The circular economy is a new way of optimizing resource utilization, with emphasis on reducing waste, then reusing and recycling products and materials. It applies to industrial materials production and in consumer retail. Moving beyond a linear economy to a more circular one will be important to limiting global temperature rises in line with the goals of the Paris Agreement.
This report outlines the contribution that a circular economy can make in dramatically reducing global emissions by mid-century. It also highlights the opportunities to apply circular economy activities in four critical sectors of the economy that are significant contributors to global greenhouse gases: steel, cement, plastics and aluminium.
The paper demonstrates how businesses, financial institutions and policymakers can build a thriving and resilient economy while playing an essential role in reaching climate targets.