Assessing the Climate mitigation potential of Circular Economy

How the Circular Economy can reduce GHG emissions?

The circular economy can lower demand for primary raw materials throughout the product value chain (EEA, 2024b) and thereby reduce emissions associated with their extraction and processing.

• Before use: measures such as circular design and sustainable material selection can minimise the resource inputs required and facilitate reuse or recycling later in the cycle;
• During use: actions that extend product lifetimes — through repair, refurbishment or shared use — can further reduce demand for new materials by keeping materials in active use for longer;
• After use: when products and materials have been discarded, recycling and retaining materials help to close the loop and decrease reliance on primary resource extraction. Reducing the amount of waste sent to landfill lowers methane emissions generated during waste decomposition.

Together, these measures can significantly cut emissions from extracting and processing raw materials — which account for about 55% of global GHG emissions, including emissions linked to the production of food or fossil fuels (UNEP IRP, 2024).

Circular approaches can also support more sustainable production and sourcing activities, particularly in biomass systems; improved land management and regenerative agricultural practices can both reduce emissions and enhance carbon sequestration (EMF, 2021).

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