Species extinction rates have surged to levels unseen since the mass extinction event 66 million years ago, with thousands of species disappearing annually—nearly a thousand times faster than the natural baseline. This rapid decline threatens the foundational systems on which human health, economies, and societal well-being depend. The Finnish Innovation Fund Sitra, in collaboration with Vivid Economics, has released a study quantifying the potential of a circular economy to halt global biodiversity loss by 2035.
In the prevailing linear economic model, approximately 90% of land-use-related biodiversity loss stems from resource extraction and processing. Materials are often used once before disposal, driving relentless demand for virgin resources. A circular economy counters this by designing out waste, extending product lifespans, and keeping materials in circulation, thereby reducing extraction pressures and allowing ecosystems to regenerate.
The study, titled *Tackling root causes – Halting biodiversity loss through the circular economy*, focuses on four sectors with the highest biodiversity impact: food and agriculture; buildings and construction; textiles and fibres; and forests. An ambitious scenario for these sectors demonstrates that biodiversity loss could be halted even without additional interventions.
The food and agriculture sector emerges as the most critical area for transformation. Three primary strategies are identified:
**Design circular substitutes**: Land-use change accounts for the largest share of biodiversity loss, with 85% linked to biomass extraction. Food and agriculture, particularly meat and dairy production, occupies 77% of agricultural land according to Food and Agriculture Organization data. The study identifies the most impactful measure as diversifying protein sources away from animal-intensive production. Reducing meat consumption by half and dairy by two-thirds could free 350 million hectares of land by 2050—more than the area of India. This shift also represents a substantial economic opportunity, with alternative protein markets potentially creating 30 million jobs globally by 2030. Policy momentum is visible: the European Commission has advanced an EU protein strategy, and China’s 14th five-year plan references “synthetic proteins.”
**Reduce waste**: Currently, 28% of agricultural fields produce food that is lost or wasted. Circular approaches aim to maximize value from existing resources, cutting waste throughout the supply chain. Initiatives range from valorizing cosmetically imperfect produce, to supermarket programs that process near-expiry goods into new products, to AI tools that help chefs track and reduce waste. The study finds waste reduction to be the second most effective action, potentially freeing 146 million hectares—equivalent to the combined area of Ukraine, Belarus, Poland, Hungary, and Moldova.
**Drive regenerative outcomes**: Beyond halting biodiversity loss, the circular economy can foster recovery to year 2000 biodiversity levels by 2035. Regenerative agriculture practices—such as no-till farming, crop rotation, polyculture, precision agriculture, and agroecology—enhance soil health, retain nutrients, and sequester carbon. The study notes these methods could cut methane emissions from the sector by 90% and reduce nitrogen inputs by 20%. The Science Based Target Network’s ARRRT framework underscores the sequence of avoiding and reducing impacts before pursuing restoration and regeneration. In the circular scenario, 10% of interventions involve applying regenerative principles to active agricultural and forestry landscapes.
The study warns that time and resources are dwindling, with geopolitical tensions threatening the global circular transition that relies on trade, investment, shared standards, and rapid innovation dissemination. Yet many solutions are already viable, economically sound, and capable of addressing biodiversity loss alongside climate change and pollution. The alternative protein market has expanded rapidly, food waste prevention targets are becoming more ambitious, and interest in regenerative agriculture has multiplied tenfold over the past decade.
Harnessing this momentum demands coordinated policy ambition and bold business innovation. Only through such synergy can the transition to a circular economy accelerate, creating conditions for ecological recovery.