The 2024 Circularity Gap Report, produced by Circle Economy in collaboration with Deloitte, presents a sobering assessment of material use trends. It records a drop in the global circularity rate from 9.1% in 2018 to 7.2% in 2023, indicating that the proportion of secondary materials in global consumption is shrinking. Over the past five years, humanity has consumed 500 billion tonnes of materials—nearly matching the total consumption of the entire 20th century. This acceleration has occurred despite a tripling in public discourse around the circular economy, underscoring the gap between awareness and action.
The report emphasizes that addressing the root causes of linear economic impacts is essential. It advocates changing the “rules of the game” to favor circular practices, proposing a coordinated strategy to unlock capital, implement bold yet context-sensitive policies, and close the sustainable and circular skills gap. These measures are framed not as optional enhancements but as structural shifts necessary to reverse the decline in circularity.
Recognizing the diversity of economic contexts, the report segments its recommendations by national income levels. High-income countries (HICs) are urged to “shift” by radically reducing material consumption while maintaining societal well-being. Middle-income countries (MICs) should “grow” in a way that stabilizes material use, preventing the trajectory seen in HICs. Low-income countries (LICs) are advised to “build” their material consumption to meet basic needs, but through sustainable pathways.
For HICs, policy levers include incentivizing retrofitting and reuse in construction, developing certification and warranties for secondary building materials, setting product durability standards, and strengthening Right to Repair legislation. These measures aim to extend product lifecycles and reduce the demand for virgin resources. In MICs, the focus shifts to circular agriculture and manufacturing, with actions such as pollution bans, extended producer responsibility schemes, and minimum recovered material requirements for new production. Funds should be directed toward regenerative farming, which can restore ecosystems while supporting food security.
LICs face a different set of priorities, with sustainable development at the forefront. Policies recommended include debt relief, improved access to development and transition capital, securing smallholder farmer rights, and incentivizing local, organic, and secondary materials in construction. Such measures are designed to meet urgent infrastructure and agricultural needs without locking in environmentally damaging practices.
Financial mechanisms are central to the report’s vision. In HICs, rethinking accounting standards to reflect environmental costs and taxing unsustainable products could shift market incentives. MICs are encouraged to redirect subsidies from polluting activities toward clean, regenerative ones. For LICs, regenerative farming and smart urban planning are highlighted as pathways to integrate sustainability into growth.
Labor and skills transitions are another critical dimension. The report calls for bridging gaps by embedding green disciplines and skills into education curricula and short-term training programs. This would prepare workforces to operate and innovate within circular systems, ensuring that technological and policy changes are matched by human capability.
Since its inception in 2018, the Circularity Gap Report series has sought to provide decision makers with structured evidence on circular strategies and their economic, environmental, and social impacts. By grounding recommendations in data and differentiating them by economic context, the 2024 edition reinforces the principle that circularity is not a one-size-fits-all endeavor but a tailored process responsive to local realities. Released on 24 January 2024, it continues to serve as a reference point for policymakers, industry leaders, and engineers seeking to align material use with the planet’s safe operating limits.