CRAVIDO

Despite the circular economy entering the mainstream, global circularity is still in decline. Over the past five years, the volume of discussions, debates, and articles addressing this topic has almost tripled, reflecting a heightened awareness and interest in circularity. However, the vast majority of extracted materials entering the economy are virgin, with the share of secondary materials declining steadily since the Circularity Gap Report began measuring it: from 9.1% in 2018 to 7.2% just five years later in 2023.1 Meanwhile, the total amount of materials consumed by the global economy continues to rise: in just the past six years alone we have consumed over half a trillion tonnes of materials—nearly as much as the entirety of the 20th century. These statistics display the cold, hard truth: despite the circular economy reaching ‘megatrend’ status, lofty speeches and targets are not yet translating into on-the-ground actions and measurable impacts. Without bold, urgent action to shift to a circular economy, we’ll miss out on achieving broader social and environmental goals—ranging from emissions reductions to boosting the use of secondary materials—putting industries and governments at risk of sleepwalking into circular washing and missing out on much-needed impact.

Circularity Gap Report 2024

Based on extensive interviews and desk research, this Report aims to show governments and industry leaders that if they want to turn theory into action and scale an economy that delivers on needs within the safe limits of the planet, they need to dismantle harmful entrenched processes and align enabling elements: Create a level policy playing field: Set the ‘rules of the game’ through policies and legal frameworks that incentivise sustainable and circular practices while penalising harmful ones, thereby shaping the nature and scale of economic activities across industries and nations.

The global economy faces a “polycrisis” of geopolitical, economic, environmental, and social dilemmas.

• Rising material consumption and excessive waste contribute to wealth, materials, and opportunity disparities.
• The Circularity Gap Report suggests that through circular economy solutions, we can meet people’s needs with one-third fewer materials and reverse the overshoot of five planetary boundaries.
• The report provides solutions across four key systems: food, the built environment, manufactured goods, and mobility.
• Enabling elements such as policy, finance shifts, and the role of the workforce are crucial in supporting the circular transition.
• The report emphasizes the importance of a just transition that considers the well-being of workers, citizens, and consumers.
• Material consumption is linked to environmental damage, including greenhouse gas emissions, biodiversity loss, and water stress.
• The global economy’s linear practices have driven exponential growth in material consumption, pollution, and waste generation.
• The unequal distribution of wealth and materials strains Earth’s systems and destabilizes societies.
• Increasing material consumption no longer guarantees increases in human well-being, especially in wealthier nations.
• Rethinking material consumption is necessary to bend the development curve towards a more environmentally safe and socially just future.
• The circular economy offers a means to provide for people’s needs with less environmental impact, but it must be designed to be socially just.
• Jobs act as a proxy for human well-being, and the circular economy can create decent and meaningful livelihoods while reducing inequalities.
• Circular solutions should be designed with the world’s most vulnerable in mind and provide affordable options for sustainable choices.
• The report identifies impactful circular solutions tailored to different country profiles based on their environmental impact and socio-ecological potential.
• The report aims to pinpoint key leverage points for each country profile, move from theory to action, and explore circular enablers.

Takeaways for the Indian Circular Economy

The global call for a new economic model that prioritizes both social well-being and environmental sustainability is resonating, and India stands at a crucial juncture to embrace the circular economy. By maximizing benefits for its citizens while minimizing the pressure on the planet’s resources, India can set a transformative example for the 21st century.

Decoupling Development and Material Consumption:

• Countries like Angola, Eswatini, Togo, Nepal, Gambia, and South Africa have demonstrated that well-being indicators can improve without a proportional increase in material demand.
• India can leverage these examples to chart a development trajectory that prioritizes ecological sustainability, by decoupling material consumption from quality of life.

Circular Economy Principles:

• The circular economy provides a pathway for India to meet the needs of its growing and urbanizing population while staying within planetary boundaries.
• The principles of using less, using longer, making clean, and reusing align perfectly with India’s diverse economic landscape.

Social Justice and Citizen-Centered Approach:

• As India transitions towards a circular society, it must prioritize social justice. People-centred solutions are imperative, ensuring that no individual or community is left behind.
• Policymakers need to consider the impact on citizens, workers, and consumers, integrating social justice into decision-making processes.

Circular Solutions for Well-being and Decent Work:

• The Circularity Gap Report 2023 emphasizes the link between circular solutions and human well-being. Employment, a powerful indicator of well-being, can be positively influenced by the circular economy.
• India’s focus should be on creating decent and meaningful livelihoods, laying the foundation for a prosperous and inclusive society.

Consumer-Centric Solutions:

• Workers are consumers, and India should strive to make sustainable choices accessible to all citizens. This involves promoting goods and services with lower environmental impacts and empowering citizens to make informed decisions.
• Circular strategies must be designed to improve the quality and security of jobs, reducing inequalities across the workforce.

Opportunities for India’s Circular Economy:

Agricultural Transformation:

• India’s circular food system should prioritize local, seasonal, and organic products, reducing the need for chemical inputs and lowering environmental impacts.
• Emphasis on regenerative agricultural practices can contribute to ecosystem health and carbon sequestration.

Built Environment Revolution:

• In the construction sector, India can lead by maximizing existing materials through reuse, repurposing, and renovating existing structures.
• Circular design principles in town planning can facilitate easy dismantling and repurposing of buildings, reducing material demand.

Clean Energy Integration:

• Transitioning to a circular economy involves prioritizing clean, regenerative materials and energy.
• India has a significant opportunity to lead in the adoption of renewable energy sources and sustainable materials.

Localized Solutions to Global Challenges:

• India’s diverse economic landscape offers opportunities for localized circular solutions, addressing specific challenges and needs of different regions.
• Innovation in waste management, particularly in the informal sector, can significantly contribute to circularity.

As India strives for economic growth, the circular economy presents a unique opportunity to achieve development goals while respecting planetary boundaries. By prioritizing well-being, decent work, and inclusive growth, India can emerge as a global leader in the circular economy, setting an example for a sustainable and just future. The transition requires strategic policies, active citizen engagement, and collaborative efforts to unlock the full potential of India’s circular economy sector.

We must take a system-thinking approach in real-life applications of the circular economy—both because systems change must meet people’s needs and because people and their skills are necessary to implement the solutions themselves.

Join the movement towards a sustainable and circular India!