Role of Circular Economy on Climate Change

Abstract

This research explores the critical role of the circular economy (CE) in addressing the “missing 45%” of global greenhouse gas (GHG) emissions—those originating from the production of materials, products, and food—which cannot be eliminated by the energy transition alone. By transitioning from a linear “take-make-waste” model to a restorative system, circular strategies offer a pathway to reduce global GHG emissions by nearly 39% to 45% by 2050. (a)

Circular Economics is Directly Proportional to the climate. (b)

Key findings highlight that high-impact sectors—including construction, heavy industry (steel, cement, aluminium, and plastics), and food systems—can achieve emission reductions of up to 40–50% through strategies such as material-efficient design, product-life extension, and regenerative agriculture. The analysis further identifies Digital Product Passports, AI-driven sorting, and blockchain traceability as essential technological enablers for scaling these models. However, the study notes significant barriers, including a current policy overemphasis on downstream recycling rather than upstream design, and the risk of the “rebound effect,” where efficiency gains may inadvertently trigger increased consumption. Ultimately, this research concludes that integrating circularity into National Climate Plans is mandatory for achieving the Paris Agreement targets and building a resilient, net-zero global economy.