The Role of Circular Economy in Climate Adaptation

The circular economy is a model of production and consumption centred on sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible. It is a system in which materials never become waste and natural ecosystems are regenerated. In a circular economy, products and materials remain in circulation through maintenance, reuse, refurbishment, remanufacturing, recycling, and composting.

Yet, according to the 2023 circularity gap report, only 7.2% of used materials are cycled back into the global economy. This places a significant burden on the environment and contributes to the climate, biodiversity, and pollution crises.

This model stands in stark contrast to today’s prevailing “linear economy”, which follows a “take–make–waste” approach. By keeping resources in continuous use, the circular economy aims to sharply reduce waste while addressing wider environmental challenges, including climate change and biodiversity loss.

The UNDP notes that discussions of the circular economy often focus on waste management, but the concept extends far beyond that. It encompasses various industries—from textiles to construction, and applies across every stage of a product’s lifecycle, including design, manufacturing, distribution, and end-of-life processes.

Applications across key sectors

In textiles, regenerative agriculture and the use of natural dyes improve garment quality while reducing harm to consumers and the environment. In construction, circular principles are applied by reducing the use of virgin materials, repurposing existing materials, and choosing low-carbon alternatives such as timber.

Electronics manufacturers are increasingly designing products for longevity, incorporating recyclable components and biodegradable packaging.

Agriculture also benefits from the reuse of animal waste as a natural fertiliser or as a feedstock for biogas production.

Globally, material consumption rose by more than 65% between 2000 and 2019. Food waste increased by 13% during harvest alone, with an additional 17% lost at the household and retail levels.

Electronic waste reached an estimated 7.3 kg per person in 2019. As waste generation grows, so do the associated greenhouse gas (GHG) emissions. A shift to a circular economy could reduce global emissions by 40% by 2050, and up to 49% if food systems are fully integrated.

Driving the transition: The work of the Circle Economy

Circle Economy, a non-profit organisation based in Amsterdam, helps cities, industries, and nations accelerate their transition to a circular economy. Founded in 2011, the organisation envisions a world where waste is designed out, materials and products stay in use for as long as possible, and natural systems are restored.

To support businesses, governments, and sectors, Circle Economy offers:

• Research and measurement – including the annual Circularity Gap Report, which assesses the share of global materials cycled back into the economy.
• Tools and platforms – such as dashboards, data sets, and indicator libraries to help organisations track and plan circular strategies.
• Advisory and implementation services – supporting cities, regions, and companies in developing and applying circular economy roadmaps.
• Community and ecosystem building – connecting networks of businesses, cities, and knowledge partners to foster collaborative solutions.
  

The Circle Economy website highlights real-world examples of circular strategies in practice. These include supporting Austria in developing a national circular economy strategy, assisting Scotland in shaping its Circular Economy Bill, resulting in measures such as the ban on destroying unsold goods, and helping the city of Gamagori in Japan map circular jobs to create new local employment opportunities.

Circular economy and climate adaptation

The circular economy not only mitigates climate change by reducing emissions, waste, and resource extraction; it also supports climate adaptation by strengthening resilience to climate impacts such as sea-level rise, heatwaves, and extreme weather events.

A working paper by the World Resources Institute (WRI), “Circular economy as a climate strategy: current knowledge and calls-to-action”, outlines how circular strategies complement decarbonisation efforts by reducing emissions across material production, the built environment, transport, and waste systems.

The report also highlights several ways circularity contributes to climate resilience:

• Reduced reliance on virgin materials helps preserve natural ecosystems. Such as mangroves and forests, which regulate temperatures, protect against flooding, and support biodiversity.
• Regenerative agricultural practices improve soil health, enabling greater water retention and resilience to both drought and heavy rainfall.
• Improved waste management in urban areas prevents drainage blockages, reducing the risk of severe flooding.
• Circular water systems enhance water efficiency, support aquifer replenishment, and strengthen agricultural and industrial resilience during climate-related disruptions.

At the community level, sharing initiatives increase access to essential goods and services. Nationally, localised reuse, repair industries, regenerative agriculture, and domestic material production enhance resilience to global supply chain disruptions caused by climate shocks.