The circular economy is growing in popularity among businesses and policymakers as a means to reach climate goals. By increasing the reuse and regeneration of products and materials, a total of 7 to 8 million new jobs can be created. However, the new report, Decent Work in the Circular Economy: An Overview of the Existing Evidence Base, identifies knowledge gaps which may hinder the creation of new employment opportunities.
This study reveals that current research on jobs in the circular economy displays a strong Global North bias. It fails to address the impact circular economy interventions have on people in countries in the Global South, atypical workers, women, migrants, youth and other vulnerable populations. Additionally, the study outlines what we currently know about jobs in the circular economy. It also pinpoints research gaps, calling for more consistent and internationally relevant evidence to create a stronger foundation for decision-making.
The report finds that 84% of current research focuses on countries in the Global North. Sub-Saharan Africa, Eastern Europe, the Middle East and North Africa were the least represented regions—despite the fact that most circular economy activities are now located in the Global South. Moreover, while 73% of workers in low-income countries are employed in the informal economy, most research concerns formal, regulated work.
Existing research also focuses disproportionately on job creation and disregards job quality, including working conditions and wages. The report finds that only a handful of studies have examined whether and how a circular economy can alleviate poverty and benefit vulnerable communities in low-income countries.
Namita Datta, S4YE Program Manager, calls our attention to poor working conditions in the Global South: ‘It is not as much the concept of circularity that needs an introduction in these economies, but instead, the focus would be on addressing the low quality, low paying jobs in the informal sector with hazardous working conditions and exposure to toxic materials that are associated with circular activities like waste management, recycling, repair and reuse'.
Speaking on the need to address the social dimension of the circular economy, Alette van Leur, Director of the Sectoral Policies Department of the ILO said, ‘There is no doubt that a circular economy can help us reach our climate goals. However, the links between circularity and the achievement of social and economic progress remain overlooked. The shift towards a more circular economy offers significant opportunities for the world of work, such as the creation of new jobs and sustainable enterprises.’
Ultimately, the new report calls for more in-depth and inclusive research on decent work and the circular economy, which puts the Global South, informal workers and global value chains in the spotlight. The authors also reveal the need for joint advocacy and data partnerships to close knowledge gaps and build links to other important themes, such as climate justice and female empowerment.
Access the full report here.
This report is the first output under the ‘Jobs in the Circular Economy’ initiative of Circle Economy, the ILO and S4YE. This initiative aims to address gaps in the evidence base for circular jobs through collaboration with an international community of research institutions, industry representatives, social partners, governments and public agencies. The launch of the initiative takes place on May 9th at the Geneva Environment Network, the details of which can be found here. Members of the initiative will also present findings from the report at this year’s World Circular Economy Forum.
Find out more about our joint initiative on our website.
With thanks for the generous support from the @Goldschmeding Foundation.
The Circular Buildings Coalition (CBC), which aims to accelerate the transition to a circular built environment, is proud to showcase the first outcomes of its collaborative work. On the 1st of June, during the World Circular Economy Forum (WCEF) in Helsinki, Finland, the CBC will launch the landmark report on the current state of the European built environment sector and a call for applications, with more materials coming out later in June.
The Circular Buildings Coalition is hosting the WCEF Accelerator session ‘Accelerating the transition towards a circular built environment’, a hybrid event comprised of two sub-sessions.
During the Accelerator session, the CBC will officially announce its open call for Blueprint Projects—initiatives that can accelerate the circular transition. Selected projects will receive financial support and tailored mentorship to become showcase examples for market players and policymakers to learn from and reproduce. This would allow for large-scale implementation of circular economy principles in the built environment worldwide. Details on how to submit projects and the application process will be announced on the CBC’s webpage on the 1st of June and during the Information Day webinar on June 14th. The webinar will also provide potential applicants with an opportunity to have all of their questions answered.
More information and registration options for the WCEF Accelerator session are available here: https://www.eventbrite.co.uk/e/accelerating-the-transition-towards-a-circular-built-environment-tickets-623498128687
On a final note, some of the Coalition’s partners will attend the Urban Future conference being held on the 21st–23rd of June in Stuttgart. More details about our participation and live streaming will be announces soon.
The CBC is an initiative of seven thought leaders and frontrunners in the circular built environment: Metabolic, Circle Economy, the World Green Building Council (WGBC), the World Business Council for Sustainable Development (WBCSD), the Ellen MacArthur Foundation and Arup. The CBC intends to grow its reach by strengthening collaboration towards the transition, supporting key initiatives and developing new partnerships. Organisations interested in joining the movement or showcasing their circular solutions are invited to get in touch: https://www.circularbuildingscoalition.org/join-our-movement.
The Circular Economy Indicators Coalition (CEIC) has launched an online Circular Indicators Library on Circle Economy’s Knowledge Hub. The library consists of a curated collection of circle economy indicators that financiers can employ to track the circular performance of their investments.
The first set to be released contains around 50 indicators, methodologies and resources for banks to measure the circularity of investments and loans to businesses, in addition to measuring their social, economic and environmental impacts. The library informs investment decisions by helping financiers evaluate businesses' circular performance against reliable and meaningful benchmarks.
One example from the library’s latest indicator set is ‘product recyclability’, measured in percentage of the total weight of materials used in ‘designed for recycling’ products or services. The criteria for considering a product ‘designed for recycling’ includes low material complexity, low toxicity and ease with which product materials can be separated.
With this new tool, the CEIC is making circular indicators accessible to users globally and enabling them to pinpoint the most relevant examples linked to regulations, target groups and clusters. The coalition will continue adding new indicators to the library, including those geared towards policy and labour market analysts.
The Circular Indicators Library adds to the practical resources developed by the CEIC, a collaboration between the Platform for Accelerating the Circular Economy (PACE) and Circle Economy. The coalition strives to harmonise and increase the application of circular indicators worldwide to steer the circular transition and assess the impact of circular economy interventions.
With multiple challenges, ranging from limitations in indicator coverage to data availability and collection, the field of circular economy metrics is still in its infancy. The CEIC responds to this challenge by collecting meaningful circularity indicators and working towards their wider acceptance, for example, in governments and corporate target-setting.
The library was noted in the United Nations Environment Programme’s report, ‘Guidance on Resource Efficiency and Circular Economy Target Setting’, as a source of circularity criteria.
The Circular Indicators Library is part of Circle Economy’s Knowledge Hub, the largest circular online library in the world. It currently contains over 5,000 circular economy case studies, reports and policies. The Knowledge Hub is a collaborative co-creation project.
Circle Economy has launched a podcast series, Talking Circular. In each episode, our experts will share inspirational stories and hands-on tips to drive circularity in countries, cities and businesses.
The goal of the podcast is to evoke conversations about the circular economy and talk openly about challenges and opportunities in the circular transition. We will make sure each episode is supported by relevant resources and publications placed in the show notes.
Currently, the podcast is hosted on Spotify and SoundCloud. More platforms will be added in the future. New episodes will come out on a monthly basis, so we recommend subscribing to the podcast to get notified about new episodes.
In the first episode, our Editor, Ana Birliga Sutherland, speaks with Marvin Nusseck, who leads our finance team. They discuss:
Listen and subscribe to the Talking Circular Podcast on Spotify
Or SoundCloud
The UK economy consumes nearly twice as many materials per capita as the sustainable level of 8 tonnes per person, per year. Without tackling overconsumption through the reuse and recycling of products, the country could struggle to meet its net zero emissions target, finds the Circularity Gap Report the United Kingdom by Circle Economy, in collaboration with Deloitte.
Globally, 70% of emissions come from the use and handling of materials , and lowering material consumption is crucial for combating climate change. The Circularity Gap Report the United Kingdom examines the UK economy’s material use for the first time, uncovering how materials—including food and fossil fuels—are extracted, used and disposed of. The report indicates that the UK’s population consumes roughly 20% more than the global average of 12 tonnes per person, per year: 15.3 tonnes of materials per capita. This figure includes goods produced in other countries that are sold and used in the UK.
Material extraction and use is not evenly distributed across the UK. While the bulk of materials are extracted in resource-rich but sparsely populated Scotland, Wales and Northern Ireland, they are mostly used in England, a densely populated consumption hotspot. For example, the material extraction in Scotland and Northern Ireland amounts to 22.8 and 14.5 tonnes per capita respectively, compared with the UK’s average of 6.3 tonnes.
Of all the materials that flow through the UK’s economy, just 7.5% are used again. This is slightly above the global figure of 7.2%. While the UK imports 80% of the total raw materials it uses, it exports vast amounts of recyclable waste, around ten times more than it imports. This disparity is partly explained by a lack of domestic recycling infrastructure. By making changes and adopting more circular solutions* in areas like construction, manufacturing and lifestyle, the UK could cut its material use by 40%, while decreasing its carbon footprint by 43%.
For example, the mass insulation of UK’s buildings—which are older and with poorer energy labels than the European average—could greatly reduce energy use. As fossil fuels are considered materials, this would cut material consumption and move the UK closer to a circular economy.
The study also advises rethinking revenue models for businesses and industries, for instance, by choosing rental models over single-sale, and boosting repair services. Lifestyle change also has great potential to bolster the circular economy. Buying fewer goods and keeping them longer, keeping vacation travel closer tothe UK, and eating less meat are just a few of the behaviours that can boost circularity. If the UK were to implement all of the report’s recommendations, its economy could become 12.1% circular—almost double the current level.
David Rakowski, circularity partner at Deloitte commented: “With only 7.5% of materials that flow through the UK economy used again, a circularity gap exists. While this is a sustainability challenge the country must overcome, it is also an opportunity for businesses to learn, adapt and grow.
“Adopting sustainable practices and taking a circular approach it ultimately good for business, consumers and for the planet. UK businesses must start to consider to what extent their supply chains and the goods they produce are geared towards single use. Piloting strategies that allow them to ensure products are created in a sustainable way, to be used and reused, is key to ensuring their own growth, as well as decreasing the country’s carbon footprint.”
For more information, please contact amy@circle-economy.com
Celebrated for their classic Mediterranean natural environment and culture, the Balearic Islands (Ibiza, Mallorca, Menorca and Formentera) welcome scores of tourists yearly, hosting 16.4 million visitors in 2022 alone. The tourism sector accounts for roughly 40% of the autonomous region’s GDP, but also requires the supply and treatment of different resources, and the political, regulatory and financial support from various entities and institutions. All these elements interact with the local society and with the environment to make up the tourism system, which is a primary driver for transforming the Islands’ economy. To reconcile the goals of economic development and environmental protection, the Balearic Islands have the ambition to become the first circular tourist destination in the world. Together with Fundació Impulsa Balears, we examined practical steps to achieve this goal.
The biggest challenges to a circular economy in the Balearic Islands are consumption habits, lack of infrastructure and current regulations. The linear tourism system encourages overconsumption which many holidaymakers take for granted. This results in negligent water use, avoidable food waste and excessive use of private cars. Moreover, the islands lack solid waste management facilities and renewable energy infrastructure, and local regulations still largely favour linear models.
Our analysis identified five key focus areas where circular solutions can have the most impact. These are Water, Energy, Materials, Food and Mobility. The report also shows how these focus areas interact with the Terrestrial and marine environment. In particular, it examines their impact on the land and sea and how better management of the terrestrial and marine environment can unlock the circular opportunities of each strategic direction.
For a more circular tourism system, the Islands should focus on optimising water consumption, making it more efficient and increasing its high-value reuse. This involves reducing water use, recycling grey water, as well as creating enabling infrastructure to replenish and cycle water flows.
Most of the energy powering the Balearic Islands comes from fossil fuels. In a circular tourism system, the region's natural resources—like sun and wind—generate renewable energy, ensuring a clean and steady supply.
The transition towards a circular food system must centre on sustainable agricultural practices and food self-sufficiency. It will also involve a shift in consumer habits, as well as better distribution and packaging schemes to cut value loss and food waste.
Currently, the tourism system is highly dependent on material imports while generating tonnes of waste. Switching to a circular economy would imply containing material consumption through Product-as-a-Service schemes and reuse initiatives, for example. Moreover, the region is advised to develop recycling facilities to close material flows.
To create a circular mobility, the tourism sector should optimise logistics to cut travel time, promote electric cars and shared mobility, such as carsharing and public transport, and incentivise micro-mobility options like bicycles and electric scooters.
The tourism system’s circular transition must be led by both the public and private sectors. This will include the development of new business models and mobilising private investment to achieve impact at scale.
Read the full Circular Balears report to discover pathways for circular tourism: https://www.circle-economy.com/resources/transitioning-towards-a-circular-tourism-system-in-the-balearic-islands
On the 7th of March, our Circular Jobs Initiative hosted an interactive event, ‘Putting People at the Heart of the Circular Economy’, in the Hague with the Dutch Ministry of Infrastructure and Water Management. The event was geared towards fostering connections between crucial players from the public sector, education and industry who are working on the social impact of the circular economy. By collaborating and aligning their efforts, these stakeholders can design circular policies that promote decent work while protecting the environment.
Ingeborg Absil, acting Circular Economy Manager at the Dutch Ministry of Infrastructure and Water Management, opened the discussion by highlighting: ‘The circular economy affects almost everyone, everywhere. That’s why we seek to make a just transition, not only in the Netherlands but also abroad. We base this on decent working conditions, affordable, useful products and fair trade worldwide’.
According to Casper Edmonds, Head of Sector Unit, Extractives, Energy and Manufacturing at International Labour Organisation (ILO), the world must face some bitter truths about the circular economy of today.
‘When we say we want to accelerate the circular economy, surely, we do not want to accelerate the economy as it exists today in so many places. We do not want to see more impoverished men and women toiling in poor working conditions, subject to unsafe work and abuse. We must advance a circular economy that is just, that benefits the environment and uplifts people’, Edmonds pointed out.
He continued by presenting three challenges in making a people-centred circular economy a reality. First, decent jobs in the circular economy will not appear out of thin air. There must be a massive investment in innovative business models and an enabling environment for sustainable enterprises, skills and lifelong learning, waste management and infrastructure, in addition to smarter and more coherent laws and regulations.
The second challenge is involving workers and employers in shaping the circular economy instead of just imposing new policies on them. Finally, decision-makers need to better understand circular jobs, current working conditions and how to improve them.
We closed the event by announcing that Circle Economy, the ILO and World Bank are launching a new initiative to measure, model and monitor jobs in the circular economy. More information on this initiative will be announced in April.
Due to the lack of knowledge available to facilitate the circular transition, lessons learned from the energy transition prove useful. Olga Ivanova, a Senior Researcher at the Netherlands Environmental Assessment Agency (PBL), emphasised that decision-makers need to think ahead, creating education tracks and training programmes to cater for the labour market of tomorrow. As the energy transition has shown, not doing so may result in skill and labour shortages. Moreover, one should consider developments in all economic sectors—the circular economy may compete for the same talent as artificial intelligence and robotics, for example. Finally, Ivanonva pointed out that ‘The jobs are appearing and disappearing in completely different geographies. ‘But people are not mobile. They cannot just jump from one place to another; there should be policies to facilitate this’.
The need to advance research and grow the knowledge base should not distract from the fact that the circular economy is mostly powered by workers with vocational skills. However, as Marie van der Zalm highlighted, vocational education has been consistently undervalued, at least in the Dutch educational system. This demotivates the young from pursuing practical careers in sustainability.
Van der Zalm is a member of the Education Task Force at Jonge Klimaatbeweging, a Dutch youth climate movement. Together with her peers, she devised practical recommendations to improve the educational system. Jonge Klimaatbeweging proposes a project-based, interdisciplinary education: ‘the value of people and their skills can be approached much better from the perspective of competencies, talents and intentions’. Van der Zalm also called for regional educational institutions, labour market authorities and businesses to collaborate to map labour gaps and design educational programmes accordingly.
After the plenary session, participants attended thematic workshops, delving into practical solutions.
In the workshop ‘Better work in the circular economy: International trade and labour conditions’, labour rights advocates, policymakers, academics and industry leaders discussed how to ensure decent work and fair labour conditions for all and explored examples of successful initiatives prioritising fair employment.
‘I was inspired by the solutions discussed during my workshop, particularly with a focus on overlooked sectors and types of workers. We looked at, for example, ‘wisdom economy’—including elderly people who have transferable skills that we can leverage in a circular environment’, shared Katja Noordam, a consultant at Fair Change.
In ‘Mainstreaming circular economy in businesses: How to enable HR to develop and attract talent’, facilitators prompted questions like: ‘How will your team’s knowledge and skills change in a more circular future?’ and ‘How can people managers prepare for and anticipate those changes?’, helping participants to understand the needs of their organisations.
The workshop ‘Education and on the job training: Tackling labour and skills shortages in the case study of the construction sector’ took the construction sector as a case study on how to tackle labour shortages and organise upskilling programmes.
Emma Gervasi, a junior consultant at Holland Circular Hotspot, commented on the workshop: ‘For me, it was really interesting to see how you can bring people from various perspectives and use non-experts to solve the problem in a sector that has such a big impact on the environment’.
In the workshop ‘A regional circular transition between education, businesses and governments’, it was acknowledged that the shift from linear to circular economy requires collaboration from various disciplines, including engineering, economics, social sciences and environmental sciences.
In the ‘Measuring what matters: how employment-related indicators can be used to design impactful circular economy interventions’ workshop, participants discussed why employment-related indicators must be measured and which social aspects of employment must be taken into account.
The event was organised by Circle Economy and the Dutch Ministry of Infrastructure and Water Management, with support from the Goldschmeding Foundation.
Visit the Circular Jobs Initiative website for more information on circular jobs globally.
Visit the Dutch Ministry website and read about the National Programme on Circular Economy 2023-2030 (Dutch only).
Circle Economy is announcing changes in its Supervisory Board. The Board was recently joined by Kitty van der Heijden, Director-General of International Cooperation at the Ministry of Foreign Affairs of the Netherlands, and Jules Kortenhorst, clean energy expert and former CEO of Rocky Mountain Institute (RMI). At the same time, Herman Wijffels, economist and former Chairman of the Executive Board of Rabobank, the Netherlands, has stepped down after serving on the Board for over eight years.
Last year, our Supervisory Board already proudly welcomed Kitty van der Heijden. Kitty brings an international perspective and a much-needed social perspective with her career path with the UN, the World Resources Institute (WRi) and the Ministry of Foreign Affairs, including postings in North America, Asia and Africa.
‘Circular economy is an integral part of sustainable development. We must engage nations and global communities in meaningful action to accelerate the circular transition. I look forward to guiding Circle Economy on this path and seeing what we can achieve together’, says Kitty van der Heijden.
Our newest Supervisory Board member, Jules Kortenhorst, brings a wealth of experience scaling non-profit organisations as RMI grew from 60 to over 600 people under his leadership. He is also a renowned global energy and climate change expert and was instrumental in launching the Mission Possible Partnership that addresses the hard-to-abate sectors. His background spans business, government, entrepreneurial and non-profit leadership. Before leading RMI, Jules Kortenhorst was the founding CEO of the European Climate Foundation and a member of the Dutch Parliament.
‘I am honoured to join Circle Economy’s Supervisory Board and look forward to our productive work together. In addition to the energy transition, the circular economy is crucial for mitigating climate change, and Circle Economy is one of the frontrunners in this field. I hope to make a valuable contribution to its cause’, says Jules Kortenhorst.
Herman Wijffels is recognised as one of the leading experts on sustainable development and circular economy. In addition to serving on Circle Economy’s Supervisory Board, his career highlights include chairmanship of the Executive Board of Rabobank, the Netherlands, and the Social and Economic Council of the Netherlands.
Robert-Jan van Ogtrop, Founder of Circle Economy & Chairman of the Supervisory Board: ‘We thank Herman Wijffels for his contribution to good governance practices at Circle Economy and the organisation's overall success. His impeccable reputation, profound expertise and timely advice were invaluable for our continuous development and the advancement of the circular economy worldwide. We wish Herman all the best in his future endeavours.’
‘We are lucky to have Kitty and Jules on board. With their broad experience in foreign affairs, sustainability and running successful foundations, we hope to step up our work across the globe and forge new ambitious partnerships, promoting the Netherlands as a leading circular economy nation’, adds Martijn Lopes Cardozo, CEO of Circle Economy.
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