
Between 121 and 142 million people worldwide are employed in sectors that contribute to the circular economy, such as repair, recycling, second-hand trade and waste management. This represents roughly between 5 and 5.8 percent of total global employment (excluding agriculture), according to a new joint report by Circle Economy, the International Labour Organization (ILO) and the World Bank Group, in partnership with the UN Partnership for Action on Green Economy (UN-PAGE).
The study—the first global analysis of employment in the circular economy— shows that most circular economy activities are concentrated in the Global South. The Americas and Asia and the Pacific regions report the highest shares of circular employment, at 6.4 percent and 5.8 percent respectively.
More than half of all circular economy workers—over 74 million people—are employed in the informal economy, where jobs are not regulated and lack state protection. This is particularly prevalent in the Global South, leaving many of the workers driving sustainable development and caring for our planet among the most disadvantaged. They often face precarious working conditions, unstable incomes, and low wages.
Titled Employment in the Circular Economy: Leveraging circularity to create decent work, the study is the culmination of three years of collaboration between the three agencies aimed at equipping policymakers and decision-makers with data and practical tools to accelerate a just and job-rich transition to the circular economy.
‘With this report, we are casting a new light on the businesses and workers that every day in every country and every sector of our economies provide essential services for our societies and planet’, said Casper Edmonds, Head of the Extractives, Energy & Manufacturing Unit at the ILO. ‘Some are at the forefront of innovation. But for many, circularity is not a choice, but a way of getting by. If we combine investments in circularity with measures to advance decent work, we accelerate a just and job-rich transition to the circular economy’.
A selection of sectors dominate circular economy employment. Repair and maintenance account for nearly half (46 percent), followed by manufacturing (24.5 percent) and waste management (8 percent). By contrast, industries that are crucial to advancing the circular transition—such as construction and mining—have a very low share of circular employment. The report stresses the need for targeted policies to ‘green’ jobs in these sectors and accelerate their transition toward a circular economy.
The findings call on policymakers to integrate workers’ rights and social protections into circular economy strategies. Too often, environmental legislation prioritises climate goals while neglecting the social dimension and the people driving the transition.
‘Jobs in the circular economy are highly labour-intensive and present a real opportunity to create local employment, particularly in developing countries where such practices are already part of daily life,’ said Namita Datta, Head of Gender & Economic Inclusion Thought Leadership at the International Finance Corporation. ‘The key question is how to make these opportunities inclusive—ensuring that women, who make up 26% of circular economy workers, benefit fully. With intentional investments and policies, we can create not just green jobs, but better-quality green jobs linked to productive value chains for women and informal workers.’
To ensure a just transition to the circular economy, the report recommends:
‘This report is the first global analysis of employment in the circular economy,’ said Esther Goodwin Brown, Circular Jobs Initiative Lead at Circle Economy. ‘However, this study is just the first step. It demonstrates that there are significant data gaps we must overcome—particularly to better recognise and value the contribution of workers in the informal economy and agricultural sector. We look forward to continuing our work with partners to bridge these gaps and develop modelling that can better inform the design of circular economy and socio-economic policies.’
The report draws on the expertise of an international advisory board and benefits from close collaboration with the UN Partnership for Action on Green Economy (PAGE), an interagency programme that brings together the expertise of five UN agencies: ILO, UNEP, UNDP, UNIDO and UNITAR.

24 November, AMSTERDAM — A first-of-its-kind study finds that Sweden is losing SEK 600 billion (€54.6 billion) each year due to linear economy practices, such as designing products for short lifespans and failing to reuse or recycle them. This loss represents 19% of the total economic value created in the country and is equivalent to 57% of the national state budget.
The Circularity Gap Report (CGR®) The Value Gap: Sweden, authored by Circle Economy in partnership with RISE, initiated and funded by RE:Source, provides clear evidence of the economic inefficiencies inherent in a linear economy, reinforcing the economic case for the circular transition. With this study, Sweden becomes the first country in the world to quantify how much economic value it loses due to linear practices.
‘Historically, we have measured prosperity by the value we create. Few have lookedat the value we are losing. Our economy is leaking, and the Value Gap shows uswhere those leaks are and how much they cost’, says Ann-Charlotte Mellquist, project manager and researcher at RISE.
Products discarded too soon are Sweden’s largest source of lost value, costing the country SEK 420 billion (€38.3 billion) annually. Extending product lifespans through reuse, refurbishment and remanufacturing could recover much of this loss.
‘The majority of goods reaching their end of life are not reused, refurbished, or recycled. By failing to give products and materials long lifespans, we waste not only the materials themselves but also the energy, labour, and infrastructure invested in them – the very value we work so hard to create,’ says Klas Cullbrand, Innovation Leader at RE:Source.
In addition, overconsumption—spending that exceeds actual needs or offers minimal benefit—amounts to SEK 200 billion (€18.2 billion) annually. This is roughly four times the amount Sweden planned to allocate for development aid to the world’s poorest countries in 2025 (SEK 56 billion).
When comparing economic sectors, construction stands out as the largest source of value loss, amounting to 180 billion SEK (€16.4 billion). The majority of this loss occurs when buildings are demolished and their embedded value is discarded. The second-largest source of value loss is consumer goods like textiles, electronics, plastic packaging and furniture. Each year, an estimated SEK 88 billion (€8 billion) worth of these goods becomes waste, while they could have remained in circulation within a more circular economy.
The report recommends the following actions to reduce value loss and better capture circular opportunities in Sweden:
‘While this report examines the Swedish economy, its findings are relevant beyond the country’s borders. It demonstrates that the linear, ‘take-make-waste’ models are not only environmentally harmful, but also economically weak. This presents a strong business case for the circular economy, which can unlock billions in untapped value—in Sweden and globally’, says Ivonne Bojoh, CEO at Circle Economy.
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Over the past four years, Québec’s economy has become less circular, according to the updated Circularity Gap Report (CGR®) Québec released today. In 2021, 3.5% of materials used in the provincial economy came from recycled sources. By 2025, this figure is 2.5%. This trend underscores the need for urgent action.
The new report, produced by the impact organisation Circle Economy in collaboration with RECYC-QUÉBEC, examines the state of the circular economy in Québec four years after the first Circularity Gap Report Québec (2021). While the initial report prompted provincial authorities to adopt the Circular Economy Roadmap 2024–2028, the new policies have yet to improve Québec’s circularity rate.
The decline in circularity is largely attributed to persistent overconsumption. Québec residents consume an average of 46 tonnes of materials per person per year—nearly four times the global average. This leads to a rising amount of waste, which overwhelms the province’s recycling systems, pushing its circularity rate down.
The report also highlights a decline in Québec’s material productivity. In 2019, the province generated 16% less economic value in CA$ per tonne of materials than in 2016, indicating a less efficient economy.
Material overconsumption hampers Québec’s climate goals. While over 99% of its electricity comes from renewable sources, emissions embedded in imported goods remain high. Québec’s consumption-based carbon footprint stands at 14 tonnes per capita—double the global average of seven tonnes. More than half of these emissions are tied to goods and services produced abroad.
The report commends Québec’s authorities for recent policy efforts to improve circularity. In particular, the Circular Economy Roadmap 2024–2028 outlines concrete actions to close material loops and commits to using Circle Economy’s Circularity Metric for monitoring progress, enabling data-driven decisions and accountability.
However, the CGR Québec 2025 stresses that further policy action is needed for meaningful progress. It recommends setting clear, sector-specific targets for reducing the province’s material footprint. These targets should be supported by robust monitoring and collaboration across sectors.
Policies should also make it easier for businesses to adopt circular practices. Suggested measures include making recycled materials cheaper and subsidising circular business models, such as repair and rental services. Lastly, policies could prioritise reuse, refurbishment, and extending the lifetime of existing materials and products. This would allow the province to retain value within its borders and reduce dependence on volatile global supply chains.

Circle Economy is proud to have taken part in the public consultations for the upcoming EU Circular Economy Act. As the consultations concluded on November 6, we look forward to seeing the Act take its final shape next year. Our official response is presented below.
We at Circle Economy, an impact organisation based in the Netherlands, welcome the Circular Economy Act and the global leadership the European Union is taking in driving circular economy policies. As highlighted in our Circularity Gap Report 2025, the circularity gap continues to widen. The use of secondary materials is declining—from 9.1% in 2018 to 6.9% in 2025—while overall material consumption keeps rising.
The circular economy offers a practical approach to achieve climate stability, resource security, and fair global value chains. But a successful circular transition must work across borders, support workers and communities, and reduce the environmental and socioeconomic pressures created by today’s linear systems.
Our response to the public consultation for the upcoming Circular Economy Act builds on our main areas of expertise: understanding circularity from a systemic perspective and providing clear data to measure progress. We examine value chains as part of the global economy, rather than in isolation, and assess both environmental and socio-economic impacts holistically. We recognise the importance of adopting a territorial approach to circularity, acknowledging the crucial role that cities and regions play in planning and embedding the circular economy within our societies and economies. A key part of our work is focused on fixing the economic and financial inadequacies of our linear system, enabling circular business models to compete fairly and scale effectively.
In addition to our response to the public consultation, we highlight below several key messages derived from 15 years of experience researching and implementing circular transitions:
The Circular Economy Act has the potential to be a milestone for circular economy implementation in the EU. In a time of political uncertainty, the Act can offer a clear direction towards ambitious policies that make sense for people, the environment and businesses. To succeed, the Circular Economy Act must go beyond recycling to reduce the material footprints of key sectors, supported by economic incentives that reflect true environmental and social costs. A well-trained and supported workforce, active city involvement, and strong global cooperation are essential to ensure an inclusive, effective, and truly circular transition across the European Union.

Only 1.3% of materials used in Brazil’s economy come from recycled or reused sources, placing the country well below the global average of 6.9%, according to the Circularity Gap Report Brazil. The report, developed by Circle Economy in collaboration with Deloitte Brazil, quantifies for the first time the nation’s level of circularity. The study finds that Brazil’s economy remains largely linear and extractive, with high material consumption driven by agriculture, manufacturing, housing, and infrastructure.
As Latin America’s leading economy by GDP and a major global supplier of natural resources, Brazil consumes 4.1 billion tonnes of virgin materials each year—equivalent to 20 tonnes per person--this is known as the material footprint. This is higher than the global average of 13 tonnes and the estimated sustainable threshold of 8 tonnes per person. The country’s material footprint is dominated by locally sourced biomass—organic matter used as fuel—which accounts for 64% of total use, reflecting Brazil’s land-intensive economy.
In total, Brazil extracts around 5 billion tonnes of raw materials annually (25 tonnes per capita), making it Latin America’s second-largest extractor. While 31% of these resources are exported, 69% are used domestically, meaning much of the environmental impact—particularly from agriculture—occurs within Brazil’s borders.
Nevertheless, there are promising examples of excellence that demonstrate the transformative potential of circularity, such as the high recycling rate of aluminium cans, which reaches 97%. The cardboard recycling rate is also high (67%). With 39.5% of its materials coming from carbon-neutral biomass—well above the global average of 21%—Brazil stands out as a country where biomass can serve as a foundation for a more circular economy.
According to the report, Brazil’s carbon footprint, which measures the total greenhouse gas emissions caused directly or indirectly by the country’s consumption, totals 1.4 billion tonnes of CO₂ equivalent, or 6.5 tonnes per person—slightly above the global average. The largest contributors are the population’s needs for nutrition (565 million tonnes), services (216 million tonnes), manufactured goods (153 million tonnes) and housing and infrastructure (143 million tonnes). Since 87% of these emissions occur within the country, Brazil holds significant potential to reduce them through domestic policies and interventions.
“Right now, only 1.3% of materials in Brazil come from recycled sources, which shows the country still relies heavily on virgin resources. But it also points to opportunities. By scaling up things like regenerative agriculture and extending the lifespan of existing infrastructure, Brazil can unlock real economic, social, and environmental benefits. The key is coordination across stakeholders so Brazil can turn this potential into a fair and sustainable transition,” says Andrew Keys, Senior Research Analyst at Circle Economy.
The circular economy offers Brazil a strategic opportunity to reduce dependence on virgin materials, strengthen domestic supply chains, and improve economic and environmental resilience. In 2024, the Brazil government took an ambitious step forward in the transition by launching its first National Circular Economy Strategy, which aims to tighten regulations, lower resource intensity, stimulate innovation and investment, and align policies across sectors. Existing policies—such as Brazil’s Nationally Determined Contribution under the Paris Agreement, the National Ecological Transformation Plan, and the National Solid Waste Policy—also provide a foundation for circular progress.
“Deloitte Brazil was pleased to collaborate on this report which offers Brazilian leaders of organisations across sectors a useful framework to reimagine how we design products, use resources, develop cities, and educate society on many levels. It is important to create favourable environments for circular solutions to flourish, from effective public policies to financing, technological innovation, and professional training,” says Maria Emília Peres, sustainability strategy partner at Deloitte Brazil.
The report recommends coordinated action across government, industry and education to accelerate the transition. Priority areas include strengthening skills and training, improving waste management infrastructure, and supporting industrial symbiosis to reduce waste in manufacturing and agriculture. Developing a more regenerative circular bioeconomy could also help Brazil make more sustainable use of its rich biomass resources.
The full report is available at: https://dashboard.circularity-gap.world/report/brazil/overview

Amsterdam, 30th June 2025 — Businesses engaging the circular economy raised nearly US$164 billion between 2018 and 2023, according to the Circularity Gap Report (CGR®) Finance released today. Investment in circular business models surged by 87% in the latter half of the period (2021–2023) compared to the earlier years (2018–2020), showing growing investor appetite and an increasing business case for the circular economy. Yet most capital is still flowing to more conventional solutions like car repair, resale of electrical goods and recycling, leaving many high-impact innovations underfunded.
The Circularity Gap Report Finance is the first empirical global study that quantifies and explains the global financial streams to circular business models, such as resale and repair, which allows for estimating the ‘gap’ in finance for a circular economy. It was authored by the Amsterdam-based impact organisation Circle Economy in collaboration with KPMG International, with support from the International Finance Corporation (IFC).
The report highlights that circular economy investments can deliver risk-adjusted returns. Circular business models generate additional revenue, unlock new markets, and deliver greater value from fewer resources. In addition, circularity is emerging as a key strategy for the financial sector to manage resource risks from supply chain disruptions and material scarcity—risks that are now more relevant than ever, considering trade wars and geopolitical instability.
The sector increasingly recognises these benefits: investment in the circular economy has grown from US$ 10 billion in 2018 to US$ 28 billion in 2023, peaking at US$ 42 billion in 2021. While this upward trend signals a strengthening business case for circularity, the failure to surpass the 2021 peak suggests waning momentum. Banks account for the majority of these investments in the form of debt. Nevertheless, circular investments still represent just 2% of all tracked capital (in the scope of this report), suggesting a vast unrealised potential.
Investments mainly go to conventional applications of circularity, like rental and repair, which have existed for decades. High-impact solutions and innovations in design and production received just 4.7% of all investment, despite their potential to eliminate waste and pollution at the source.
‘The circular economy isn't just a sustainable solution—it’s an essential tool to manage financial risk,’ said Marvin Nusseck, Finance Lead at Circle Economy. ‘From supply disruptions tied to resource dependence on single countries, to the rising likelihood of taxes on virgin materials, the economics of resource use is shifting. Circular businesses are well-positioned to thrive in this new reality. That’s why investors must rethink how they assess risk and value in circular models—updating their frameworks to reflect the circular economy’s benefits and building resilience as a result.’
The global economy is only 6.9% circular today*, and the circularity gap continues to widen. Redirecting finance from linear to circular activities is crucial to reversing this trend. A more circular economy would enable us to maintain high living standards while reducing environmental pressure and building long-term economic resilience.
Investors and lenders can update valuation and risk assessment methods to reflect the retained value of durable, repairable, leased or reusable products and the reduced reliance on volatile global supply chains.
Financial regulators can accelerate this shift by standardising circular definitions and metrics as well as mandating disclosures related to the circular economy. This includes requiring companies to report natural resource dependencies and incorporating resource risk into financial stress tests—such as the impact of material shortages or ecological collapse.
Policymakers can explore a range of fiscal measures that more effectively recognise the social and environmental cost of resource use and the economic risk this involves. Public institutions can reduce the perceived risk of the circular economy by generating market demand for circular products and services through green public procurement and direct investment in critical circular infrastructure.
High-impact circular models remain largely underfunded, representing significant untapped potential and a missed opportunity to build a more resilient financial sector. Realising this potential will require targeted policies, updated financial frameworks, and a concerted effort to shift capital toward circular solutions.
‘The economic case for continued investment in the circular economy is clear. Business leaders, capital providers and investors now understand that in an uncertain geopolitical and economic environment you can’t have long-term growth without putting circular economy strategies at its heart,’ said Arnoud Walrecht, Circular Economy Lead, KPMG Netherlands.
‘Our findings reveal that the economic case for investment in the Global Circular Economy has been made and is embedded in C Suite thinking and planning. Whether its tackling supply chain blockages or navigating the regulatory environment for higher levels of recycle or reuse models, the business community is facing a new reality. Our findings show that progress is being made, but far more scale and focus is required and we can achieve through collective, international focus on ensuring that higher levels of capital are directed towards circular economy opportunities.’
* According to the Circularity Gap Report 2025 by Circle Economy
About Circle Economy
Circle Economy is driving the transition to a new economy. In this circular economy, we help businesses, cities, and nations leverage business opportunities, reduce costs, create jobs and inspire behavioural change. As a global impact organisation, our international team equips business leaders and policymakers with the insights, strategies, and tools to turn circular ambition into action.
Circle Economy has been at the forefront of the circular economy since 2011. Our annual Circularity Gap Report (CGR®) sets the standard for measuring progress, and we manage the world’s largest circularity database, encompassing data from over 90 nations, 350 cities, and 1,000 businesses.
About KPMG International
KPMG is a global organization of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively.
KPMG firms operate in 143 countries and territories with more than 273,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
For more detail about our structure, please visit kpmg.com/governance.

The Circular Buildings Coalition (CBC) has published a new briefing highlighting the challenges and necessary actions to ensure a just transition for construction workers in Europe as the industry moves toward further integration circular economy practices. In particular, the report explores how increasing the use of secondary building materials and focusing on renovation, retrofitting and adaptive reuse will impact workers and who need to be involved to:
The construction industry is at the centre of the EU’s commitment to environmental and social sustainability, whereas the circular economy offers practical strategies to fulfil these pledges. The CBC’s earlier report—Four circular building pathways towards 2050—outlined the following pathways for a circular built environment in Europe:
The CBC’s latest briefing zooms in on the first two pathways and examines their implications for the European construction industry.
Building with the Right Materials will increase demand for workers in secondary material sourcing, urban mining, procurement, and quality assurance. It will also require new expertise in material recovery, testing, certification, and digital tracking systems. The use of secondary materials adds complexity to construction, making quality control, adaptive techniques, and specialised handling more important than ever.
The Build Nothing New strategy prioritises renovation, retrofitting and adaptive reuse over new construction. It will shift the industry toward more labour-intensive projects, requiring workers with diverse and adaptable skills. These types of projects can expose workers to deteriorated structures and hazardous materials such as asbestos. To ensure worker safety, stronger protocols and targeted protections will be necessary.
Several challenges stand in the way of a just transition to circular construction for workers. The industry remains highly fragmented, with long and often opaque subcontracting chains that leave workers vulnerable to risks. Additionally, there is a lack of legally binding circular economy targets, as well as insufficient investment in skills development and training infrastructure. Lastly, circular business models, which are more labour-intensive, continue to struggle against traditional linear approaches that prioritise cost efficiency over sustainability.
To address these challenges, the briefing outlines key measures that governments, social partners, educators and other EU institutions need to consider when shaping policies and implementation strategies. These include integrating social standards into EU-wide circular economy guidelines, fostering social dialogue to ensure just transition planning, and investing in workforce skills and occupational safety and health (OSH).

On 15 May 2025, Circle Economy joined leading regional networks around the globe to launch the Circular Alliance of Regions (CARe)— a global initiative uniting regional frontrunners in the circular economy. By joining forces, regions from around the world share knowledge, exchange best practices, and collaborate on accelerating the transition to a sustainable, circular society.
CARe brings together a diverse group of regional programmes, networks and alliances that are already using circular strategies to close material loops and lower environmental footprints. As a founding partner, Circle Economy will collaborate with:
Regions play a crucial role in the circular transition. They connect local ecosystems, businesses, governments, and citizens—making them powerful changemakers. Through CARe, regional pioneers can scale their efforts, learn from international peers, and jointly tackle global challenges with local solutions.
CARe aims to expand its reach and impact through a joint declaration of intent. This shared commitment will formalise the alliance and open the door for more regions to join in the coming years. The declaration will highlight common goals, guiding principles, and opportunities for joint actions.
With CARe now in motion, our next priority is to evolve into a truly impactful and cohesive network. To achieve this, we must refine our collective vision, enhance coordination, and establish robust mechanisms for sharing knowledge. These foundational steps will ensure CARe becomes a powerful catalyst for regional change worldwide. We warmly invite any region that shares our ambition to get in touch and join the alliance.
Contact Krijn Smits at krijn@circle-economy.com for more information.