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
