PIONEERING METHODOLOGY WILL HELP CITIES GO CIRCULAR: CGR4CITIES

BY CLAUDIA ALESSIO

The circular economy has been recognized as a way to reach net-zero goals, reduce pollution, and build more sustainable, resilient communities. Cities—as hot spots of consumption and innovation—are key players in this transition and stand to benefit substantially from leaving the linear status quo behind. But how can they get started? This article highlights the importance of defining a baseline and uncovering key leverage points for action, and shows how cities can do just this.

What Is the Circular Economy?

Our global economy is overwhelmingly linear: we take materials from the Earth and make them into products, which eventually go to waste. This has been the status quo for far too long—but we now have the tools and solutions to shift from linear to circular. In a circular economy, waste is obsolete, and materials and products are kept in use at the highest value possible, continuously reused, repaired, refurbished, and recycled. It’s a big shift, but doing so could bring about economic, social, and environmental prosperity within the boundaries of our planet. We know where action must be galvanized: in the city.

As hot spots of innovation and consumption, cities are the beating heart of the circular economy transition. Cities worldwide drive environmental impacts: their consumption is responsible for 70% of global material extraction, and they concentrate up to 70% of total waste generation, consume two-thirds of global energy, and release 75% of emissions. Their impacts do not end here. Urban sprawl, driven by economic and population growth, transforms landscapes, putting pressure on biodiversity and ecosystem health. But in their position as high-impact agents, cities also have the transformative power to drive solutions. Approximately 55% of the global population lives in cities—more in areas with increasing urbanization rates, such as Latin America and Africa—and globally, over 80% of GDP concentrates in urban areas. Cities are also especially vulnerable to the impacts of climate breakdown: The vast majority lie in coastal areas, for example, which will become increasingly susceptible to floods and storms. We’re at a turning point, and cities have a crucial opportunity and responsibility to spearhead change and shape a livable and resilient future for all.

Circular Economy in the City

At Circle Economy, we recognize the potential of circular cities for value creation, job creation, better air quality, competitiveness in global markets, and the reduction of waste and greenhouse gas emissions. About 70% of emissions worldwide are tied to material use and handling. Strategies that contribute to using fewer materials are a pathway for cities to reach net-zero goals. But what will a circular city look like?

Redesigning cities will be challenging: They’re home to a set of complex systems, from housing and industrial clusters to energy and food. Changing will mean embedding elements of circularity within each system, all of which feed into each other. In a circular city, energy production is renewable and local. Buildings are modular and designed to be deconstructed rather than demolished so that materials and components can be reused. Industries share their byproducts, with one’s waste serving as another’s resource. Mobility systems are clean and shared, and active transport like walking and cycling is supported through urban planning. A circular city is inherently smart. Technology will have a key role to play in the transition to manage assets, resources, and services efficiently—and data will be crucial to form benchmarks, mark progress, and improve operations across the whole city.