The transition to a circular economy is a critical factor in advancing sustainable development, increasing resource efficiency, and reducing environmental impact, according to a new report from the Organisation for Economic Co-operation and Development (OECD). The report, titled Circular Economy in Cities and Regions of the European Union, states that in 2024, approximately 60 percent of global greenhouse gas emissions originated from the production of materials such as iron, steel, cement, and plastic.
It projects that material efficiency measures could reduce process emissions in the EU’s raw material production by more than 50 percent by 2050. The OECD identifies key sectors where circular economy strategies can have a measurable impact. It estimates that applying resource demand strategies across buildings, transport, food, and energy systems could lead to a reduction of global greenhouse gas emissions by 40 to 70 percent by 2050. The report also notes that cities are responsible for 50 to 70 percent of global waste production.
Data presented in the report shows that municipal waste in the EU is expected to increase by 5.3 percent, rising from 220 million tonnes in 2018 to 231.5 million tonnes by 2035 under a business-as-usual scenario. However, implementing circular economy principles could reduce municipal waste generation by 34 percent by 2030 compared to 2020 levels. According to the report, the circular economy could result in the creation of 2.5 million new jobs across the EU by 2030.
These positions are projected to be concentrated in sectors such as recycling, repair, and reuse. The report also identifies potential improvements to urban conditions through reduced waste and more efficient use of shared goods and spaces. As of 2023, 24 out of 27 EU Member States had adopted national circular economy strategies, roadmaps, or action plans. In 2024, three-quarters of the cities and regions participating in the OECD survey had developed their own circular economy strategies.
The findings are based on a survey conducted by the OECD that included 64 cities and regions across the EU. The report also incorporates insights from ten place-based policy dialogues and supplementary desk research. The OECD concludes the report with a set of policy recommendations aimed at accelerating the implementation of a territorial approach to the circular economy, ensuring that local policies align with broader EU goals. – By MENA Newswire News Desk.