Moving to a circular economy could generate $1 trillion per year by 2025
- 24 January 2014
DAVOS: A transition to a more efficient, circular economy can generate millions of dollars in cost savings and hundreds of thousands of new jobs, according to a new report.
If the world shifted to a circular economy it could generate US$500 million in material cost savings and 100,000 jobs within the next five years, as well as cut 100 million tons of waste. These are the results of a report called Towards the Circular Economy launched by the World Economic Forum (WEF) in Davos today.
Analyzing the economic benefits for businesses that increase recycling, reuse and remanufacture in supply chains--which maximizes the value of materials and develops what is called a ‘circular economy’--the authors found that such a move could make more than US$1 trillion each year for the global economy by 2025.
The report also points to a new WEF initiative called Project Mainstream, which aims to help businesses shift to the circular economy. The initiative is a partnership with the Ellen MacArthur Foundation, is supported by McKinsey & Co and has confirmed industry leaders such as Philips, Kingfisher and Veolia to be part of it.
Ellen MacArthur, Founder of the Ellen MacArthur Foundation, said: “Building on growing momentum around the circular economy, Project Mainstream will leverage the convening power of the World Economic Forum and bring together a group of business leaders capable of triggering widespread innovation and employment. It is about going beyond concept stage, it's about turning proven potential into an economic reality."
Harry Verhaar, Global Head of Public Affairs, Philips Lighting, told us: “A transition to a circular economy is a win-win. Much-needed economic benefits can easily be created from improvements in resource productivity. But beyond these cost reduction opportunities, a circular economy will also spur innovation that matters to people--from ‘more is better’ to ‘better is best’--as linear consumption reaches its limits. Most of all, the products and services developed in a circular economy have the potential to improve quality of life and prosperity for all.”
More about Project Mainstream
Image by World Economic Forum, Towards the Circular Economy report