Around the world, governments and businesses are talking more and more about the need to move from today’s “take, make, waste” economy to a circular one, where products are designed to last, materials stay in use, and waste is dramatically reduced. On paper, the case is compelling: recent assessments show that shifting to a circular economy offers both a major climate opportunity and a significant economic one. A study from the European Commission’s Joint Research Centre finds that “reduction, reuse and recovery” measures could cut Europe’s heavy industrial emissions by up to 231 million tonnes of CO₂ each year, and global analyses estimate that circular models could generate around $4.5 trillion in value by 2030).
Yet progress may be stalling. The latest Circularity Gap Report shows that the share of secondary materials in the global economy fell from 9.1% in 2015 to 6.9% in 2021. Instead of becoming more circular, the world, in a recent timeframe, became less so.
What would actually help stakeholders such as consumers, companies and governments embrace circular models? In our recent research project, we reviewed more than 130 studies on circular business models to understand this very question. What we found is simple but often overlooked: circularity is not just a design or engineering challenge, it is also an engagement one. If consumers hesitate, or companies delay investments, or policymakers fail to create the right conditions, the circular shift stalls.
