Economies should achieve maximum possible well-being for people while staying within the planetary boundaries, yet global circularity rate continues to decline, “falling from 7.2% to 6.9% as of the latest analysis.” This is according to the 2025 edition of the Circularity Gap Report, published by Circle Economy in collaboration with Deloitte. The report finds governments and businesses could do more to drive the circular transition.
Themed, ‘A Circular Economy to Live Within the Safe Limits of the Planet,’ the report focuses on three interconnected categories of global material flows: circular; linear; and “potentially circular, potentially linear.” It examines “how materials enter the economy, whether they re-enter it and, if not, how they leave it – either as waste or emissions.”
The report finds that virgin materials make up the vast majority of materials entering the economy and that without strong global targets, global trends in material use “are moving in the wrong direction.”
Other findings include:
- A sustainable bioeconomy can support the global circular economy transition, but its impact is difficult to assess;
- Fossil fuel use is still on the rise and there are “few strong incentives to change course”; and
- Rapid stock accumulation is responsible for rising resource extraction – especially non-metallic minerals, accounting for half of total extraction.
The report recommends that governments lead the circular transition through smart policies and transparent multilateral collaboration. Pointing to the lack of a global governance framework with clear targets to monitor the transition to more sustainable resource use, it defines a role for an international institution on resource management that “could steer action by providing science-based assessments, policy guidance, and benchmarks to track material use.” This approach is “already reflected” in the negotiating text of the plastics treaty, according to the report.
The report also recommends that governments select and monitor reliable indicators at national level and that businesses measure and monitor circularity for their own operations and value chains. “Businesses that adopt circular practices now,” it argues, “can gain a competitive edge, unlock new revenue streams, and future-proof against resource scarcity and market volatility.”
The 2025 Circularity Gap Report was launched on 13 May.
Circle Economy started the Circularity Gap Report series in 2018. The series aims to provide decision makers with structured evidence about circular strategies and their economic, environmental, and social impacts, to enable them to adequately consider the quality of life and well-being of people and the planet. [Publication: Circularity Gap Report 2025: A Circular Economy to Live Within the Safe Limits of the Planet] [Executive Summary] [Circular Economy Press Release] [Deloitte Press Release] [SDG Knowledge Hub Story on Circularity Gap Report 2024] [SDG Knowledge Hub Story on Circularity Gap Report 2023]