Welcome to the last edition of Circular Digest of 2025!
It's been a big year. Read on for the key wins, challenges for the circular economy and where we go next. ⬇️
Your Circular Economy Wrapped
Key Wins 🌍
The Global Circularity Protocol (GCP) - A big milestone this year. The new Protocol finally gives organisations a practical, global framework for measuring, managing and communicating circular performance and impacts. It offers a step-by-step approach to frame, prepare, measure, manage, and communicate progress, enabling organizations to track material flows, assess impacts across climate, nature, equity and business performance, and communicate results through comparable, decision-useful information. I’m especially proud of this one because I was involved from start to finish, providing technical advice throughout!
Key Circularity Metrics Remain Post Omnibus. This may be a controversial one. While the European Commission has significantly reduced the quantitative metrics and harmonised the qualitiative metrics due to concerns around competitiveness and reporting burden, key metrics remain covering waste management, resource inflows/outflows and eco-design (durability, recyclability etc). The Omnibus also reinforces the role of materiality assessments, which should help companies focus on the materials that actually matter for their impact.
Stronger Policy Momentum. Governments expanded extended producer responsibility (EPR), eco‑design rules, and waste reduction mandates. Sustainability reporting entered an era beyond disclosure for disclosure's sake, wanting to see actual improved performance. Stakeholders such as FIs are asking for real performance improvements, not just reporting.
Overview of the GCP journey. Source: WBSCD
Key Challenges ⚠️
The Circularity Gap Widened. Despite progress in some areas, we're still nowhere where we need to be. The Circularity Gap Report found that the vast majority of materials entering the economy are still virgin, with the share of secondary materials actually falling from 7.2% to 6.9% in the latest analysis.
Global Plastics Treaty Not Yet Agreed. INC5.2 (the 6th round of negotiations) ended without an agreement in August 2025. Without a global treaty, companies are still operating without a shared direction: no common definitions, no agreed list of problematic materials or chemicals of concern, and no harmonised policy framework. Fragmentation continues.
Political Pushback and ESG Fatigue. 2025 saw intensified scrutiny of ESG claims, political pushback, and pressure on companies to justify circular investments with hard financial returns. The narrative is tougher and the landscape was more unpredictable this year.
Cost Competitiveness of Recycled Materials. Virgin materials remain cheaper and more predictable than circular alternatives in many sectors, which continued to hold back adoption, even where circularity goals were strong.
🔮 Where We Go Next
Stronger Policy Enforcement. Regulators will tighten enforcement of EPR, eco‑design rules, and mandatory reporting. Companies will need to demonstrate measurable circular outcomes, not just commitments.
Investment in Circular Infrastructure. Recycling, remanufacturing, repair networks, and digital product passports will attract more funding as governments and investors prioritise enabling infrastructure. The renewed focus of secure supply chains for Critical Raw Minerals will only accelerate this.
Data and Traceability Become Non‑Negotiable. Digital product passports and lifecycle data sharing will become essential, not only for compliance but also competitiveness.
Economic Competitiveness Takes Centre Stage. 2026 will be the year the narrative of circularity will shift from 'nice to have' to vital to future-proofing businesses. Cost savings, supply chain resilience, and new revenue models (leasing, refurbishment, resale) will drive adoption as much as environmental goals.
What did you think of this edition of Circular Digest? If you have any thoughts, questions, or ideas for future content, reply to this email. 😊
See you in 2026!
Kayleigh
How can I help you? 💪
Here are a few ways, whenever you are ready:
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