The latest edition of the annual Circularity Gap Report has for the first time quantified the avoidable economic loss by taking place in the linear economic model: this "value gap" is estimated at around €25.4tn each year, or approximately 30 per cent of global GDP, according to the study published by Circle Economy and Deloitte.
The authors say the value gap expresses in monetary terms the scale of the inefficiencies in the current "take-make-waste" economy and shows how and why value is lost. At the same time, they demonstrate how circular measures can maintain value, reduce waste generation and strengthen long-term prosperity.
The global circularity rate, which was the focus of last year’s report, was not updated for the latest edition of the report. The indicator, which describes the share of secondary materials in the global economy, was calculated to be 6.9 per cent....
