Fixing the economy to fix climate change

We need to change the way we think about climate change in order to reduce greenhouse gas emissions and meet the targets set out in the Paris Agreement.

Switching to renewable energy is only half the story. It is vital, but would only address 55% of global emissions. To reach net-zero, we also need to change the way we make and use products, materials, and food.

How a circular economy cuts greenhouse gas emissions

By adopting the principles of the circular economy – eliminate waste and pollution, circulate products and materials, and regenerate nature – we can tackle those emissions associated with industry, agriculture, and land use – the remaining 45%.

• By eliminating waste and pollution, we reduce greenhouse gas emissions across the value chain

• By circulating products and materials, we retain their embodied energy

• By regenerating nature, we sequester carbon in soil and products

For example, by eliminating waste in buildings and construction, sharing buildings more, and by reusing and recycling construction materials, we can reduce the emissions from construction materials by 38% by 2050. 

Likewise, shifting to regenerative production practices in agriculture, eliminating food waste, and using better and upcycled ingredients in our food products and menus could halve food system emissions by 2050.   

Making the circular economy happen

1. Businesses can embed the circular economy in their climate strategies and make smart decisions about how to design and sell products and services 

2. Governments can set enabling policies and put the necessary infrastructure in place

3. Investors can mobilise capital towards circular economy solutions

4. International institutions can put the circular economy on the global climate agenda