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To keep materials in circulation for as long as possible, it’s just as important to design and produce new products with circular materials as it is to recover parts, recycle or regenerate materials. Closing this material loop is a necessary step toward enabling a circular economy.

To keep materials in circulation for as long as possible, it is just as important for producers to design and produce new products with circular materials as it is to recover parts and recycle or regenerate materials at end-of-use stage. This is “closing the material loop,” and it is a necessary step toward enabling a circular economy.

The share of total recycled materials used is increasing slowly in regions where data is available but needs to be significantly accelerated. For example, the share of recycled materials in the European Union (EU) slowly increased from 8.2% in 2004 to 10.7% in 2010 and 11.5% in 2022.

According to the Organisation for Economic Co-operation and Development (OECD), the use of recycled plastic for making new products increased slowly from 1.5% in 1990 to 6.3% in 2019. That number needs to increase dramatically if the use of virgin materials is to be reduced, although using 100% recycled plastic material in many products is not practical due to quality and degradation limitations.

Recycling metals has been a common practice given their high value. However, significant growth in the total quantity of metals used combined with lagging growth in scrap metal for recycling has led to the share of recycled content for some metals remaining constant or even decreasing. For example, the average share of recycled content in copper was 35% in 2005 and has since fluctuated between 29% and 37%.

For products and materials from biological sources, resources that are sustainably managed should be used. Unfortunately, the use of sustainably produced renewable materials is not adequately monitored.

The reuse of recovered parts and components to make new products or infrastructure is also not being monitored. Prioritizing reuse when possible can close circularity loops more efficiently than recycling. An example of a reused part may be an outer casing of an end-of-use product that can be reused in a new product without significant modification. There is not yet enough data to understand the current levels of reuse and set science-based targets.

Enablers and barriers to using circular materials

Increasing the share of circular materials requires not only the availability of quality materials to reuse or recycle, but also a willingness of producers to use these materials in products. Economic viability, compatibility with available production methods, positive market demand and policy support are key enablers.

For products that are manufactured goods, the use of recycled materials, renewable materials or reused components typically needs to be selected at the design phase. Therefore, it is important to influence the initial product specification to incorporate material circularity and train designers to use circular materials. More data is needed to evaluate these drivers.

Tracking progress on global outcomes

Key enablers and barriers to change

Data challenges

Centralized and comprehensive data on the use of circular materials or components (recycled, reused or renewable) and the changes that need to be made is limited. The use of such materials or components as a substitute is typically a design or sourcing decision that is made on a product or project basis. This information has traditionally not been well tracked and aggregated and is difficult to survey, unless there is a specific marketing benefit or requirement for manufacturers. The added cost and overhead of validating and communicating the use of circular content are hindering factors. Negative perceptions surrounding the quality of recycled and reused content compared to virgin materials may also be a factor. The information that is available is usually from material producers (such as those producing metals and plastics) who source raw materials and blend in recycled content, but even this is not consistently measured in different countries. The source of the recycled content is also not always clear or consistent, such as whether it is derived from pre-consumer materials, post-consumer materials or internally within an industrial process. Better data is needed to help understand how the global community is progressing with this shift.

Other shift Other shifts needed to transform the system

Decrease overconsumption

Global material consumption has more than tripled since 1970, causing increasing environmental impacts throughout the life cycle of materials and products. Decreasing overconsumption, especially in high consuming societies, is critical to ensure that human activities fit within the global capacity of our natural resources.

Minimize environmental and social harms in resource extraction

More effective monitoring, regulations and laws are needed to minimize environmental and social harms in resource extraction, to tackle issues including deforestation, water pollution, overfishing, ecosystem disruption, worker injuries, child labor and other human rights violations.

Make production more resource efficient

Current production systems are still using resources inefficiently and generating losses of resources in production processes. Global material productivity needs to be improved far faster than the current trend.

Use products longer

The lifetime of products can be extended by a combination of durable product design, support services, and consumers' behavioral changes.

Increase the quantity and value of resources recovered at end of use

End-of-use products, materials or components need to be sorted, collected and processed to obtain as high a material value as possible, and products should be designed to be easily dismantled for reusable components or recycled.