What is the circularity gap?

The circularity gap shows how much material is wasted instead of reused or recycled. Closing it means less waste, more recycling, saving resources, and protecting the environment for the future.
By
Oskar Mortensen
March 31, 2026
5 min read
What is the circularity gap?

More than 90% of the materials we use today end up as waste instead of being reused or recycled. This large difference shows the circularity gap, which measures how much we lose when trying to keep materials in use.

The circularity gap reveals that despite recycling efforts, most resources still follow a “take, make, waste” path. For example, if only 8 out of 100 material units get recycled, the gap of 92 units highlights the urgent need to improve reuse and recycling.

Tracking this gap helps governments, companies, and people see where they stand in building a circular economy. Closing the circularity gap means using resources smarter, saving energy, and protecting the environment for future generations.

Definition: circularity gap

The circularity gap shows the difference between materials reused or recycled and those lost as waste. It measures how far we are from a circular economy, where resources stay in use instead of being thrown away or wasted.

The circularity gap measures how far we are from a circular economy. It shows the difference between reused materials and those lost as waste.

Think about buying a product made with 100 units of material but only 8 units get recycled after use. The circularity gap here is 92 units, meaning most materials are wasted instead of reused, showing the need to improve recycling and reuse to protect resources.

Tracking the journey of closing the circularity gap

What does the circularity gap tell us about how we use materials? It shows the difference between what we recycle or reuse and what we consume. This gap reveals how much we still rely on a “take, make, dispose” approach instead of embracing circular practices.

The idea gained attention with the first Circularity Gap Report in 2018 from Circle Economy. It revealed only 9.1% of the global economy was circular, meaning most materials weren’t cycled back. Since then, annual reports show this rate has dropped to 7.2% in 2023, highlighting a growing challenge in closing this gap.

Countries like Austria have started their own reports, showing slightly better circularity but still emphasizing the need for progress. These assessments help track changes and inspire action toward sustainability.

Closing the circularity gap isn’t just about numbers—it’s about protecting resources and reducing waste. Embracing circular economy principles can cut emissions and save materials, offering a brighter, greener future for everyone.

4 examples on closing resource loops in everyday products

Here are some real-world ways companies and communities are making better use of materials:

  • Electronics take-back programs: These initiatives encourage consumers to return old devices, enabling recovery of valuable materials like metals and plastics. This reduces the need for new mining and lowers electronic waste.
  • Textile recycling innovations: Some brands collect used clothing for fiber-to-fiber recycling, turning old fabric into new garments. This helps cut down on water and chemical use compared to making textiles from raw fibers.
  • Plastic packaging redesign: Companies are switching to mono-material packaging that is easier to recycle, increasing the chance materials get reused instead of discarded. Clear labeling also improves recycling rates.
  • Food waste composting: Urban composting programs turn leftover food into nutrient-rich soil, creating a closed nutrient cycle for agriculture. This reduces landfill waste and lowers greenhouse gas emissions.

Many efforts focus on improving how materials flow back into production, but large amounts of resources still end up lost or wasted. Bridging this divide requires changes at every step, from design to disposal.

Terms related to circularity gap

More than half of the materials extracted globally are not cycled back into the economy, highlighting the need for better resource use.

  1. Circular economy: A system designed to keep products, materials, and resources in use for as long as possible, reducing waste.
  2. Resource efficiency: Using fewer materials and energy to produce goods, minimizing environmental impact.
  3. Waste management: Processes involved in handling waste from collection to disposal or recycling.
  4. Sustainable consumption: Choosing products and services that have minimal environmental impact throughout their life.
  5. Material flow analysis: Tracking the movement of materials through an economy to identify waste and recycling opportunities.
  6. Life cycle assessment: Evaluating the environmental impacts of a product from raw material extraction to disposal.
  7. Recycling systems: Processes for collecting, sorting, and processing waste materials to make new products.
  8. Climate change mitigation: Actions taken to reduce greenhouse gas emissions and lessen global warming effects.
  9. Environmental impact assessment: A study predicting the effects of projects or products on the environment before they start.

Frequently asked questions on the circularity gap

Explore key questions about closing the circularity gap and building a sustainable future.

What is a circular economy?

A circular economy is a system where resources are reused, repaired, and recycled to minimize waste, keeping materials in use longer and reducing environmental impact.

How does resource efficiency help close the circularity gap?

Resource efficiency means using materials wisely, so less is wasted. This reduces demand for new resources and lowers environmental harm, helping close the circularity gap.

What role does waste management play in circularity?

Effective waste management ensures waste is sorted, treated, and recycled properly, turning waste into new resources instead of landfilling or incinerating it.

Why is sustainable consumption important?

Sustainable consumption encourages choosing products that last longer, can be repaired or recycled, reducing overall waste and resource use.

How does material flow analysis support circularity efforts?

Material flow analysis tracks how materials move through an economy, identifying leaks where resources are lost, helping target improvements to close the circularity gap.

What is life cycle assessment (LCA) and why does it matter?

LCA evaluates the environmental impact of a product from production to disposal, helping designers and companies make greener choices that support circularity.

How can recycling systems be improved for better circularity?

Improving collection, sorting, and processing of recyclables increases material quality and availability, making recycling more effective and supporting circular economies.

How does circularity contribute to climate change mitigation?

By reducing resource extraction and waste, circularity lowers greenhouse gas emissions, helping to slow climate change and protect ecosystems.

What is environmental impact assessment (EIA) in this context?

EIA evaluates potential environmental effects of projects or policies, ensuring they support sustainability and don’t widen the circularity gap.