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Circle Economy and ICLEI have partnered up to initiate the go to knowledge hub of case studies about the circular economy in cities. The Cities Collection is a repository of case studies that demonstrate the role of cities in the circular transition, and includes policies, business cases and research articles. Cases in the Collection flow into an ecosystem of digital products which support users in transitioning cities to circularity, for example [Ganbatte](https://ganbatte.world/cities/) and <a href="https://circulars.iclei.org/" target="_blank">ICLEI Circulars</a>, both part of the <a href="https://circulars.iclei.org/circle-lab-for-cities/" target = _blank">Circle Lab for Cities Programme.</a>

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Circular Cities

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This collection features a selection of case studies, based on the global *Circularity Gap Reports*, that can mitigate climate breakdown by reducing virgin material consumption, waste and greenhouse gas emissions. The latest **[Circularity Gap Report 2023](https://www.circularity-gap.world/2023#download)** reveals that the global economy is now only 7.2% circular and outlines how circular solutions across four sectors can bring global planetary boundaries back within safe limits. 

In the six years of the *Circularity Gap Report*, the global economy has extracted and used unprecedented amounts of materials. The first edition of the *Report *in 2018 found that global circularity was 9.1% and it has decreased every year since—leaving a Circularity Gap of over 90%. If this trend continues, we will have to find more and better solutions to combat the negative effects of climate change. This is why we have identified case studies from across the globe—based on the needs of society and planetary health—that serve as real-world examples of the circular economy in action.

Circle Economy is a not-for-profit organisation working to accelerate the circular transition. Through the *Circularity Gap Reporting Initiative*, our mission is to deliver an annual global Circularity Metric that measures the state of the world economy and identifies key levers to transition to global circularity. With nature as our guide, we work alongside cross-sector stakeholders from academia, businesses, NGOs and governments to provide a powerful combination of practical and scalable interventions that transform circular opportunities into realities. 


To learn more about these interventions to accelerate the circular transition, read the latest [Circularity Gap Report 2023](https://www.circularity-gap.world/2023#download), as well as previous editions of the global [Circularity Gap Reports](https://www.circularity-gap.world/global).

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Global Circularity Gap Report 2023

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Article / Report

Impact on increased knowledge and understanding as a result of the case study

Increase Awareness

Direct and indirect reduction in economic costs

Cost Savings

Direct and indirect effects that increase revenues or the potential for new revenues, for example from new products, customer segments, partnerships or business models

Revenue Potential

Efficiency gains on operations or transactions either through cultural or technological shifts

Productivity

Impact on the ease of innovation, and facilitating uptake of innovations

Innovation

Scalability

Reduced green house gas emissions released into the biosphere

Reduce Emissions (SDG13)

Reduced use of virgin materials and/or an increase of the use of secondary and bio-based materials

Reduce Material Consumption (SDG12)

Minimise waste through diversion: Instead of sending waste to landfill, it is redirected into other industrial processes for handling, treatment, recycling, recovery, or reuse in various forms. 

Minimise waste through design: At the outset of a process of project, plan and design such that there is zero waste or minimal waste during production, use, and at end of life. 

Minimise Waste (SDG12)

Reduced use of fossil fuel energy sources and/or increased use of renewable energy

Reduce Energy Consumption

Extracting resources and processing them to produce materials for use bysociety

Materials and Fuels

Producing electrical equipment and machinery for industrial use

Capital Equipment

Producing transporation equipment and providing services for thetransportation of goods and people

Transportation and Logistics

Producing and providing business and consumer goods and services

Goods and Services

Societal Services

Producing building materials and providing services to create residential and non-residential infrastructure and real estate


Construction and Infrastructure

While resources are in-use, maintain, repair and upgrade them to maximise their lifetime and give them a second life through take back strategies when applicable

Stretch the lifetime

Utilise waste streams as a source of secondary resources and recover waste for reuse and recycling

Use waste as a resource

Consider opportunities to create greater value and align incentives that build on the interaction between products and services

Rethink the business model

Account for the systems perspective during the design process, to use the right materials, to design for appropriate lifetime and to design for extended future use

Design for the future

Use digital, online platforms and technologies that provide insights to track and optimise resource use, strengthen connections between supply chain actors, and enable the implementation of circular models



Incorporate digital technology

'Inform' increases the overall levels of awareness and builds the necessary skills and knowledge around the circular economy to foster long-term change.

Inform

Data, knowledge & information sharing

Conduct research

Eliminate waste by maximizing the recovery of resources at the end of the use phase so that they can be reintroduced into production processes


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Recover

Process waste into valuable industrial inputs or consumer products; distribute processed waste to users.

Process waste and ensure its re-entry into industry at its highest value

The most common and visible problems associated with vehicle use and transportation in cities are road accidents, air pollution, or traffic congestion. However, vehicles also present a problem at the end of their life. They continue to take up space in landfill (although sometimes in a compacted form), and even if fossil fuel vehicles are phased out, the shift to electric vehicles in the short term could lead to more internal combustion engine vehicles being scrapped, and to a mountain of battery waste in the longer term.

High-value reuse, and recycling of vehicles and their components, is key to a sustainable future of mobility. When reuse is not an option, advanced recycling technologies can extract valuable raw materials, such as lithium and cobalt, before batteries are disposed of. This would not only reduce the burden on incinerators and landfills, but could provide a new, local and circular source of critical materials for the automotive industry. 

Although only few initiatives exist at the municipal level to support high-value reuse and recycling of vehicle components, many initiatives are being supported at national level and businesses are taking the lead in implementing pilot projects across Europe. In the future, local governments could support the recycling of materials by implementing environmental standards for pollution reduction, dismantling, crushing and shredding of vehicles, as well as financial incentives (such as tax rebates and subsidies.) for remanufacturing of cars and part recovery. Alternatively, cities could ban the landfilling of scrap metals and batteries without any previous treatment. Collaboration and engagement with local businesses can help local governments to accelerate research and disseminate knowledge about circular economy approaches to end-of-life vehicle management. 


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🚌  Recycling of vehicle components

A considerable resource footprint is taken up by our need for mobility. In particular, two resource types are used: the materials to build transport technologies and vehicles like cars, trains and airplanes; plus, predominantly, the fossil fuels burned to power them.



Mobility

- Set fiscal and financial incentives for remanufacturing, refurbishing, repairing or upgrading vehicles
- Reuse of motor vehicle components
- Durable vehicle design and production
- Optimal vehicle repair and maintenance

Saving: 1.23 Gt emissions and 2.18 Gt material use

🚗 Vehicles durability

Cycle strategies aim to cycle and reuse materials at their highest value: they maximise the volume of secondary materials re-entering the economy, ultimately minimising the need for virgin material inputs and therefore also narrowing flows. Of course, virgin materials will always be needed to a degree: all materials degrade and can’t be cycled infinitely, use energy, and require blending with virgin materials to maintain strength and functionality.

Cycle

Impacts

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Industries

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A framework of policy instruments that enabled and encourage the transition to the circular economy

Policy Instruments

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A framework of policy instruments that enable and stimulate the transition to the circular economy

The principles of a circular economy concern designing out waste, regenerating ecosystems and keeping items in use. Decoupling the economy from material flows—improving the rate of resource productivity faster than the economic growth rate—is also a consistent guide. By evolving with the growing number of applications of circular economy principles, and consolidating these strategies across thematic areas, Circle Economy’s Key Elements Framework (KE) renders the elements of the circular economy salient and serves as a basis to derive contextual strategies and interventions. 


The Framework consists of:
- Core Elements: Activities directly handling product or material flows; and uniquely,
- Enabling Elements: those that remove obstacles for core actors.


Key elements of the circular economy

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Circle Economy's framework of strategies and activities that define the circular economy

The Circular City Actions Framework provides urban changemakers with five complementary strategies they can use to start working towards a more circular system. 

The framework is action-based to provide users with concrete strategic directions and showcase the desired outcomes of each strategy. 
The framework consists of five complementary **strategies**, under which **sub-strategies** provide further detail. Finally, each sub-strategy consists of a diversity of tangible **solutions** which are framed in relation to key thematic areas. 

Note: solutions are currently focused on:
- 🍏 **Food systems**
- 🏢  **Built environment**
- 👕📱  **Consumer goods**
- ⚡ **Energy Systems**
- 🚌 **Mobility Systems**
- 💧 **Water Systems**

More thematic areas are coming soon...

'Click through each of the five strategy cards below to explore the framework and circular economy case studies in more depth!'



This framework was developed in collaboration with ICLEI, Metabolic and Ellen MacArthur Foundation with support from the MAVA Foundation. Read more about it [here]( https://circulars.iclei.org/action-framework/). 



Circular City Actions Framework

An action-based framework for local governments working towards circular cities

The framework consists of 21 complementary interventions, across six scenarios - one for each of the six societal needs we model. These interventions can mitigate climate impact by curbing GHG emissions

Note: interventions are currently focused on:
- 🏠 Housing 
- 🍎 Nutrition
- 🚗 Mobility
- 👚📺 Consumables
- 👩‍⚕️👨‍⚕️ Healthcare
-  🔊 Communication

These 21 interventions are spread across six societal needs and wants, with a set of solutions. Within these solutions are strategies on ’how to get there'.  

The framework moves beyond incremental action and provides solutions that will require behavioral change (dietary shifts towards less meat consumption, for example) and the adoption of state-of-the-art technologies in the industry to mitigate emissions in hard-to-abate sectors (such as steel manufacturing). It illustrates how continued globalisation can benefit from the uptake of digital solutions. The combined interventions showcase the mitigation potential that begins where the current country pledges end; illustrating the additional impact our interventions can bring to the NDCs. In short, the interventions provide input for a more profound fundamental transformation than the more current pathways that make up the vast majority of NDCs. 

Together, the combined interventions can almost double the current global Circularity Metric of 8.6%, bringing it to 17%. 

This results in:
• Shrinking global material use and extraction by 28%. 
• Cutting global GHG emissions by 39%—fully closing the Emissions Gap as defined in our report and taking into account the updated NDCs.
• Allowing the world to achieve the Paris Agreement’s goal of keeping at 1.5-degrees of warming by 2032.

*This framework was developed in the Circularity Gap Report 2021. Read more about it [here](https://www.circle-economy.com/resources/circularity-gap-report-2021)*






Global Circularity Gap Report

An intervention-based framework for nations and stakeholders working towards circular countries

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Based on the work of [Bocken et al. (2016)](https://www.researchgate.net/publication/309699661_Product_design_and_business_model_strategies_for_a_circular_economy), the Four Flows Framework serves as a simple framework for managing resource flows in a circular economy by using less (Narrow), using for longer (Slow), using again (Cycle), and using clean, regenerative materials and energy (Regenerate).

These different principles of circular economy can be applied to our socioeconomic metabolism: we can design stocks like buildings, infrastructure, machinery, and vehicles to be rich resource mines for the future, and design manufactured goods and consumables to be cycled and made regenerative. Furthermore, the focus must also centre on getting more value out of fewer materials. Achieving the aims of a circular economy—minimising material use, regenerating the Earth, and preventing material losses—can be done through these four key strategies mentioned above.

Source: Circle Economy. (2023). *[The circularity gap report 2023](https://www.circularity-gap.world/2023)* (p.22). Amsterdam: Circle Economy. 

Four Flows Framework

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  The state would be the first to pass legislation setting broad sustainability regulations for the industry.  Last September, as New York Fashion Week was taking place for the first time in a year, Kathy Hochul, the new governor, sat front row at the Prabal Gurung show, marking a fresh era in the relationship of the fashion industry and the state government. “This is where all the eyes of the world are when it comes to fashion,” she later told Vogue.
Just four months later, the eyes of the world may open a little wider. On Friday, the Fashion Sustainability and Social Accountability Act (or Fashion Act) was unveiled: a bill that, if passed, would make New York the first state in the country to pass legislation that will effectively hold the biggest brands in fashion to account for their role in climate change.
Sponsored by State Senator Alessandra Biaggi and Assemblywoman Anna R. Kelles, and backed by a powerful coalition of nonprofits focused on fashion and sustainability, including the New Standard Institute, the Natural Resources Defense Council and the New York City Environmental Justice Alliance, as well as the designer Stella McCartney, the law will apply to global apparel and footwear companies, with more than $100 million in revenues, doing business in New York.
That is pretty much every large multinational fashion name, ranging from the very highest end — LVMH, Prada, Armani — to such fast-fashion giants as Shein and Boohoo. Specifically, it would require such companies to map a minimum of 50 percent of their supply chain, starting with the farms where the raw materials originate through factories and shipping. They would then be required to disclose where in that chain they have the greatest social and environmental impact when it comes to fair wages, energy, greenhouse gas emissions, water and chemical management, and make concrete plans to reduce those numbers (when it comes to carbon emissions, specifically in accordance with the targets set by the Paris Climate Accords).
Finally, it would require companies to disclose their material production volumes to reveal, for example, how much cotton or leather or polyester they sell. All of that information would also have to be made available online.
“As a global fashion and business capital of the world, New York State has a moral responsibility to serve as a leader in mitigating the environmental and social impact of the fashion industry,” Ms. Biaggi said in a news release, calling the law “a groundbreaking piece of legislation that will make New York the global leader” in holding the fashion industry “accountable.” She also said that the act would ensure that “labor, human rights, and environmental protections are prioritized.”
Companies would be given 12 months to comply with the mapping directive (18 months for their impact disclosures), and if they are found to be in violation of the law, they would be fined up to 2 percent of their annual revenues. Those fines would go to a new Community Fund administered by the Department of Environmental Conservation and used for environmental justice projects. The New York attorney general would also publish an annual list of companies found to be noncompliant. While similar legislation regarding due diligence is being debated in the European Union, and while Germany, France, Britain and Australia have laws requiring due diligence when it comes to human rights and slavery, there is no general legislation in any country governing the greater social and environmental actions of the fashion industry and mandating change.
In 2010, California passed the Transparency in Supply Chains Act, which addresses modern slavery, in 2019 banned sales of new fur products, and last year passed the Garment Worker Protection Act, but the New York act focuses on the manufacturing end of the business, broadly defined.
“Fashion is one of the least regulated industries,” said Maxine Bédat, the founder of the New Standard Institute. In part that is because its sprawling supply chain can include multiple countries and continents. As a result, efforts at sustainability vary widely. Imposing government regulation would regularize the reporting and “make sure there isn’t a competitive disadvantage to doing the right thing,” Ms. Bédat said.
Though many brands have become increasingly vocal in acknowledging their own responsibility when it comes to climate change and human rights violations, efforts to rectify the situation have been left up to the companies and an assortment of nongovernmental watchdog consortiums like the Fair Labor Association, which addresses wage issues, and Higg, which addresses supply chain reporting. They can vary widely.
Ralph Lauren, Kering, LVMH and Capri Holdings, for example, are among the companies that have already committed to using the Science-Based Targets Initiative, a tool for reducing carbon emissions created by the CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature. But Shein didn’t hire its first environmental, social and governance (ESG) head until December.
“Often there is a knee-jerk reaction by businesses against the idea of regulation,” Ms. Bédat said, noting that numerous stakeholders were consulted in drafting the Fashion Act, including retail brands and manufacturers such as Ferrara, which is based in the garment district and has endorsed the bill. But, she continued, “even the auto industry, which initially rebelled against fuel efficiency standards, has now embraced them.” The Fashion Act, Ms. Bédat said, “is an effort to meet industry where they are, recognize the good faith efforts they are already making and come up with a common standard, but do so with some teeth.”
The bill will now make its way through Senate and Assembly committees, with the sponsors aiming to bring it to a vote in late spring after state budget negotiations are complete. “Before officially introducing the bill, we built a broad coalition of support that includes leaders in the fashion industry, manufacturers, labor rights activists and environmental activists who are passionate about seeing the bill become law,” Ms. Biaggi said via email.
Though she said she expected “that some companies impacted by this legislation won’t initially support these new standards,” she added: “This diverse and active coalition makes me confident we can pass this legislation in both chambers later this legislative session.”
Then, said Ms. Kelles, New York may really “set a trend.” 


2022 will continue to bring increased focus on sustainability and social accountability requirements and practices for the fashion, apparel and beauty sector up-and-down the supply chain.
Some of this increased focus will undoubtedly come from state and federal lawmakers and governmental agencies, as new or proposed legislation and regulations are being actively considered or are planned to be rolled out in the coming year. For example, the Environmental Protection Agency, the Food and Drug Administration, and various state agencies and legislatures are pursuing or considering measures such as additional chemical use restrictions and prohibitions, new notification and reporting requirements on chemical use and imports, limitations on product disposal options, and extended producer responsibility obligations.
In addition, the Federal Trade Commission (the “FTC”), indicated in summer of 2021 that the agency would initiate a review in 2022 of its Guides for the Use of Environmental Marketing Claims, colloquially known as the “Green Guides.” The Green Guides are a resource the FTC originally created in 1992 to help businesses avoid making unfair and deceptive environmental advertising claims and to assist the public in understanding and appreciating the statements included in such claims. The Green Guides have not been revised since 2012 and, as currently written, may no longer provide comprehensive guidance for businesses and consumers alike given the current sustainability-focused advertising landscape, especially because the Green Guides currently do not cover “sustainability,” “organic,” or “natural” environmental claims. While the FTC did not expressly indicate a specific focus area for its planned revisions to the Green Guides, some suspect that the agency’s revisions will address claims related to sustainability, organic, and natural, as well as climate-related claims, which are top-of-mind for consumers when making purchasing decisions. Brands should be on the lookout for the revisions to the Green Guides and understand them as they may significantly affect the types of environmental advertising claims that are available.
Legislators from the Empire State have their own ideas on how to increase focus on sustainability and social accountability in the fashion industry. In January 2022, the New York state legislature unveiled the Fashion Sustainability and Social Accountability Act (the “Fashion Act”), which is a bill that attempts to make New York the first state in the United States to effectively “hold the biggest brands in fashion to account for their role in climate change.” As currently proposed, the Fashion Act would apply to global apparel and footwear companies with more than $100 million in revenue who do business in New York (so, in other words, a majority of multinational fashion brands). The law would require, inter alia, qualifying brands to map a minimum of 50% of their supply chain and disclose whether in that chain the brands have a significant real or potentially adverse social and environmental impact when it comes to issues such as fair wages, energy, greenhouse gas emissions, etc. and then disclose targets for preventing and improving those impacts. Failure to comply could result in fines of up to 2% of a brand’s annual revenues over $450 million. Brands should keep tabs on the Fashion Act, which is currently making its way through New York legislative committees with an aim towards a vote in late Spring 2022, and the new local requirements that may follow therefrom.
Notwithstanding these planned governmental actions and the impact they may have, the greatest increased focus on sustainability and social accountability in the industry may be driven by non-governmental stakeholders, starting—as most initiatives usually do—with consumers and trickling down to investors, shareholders, and lenders. Now more than ever, there is high consumer demand for goods to meet certain environmental, social and governance, or “ESG,” criteria. Sustainably sourced materials, organically produced fibers, zero-carbon footprint, not tested on animals, no child labor, fair trade, all natural ingredients, plastic-free, environmentallyfriendly packaging – these are just some examples of consumers’ expectations that are driving purchasing, investing, and commercial decisions. And, as companies commit to these certifications and practices to meet consumer expectations, this in turn drives sustainability obligations up-and-down the supply chain, impacting producers and providers of ingredients, components, packaging, and labor.
Failure to comply with these sustainability and social accountability commitments and requirements can have broad ramifications – such as governmental agency enforcement (e.g., enforcement actions brought by the FTC or National Advertising Division for making unfair and deceptive environmental advertising claims), lawsuits (e.g., for failure to comply with New York’s proposed Fashion Act), loss of customers and licensing rights due to breach of contract claims, and other negative impacts to overall brand reputation, to name a few. So regardless of where you are in the supply chain, it will be challenging but important to have robust programs to keep up with the changing regulatory, contractual, and market requirements. In addition to monitoring and ensuring compliance with your reported sustainability and ESG commitments and existing laws and regulatory requirements, some other measures companies should consider:

Stay abreast of upcoming relevant legislation and regulatory requirements and restrictions and consider and plan for how they may affect your business;


Ensure robust processes to inventory all chemicals used in products and identify those chemicals to limit, phase out or prohibit in advance of regulations;


Inventory relevant contractual requirements and commitments and track execution of such obligations;


Assess supply chain contracts to ensure relevant requirements and commitments are passed through to suppliers;


Confirm compliance with commitments, both internally and within supply chain; conduct periodic auditing of operations and contract performance; require routine verification; and confirm execution of corrective measures to address non-conformances.

Those companies who monitor and plan ahead, including by implementing strong compliance programs, will be best suited to ride the ever-expanding sustainability wave, bolster market strength, and ultimately grow and protect brand reputation.


© 2022 Foley & Lardner LLPNational Law Review, Volume XII, Number 90 

Netherlands

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MVO Nederland 

OUR MISSION IS TO ACCELERATE THE PRACTICAL AND SCALABLE IMPLEMENTATION OF THE CIRCULAR ECONOMY

At Circle Economy, we believe in a visionary future for our planet — one in which we do not have to compromise in order to achieve economic, social, and environmental prosperity. As an impact organisation, we connect and empower a global community to create the conditions for systemic transformation. With nature as our mentor, we work alongside businesses, cities and governments to identify opportunities to make the transition to the circular economy, and provide a powerful combination of practical and scalable solutions to turn these opportunities into reality.
‍
Our mission is to empower a global community of businesses, cities and governments to accelerate the transition to the circular economy through practical and scalable insights and solutions that address humanity’s greatest challenges.

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Circle Economy

Netherland Circulair

The Dutch Ministry of Infrastructure and Environment and the RACE Program (Realising the Acceleration towards a Circular Economy) consortium have put forward tools, guidelines, and frameworks to educate municipalities, businesses, consumers about high-value reuse and recycling of products, including cars and vehicles components. The initiative identified knowledge, technology, market, legal and culture barriers and developed a Product Reuse Framework to identify opportunities.&nbsp; With this report of the RACE Theme 2 program, Circle Economy and MVO Nederland have defined high-value reuse and developed the beginnings of tools and resources that can be disseminated to the broader business community, society, and policy makers.