< PreviousWe design recycling supply chains where materials are collected, recycled and returned to producers to use as recycled content in new products and packaging. Through our material traceability system and composition audits, producers have visibility to the regulatory recovery performance of each material category. We engage in strategic initiatives and actively collaborate with leading industry experts to create a more circular economy across Canada and improve recycling rates.Circular Economy 12 CIRCULAR ECONOMY MAGAZINEFEATURE This year’s Canadian Circular Economy Summit (CCES) centres on the theme, “Tackling Canada’s Biggest Challenges Through a Circular Economy.” From addressing critical issues like resource scarcity, economic resilience, social inequality, and climate action to unlocking innovative solutions in waste management, infrastructure, and community wellbeing, CCES 2025 will showcase how circular approaches can drive transformative change across sectors and industries. Explore insights and inspiring success stories that demonstrate the power of circularity in creating a sustainable and prosperous future for Canada. APRIL 2025 • ISSUE 01 13Seven Megatrends Driving the Global Circular Economy By: Paul Shorthouse, Managing Director of Circular Economy Leadership Canada, and Jo-Anne St. Godard, Executive Director of Circular Innovation Council T he concept of a circular economy has gained signifi cant momentum in recent years as a sustainable alternative to the traditional linear economy, which operates on a “take-make-waste” model. In contrast, the circular economy model focuses on extending product life cycles, minimizing waste, and promoting the reuse, repair, and recycling of materials. As the world grapples with resource deple- tion and environmental degradation challenges, businesses, governments, and consumers are increasingly turning to the circular economy model for solutions. For example, the 2024 Circularity Gap Report suggests that the circular economy has reached megatrend status, with the volume of discussions and articles on the concept nearly tripling over the past fi ve years. While signifi cant action is still needed, these seven major trends are currently driving the interest, growth, and adoption of climate-smart circular economy activities. ● Urban mining. 14 CIRCULAR ECONOMY MAGAZINEIncreasing Awareness of Environmental Impact One of the primary forces behind the rise of the circular economy is the growing awareness of the environmental conse- quences of the linear economic model. Major global challenges such as climate change, biodiversity loss, ocean pollution, and the depletion of natural resources have brought environmental sustainability to the forefront of public discourse. As a result, businesses and consumers are becoming increasingly conscious of the need to reduce their environmental footprints. Th e principles of a circular economy off er a promising solution to these issues by minimizing waste, reduc- ing carbon emissions, and promoting the responsible use of resources. For example, circular economy strat- egies are essential for achieving net-zero targets as they consider greenhouse gas (GHG) emission reduction opportunities across a product's entire life cycle, including those related to upstream supply chains and raw materials, use phases, and end-of-life treatment, which include 45% of global GHG emissions that come from how products are manufactured and used. From an environmental perspective, 90% of loss results from resource extraction and processing. Governments and international organizations are also critical in raising awareness and creating the regulatory frameworks necessary to support the circu- lar economy. Th e European Union (EU), for example, has set ambitious targets for recycling, waste reduction, and sustainable product design through initiatives like the EU Circular Economy Action Plan. Th ese policies infl uence global trends and encourage businesses worldwide to adopt climate-smart circular practices. Advancements in Technology Technological innovations are a corner- stone of the circular economy, particularly in recycling. In recent decades, signifi cant strides have been made in digital and other technologies — such as artifi cial intelligence (AI), sensors, and robotics — making it easier and more cost-eff ective to recover valuable materials from waste streams. Th ese advancements are opening new opportunities for reuse, sortation, recovery, and recycling in industries rang- ing from plastics to electronics, building materials, and textiles. In electronics, technologies like urban mining — the process of extracting valuable metals from electronic waste — facilitate the recovery of precious materials and critical minerals such as gold, silver, copper, nickel, lithium, and cobalt. In the fashion industry, developments in textile recycling, such as chemical recycling processes, enable synthetic fi bres to be broken down and reused. Th ese innova- tions reduce the need for virgin materials and lower the environmental impact of clothing production. Th e circular economy also benefi ts from innovations in next-generation and bio-based materials, which can substitute non-renewable resources and reduce the environmental impacts of products like single-use plastics. Bioplastics, made from renewable sources like corn or algae, are increasingly being used in packaging and product design, off ering a sustainable alternative to traditional plastics. Corporate Sustainability Initiatives Corporate sustainability has become a major trend as companies recognize the fi nancial and reputational benefi ts of embracing circular economy principles. Forward-thinking companies are integrat- ing circularity into their business models, from design to end-of-life management. Many are implementing take-back programs, enabling customers to return products for refurbishment, recycling, or repurposing. Major companies like L’Oréal and IKEA are leading the way in priori- tizing product quality, repairability, reuse, and recyclability. Th e shift toward circularity is driven not only by environmental concerns but also by the economic opportunities it presents. By extending a product’s life, businesses can reduce its material costs and create new revenue streams from secondary markets, such as refurbished goods or recycled materials. Th is approach is particularly important for industries [T]he circular economy has reached megatrend status, with the volume of discussions and articles on the concept nearly tripling over the past five years. APRIL 2025 • ISSUE 01 15that rely heavily on raw materials, like electronics, automotive, and construction. Circular business models are also gaining traction, including product-as- a-service, which enables consumers to lease rather than own products. Th is model incentivizes companies to design long-lasting, repairable products as they retain ownership and responsibility for the product’s life cycle. Companies like Rolls- Royce, Hilti, and Philips have pioneered such models, off ering these services rather than only selling products outright. Consumer Demand for Sustainability Consumers are playing an increasingly important role in driving the circular economy. Th e rise of environmentally conscious consumerism has pressured busi- nesses to adopt more sustainable practices. According to recent studies, Millennials and Generation Z (Gen Z) are particularly concerned with the environmental impact of their products, favouring companies that off er eco-friendly and ethically sourced goods. Th e demand for secondhand goods, recycling programs, and sustainable fashion is growing rapidly. Platforms such as Th redUp, Depop, and Poshmark have tapped into this trend by creating online marketplaces for pre-owned clothing, while brands like Nike and Adidas are exploring ways to recycle old sneakers and turn them into new products. Moreover, consumers are becoming more aware of a product's life cycle and are increasingly seeking products with clear information about their environmental impact, from sourcing to disposal. Th is shift has led to the growth of eco-labelling and certifi cation programs like the Cradle-to-Cradle Products Innovation Institute, which assesses the sustainability of products based on their material health, design for disassembly, and recyclability. Circular Supply Chains Th e transition to a circular economy requires a fundamental rethinking of supply chains. In a linear economy, raw materials are extracted, used to manufac- ture products, and eventually discarded. However, in a circular economy, supply chains are designed to be regenerative, with materials fl owing in closed loops rather than being lost at the end of their life cycle. Circular supply chains are becoming a critical trend as companies seek to source sustainable materials, reduce waste, and minimize their dependence on virgin resources. For example, the automotive industry is turning to remanufacturing, meaning used parts are collected, refur- bished, and resold rather than discarded. In industries like construction and textiles, businesses adopt closed-loop supply chains, where waste products from one production phase are used as raw materials for another. Blockchain technology also enables circular supply chains. By providing transparency and traceability, blockchain can help ensure that materials are sourced responsibly and that products are recycled or disposed of properly at the end of their life cycle. Government Policies and Legislation Government policies and regulations are also infl uencing the transition to a circular economy. In many regions, governments are introducing legislation to reduce waste, increase recycling rates, and promote sus- tainable product design. For example, the EU's Circular Economy Action Plan, adopted in 2020, outlines a comprehensive strategy to reduce the environmental impact of products and services. Key measures include extending product life spans, improving recycling systems, and creating a more circular value chain. Additionally, the EU’s mandatory Corporate Sustainability Reporting Directive, which focuses on the circular economy, drives activities and investments by linking to a region’s sustainable fi nance framework. Countries like Japan and South Korea have long been leaders in The shift toward circularity is driven not only by environmental concerns but also by the economic opportunities it presents. ● Automotive remanufacturing. 16 CIRCULAR ECONOMY MAGAZINEpromoting recycling and waste manage- ment initiatives. Japan's 3R Initiative (reduce, reuse, recycle) and South Korea's strict waste sorting laws exempli- fy how government action can foster a circular economy. Coordinated eff orts to focus government purchasing power through procurement drive demand for circular products and services. Meanwhile, policies and regulations focused on extended producer responsibility (EPR), incentives such as tax breaks for companies that invest in sustainable practices, and fees for those producing excessive waste are increasingly being used to encourage businesses to adopt circular models. The Rise of Circular Cities As urbanization continues to rise glob- ally, local governments are beginning to explore how circular economy principles can be applied at the city level. Circular cities aim to create closed-loop systems for urban resources, where waste is minimized, energy consumption is reduced, and materials are reused. Cities including Amsterdam, Paris, Melbourne, San Francisco, and Montréal are leading the way, with initiatives focusing on waste reduction, sustainable transport, and green infrastructure. For example, Amsterdam has adopted a "circular city" framework that integrates circular economy principles across various sectors, including construction, food, and manufacturing. Th e city has established a roadmap that outlines specifi c targets for waste reduction, recycling, and sustainable product design. In Summary Th e shift toward a climate-smart circular economy is not just a passing trend but a fundamental transformation in how businesses, governments, and consumers interact with the planet’s resources. Th e key trends driving this movement — rising environmental awareness, next- generation technology and materials advancements, corporate sustainability initiatives, changing consumer preferences, circular supply chains, supportive policies, and circular cities — converge to create a more sustainable, resilient global economy. As these trends continue to develop, the promise of a circular economy becomes increasingly achievable, paving the way for a more sustainable and equitable future. Paul Shorthouse circulareconomyleaders.ca/team/ paul-shorthouse linkedin.com/in/paul-shorthouse Circular Economy Leadership Canada circulareconomyleaders.ca facebook.com/ CircularEconomyLeaders linkedin.com/company/ circular-economy-leaders x.com/CELeadershipCA (@CELeadershipCA) Jo-Anne St. Godard linkedin.com/in/jo-anne-st-godard Circular Innovation Council circularinnovation.ca facebook.com/ CircularInnovationCouncil instagram.com/ circularinnovationcouncil (@circularinnovationcouncil) x.com/circularonline (@CircularOnline) linkedin.com/company/ circularinnovation Circular cities aim to create closed-loop systems for urban resources, where waste is minimized, energy consumption is reduced, and materials are reused. ● Preserving history and fostering reconciliation, the Little Yellow School House was rescued from demolition through a partnership with the Squamish Nation (S ḵ wx̱wú mesh Úxwumixw), Renewal Development, and Nickel Bros. APRIL 2025 • ISSUE 01 17L e travail des agents et des agen- tes de changement se déroule souvent de manière isolée. Cependant, pour faire progresser l’économie circulaire plus effi cacement, avec une approche durable et équita- ble, nous devons aborder les enjeux sous tous leurs angles, à travers toute la chaîne de valeur. Nous avons discuté avec Daniel Normandin, Directeur du CERIEC et Directeur exécutif du RRECQ, de la manière dont les laboratoires d’accélération et les projets d’expéri- mentation qui en découlent mènent à des solutions concrètes, testées sur le terrain, pour accélérer la transition du Québec : un modèle pouvant être reproduit partout en Amérique du Nord. Comment le CERIEC et le RRECQ soutiennent-ils l’écosystème d’innovation du Québec et font-ils progresser l’économie circulaire ? Basé à l’École de technologie supérieure (ÉTS), une école d’ingénieurs située à Montréal, le CERIEC est un centre de re- cherche dont les membres-chercheur.euse.s sont issu.e.s de tous les domaines du génie. Au CERIEC, l’innovation est intimement liée à son principal dispositif de recherche appelé « laboratoires d’accélération sectori- els en économie circulaire », lequel repose sur le concept de « laboratoires vivants ». En vertu de cette approche, les expert.e.s du CERIEC mobilisent et animent des acteur.trice.s clés d’un secteur donné dans la totalité de sa chaîne de valeur. De concert avec des chercheur.euse.s de diverses disciplines et sous la supervi- sion des expert.e.s du CERIEC, les acteur. trice.s concerné.e.s développent une vision commune de ce même secteur « plus cir- culaire » à l’horizon de 2040. Les barrières et les freins à cette vision sont ensuite co-identifi és et les solutions pour lever ces freins sont cocréées avec l’ensemble des parties prenantes. Ces solutions sont testées sur le terrain via des projets d’expérimentation. Elles peuvent être technologiques, règlemen- taires ou autres. Les connaissances ainsi générées sont, tout au long du processus, transférées vers les utilisateurs et accessibles en fi n de projet sur une plateforme ouverte. Trois secteurs sont actuellement investis via ce dispositif, soit les secteurs de la con- struction, des systèmes alimentaires et des textiles. L’ensemble de ces labs constitue un écosystème appelé « ELEC » (Écosystème de laboratoires d’accélération en économie circulaire). D’autres secteurs économiques clés seront également abordés au cours des mois et des années à venir. Pour sa part, le RRECQ regroupe plus de 300 chercheuses et chercheur.euse.s universitaires et collégiaux.ales mem- bres issu.e.s de plus d’une soixantaine de disciplines, provenant du Québec, mais également d’universités hors Québec et hors Canada. Reconnu comme étant le plus import- ant réseau de recherche interdisciplinaire en économie circulaire au monde (selon la Fondation britannique Ellen MacArthur) et soutenu par les Fonds de recherche CERIEC Tester des solutions concrètes pour l’économie circulaire au Québec et au-delà FR 18 CIRCULAR ECONOMY MAGAZINE ● Atelier de cocréation mené dans le cadre de l’ELEC. APRIL 2025 • ISSUE 01 19Next >