Circularity Gap Report 2025: progress stalling

Circularity declining

The global Circularity Metric, which measures the share of secondary materials in total material consumption, has dropped to just 6.9%, down from 7.2%. This means over 93% of materials used globally are still virgin resources, despite years of policy focus on recycling and reuse. The main culprit? Soaring material extraction. Global use of resources now surpasses 100 billion tonnes annually and is projected to rise by 60% by 2060 if current trends persist.

The built environment

The report identifies stock accumulation—such as in buildings and infrastructure—as both a challenge and an opportunity. Currently, 38% of materials go into new stock. While material-intensive, these stocks can serve as future “urban mines”, offering recoverable resources—if circular design is embedded now.

Renewable is not always circular

The report adds nuance to the role of biomass. Although 21.5% of materials are from carbon-neutral biomass, the report warns that “renewable” does not equal “sustainable.” Monoculture practices and soil degradation remain risks. Catalisti’s bioeconomy stakeholders must focus on regenerative models, circular nutrient cycles, and land-use efficiency.

Decarbonisation too Slow

While electrification is increasing, energy demand is growing faster, and fossil fuels still make up 82% of primary energy. The report stresses the need to restructure systems—not just replace inputs. Circular design in energy systems, durable equipment, and reuse at both the product and system levels will be essential.

Urgency

Governments must set clear targets and enable collaboration, but businesses don’t need to wait. For companies in the Catalisti ecosystem, this means a renewed focus on the ‘Circularity and Reseource Efficiency‘, a pillar of Catalisti's innovation agenda. Topics include:

• Plastics sorting, separation and purification​

• mechanical recycling of plastics​

• chemical recycling of plastics​

• valorisation of side streams from chemical industry ​

• closing the water loop​

More generally companies can benefit from the following strategies: 

• Adopting closed-loop production models

• Building localised and resilient supply chains

• Shifting toward service-based revenue models

• Measuring and communicating circularity performance

• Engaging in industrial symbiosis— and engaging in Catalisti’s open innovation program

These strategies not only reduce environmental impact but also mitigate risks from resource scarcity and geopolitical tensions.

Accelerate innovation

The message for Flanders’ innovators is clear: we’re not yet on the right track, but we know where the tracks are. For industry leaders the time to scale circular innovations is now. From high-value recycling to smart material design and sustainable feedstocks, the Catalisti network can lead by example actively shaping the circular economy.

Read the complete Circularity Gap Report 2025 here: circularity-gap.world