By 2050, the global population is estimated to reach 9 billion, 55% of which will be living in cities. The pressure on natural resources will increase, while new infrastructure, services and housing will be needed. Cities already represent almost two-thirds of global energy demand, produce up to 50% of solid waste and are responsible for 80% of greenhouse gas emissions. Levels of municipal solid waste are projected to double by 2050.
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Today, cities demand almost two-thirds of global energy, produce up to 80% of greenhouse gas emissions and 50% of global waste. The circular economy is based on three principles: i) design out waste and pollution; ii) keep products and materials in use; and iii) regenerate natural systems. It can provide a policy response to tackle these challenges, as a driver for economic growth, jobs and environmental quality.

Key messages
While the circular economy is expected to be beneficial for the environment, projections suggest that shifting from a linear “take, make, dispose” approach to a circular system could have as much as USD 4.5 trillion in potential for economic growth by 2030. The circular economy could be worth as much as USD 700 billion in global consumer good material savings. With activities such as repair, maintenance, upgrading, remanufacturing, reuse, recycling and product-life extension being more labour-intensive than the extractive and manufacturing activities of a linear economy, the circular economy is also likely to provide job creation opportunities.?
Achieving this requires going beyond solely technical aspects. It requires setting the right governance framework and enabling environment. The 3Ps framework (“people”, “policies” and “places”) argues that the circular economy implies a shift towards sustainable production and consumption pathways as well as new business and governance models (people). It also requires a holistic and systemic approach that cuts across sectoral policies, and a functional approach going beyond the administrative boundaries of cities and linking them to their hinterland and rural areas to close, narrow and slow loops at the right scale (places).
Policy dialogues
Benchmarking and Monitoring
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Working paper27 June 2024
Context
What to do? Promote, Facilitate and Enable!
Cities and regions have a key role to play as promoters, facilitators and enablers of circular economy. The OECD Checklist for Action identifies 12 governance dimensions as key conditions for the transition to the circular economy. The OECD Scoreboard on the Governance of the Circular Economy helps governments to self-assess existing enabling conditions for a circular economy, identify challenges and set priorities towards a more effective, efficient and just circulareconomy transition.
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What can the OECD offer?
The OECD?Programme?on the?Circular Economy in Cities and Regions supports cities and regions in their transition towards a circular economy through multi-level dialogues to identify challenges and opportunities; peer-to-peer learning and key indicators for decision making and evaluation of circular economy strategies. OECD cases studies highlight the need for place-based circular economy policies.

The OECD Roundtable on the Circular Economy in Cities and Regions
The Roundtable brings together key circular economy stakeholders from cities, regions, national governments, business, academia and international organisations to share knowledge, experience and best practices.
- Highlights of the 7th OECD Roundtable on the Circular Economy in Cities and Regions?(15 April 2025)
- Highlights of the 6th OECD Roundtable on the Circular Economy in Cities and Regions?(18 April 2024)
- Highlights of the 5th OECD Roundtable on the Circular Economy in Cities and Regions?(5-6 June 2023)
- Highlights of the 4th OECD Roundtable on the Circular Economy in Cities and Regions?(12 April 2022)
- Highlights of the 3rd OECD Roundtable on the Circular Economy in Cities and Regions?(18-19 May 2021)
- Highlights of the 2nd OECD Roundtable on the Circular Economy in Cities and Regions?(31 March 2020)
- Highlights of the 1st OECD Roundtable on the Circular Economy in Cities and Regions?(4 July 2019)

Related publications
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Working paper27 June 2024
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Contact
Please contact Oriana Romano, Head of Unit, Water Governance, Blue and Circular Economy: