Circular economy as crisis response: A primer

Abstract

The early 2020s have been characterized by multiple convergent crises, including the Covid-19 pandemic and economic fallout of mitigation measures, Russia's invasion of Ukraine, and the ongoing sustainability and climate change crisis. This article discusses how the concept of the circular economy can inform responses to such crises by addressing four elements of a socio-economic system: technological innovation, supply chains and markets, public policy, and consumer behaviour. Synthesizing emerging insights from the scholarly and policymaking arenas, the article identifies the following ways that the circular economy concept can be effectively framed as crisis response: focusing on circularity in a more holistic way, adopting global value chains as the primary unit of analysis, pinpointing specific circularity aspects like drivers and barriers in value chains and business models, and extending the prevailing focus on technical aspects and material flows to often overlooked trade and geopolitical considerations. This discussion aims to articulate lessons for industry, policymakers, and scholars in leveraging a circularity approach to address the world's most pressing issues.