Circle Economy Report Highlights €25.4 Trillion Annual Loss Due to Linear Economic Practices
Circle Economy, in collaboration with Deloitte Netherlands, has released its updated Circularity Gap Report for 2026. The report reveals that the global economy loses more than €25 trillion annually due to wasteful, linear approaches to material and energy use. This loss is attributed to structural and systemic issues within current economic frameworks that prioritize output over sustainability. The report identifies five key areas of value loss: processing losses, energy losses, food losses and waste, end-of-life waste, and consumption of fixed capital. End-of-life waste alone accounts for €10 trillion in losses, as products are discarded prematurely without recycling or reuse. The report advocates for a shift towards circular economic practices to unlock significant financial value and enhance productivity, supply chain resilience, and ecological protection.