G20 members can unlock economic, environmental, and social benefits by transitioning to the circular economy
As stewards of over 80% of global GDP, G20 members have both the responsibility and opportunity to lead the transition to a circular economycircular economyA systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature.. Momentum has been building, with the circular economy being included in multilateral discussions and debates.
The G20’s Environment and Climate Sustainability Working Group (ECSWG) has played a central role in driving this agenda forward, providing a platform for cooperation, technical exchange, and aligned policy development. By advancing aligned, inclusive, and ambitious policy action, the G20 can help shape a just, circular, and climate-resilient global economy that protects biodiversity and regenerates natural ecosystems.
The Ellen MacArthur Foundation has supported the ECSWG since the circular economy was first brought into the G20 agenda. Our contributions include co-authoring the T20 policy brief on plastic pollution with IEEP under Germany’s Presidency (2017), presenting at the G20 Resource Efficiency Dialogue during Japan’s Presidency (2019), and supporting the innovative concept of an inclusive circular economy and the addition of circularity among the bioeconomy principles during Brazil’s Presidency (2024).
This year, the Foundation was invited as Knowledge Partner of the G20 ECSWG, deepening its collaboration through a major contribution to South Africa ’s Presidency. In this role, the Foundation co-authored the Technical Paper on Circular Economy and Extended Producer Responsibility, working closely with the Presidency, G20 members, and policy experts. The paper presents an ambitious pathway for the G20 to unlock economic, environmental, and social opportunities by accelerating the circular economy transition, and highlights technology, finance, and capacity-building as key enablers that G20 members are well-positioned to foster.
“This technical paper highlights the circular economy as a source of economic and social opportunity. As the G20 holds a pivotal role in the global economy, it has both the responsibility and the opportunity to lead the transition towards a more circular, resilient, and climate-neutral future.”
Jocelyn Blériot, Executive Lead for Policy and Institutions at the Foundation
By redesigning production and consumption systems, and integrating circular economy approaches in climate and biodiversity agendas, the paper outlines how G20 countries can ensure policy coherence and foster new forms of value creation that strengthen the relationship between the economy, people, and the environment, supporting more resilient growth. Based on a design-led approach, the circular economy addresses pressing global challenges — such as the triple planetary crises of waste and pollution, climate change, and biodiversity loss — by eliminating waste, keeping materials in use, and regenerating natural systems.
Five recommendations for ambitious action
Developed in collaboration with the Department of Forestry, Fisheries and the Environment of the Government of South Africa, and with contributions from G20 members, UNEP, UNOPS, OECD, and over a dozen international organisations, the paper aims to lay the groundwork for ambitious future discussions. It provides key recommendations for a comprehensive policy approach to truly unlock the economic, environmental, and social benefits of the circular economy.
To guide the G20 beyond fragmented efforts and accelerate a just and inclusive transition, the technical paper proposes to:
Strengthen international policy coherence: Align circular economy frameworks through multilateral platforms.
Target high-impact sectors: Use tailored policy packages with design standards, market incentives, investments, monitoring systems, and infrastructure.
Embed circularity in innovation and industrial strategies: Advance enabling technologies and public-private partnerships.
Align financial systems with circular economy goals: Use fiscal measures, subsidy reform, and instruments like circular public procurement and blended finance.
Support inclusive capacity-building and institutional cooperation: Invest in skills and foster cross-sector collaboration through multistakeholder and multi-level government approaches.
Extended Producer Responsibility: A dual opportunity
The technical paper includes a deep dive into Extended Producer Responsibility (EPR), which has emerged as a promising policy instrument to advance the circular economy and the G20’s sustainable development objectives. By shifting financial and operational responsibility to producers, EPR not only provides the funding for end-of-life treatment but also incentivises companies to design products that are more durable and recyclable. Well-designed EPR systems must drive upstream change, incentivising circular product design, and be part of a broader policy mix.
The technical paper includes three key recommendations for designing and implementing effective EPR schemes:
Promote shared design principles: Implement mandatory fee-based models, eco-modulated fees, clear performance targets, transparent governance structures, and enforcement mechanisms.
Embed inclusivity and local context: Recognise the vital role of informal workers and SMEs, and include them in the design and implementation of EPR policies.
Enhance global material traceability: Use digital systems, shared tracking protocols and data infrastructure to increase accountability and transboundary cooperation.
