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Growth Within: study reveals results of applying circular economy principles to Germany

January 25, 2016
Dr Martin R Stuchtey of McKinsey Center for Business and Environment presents the research findings in Berlin
Dr Martin R Stuchtey of McKinsey Center for Business and Environment presents the research findings in Berlin

Analysis from the report Growth Within: A circular economy vision for a competitive Europe, applied specifically to Germany, indicates that putting circular economy principles into practice could lead to a 25% reduction in German households' food, housing and mobility costs by 2030, and 0.3% higher annual GDP growth, compared with the current linear path.The results were presented in Berlin today by the Ellen MacArthur Foundation, McKinsey Center for Business and Environment, and SUN (Stiftungsfonds für Umweltökonomie und Nachhaltigkeit), at a meeting of business leaders and policymakers who included German Secretary of State for energy and the economy, Matthias Machnig. The meeting was hosted by the German Academy of Science and Engineering, Acatech.

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The original research, which was launched in June 2015 at the European Commission stakeholder conference on the circular economy, found that by adopting circular economy principles, Europe would take advantage of the impending technology revolution to create a net benefit of €1.8 trillion by 2030, or €0.9 trillion more than in the current linear development path. This would be accompanied by better societal outcomes including an increase of €3,000 in household income, a reduction in the cost of time lost to congestion by 16%, and a halving of carbon dioxide emissions compared with current levels.

The German-specific analysis found that due to its high resource dependency, and its innovative and highly integrated services industry, Germany is well positioned to benefit disproportionately from moving towards a circular economy.

Download the full presentation (in German)

Read the full report Growth Within: A circular economy vision for a competitive Europe (in English)