Circular economy - waste and materials

The use of raw materials from natural resources and the related production and consumption processes have environmental, economic and social consequences in countries and beyond national borders. The intensity and nature of these consequences depend on the kind and amounts of natural resources and materials used, the stage of the resource cycle at which they occur, the way the material resources are used and managed, and the type and location of the natural environment from where they originate. Main concerns relate to the pressures exerted on natural assets, the associated negative environmental impacts (upstream and downstream) from the extraction, processing and use of materials, and the potential impact from inappropriate waste management on human health and the environment such as soil and water pollution, air quality, climate change, degradation of natural habitats and ecosystems.

• A broadening of the scope of waste management policies in line with the waste hierarchy, which ranks waste prevention as the most preferred option that can be encouraged through eco-design, reuse, repair, refurbishment, re-manufacturing, and extended producer responsibility schemes (see figure).

• Integration of policies on materials, product and chemicals management, and use of life-cycle oriented waste and materials and product management and related policies.

Examples include 3R policies (reduce, reuse, recycle), sustainable materials management, sustainable manufacturing, resource efficiency and circular economy policies. Waste prevention can be encouraged through eco-design, reuse, repair, refurbishment, re-manufacturing, and extended producer responsibility (EPR) schemes.

Moving towards a resource efficient and circular economy is critical from both supply security and environmental perspectives and provides the basis for a sustainable and competitive economy. It is the way to ensure adequate supplies of materials; to manage the environmental impacts associated with their lifecycle and supply chain; and to make sure that natural resources are not degraded and remain available for future generations. Establishing a circular economy with improved waste and materials management further helps addressing the issue of microplastics in the environment and marine litter. Recovering materials from waste streams for recycling or reuse, using products longer and increasing the use intensity of goods through sharing economy approaches like car-sharing are some of the areas in which circular business models are operating. A circular economy seeks to:

• maximise the value of the materials that circulate within the economy;

• minimise material consumption, paying particular attention to virgin materials, hazardous substances, and waste streams that raise specific concerns (such as plastics, food, electric and electronic goods);

• prevent waste from being generated;

• reduce hazardous components in waste and products.

The waste hierarchy

Source: OECD based on various other sources.

Agreements and regulations on waste in general and transfrontier movements of hazardous waste in particular, include directives of the European Union, OECD Decisions and Recommendations and the Basel Convention that was amended in 2019 to cover plastic waste. G8 and G7 countries further adopted several plans and strategies related to the resource cycle, resource productivity and life-cycle based materials management. Resource efficiency was part of the G20 agenda in 2017.

During the 1990s, municipal solid waste generated in the OECD area has risen mostly in line with private consumption expenditure and GDP. As of the mid-2000s, this rise has been slowing down. The amount and composition of municipal waste vary widely among OECD countries; this is linked to levels and patterns of consumption, urbanisation rates, income levels, lifestyles, and national waste management practices.

In 2021, the quantity of municipal solid waste generated exceeded an estimated 730 million tonnes. A person living in the OECD area generates about 534 kg of municipal waste per year; this is 39 kg more than in 1990, but 9 kg less than in 2000. On average, Europeans generate less than people living in the Americas, but more than people living in the OECD Asia-Oceania region. It is estimated that worldwide, about 2 billion tonnes of municipal waste were generated in 2016 (about 270kg per person) and that this number will continue to grow (World Bank, 2019, What a Waste 2.0).

More and more waste is being diverted from landfills and incinerators and fed back into the economy through recovery and recycling. Mechanical and biological pre-treatment is increasingly used to facilitate recovery, enhance incineration efficiency, and reduce the amounts being landfilled. Manufacturers and importers are increasingly encouraged or required to accept responsibility for their products after the point of sale, through so-called “extended producer responsibility” or “product stewardship”. The European Union, Japan and other countries have introduced recycling targets and monitor progress through indicators.

The share of municipal solid waste landfilled in the OECD area has decreased from an estimated 53% to 40% between 2000 and 2021, with some countries no longer using landfills (Switzerland, Germany, Denmark, Finland, Sweden and Japan). Yet landfilling remains the main waste disposal method in several countries (e.g. in the OECD America region).

The recovery of waste through recycling, composting and incineration with energy recovery shows an encouraging increase since 2000 across the OECD area. Several countries now recycle more than one third of the municipal waste they manage (Belgium, Denmark, Germany, Korea, Latvia, , Slovenia).

Waste from electrical and electronic equipment (i.e. e-waste) is one of the fastest growing and most complex waste streams in the world, affecting both human health and the environment, and proliferating a loss of valuable raw materials. The amount of per capita electronic equipment put on the market, related e-waste generated, electrical and collected in the past decade, has been steadily increasing in almost all OECD countries. Per capita values for materials put on the market is particularly high (over 30 kg/capita) for countries such as Australia, Austria, Denmark, France, Germany, Iceland, the Netherlands and Norway. Only a fraction of the e-waste generated is collected. For example, while 27.6 kg/capita were put on the market in 2020 in the European Union, only 10.5 kg/capita were collected. Rates of recycling vary across countries and are only available for European countries in recent years. Rates of recycling in European countries vary between 62% and 92% of the per capita collected e-waste, resulting in low rates of recycling compared to the amounts generated. It is estimated that worldwide only 17.4% of 2019’s e-waste was collected and recycled (ITU, 2020).

Municipal solid waste is only a small share of total waste generated (about 10%), but its management and treatment often represents more than one-third of public sector financial efforts to abate and control pollution.

The definition of municipal waste, the types of waste covered and the surveying methods used to collect information vary from country to country and over time. The main problems in terms of data comparability relate to the coverage of household-like waste from commerce and trade, and of separate waste collections that may include hazardous waste from households such as waste batteries or waste electric and electronic equipment (WEEE) and waste collected by the private sector in the framework of extended producer responsibility schemes.

Electronic waste, or e-waste, refers to all items of electrical and electronic equipment (EEE) and its parts that have been discarded by its owner as waste without the intent of re-use. E-waste is also referred to as WEEE (Waste Electrical and Electronic Equipment), electronic waste or e-scrap in different regions and under different circumstances in the world. It includes a wide range of products - almost any household or business item with circuitry or electrical components with power or battery supply.

For further details see the metadata in the source databases listed under Sources below.

DMC per capita decreased in most OECD countries since 2000. In some countries, such as the Baltic countries, per capita material consumption increased driven by economic growth and infrastructure development associated with a declining population. Overall, the levels of material consumption per capita remain higher in the OECD area (about 15 tonnes per person per year) compared to other world regions. However, in the coming decades growing populations with higher incomes and living standards will drive a strong increase in global demand for goods and services. Material consumption per capita in emerging and developing economies is thus expected to grow faster than in the OECD region.

Since 2000, the vast majority of OECD countries experienced improvements in material productivity (expressed as the amount of economic value generated per unit of materials used). OECD countries generated USD 2.9 per kg of materials consumed in 2017, compared to USD 2 per kg in 2006 (USD in 2015 constant PPP). This progress reflects efficiency gains in production processes, as well as changes in the materials mix and substitution of domestic production by imports. It also reflects a decreasing demand for materials following the 2008 financial crisis. In many countries, domestic material consumption decreased following the 2008 financial crisis and remained relatively stable afterwards while economic growth resumed.

When accounting for all materials needed to satisfy final demand in OECD countries, i.e. including materials extracted abroad and embodied in imported goods (i.e. a demand-based measure), progress is more modest. The per capita material footprint, is generally higher than DMC per capita. Countries with high import rates and high-income levels show higher material footprints.

The data presented here refer to the mass of materials or substances produced from renewable and non-renewable natural resource stocks, used as inputs into human activities, and the products that embody them. Data coverage and completeness vary by variable and by country. In general, caution needs to be exercised when drawing conclusions based on country-level data. Although considerable progress has been made in the past decade to set up material flow accounts, missing information, including on physical flows of international trade and on secondary (recycled) raw materials, and a lack of consensus on conversion factors limit the calculation of some material flow indicators at the international level.

For further details see the metadata in the source databases listed under Sources below.