The transition to a circular economy is a critical step towards achieving sustainable development and a resilient future for all. It provides a framework that shifts the traditional linear take-make-consume-dispose model towards one that keeps the value of materials in the economy for as long as possible while minimising waste generation. In addressing resource scarcity, environmental degradation and economic inequality, the circular economy offers solutions that are particularly relevant to cities and regions, which are uniquely positioned as hubs of both opportunity and pressure.
This report highlights the pivotal role that cities and regions play in driving the circular economy. Local governments are key to shaping the infrastructure, policies, and partnerships needed for circular practices to thrive. The proximity of city and regional governments to businesses, communities, and ecosystems offers significant advantages in testing innovative solutions, piloting new business models, and scaling up successful circular initiatives. Cities like Berlin (Germany) and Jyväskylä (Finland), along with regions such as the Valencia Region (Spain), among many others, are taking bold steps towards circularity, offering valuable lessons for cities and regions across the globe.
Furthermore, the report highlights the broader policy landscape needed to foster a thriving circular economy, an area that remains largely underexplored in many urban and regional development strategies. As the European Union (EU) continues to prioritise green growth and sustainable development, the circular economy is becoming an integral part of its vision. Initiatives such as the forthcoming Circular Economy Act, the updated Bioeconomy Strategy, and the New European Bauhaus reflect the EU’s growing commitment to embedding circular principles across sectors and territories. These initiatives will help drive demand for circular solutions, support local economies, and encourage innovation in areas such as waste management, energy efficiency, and material reuse.
Five years after the OECD 2020 report on the Circular Economy in Cities and Regions, which provided a first-of-its-kind overview of the circular economy at local and regional levels and proposed a Checklist for Action to drive the circular transition, this report aims to help accelerate the adoption and implementation of circular economy strategies at the local and regional levels.
Looking ahead, the report serves as a call to action for cities and regions to unlock the circular economy in a shared responsibility across levels of government.