Circular cities – making progress or going round in circles? 

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About the OECD #ResilientPlaces blog series 
In an era of unprecedented economic, environmental and geopolitical changes, local and regional leaders are uniquely placed to turn these changes into opportunities to improve the well-being of all citizens, strengthen resilience and boost competitiveness. Following the OECD Regional Development Policy Ministerial Committee meeting in Warsaw, Poland (19–20 May 2025), the OECD Champion Mayors, local and regional leaders, as well as stakeholders, continue to share innovative solutions to reinforce local and regional resilience in this blog series.

Cities were at the forefront of the industrial revolution. Two centuries later, urban centres are once again poised to lead a new economic transformation – the shift to a circular economy. 

Cities’ colossal consumption 

From high ceilings featuring steel beams to glass-roofed workshops tucked away in paved courtyards (and the occasional faded but oh-so-poetic enamel sign), industrial remnants are now sought after features for residential and retail properties of advanced economies. 

On the other side of the world, megacities whose development was more recently fuelled by the offshoring of Western industry have integrated factories, office space and public infrastructure into one giant, perpetually buzzing ecosystem.  

Both speak to the colossal power wielded by cities to reshape our world and way of life. Yet cities also require colossal amounts of resources to function. Cities cover just 2% of the Earth’s surface but consume about 75% of its resources, are responsible for over 50% of solid waste and emit up to 60% of greenhouse gases.  

Cities hoover up materials, whether raw or in the form of finished products… and leave behind a trail of waste. Some cities spend up to 20% of their municipal budget on waste management alone while grappling with air pollution, residual heat, and a lack of green space. 

Cities are leaping ahead of national governments 

Circular economy practices can be a key mitigation strategy for cities, combining resource efficiency, energy transition and nature-positive impacts. And they are proving popular – with cities moving ahead of national governments in seizing the opportunities. Paris adopted its circular economy roadmap in 2017 – two years before France’s national strategy was published. 

Europe was a first mover in embracing the circular economy and is now looking to embed approaches through integrated governance tools, spatial planning, and city-wide infrastructure for reuse. 75% of the 64 cities and regions surveyed for the OECD’s report on the Circular Economy in Cities and Regions of the European Union have a circular economy initiative (e.g. a strategy, plan, programme, road map, etc.) in place.

Meanwhile, cities outside Europe are rich in pilot programmes and sector-specific innovations across food systems, building materials and mobility.

Circular cities around the world 

Latin America is very active on the circularity front, and Brazil recently adopted its first comprehensive CE legislative package… yet at municipal level, circular economy activities have been flourishing for years. Belo Horizonte’s Computer Reconditioning Centre (CRC) is a government established electronics remanufacturing facility that reduces electronic waste and tackles youth unemployment. 

Citizens from low-income communities are trained to restore donated post-use IT equipment. This refurbished equipment goes on to support over 300 ‘digital inclusion sites’. Operated by the city, these sites offer free access to computers and the internet as well as varied training opportunities in basic digital literacy.  

Since the Belo Horizonte CRC launch in 2008:  

  • 7 000 post-use IT products (CPUs, monitors, printers) were restored in the first nine years of the initiative and offered to digital inclusion sites and similar initiatives. 
  • 15 000kg of post-use electronics have been diverted from landfill every year on average, since 2008. 
  • 10 446 citizens have been trained in basic technological skills, environmental education, and computer remanufacturing. 

In Europe, London – one of the poster children of early industrialisation – has been an early adopter of circular practices. The Business Transformation programme of the ReLondon initiative (umbrella framework for the city’s circular agenda) has helped over 350 SMEs become more circular – 74% of which are female-led or shared ownership, and 37% of which are led by individuals from Black, Asian or minority ethnic groups (compared to a national representation of 6% for small business owners). It has also:  

  • Offered more than 6 000 hours of support to both innovators and established businesses and helped secure over GBP 5 million worth of capital for circular businesses across both private and public funds.  
  • Supported the creation or safeguarding of around 600 jobs. 
  • Supported the launch of more than 80 circular products, processes or services. 

By transforming waste challenges into business opportunities, the work of the programme also contributes to meeting London’s goal of zero waste to landfill by 2026. 

In Asia, Japan has been at the forefront of CE practices since it established its materials flows mapping programmes in the early 2000s, and the framework of the “Sound Material Cycle Society”.

At municipal level, Tokyo’s 2050 strategy is closely linked to its circular economy programmes, while Kyoto’s city government set a 50% reduction target for food loss and waste by 2030 in line with SDG targets and engaged businesses and customers to cut waste.

Initiatives that have driven waste reductions include awareness campaigns and a recipe scheme in conjunction with a major local condiments manufacturer (Mizkan), encouraging customers to buy and use food close to its expiry date. This collaboration alone reduced food waste by 41 000 tonnes. 

The next step will need to be taken together 

Yet to make rapid progress, cities need national governments to work with them. Cities need enabling national frameworks to assess life cycle impacts, set product standards, and implement carbon accounting. Public procurement rules, tax incentives and circular construction standards are also critical national levers that can reinforce local efforts. 

National governments should be inspired by the many examples of cities who have demonstrated what is possible. They are reducing waste, creating jobs, and building resilience – all through circular economy principles.

Now is the time to match their ambition with supportive frameworks that help circular solutions scale – locally, nationally and globally. 

OECD Work

The Circular Economy in Cities and Regions of the European Union

Climate adaptation: Why local governments cannot do it alone

The Circular Economy in Jyväskylä, Finland

OECD Contacts

OECD support for advancing circular urban strategies
The OECD offers essential frameworks and lessons to guide cities on the journey to a circular economy. Core publications include The Circular Economy in Cities and Regions of the European Union, The Circular Economy in Cities and Regions, and The Circular Economy in Tallinn, Estonia, which together outline good practices, governance tools, and place-based policy recommendations for accelerating urban circularity

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Jocelyn Blériot has been with the Foundation since its creation in 2010, after 15 years spent in the media and publishing industry. Initially in charge of editorial matters, overseeing content development and messaging, he now leads the organisation’s institutional engagement, and has overseen the EMF's China office INGO registration process. He manages the relationship with governments and supra-national bodies such as the European Commission, United Nations, G7/20 Resource Alliance, OECD or the World Economic Forum - having been a member of its Global Future Council on Consumption. He represents Dame Ellen MacArthur on the Scottish First Minister's Environmental Council.