The 15 circular steps for cities – Second edition

Why a circular economy? 
With a quickly growing global population and prosperity, the increasing consumption and 
related extraction of often scarce and finite resources is unsustainable. This prompts a shift 
from our current linear take-make-use-dispose production and consumption approach to a 
more circular economy, where we maximise the use and utility of resources, products and 
assets, and minimise resource consumption and wastage in all forms. 
In its most simple form, the circular economy transition can be depicted in the following way. 

The transition to a circular economy not only conserves resources, but also reduces 
environmental and climate impacts. At the same time, it fosters innovation and thereby 
increases competitiveness and creates new jobs. 
While this approach may seem new and revolutionary, the “Waste Not” mantra of the circular 
economy was a central principle in our society until the industrial revolution introduced a culture 
of mass production, consumption and disposal. In a sense, the transition to a circular economy 
therefore involves going forward to the past.

What problems are facing cities today? 
On a global scale, cities use about 1% of the land area, and house about 55% of the world 
population (almost 75% in Europe). With increasing urbanisation, the share of the population 
living in cities is expected to increase to 70% on a global scale by 2050, and up to 85% in 
Europe. 
Cities generate about 85% of global GDP. In doing so they consume about 70% of global 
resources and 70% of all energy generated. Furthermore, they emit 70% of all greenhouse 
gases and generate about 50% of all waste. Cities also waste assets, resources, utilities, space 
and time. For example, a car is parked more than 90% of the time on average, 30% of food is 
wasted, and the average office is used only 35-50% of the time. 
Therefore, many cities suffer from so-called linear externalities, for example emissions to air 
and water, noise and congestion. They are also exposed to the linear risks related to increased 
demand for resources and diminishing supplies. This shows that linear cities are not 
sustainable, and makes a good case for change. 

Why are cities relevant in the circular transition? 
Cities have a density and concentration of producing businesses and consuming citizens that 
generate material and resource flows with circular potential. Most cities also have a scale that 
on the one hand enables quick decisions, building on the autonomous power to regulate and 
incentivise, and on the other hand is large enough to enable the establishment of new circular 
city functions and services, and circular business models. Cities also have infrastructure, 
utilities and services with circular potential.

The 15 circular steps for cities – Second edition