Transforming Resource Lifecycles: An Urgent Shift from Linear to Circular (Triodos Bank)

Summary

• More than 100 billion tonnes of resources enter the economy every year, yet only 7.2% get recycled and used again.p.4
• In the European Union in 2020, approximately 2,135 million tonnes of waste were generated, with around 40% going to landfill or incineration without recovery.p.4
• Natural resource extraction and processing make up approximately 50% of the total greenhouse gas emissions.p.4
• If current usage trends continue, demand for raw materials is expected to rise by 60% by 2060.p.6
• Switching to renewable energy will only lead to a 55% reduction in global greenhouse gas emissions; the remaining 45% comes from the way products are made and used.p.7
• Only 12% of the world's population live in North America and Western Europe, but they account for around 60% of all private consumption.p.7

Key insights

1. The circular economy is based on three principles: eliminate waste and pollution, circulate products and materials, and regenerate nature.p.5
2. For successful circular economic actions there is only one metric that counts: less resource extraction.p.5
3. The world population has increased from roughly 1.5 billion to 8 billion people over the last 100 years.p.6
4. A person in North America consumes around 90 kilograms of resources each day, against around 45 kg in Europe and around 10 kg in Africa.p.7
5. Triodos Bank applies minimum standards on deforestation and water scarcity to exclude harmful activities from its lending and investment.p.10
6. Triodos Bank identifies four priority sectors for the resource transition, starting with construction.p.12
7. Triodos Bank already provides bio-based mortgages in the Netherlands, where the interest rate is linked to the building materials used.p.12