Global Circular Economy: progress and challenges

A world reinventing itself towards sustainability

The circular economy has stopped being a promise and become a reality that is redefining the way we produce, consume and manage resources.

Its global implementation, however, faces significant challenges that call for cooperation, innovation and leadership.

In recent years, circularity has gained ground as an economic, environmental and social strategy that drives resource efficiency, cuts waste generation and promotes new business models. But how far have we come, and what challenges remain?

Progress that is transforming industries and territories

According to the Circularity Gap Report 2025, only 8.6% of the world economy is truly circular, but the pace of change grows year after year.

Europe continues to lead with robust transition policies, while Latin America is starting to consolidate regulatory frameworks, public-private partnerships and business strategies that drive the change.

In countries such as Spain, for example, the waste management sector faces an ambitious target: investing more than 6.5 billion euros to meet the recycling objectives for 2035 (according to Gonzalo Cañete, CEO of PreZero). That investment represents not only an environmental commitment but an economic and social opportunity.

Structural challenges in the Latin American region

In Latin America, circularity still faces structural gaps:

• Insufficient infrastructure for waste collection and valorisation.
• A lack of financial incentives for circular innovation projects.
• Disconnection between public policy, industry and citizens.
• Scarce traceability and transparency in material flows.

Even so, more and more companies and local governments are betting on Zero Waste strategies, certifications and programmes that ensure responsible, traceable waste management.

"Circularity does not begin with waste, it begins with people."
— Global Zero Waste

Opportunities for a circular future

Adopting circular models is not only an environmental action but a new paradigm of competitiveness and corporate sustainability.

From product redesign to reverse logistics and energy recovery, every innovation contributes to a more resilient production ecosystem.

For organisations, this is an opportunity for leadership and differentiation: to be part of the change that turns waste into resources and policy into action.

Towards a circular economy with purpose

The transition to a global circular economy takes more than clean technologies; it demands vision, education and multi-sector collaboration.

At Global Zero Waste, we reaffirm our commitment to accompanying organisations along this road, driving tools, certifications and training to make sustainability an engine of progress.

Find out more about our sustainability work and projects or take part in our upcoming international workshops and forums.