About this paper
This report examines how circular economy principles can support China’s climate objectives across key sectors, including buildings, mobility, plastics, and renewable energy systems. It outlines policy actions to enable system-wide change, emphasising resource efficiency, lifecycle design, and resilience while noting the need for further quantitative analysis.
Chapter 1: The circular economy is a systems framework for accelerated climate action in China
The circular economy is presented as a systemic approach that addresses emissions across production and consumption. It complements energy transition efforts by reducing demand for materials and energy. The framework focuses on designing out waste, keeping products and materials in use, and regenerating natural systems, enabling emissions reductions beyond renewable energy deployment alone.
Chapter 2: The circular economy is crucial to reducing emissions in hard-to-abate sectors in China
Circular strategies can significantly cut emissions in sectors such as steel, cement, plastics, and transport. Measures include improving material efficiency, extending product lifetimes, increasing reuse and recycling, and shifting to alternative materials. In urban systems, circular construction and shared mobility models reduce resource use and emissions intensity, supporting decarbonisation where electrification is insufficient.
Chapter 3: The circular economy can help china secure raw material supply in its transition to renewable energy
China’s rapid expansion of renewable energy infrastructure will increase demand for critical materials. Circular approaches—such as recycling components, designing for disassembly, and recovering materials from end-of-life assets—can reduce dependence on virgin resources. This improves supply security, lowers environmental impacts, and supports long-term scalability of renewable technologies.
Chapter 4: The circular economy can increase China’s resilience to the effects of climate change
Circular systems enhance resilience by reducing exposure to resource volatility and environmental shocks. Localised production, diversified material use, and regenerative practices strengthen economic stability. Improved waste management and resource loops also mitigate climate risks, including supply disruptions and environmental degradation, supporting adaptive capacity across sectors.
Chapter 5: Calls to action: Advancing circular economy for climate action in China
The report recommends integrating circular economy principles into national climate strategies, aligning policy frameworks, and incentivising innovation in product design and business models. It highlights the need for standards, data systems, and investment mechanisms to scale circular solutions. Collaboration across government, industry, and academia is emphasised to accelerate implementation and measurable impact.
