The 29th Conference of the Parties (COP29) in Baku, Azerbaijan, marked a pivotal moment in global climate discussions, with the circular economy featured as a key component of sustainability strategies. Against a backdrop of rising urgency to combat climate change, this year’s summit spotlighted innovative circular practices while also revealing a stark gap between ambition and action. The tension between meaningful progress and superficial posturing underscored the challenges in translating climate rhetoric into measurable outcomes.

The promise of the circular economy

At its core, the circular economy represents a paradigm shift in resource management, seeking to minimize waste and reliance on finite resources through closed-loop systems. Unlike the traditional "take, make, dispose" approach, circularity emphasizes recycling, reuse, and regeneration—offering a pathway to align economic growth with environmental sustainability. High-impact sectors such as fashion, construction, and technology stand to benefit significantly from circular models, integrating resource efficiency into their operations. COP29 embraced the circular economy as a cornerstone of sustainability strategies, reflecting its potential to decouple economic growth from environmental degradation. Discussions centered on cross-sectoral collaboration, scalable innovations, and equitable transitions. However, while promising initiatives were highlighted, the summit also exposed a lack of enforceable policies and uneven participation among industries—issues that threaten the realization of circular economy goals.

Highlights and gaps from COP29

Key advancements in circular practices were showcased through case studies in "The Circular Economy in Motion", a report by the Multilateral Development Banks’ Circular Economy Working Group. For example, Croatia’s Circular Economy Action Plan for construction and demolition waste illustrated how material reuse and capacity building can meet EU waste targets. Similarly, Turkey’s Circular Economy Platform demonstrated the role of knowledge hubs and integrated solutions in accelerating national transitions. Urban innovations also took center stage, with the EU’s Circular City Centre (C3) highlighting the role of cities as incubators for sustainable waste management practices. Indonesia’s bottle-to-bottle recycling initiative showed how closed-loop systems could formalize informal waste sectors, while advances in EU battery recycling emphasized reducing dependency on virgin materials and cutting greenhouse gas emissions. These examples revealed the significant potential of the circular economy to address pressing environmental challenges. However, critical gaps became apparent, particularly the lack of widespread industry engagement. The fashion industry, responsible for approximately 10% of global carbon emissions, was notably absent from detailed circular discussions. This neglect underscored a larger issue: industries with significant environmental impacts often fail to engage in systemic reforms. The lack of enforceable regulations and measurable benchmarks exacerbates this problem, leaving industries free to contribute only superficially. This disparity between innovation and accountability transitioned into broader concerns over the integrity of circular economy initiatives, a theme that was starkly evident in discussions on greenwashing.

The greenwashing dilemma

The absence of binding commitments brought the issue of greenwashing into sharp focus. For many governments and corporations, the circular economy appeared more rhetorical than substantive, masking inadequate or even regressive environmental policies. For example, fashion recycling initiatives, while garnering attention, were criticized for potentially obscuring deeper structural issues such as overproduction and unsustainable consumption patterns. Such superficial efforts underscore the need for transparent metrics and accountability frameworks to ensure that circular economy initiatives are not co-opted as public relations tools. Without enforceable frameworks, even well-intentioned projects risk becoming empty narratives—ambitious on paper but disconnected from meaningful outcomes. Yet, these concerns coexisted with examples of inclusivity and innovation. Latin America’s Too Good to Waste initiative, for instance, showcased how methane reduction goals could align with equitable waste management practices, involving vulnerable communities in solutions. These efforts demonstrated that systemic change must include both technological and policy advancements alongside equitable participation. The inclusion of underrepresented voices is not only an ethical imperative but also a practical necessity for building resilient, inclusive systems.

Toward a circular economy future

The prominence of the circular economy at COP29 revealed its transformative potential but also highlighted the pressing need for robust regulatory mechanisms and greater industry engagement. While case studies from Croatia and Indonesia demonstrated the feasibility of integrating circular principles into global climate action, uneven participation and the lack of accountability frameworks underscored the challenges of moving from aspiration to action. Policymakers, industry leaders, and civil society must collaborate to embed circular economy principles within enforceable international agreements. Transparent metrics, robust accountability mechanisms, and scalable innovations will be critical to ensuring circularity becomes more than a buzzword. Beyond its environmental benefits, the circular economy also holds the potential to bridge resource inequities, ensuring more equitable access to sustainable solutions across the Global South and beyond. Only by embedding circularity into enforceable frameworks and fostering genuine collaboration can the global community transform aspiration into reality and lay the foundation for a sustainable future.

At CircleUp, we see the outcomes of COP29 as a call to action to further embed circular economy practices into everyday life. Our innovative tools—like smart wastebins, interactive digital platforms, and behavioral science toolkits—are designed to tackle the very challenges highlighted at the summit, turning ambition into measurable change at the household level. By empowering European communities to adopt circular habits, CircleUp bridges the gap between global policy discussions and tangible, local action. Together, we are making the promise of circularity a reality, one household at a time.