Too often, conversations about the circular economy fail to go further than waste diversion and environmental impact. While these are important benefits of the circular economy, they only scratch the surface of what circularity offers. By continuing to silo the circular economy as an environmental issue rather than an economic strategy, we risk missing out on billions of dollars in new business and investment, and the ability to create a more resilient, competitive economy.
Countries similar to Canada, including Finland and Australia, are seizing the opportunity to view the circular economy through an economic and competitive advantage lens—and beginning to reap the benefits.
Australia’s recent Circular Advantage report asserts that embedding circular economy principles across industries can drive economic resilience, boost innovation, and secure critical supply chains. For example, Australian manufacturers adopting circular practices are becoming less dependent on volatile global material markets, creating more stable and competitive operations at home. The Australian Productivity Commission’s interim report on the circular economy further emphasizes how system-wide circularity can enhance economic performance. These reports outline how embracing circularity is essential for boosting economic performance through creating jobs, fostering regional development, and strengthening national productivity.
Meanwhile, Canada continues to fall behind in areas such as material productivity (i.e., the economic value generated per unit of material used). According to OECD data, Canada ranks near the bottom among OECD nations, with a material productivity level significantly lower than the OECD average. This isn’t just an environmental inefficiency—it’s an economic handicap, and a missed opportunity.
