In today’s linear economy, raw materials are extracted from resource-rich countries, transported to manufacturers, and processed into products. The finished goods then get shipped – often a great distance –where they are used, discarded at their end of life, and eventually replaced by newer repetitions.

In the linear economy, resource capacity is massive and highly international; resources are only recovered to a small degree.

Accelerating the circular economy with a digital backbone

Currently, most circular economy initiatives are individual projects focused on physical materials and resources. However, to scale these solutions globally and across industries, we need to build reasonable digital foundations – taken together, a digital backbone – to support attractive global circularity business models and accelerate the journey towards circularity.

Without a logical and inclusive global digitization effort, we will never be able to achieve climate goals in a timely manner.

This means that governments should set up political, legislative, and economic frameworks that will stimulate the transformation to profitable circular economies. In addition, to reach the 2050 climate goals, a coherent digital foundation must be created. This will have the same impact on the next 30 years’ journey towards a circular economy as the internet had on the last 30 years’ digitization of society.

Without the internet as a foundation, the digitalization of society would have been slower, with fewer attractive business models and less impact on economic growth and poverty reduction. Similarly, without a digital foundation, a circular economy will happen more slowly, with fewer attractive circular business models and less impact on global climate goals, economic growth, and poverty reduction.