Integrating Circularity in Global Value Chains to Anchor Sustainability in Production Systems

The current global linear economy, wherein more than 90 percent of materials are wasted, lost or unavailable for reuse, urgently needs to shift to a circular economy. Circularity must go beyond end-of-life product management to focus on extending the life of input materials and enhancing resource efficiency by streamlining product design, manufacturing processes, packaging, transportation, distribution and disposal, repair or recycling into the same or other value chains. Integrating circularity in product value chains needs a fundamental shift in how products are conceived and managed by designers, producers, consumers and policymakers. This Policy Brief uses a common appliance- the refrigerator-to explore the steps needed to embed circularity in its global value chain (GVC). It explores how the G20 countries can drive industrial and governance collaboration to embed circularity in GVCs to improve resource efficiency and promote sustainable production and consumption, thus lowering environmental footprint.