From waste to wealth: Circular Bioeconomy Holds Key To Sustainable Growth

In a new report, UN Trade and Development (UNCTAD) and global partners make the case for integrating national circular economy and bioeconomy strategies – two fast-growing but often disconnected policy tracks.

Such integration will be key to fostering a circular bioeconomy that maximizes the efficient use of biomass through circular economy principles such as reuse, waste reduction, and recycling.

But the report, released to mark the International Day for Biological Diversity on 22 May, reveals a critical policy blind spot after having mapped 143 national strategies.

20 out of 143 countries (26%) have both circular and bioeconomy strategies, but only two have integrated them: Estonia and the Kingdom of the Netherlands

While many countries have expanded circular economy plans focused on technical materials like plastics and metals, their bioeconomy strategies – covering crops, algae, forestry, and agricultural residues – rarely include circular safeguards such as reuse, nutrient loops, value recovery, or regenerative practices, even where organic solutions are already proving viable.

In most cases, bioeconomy practices rely on existing linear and extractive business models, which means they deplete biological resources and don't contribute to maintaining ecosystem services.

"The circular economy, which aims to eliminate waste and pollution, circulate products and materials, and regenerate nature, should be embedded in national bioeconomy strategies from the outset," said Joss Bleriot, executive lead for policy and institutions at the Ellen MacArthur Foundation, a UK-based non-profit organization working to promote circular economy policy and systemic change.

"Without this, efforts to protect biodiversity risk being short-lived and disconnected from the systems that drive resource use."

Connecting the dots between bioeconomy and circular-economy solutions

The circular economy and the bioeconomy are inherently complementary, offering distinct yet interconnected development pathways by using natural resources more sustainably.

While the circular economy aims to reduce waste and extend product life cycles, the bioeconomy focuses on replacing fossil inputs with renewable or biological ones.

When aligned, countries and communities have a powerful tool to conserve biodiversity, while stimulating job creation, innovation, and rural livelihoods. In this regard, the new report draws on field evidence from the Sustainable Manufacturing and Environmental Pollution (SMEP) Programme, which UN Trade and Development implements in partnership with the UK Foreign, Commonwealth, and Development Office.