China and the European Union have signed a Memorandum of Understanding on Circular Economy Economic Cooperation at the 20th EU-China summit in Beijing.
This could pave the way for China and the EU to align key mechanisms, and potentially create the building blocks for product standards and policies, which can enable an effective circular economy.
This historic agreement between the world’s two largest economies could accelerate adoption of circular economy practices at a global scale, creating potential for a system shift towards a low carbon, regenerative economy.
Dame Ellen MacArthur, Founder of the MacArthur Foundation, welcomed the news stating “closer alignment on the circular economy between China and the EU is a significant step, paving the way for a global shift towards an economic system that works for business, people and the environment.” Earlier research by the MacArthur Foundation has found that by adopting a circular economy, Europe alone could add € 0.9 trillion to its GDP while halving its carbon footprint by 2030.
Is this a sign that the circular economy is about to become mainstream? What other agreements between the two economic blocks needs to be fleshed out for this to work? Will this prompt further alignment from other markets around product standards and policies? What environmental, economic and social benefits would a global circular economy provide?