Material Efficiency for the Circular Economy

Consumers and businesses on the demand side worldwide are beginning to look more favorably on tighter carbon regulations, leading players on the supply side to voluntarily launch carbon reduction initiatives. The industrial sector is also under increasing public pressure to minimize energy consumption and cut carbon emissions. Trends in this space include eco-friendly design, enhanced durability and longer usable life, remanufacturing, and recycling. Previous studies such as IPCC (2022) and Allwood et al. (2011) have stressed the importance of material efficiency in reducing carbon emissions in the industrial sector. These studies see material efficiency as a typical demand-side reduction effort. Identifying effective and diverse demand-side mitigation strategies is crucial to overcome the limitations of traditional supply-side industrial carbon reduction strategies. To date, carbon reduction activities in the industrial sector have primarily focused on supplier- or producer-funded energy transition policies, such as substituting fossil-based energy with alternative fuels and expanding renewable energy. In the context of government policies that prioritize supply, such as clean electricity and hydrogen policies, this paper reviews the contemporary discourse on material demand management, recycling, and reuse.