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Improving climate emissions accounting to accelerate the circular economy transition

Improving climate emissions accounting to accelerate the circular economy transition

Year Published

2025

Contributing Organizations

Ellen MacArthur Foundation (EMF)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic
Carbon Accounting
Topic 2
Waste & Circular Economy
Topic 3
Climate Reporting

Target Audience

Advisors & Consultants
Education Providers / Think Tanks / NGOs
Financial Services Providers

Relevant Geography

Global
Improving climate emissions accounting to accelerate the circular economy transition

Resource Description

This paper proposes updates to the GHG Protocol so emissions inventories better reflect circular economy activities, which are often undervalued in current reporting.

Why This Matters

Stronger accounting would remove barriers to circular models, enabling fairer recognition of their role in reducing emissions and supporting net-zero goals.

Key Insights

  • Current methods misattribute emissions, lack clear allocation rules, and leave Scope 3 reporting optional
  • Recommends five revisions: recognize circularity in the framework; update guidance on material inflows, product durability, material outflows, and financing
  • Highlights how durable and multi-cycle products are penalized, incineration emissions underreported, and circular benefits hidden from investors
  • Suggests mandatory Scope 3 reporting and complementary use of avoided emissions as a planning tool

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