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

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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