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New report highlights opportunity for China’s cities to lead circular economy transition

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Jerman Cheung Jerman Cheung East Asia Press Office,Hong Kong
20 September 2018

Arup contributes to a report that highlights the opportunities for China to capitalise on its circular economy transition.

The report titled The circular economy opportunity for urban and industrial innovation in China was produced by the Ellen MacArthur Foundation in partnership with Arup and McKinsey & Company, supported by United Nation Conference on Trade and Development (UNCTAD) and funded by the MAVA Foundation, with feedback from public institutions, academics and business circles in China. 

The analysis, which identifies opportunities across five focus areas, built environment, mobility, nutrition, textiles and electronics, shows that applying circular economy principles at scale could save businesses and households approximately CNY70 trillion (USD10.2 trillion) by 2040 (16% of China’s projected GDP). This would enable more of China’s urban dwellers to enjoy a middle-class lifestyle, while at the same time, see China’s cities reduce emissions of fine particulate matter by 50%, emissions of greenhouse gases by 23%, and traffic congestion by 47%, by 2040.

China’s cities are well placed to adopt a circular economy. China has been a frontrunner on circular economy for more than two decades. It continues to lead on the topic, as demonstrated by its recent signing of a memorandum of understanding with the EU to align policies that support such a transition. The country’s continuing urbanisation, rapid development of digital technologies, and boom in asset-sharing platforms present significant opportunities for further industrial innovation and circular urban development. Pioneering cities and businesses in China are already beginning to capture these opportunities as demonstrated by multiple examples.

However, a systemic shift towards the adoption of a circular economy in some of the world’s largest cities is not without challenges. The report highlights that for the benefits of a transition to a circular economy to be realised at scale, collaboration between decision makers, government institutions, along value chains, and between public and private sectors, would be highly advantageous.

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China has long been a pioneer of circular economy policies and practices, and China’s cities are hubs of circular economy innovation. This new report shows that transition to a circular economy presents China’s cities with significant opportunities to create new value, economic growth, and further drive that innovation, while becoming more liveable for citizens. ”

— Dame Ellen MacArthur, Founder, Ellen MacArthur Foundation
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As the Ellen MacArthur Foundation’s knowledge partner for the built environment, we are sharing knowledge and collaborating with partners across the world to accelerate the shift to a circular economy. We believe that based on experiences elsewhere in the world, we could learn about what to do and what not to do and develop customised approaches and solutions for Chinese cities. ” Carol Lemmens Carol Lemmens Former Arup leader