Circular Economy for mitigation: seven approaches already working in Brazil

By Flávio de Miranda Ribeiro

It is not new, but it is becoming increasingly clear that the goals of the Paris Agreement will not be achieved through the energy transition alone. Moreover, according to the IPCC, even if all signatory countries fully met their Nationally Determined Contributions (NDCs), total emissions would fall by around 12% by 2030, well below the 45% considered necessary to keep global warming below 1.5°C.

Part of the problem lies in the architecture of the NDCs themselves, which focus almost exclusively on replacing fossil energy sources with renewables and improving energy efficiency. These are essential and priority strategies, but together they address only about 55% of global emissions, according to data from the Ellen MacArthur Foundation. The remaining 45% comes from the way we produce, consume, and dispose of goods and food—precisely the territory where the Circular Economy operates.

So, the question remains: what else can companies do?

In this article, I seek to provide some direction by examining seven Circular Economy approaches that can inspire actions to mitigate greenhouse gas emissions through companies' products and business models.

1 – Rethinking product design

A product designed from the outset to reduce emissions can avoid a significant share of them. A good example is Scania, which developed an entire line of trucks powered by biomethane—not diesel vehicles converted to another fuel, but purpose-built models that can reduce emissions by up to 90% compared with diesel. In an initiative that closes the loop, these vehicles are already being used by waste management operators to transport waste to facilities where it will be converted into biomethane, as is the case with the Solvi Group.

2 – Reducing waste generation

Another circular alternative that can significantly reduce emissions is extending product lifespans, thereby reducing waste generation by avoiding premature replacement. To address this, Electrolux developed a service that anticipates product failures through a major investment in AI, combining consumer history, equipment specifications, and service data. The system enables remote diagnostics that identify potential failures even before a technician visits, shifting maintenance from a reactive to a predictive approach, extending product life, and generating numerous environmental and economic benefits.

3 – Reusing packaging and products

Keeping packaging in circulation through reuse systems, rather than discarding it after a single use, avoids repeated manufacturing and the associated life-cycle emissions. One industrial example comes from Schütz Vasitex, which operates a closed-loop system through its Ticket Service program, collecting IBCs—containers with capacities of up to 1,000 liters—throughout Brazil for reconditioning and reuse. In 2023 alone, companies participating in the program collectively reduced more than 30,000 metric tons of CO2 equivalent.

4 – Replacing fossil-based materials with biobased alternatives

Another way to reduce a product's carbon footprint is to replace fossil-based raw materials with alternatives of biological origin. Seeking to increase the value recovered from a biological residue already used for energy purposes, Klabin has partnered with Caldic to use lignin from black liquor, a by-product of pulp manufacturing, to produce antioxidants for rubber. This replaces fossil-based inputs while connecting the biological and technical cycles of the Circular Economy.

5 – Recirculating parts and components

When direct reuse is no longer possible, remanufacturing products, parts, or components avoids new resource extraction and manufacturing from scratch. One example is Stellantis' launch of Circular Autopeças, a facility for dismantling and remanufacturing vehicles of any brand. It already offers more than 180 remanufactured components that meet factory specifications, reducing raw material use by up to 80% and energy consumption by 50% compared with new parts.

6 – Recovering waste as raw material

Recycling itself can be a mitigation strategy, particularly when materials that would otherwise be sent to landfills are recovered for new uses. One example is the partnership between Dow and Valgroup, which created O1NE, Brazil's first coffee packaging designed for recycling. Produced without a metallized layer, it meets the sector's strict requirements without compromising product quality while allowing the entire package to be recycled within existing polyethylene recycling infrastructure.

7 – Regenerative agriculture

Finally, the Circular Economy can also benefit the production of food, biofuels, and agricultural raw materials. One example is Natura, which developed a regenerative cultivation system for the raw materials used in its Ekos Cacau line. The initiative has already contributed to the restoration of more than 8,000 hectares of Amazon rainforest, supporting significant carbon absorption and storage in the soil while generating income for agroextractive families.

Looking at these examples, we can see that Brazil already has many of the ingredients needed to advance toward a low-carbon Circular Economy: a consolidated National Solid Waste Policy, reverse logistics systems already in operation, enormous bioeconomy potential waiting to be harnessed, and an industrial sector with consistent success stories.

What is still missing is scale and broader adoption. In this regard, I believe it is essential to establish the Circular Economy as a guiding principle of Brazil's NDC, integrating these individual initiatives into a coherent and lasting national climate strategy. This means recognizing that reducing waste, rethinking products, and regenerating ecosystems are also part of the climate agenda, with initiatives that can be financed through existing mechanisms while generating additional benefits for the country's economy.

Companies leading this agenda, national, state, and municipal governments, and supranational organizations all have a role to play in advancing this transition. Circular Movement remains firmly committed to fulfilling its role by supporting connections that help drive the transition toward a Low-Carbon Circular Economy.

Professor, researcher, and consultant specializing in Circular Economy, Reverse Logistics, and Corporate Environmental Regulation. Ambassador of Circular Movement and Circular Economy Advisor to the UN Global Compact Network Brazil.

*This text was automatically translated using artificial intelligence and subsequently reviewed. However, minor differences may still exist when compared to the original version in Portuguese.