colorful mystical forest with sun rays

Circular solutions must become an integral part of our economy

Our way of using and consuming resources threatens not only the climate, but several of the Earth’s life-supporting systems. Humanity has already crossed six of the nine planetary boundaries, new research shows. To reverse this trend, we need circular solutions that operate within the planet’s limits – and businesses can play a crucial role, according to a report from the Stockholm Resilience Centre. 

02 Apr 2025

Humanity is facing enormous challenges. Research shows we have exceeded several of the planetary boundaries – the ecological limits that keep the Earth stable and habitable. Climate change, loss of biodiversity, and disrupted flows of nitrogen and phosphorus are among the most urgent problems. 

The traditional linear economy – in which we extract, use, and discard resources – has created an unsustainable situation. According to the UN, the extraction and processing of natural resources account for more than 55 percent of global greenhouse gas emissions, 90 percent of biodiversity loss, and 90 percent of water stress. 

“We are at a crossroads. If we continue to overexploit the Earth’s resources, we will worsen both climate change and biodiversity loss. To create a sustainable future within planetary boundaries, circular solutions must become an integral part of our economy,” says Beatrice Crona, researcher at the Stockholm Resilience Centre and lead author of the report Doing Business within Planetary Boundaries. 

To address the challenges humanity is facing, solving the climate crisis alone is not enough. Sustainable development requires that we remain within all nine planetary boundaries – not just the climate boundary. Companies that focus solely on reducing greenhouse gas emissions risk not only environmental harm, but also economic consequences, the report from Stockholm Resilience Centre concludes. 

Meeting the challenges of the future will require a transition to a circular economy, where materials are utilised over and over again, and nutrients are returned to ecosystems instead of becoming waste. By reusing and recycling resources, we can reduce our dependence on virgin materials while also shrinking our climate footprint. In this transition, the business sector can play a decisive role – not just in minimizing harm, but in creating new opportunities for sustainable growth. 

“Environment, climate, and nature are not issues we can afford to address only in good times – they are the very foundation of a stable and sustainable future. As the challenges become more evident, so does the need for innovative solutions. I hope this soon becomes a shared understanding, which will benefit the companies that invest in circular economy and sustainable innovation,” says Beatrice Crona. 

Another study from the Stockholm Resilience Centre two years ago concluded that six of the nine planetary boundaries had been exceeded. The report also warned that human use and production of phosphorus and nitrogen risks causing irreversible impacts on the planet – at a scale previously underestimated. 

illustration planetary boundaries

Phosphorus is essential for all life on Earth. The element plays a critical role in plant growth and is used in mineral fertiliser and animal feed to ensure strong yields. Today, the EU has only one active phosphate mine, in Finland, which covers only 5–10 percent of demand. To supply its agriculture, the EU imports large volumes of phosphorus from countries such as Morocco and Russia. Fertilisers are explicitly exempted from EU sanctions against Russia, which has allowed trade to continue despite the war in the Ukraine. 

“The EU’s dependence on imported phosphorus makes us vulnerable – something that becomes painfully clear when war breaks out in Europe. But we already have large amounts of phosphorus in our sewage sludge that can be recovered. With modern technology, we can reduce our reliance on imports and secure our food supply in a safe and sustainable way,” says Pär Larshans, Chief Sustainability Officer at Ragn-Sells.

Together with the innovation company EasyMining, Ragn-Sells has developed a technique to recover phosphorus from sewage sludge. The process allows more than 90 percent of the phosphorus in ash from incinerated sewage sludge to be recycled, making it possible to replace mined phosphorus from countries like Russia and Morocco with locally produced, recycled phosphorus. 

However, current EU regulations block the use of this technology. Recycled phosphorus is not yet permitted in organic farming or in the production of animal feed. The ban from 2009 was introduced in large part to counter the risk of BSE (mad cow disease) spreading through feed; however, it has been rendered obsolete by modern methods. As the sludge is incinerated, potential pathogens are destroyed before phosphorus is extracted from the ashes. 

“As long as the door remains shut for recycled phosphorus in feed, Europe is effectively killing circular innovation and local investment. By simply revising an outdated annex in its feed regulation, the EU can create a green billion-euro industry, close the phosphorus loop and strengthen its independence and competitiveness,” says Pär Larshans. 

Another example is the glass in our windows. Most of us already recycle glass packaging and assume it becomes new bottles and jars. But when it comes to window glass – flat glass – nearly all of it still ends up in landfills. In Sweden alone, 35,000 tonnes of flat glass are lost every year. 

Producing flat glass from scratch is an energy-intensive process with significant environmental and climate impacts. The raw materials – limestone, soda, and sand – must be of very high purity, making supply limited. At the same time, demand for new flat glass is growing, and the Earth’s natural resources are diminishing. 

But it doesn’t have to be that way. With the right technology, flat glass is 100 percent recyclable. At Ragn-Sells’ flat glass recycling facility in Örebro, Sweden, a system has been developed to recycle window glass. The facility supplies raw materials of equal quality to those extracted from nature. Recycling flat glass also yields a 30 percent energy savings compared to producing new glass. 

“If we are serious about building a sustainable society, we must use the resources we already have. Recycling flat glass in this way allows us to reduce emissions, conserve critical resources, and close the loop,” says Christina Stålhandske, material expert at Ragn-Sells.