Matthew Fraser (Circle Economy): The Progress of the Circular Economy Begins with Measurement

The circular economy is here to stay. This holds true for everyone, regardless of our role within its chain. As the circular transition gains momentum in Romania, the need for clear and accurate solutions grows exponentially. The CIRCULARIO Bucharest Conference on April 8, 2025, marking the conclusion of the national conference tour dedicated to circularity, brought together key actors involved in this process, both nationally and internationally. One of them is Matthew Fraser, Director of the Circle Economy Foundation (Netherlands), PIVOT-C partner and a key entity in implementing the circular economy. He coordinates the organization’s research agenda and leads the circularity gap reporting initiative, driving significant changes in how governments measure and implement circularity strategies. We take this opportunity to hear directly from him about the questions that concern public decision-makers, business leaders, and academics alike in putting circularity into action. “Data-Driven Decision-Making Is Not Optional – It Is Essential for the Success of the Circular Economy.” Q: What is the main aspect to consider for a truly functional circular transition? A: Data. They are the core. Specifically, the data we need and how we use them. This involves a measurement methodology. Because any vision, strategy, or plan, no matter how good they are in theory, cannot be translated effectively into practice if we do not know exactly where we start from. That means understanding what we rely on, the limitations we face, the directions we choose, and the decisions we make accordingly to meet real needs. This applies to any country and any of its sectors. The role and contribution of data for a functional and continuously evolving circular transition are crucial. Data allow us to monitor, harmonize comparisons, and conduct a detailed assessment of resource use, waste flows, and resource efficiency. Moreover, they are essential for data-driven and science-based political decisions and for measuring progress toward circularity objectives. Not least, data identify opportunities for efficiency and innovation and provide a competitive advantage in key sectors. Q: You are known for the circularity measurement methodology you have created, which many countries already use. What does it entail, and what contribution does it make to the circular economy? A: Our measurement is consumption-based. We measure all resources, materials, and products used to meet societal needs and derive a single circularity measure reflecting where a country, for example, stands on its circular journey. This measurement also indicates the circularity gap, representing materials wasted, lost, incorporated into long-term stock, or not reintegrated into the economy. Our methodology takes a country’s “socioeconomic metabolism” — how resources flow through the economy and are used in the long term — as a starting point for measuring and capturing its circularity level. Additionally, it emphasizes the importance of reducing total consumption. Reducing demand is a crucial step before exploring other mitigation options in a circular economy scenario. From this perspective, recognizing the need for accurate measurement of the circular economy and understanding how to transition to circularity or efficiently monitor progress led us to develop the first Circularity Gap Report, published in January 2018. Q: Can you give us concrete examples of how this methodology and reports have influenced public policies and business strategies in countries that have adopted them? A: Certainly. We have clear cases demonstrating this impact. For instance, in Ireland, such a report highlighted precisely what was causing a low circularity rate and set a plan for how to interact with industries to improve it, leading to government initiatives and policies. In Northern Ireland, the discovery of data behind the circularity gap enabled the government to develop data-driven roadmaps with key sectors and waste management. In Austria, the report encouraged the government to develop a circular economy strategy addressing consumption targets and waste management. Q: What lessons should Romania adopt from how the circular economy has evolved globally? A: The circular economy is a driving force for resource efficiency and innovation, contributing to key objectives such as reducing greenhouse gas emissions. Europe’s strong focus on circularity is also shared by Romania, which should adopt national policies and roadmaps as key instruments for engaging in critical sectors. Moreover, integrating circular principles into education and business practices is essential to boost competitiveness, innovation, and entrepreneurship. “Reliable Data Are the Foundation of Any Successful Circular Economy Strategy.” Q: What are the main challenges Romania faces in transitioning to a circular economy? A: I would first highlight the partnership that Circle Economy has in Romania with PIVOT-C, the circular economy integrator in Romania, which has given us valuable insights into the country. Based on our shared work, I have identified two major challenges at this point. First, the limited availability and quality of data on material and waste flows. Second, the need to embrace the circular economy as a major subject. Although there are many objectives, they must be put into action. The lack of reliable data affects decision-making for both policymakers and companies by hindering accurate assessment and prioritization. Q: What needs to be done in these conditions? What should be Romania’s top priority to advance concretely in its circular economy strategy? A: It is crucial that Romania acts now to strengthen its data framework on the circular economy to align with EU directives and sustainability objectives. This would facilitate informed public policy development, strategic planning, and enhance competitiveness and innovation on the global market. The first step is developing and implementing a robust data collection system, followed by establishing a baseline (CGR) and bringing together key public and private stakeholders to align on prioritizing actions and decisions. Q: Considering positive vs. negative scenarios for Romania, where could the country stand in 5-10 years with a solid data framework, and what are the risks of delaying action on data-driven circular economy policies? A: In an optimal scenario, Romania would have informed targets for resource efficiency and waste management, with the capacity to monitor progress using high-quality data. Clear pathways would lead to better governmental coordination and stronger industry involvement, positioning Romania as a market leader. On the other hand, delaying action would result in missed opportunities to foster innovation, engage strategically with relevant sectors, and promote the country’s leadership role in the circular economy. Q: What is your most important call to action following CIRCULARIO Bucharest? A: Measure – Direct – Decide for circularity. This is the clear and effective path that can place Romania on an economic trajectory where circularity becomes the norm rather than the exception. Q: How do you see the evolution of the circular economy in the next 5 years, and what are the key indicators to measure progress in this field? A: Let’s start with an axiom. The circular economy is the new economic model to which, sooner or later, everyone must align. Obviously, it is preferable that this happens as soon as possible to avoid losses and maintain competitiveness in a new world where circularity becomes the new paradigm. And I am not just referring to the private level but also to the public one, to the state as a whole, to the entire world. Therefore, the sooner this transition takes place, the better. The need and benefits of the circular economy are clear, and I believe that, in the coming years, they will become increasingly evident, even acute. That is why I see an accelerating necessity that must be kept up with. For this reason, the faster the transition process, the better prepared we become to successfully face this acceleration. And I base this on the following key indicators: the vital component of environmental protection and support, the availability of resources and the increasingly precarious ability to manage them within the traditional linear economic model, correlated with data on planetary human resources and social behavior, the technological and innovative advancement that has already outgrown the old economic paradigm. All data indicate an acceleration stemming from a need and a long-awaited stage of adapting the economic model to the realities of 21st-century human society.