Global biodiversity is being lost at an unprecedented rate, giving rise to a sixth mass extinction and constituting one of the core challenges of the triple planetary crisis. Biodiversity forms the foundation of life on Earth and its loss presents a systemic risk to future human survival. To reverse the biodiversity crisis, transformative systems-wide change is required.

This paper addresses an existing research gap by exploring whether the circular economy can play a role not only in halting biodiversity loss but also in regenerating it and thereby contributing to a nature-positive future. To unlock the regenerative potential of the circular economy, a coherent strategy is needed that provides incentives for all actors, notably policymakers and businesses.

This Sitra memorandum focuses on providing building blocks to help the next European Commission address the ecological crisis while maintaining Europe's competitiveness and resilience.

The renewed European Commission will take office in 2024 and must keep up the European Green Deal, ensuring that it centres on nature and mainstreams the circular economy across the EU single market.

The key recommendations include:

• ecosystem accounting
• biodiversity offsets
• circular single market
• leveraging nature as a business opportunity
• using data for the green transition
• addressing Europe's global biodiversity footprint, and
• reforming the common agricultural policy.

Stakeholders are encouraged to contribute to the ongoing debate, ensuring the strategy's success.

Circular economy interventions in four key sectors can halt global biodiversity loss and help the world's biodiversity recover, finds this study.

Tackling root causes - Halting biodiversity loss through the circular economy, written by experts from Sitra and Vivid Economics, is the first to quantify the role a circular economy can play in tackling global biodiversity loss, targeting the four sectors with the largest impacts:

• food and agriculture
• construction
• textiles
• forest and forestry

Circular interventions in these sectors can halt biodiversity loss even if no other action is taken. And more than that, the study finds that the world’s biodiversity can recover to 2000 levels by 2035, if the circular interventions are implemented.

Urban agriculture comes with its own share of environmental impacts. Circular strategies promise to reduce these impacts, but not all strategies are resource efficient and environmentally effective.

This paper finds that the most eco-friendly and circular strategies for urban agriculture, taking a Mediterranean tomato crop as a case study, include:

• Struvite (phosphate mineral recovered from wastewater treatment) instead of non-renewable phosphate fertiliser to conserve freshwater
• Recycled steel and materials for urban agricultural infrastructure to reduce carbon emissions, toxicity and freshwater pollution
• Closed-loop irrigation to minimise ocean and freshwater pollution. However, if new infrastructure is required, it could lead to an increase in carbon emissions.