From the University of Bolzano

Sustainability, reuse and recycling do not always 'reduce emissions': what the study says

The circular economy "does not always reduce emissions, but sometimes, if not applied correctly, risks having a negative environmental impact"

by Rome Editorial Staff

2 December 2025

2' min read

Translated by AI

Versione italiana

2' min read

Translated by AI

Versione italiana

Circular economy is not, automatically, synonymous with greater sustainability. Especially for certain steps, such as reuse and recycling. This is stated by an international study led by Italy, carried out by researcher Margherita Molinaro and Professor Guido Orzes of the Faculty of Engineering at the Free University of Bolzano, together with Professor Joseph Sarkis of Worcester Polytechnic Institute (USA).

The warning, considering that the circular economy has been set as a 'high road by many governments', is that it 'does not always reduce emissions but sometimes, if not applied correctly, risks having a negative environmental impact'.

The search

The research, developed as part of the EU-funded Sme 5.0 project, was published in the journal Business Strategy and the Environment. It analyses 1,599 manufacturing companies active in 51 countries and 21 industrial sectors, reconstructing emissions and circular practices over an eight-year time horizon using secondary data.

Redesign decreases emissions

What leads to fewer emissions, 'both direct and related to purchased energy', is the redesign of products, using fewer materials, lighter components, more efficient processes, greater reparability and durability.

The 'risks' of the circular economy

The situation is different for reuse and recycling. The analysis, in fact, shows a positive correlation with supply chain emissions: 'Transporting used products, sorting them, processing them and putting them back on the market requires reverse logistics, additional energy and industrial processes that do not always guarantee a favourable climate balance. In other words, recovery is not automatically more sustainable than primary production'.

The issue is not only environmental. "According to the European Commission," it says, "circularity can generate 700,000 new jobs by 2030 and reduce the Union's dependence on imported raw materials by 15-20%". But 'the economic potential depends on the actual reduction of emissions: if processes do not become more efficient and less energy-intensive, the industrial advantage risks coming to a halt'

"We risk deluding ourselves"

For the researchers, therefore, the circular economy remains one of the main paths to the ecological transition, but we need to understand when it pays off, how it pays off, and what conditions make it really good for the climate. "It has to be done right," says Margherita Molinaro, "if we treat it like a magic recipe, we risk deluding ourselves. Without efficient infrastructures, renewable energy and appropriate technologies, the promise of circularity risks translating into less environmental benefit than expected.

The circular economy, adds Guido Orzes, "works when it is designed, measured and integrated with reliable data, not when it is used as a simple label. Without intelligent design and adequate infrastructure, even the most virtuous practices can lose effectiveness'.

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