Circular Economy and the Net-Zero Objective: Acting Within and Beyond Your Value Chain

The perception of climate priorities and the evolution of carbon markets have made the simple logic of offsetting insufficient. Companies seriously committed to carbon neutrality are now adopting a more ambitious approach: climate contribution, which combines the actual reduction of their own emissions with support for carbon projects outside their direct scope.

This approach is part of a more holistic vision: each actor must first act where they have the greatest climate impact—within their value chain (purchasing, production, logistics, product use, and end of life)—while also mobilizing carbon finance to support complementary projects that contribute to global carbon neutrality efforts. It also aligns with the transition toward a sustainable model consistent with global greenhouse gas reduction targets.

In this context, the circular economy plays a strategic role. It offers a double benefit: it enables concrete emission reductions within a given sector and, in many cases, generates high-quality carbon credits. These can be acquired by companies with no direct link to the sector but who wish to finance solutions that deliver sustainable environmental and social co-benefits.

In this article, we will analyze three sectoral examples where the circular economy is used as a lever to reduce internal emissions while generating carbon credits that can be purchased in support of climate projects beyond the company’s own value chain.

Reducing the Impact of Digital Technology through Refurbishment 

Let’s start with a symbolic sector: digital technology. Often perceived as "immaterial," it is responsible for around 6% of global CO₂ emissions, a figure that could triple by 2030 if no action is taken. The manufacturing of equipment (computers, smartphones, servers) alone accounts for 80% of these emissions.

In response, some companies specialize in IT refurbishment: they collect used equipment, repair it, and return it to the market, thereby extending its lifespan. Unrepairable devices are carefully dismantled to extract reusable parts; the rest is recycled. Yet today, only about 5% of end-of-life devices are refurbished. Paradoxically, a large portion of refurbished computers purchased in Europe still come from Asia or the United States.

Developing local refurbishment sectors is therefore a strategic issue: by sourcing from these actors, companies directly reduce the carbon footprint of their digital activities. And by supporting these projects through the purchase of avoidance carbon credits (since each refurbished device replaces a new one, avoiding production-related emissions), they help democratize the model.

Moreover, many of these projects have a strong social dimension: some organizations train and employ people far from the labor market, such as a project in the ClimateSeed catalogue that collaborates with penitentiary centers, offering inmates a second chance by training them in refurbishment trades. These initiatives thus combine environmental, economic, and social benefits. 

Reducing the Impact of Construction through Reuse

Another key area is the construction sector, which accounts for about 40% of global CO₂ emissions and is the largest producer of waste. Today, the standard practice remains to demolish and rebuild. However, new projects are emerging to change this mindset: selective deconstruction, recovery of materials (wood, metal, windows, technical equipment), refurbishment, and resale via digital platforms.

This circular model reduces the consumption of virgin resources, limits waste, and lowers emissions associated with producing new materials. But it still costs more than traditional demolition due to logistics, labor, and regulatory compliance—factors that hinder its large-scale rollout.

Here too, carbon finance can play a pivotal role: the credits generated from emission avoidance help bridge the cost gap, develop necessary infrastructure, and make reuse economically competitive in the construction market. These initiatives are fully aligned with the transition to a low-energy, resource-efficient economy.

Waste Management: A Circular Economy Project in Africa

On other continents, the momentum is just as strong. In East Africa, a pioneering project transforms organic waste into valuable resources using black soldier fly farming. The larvae feed on industrial and household bio-waste, turning what would have ended up in landfills into high-quality protein for animal feed (replacing soy, which has a large carbon footprint).

Each ton of waste diverted from landfills avoids methane emissions, a greenhouse gas with a much higher warming potential than CO₂. The resulting organic fertilizers are sold to local farmers, reducing their dependency on imported fertilizers, which are more polluting and less beneficial to the local economy. At the same time, this limits reliance on animal meal and chemical fertilizers sourced from far away.

Companies needing animal meal or fertilizers can therefore reduce their environmental footprint by choosing a local, circular solution. Others—who don’t directly use the products but are connected to the sector or region—can support the scale-up of such initiatives through carbon credit purchases. This kind of project embodies a model of sustainable local development, where circular economy and ecological transition go hand in hand. 

For more on why you should include waste management projects in your portfolio, please read our article.

A Holistic Approach for Global Impact

These examples reflect a common principle: by embracing the circular economy, companies can concretely reduce their footprint within their value chain (through responsible sourcing, use of recycled or refurbished materials, and waste management) while also financing high-impact climate projects beyond their direct scope via certified carbon credits.

It’s this dual action—reducing at the source while amplifying impact externally—that gives true meaning to climate contribution: companies move beyond merely “offsetting” and actively help transform production and consumption models, create local jobs, and enhance community resilience.

By choosing circular economy, reuse, or waste valorization projects, companies also adopt a coherent approach: supporting solutions that extend resource life, protect the environment, and promote local, sustainable socio-economic development—acting both within and beyond their value chain.

For more information on biochar's role in waste management, please read our article.