More and more regions are developing strategies to move towards a circular economy. Yet one key question remains: how can we tell if the goals are really being achieved?
The answer lies in data. Measuring progress requires robust metrics and a systemic view of how resources are used and how waste is managed. One of the most effective approaches is Material Flow Analysis (MFA), which makes it possible to track inputs, outputs and stocks of materials in a given territory.
From there, MFA results are translated into indicators aligned with the European monitoring framework. These indicators provide a clear picture of circularity levels and help compare progress across regions.
In short, this evidence-based approach gives regions a solid foundation to make better decisions, adjust policies, set meaningful targets and demonstrate progress on the path to circularity.
How to measure progress towards circularity in a region?
The circular economy monitoring framework begins with a macro view of the material metabolism of territories: how many materials enter, circulate within, and leave the economy? The answer is built on Material Flow Analysis (MFA), a standardized accounting system that quantifies all physical flows of a country or region, expressed in tonnes per year.
Economy-wide MFA is a statistical accounting framework that describes the physical interaction of the economy with the natural environment and with other economies in terms of material flows. It includes solid, gaseous and liquid materials, except for the massive flows of water and air.
This analysis is the cornerstone for the next step: developing a set of indicators aligned with the Circular Economy Monitoring Framework proposed by the European Commission. This framework seeks to measure progress towards a circular economy, applying a life-cycle perspective to the resources, products and services within a region’s economy.
The monitoring framework includes indicators grouped into five dimensions:
- Production and consumption
- Waste management
- Secondary raw materials
- Competitiveness and innovation
- Sustainability and resilience
The result is a robust set of indicators that enables year-on-year comparability and provides evidence of a region’s progress towards a circular economy.
Methodology
In the process of Material Flow Analysis, there is a specific methodology to standardize the calculation: the Economy-wide Material Flow Accounts Handbook, which:
- Provides the official methodological basis for collecting, classifying and analyzing the physical flows of materials between the economy and the environment.
- Enables the quantification, in tonnes per year, of all materials entering, circulating within and leaving the regional economic system.
- Supports key indicators in regional monitoring frameworks.
Likewise, the development of circular economy indicators is based on the revised Circular Economy Monitoring Framework (2023) put forward by the European Commission, which establishes 11 indicators distributed across the five dimensions mentioned above.
Key indicators include: material consumption, waste generation, recycling rates, trade in recyclable raw materials, consumption footprint, and dependence on material imports.
How is the circularity monitored?
The monitoring of a region’s circularity relies on three pillars: the collection of available data, the analysis of material flows, and the calculation of indicators. This process makes it possible to transform large volumes of information into a clear picture of the region’s material flows and its progress towards a circular economy.
Do you know how your region is progressing towards a circular economy?
At Baisma, we support you in applying Material Flow Analysis (MFA): from defining the scope and collecting data to obtaining clear indicators that measure your region’s circularity. From there, we work together to define specific actions, design roadmaps, and set measurable and verifiable targets.
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