Charlotte B Domingue - Tourisme Montréal

The circular economy: Combining prosperity and ecological transition

Last updated May 23, 2024

Reading time: 2 min

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Montréal is focusing on circular economy to accelerate the city’s ecological transition and respond to the challenges of climate change. This approach also aims to preserve our resources, while stimulating economic growth and job creation.

What is the circular economy?

The circular economy is defined as “a system of production, exchange and consumption based on strategies that optimize the use of resources at all stages of the life cycle of a product, with a view to reducing environmental impacts and contributing to the well-being of individuals and communities.” – OQLF, “Entrer dans la ronde” circular economy glossary (in French)”

The circular economy aims to revamp the way we do things. The goal is to consume fewer resources and optimize the use of products and their components, by using them more often, using them for longer or giving them a new life. It differs from the linear economic model of “extract – produce – consume – discard.”

We all practice circular economy. When you donate clothes to an organization, have your shoes repaired, put coffee grounds around perennials or put your brown bin on the street, you are practicing circular economy.

Transforming the economy

The circular economy offers development potential that several Montréal companies have already tapped into. However, it involves revisiting production and consumption patterns as well as business models.

To accelerate this shift and support businesses in their transition, the city has developed a roadmap and set specific goals.

Doubling our circularity index by 2030

Only 3% of the resources consumed each year in Montreal are reintroduced into the economy through recycling, recovery or other strategies. This is known as the circularity index. The city intends to double this ratio by 2030, to 6%, and increase it to 17% by 2050.

To achieve these results, Montréal must make way for experimentation and circular solutions.

The city must also mobilize the business ecosystem, including companies, business support organizations and research institutions.

Different municipal levers are used such as procurement, regulation and frameworks, financial tools and incentives, exemplarity, power of influence, information and support for the business ecosystem.

The city wants to:

Stimulate the development and commercialization of innovative solutions and the growth of companies working in the circular economy
Support companies in transforming their business models and improving their productivity
Promote innovation in processes, procedures, products and services
Creating green jobs and supporting labour market transformation
Strengthening the local economy and short supply chains
Optimize the value of resources at each step
Demonstrate exemplary municipal practices

Five priority areas of activity

The city prioritizes 5 sectoral value chains known for their high circularity potential:

Bio-food
Construction, renovation and demolition
Textiles
Plastics
Mobility and logistics

Other sectors may be added in the next phases of development.

Moving towards tangible actions

The circular economy roadmap is part of several municipal commitments, including the Montréal 2030 Strategic Plan and the Climate Plan.

It also incorporates the results of various consultation exercises, particularly a major public consultation (in French) conducted in 2023.

The roadmap is also largely based on several studies carried out by the Dutch organization Circle Economy. These studies provided data that will be used to document the shift, such as circularity index, carbon footprint and material footprint.

The roadmap will be implemented in 2024 through the development of Montréal’s first three-year action plan.