Business Forum • 27 May, 2026 at 5:30 PM
The world economy loses around €25.4 trillion in value annually, equivalent to almost 31% of global GDP, due to inefficient resource management, according to a report conducted by Deloitte and Circle Economy. This means that for every three euros created, one euro is lost.
The report introduces the concept of Value Gap, which quantifies the economic value lost due to inefficient resource use while highlighting opportunities created by the circular economy. The losses are grouped into five major sources: end-of-life waste (over €10 trillion), energy losses (€8.7 trillion), fixed capital consumption (€5.2 trillion), processing losses (€904.2 billion), and food losses and waste (€650.7 billion).
Food that deteriorates along supply chains, electronic products discarded before their full potential is utilised, and fast fashion that encourages frequent purchase of clothes worn for short periods are examples that reflect the linear economic model and generate hidden costs. Adrian Teampău, Director, Circular Economy, Deloitte Romania, said the Value Gap is not only an indicator of inefficiency, but also a map of opportunities. The EU has introduced rules that encourage recycling and recovery of materials from waste, such as the new EU Packaging and Packaging Waste Regulation, which becomes applicable in August 2026.
The study shows that reducing the value gap depends on coordinated efforts from companies, financiers and policymakers to systematically address challenges and remove bottlenecks of the linear model. Companies play a key role by identifying inefficiencies in resource use and innovating business models to preserve existing value and create new sources of value.
Ovidiu Popescu, Partner, Deloitte Romania, Leader of the Energy and Sustainability Practices, said linearity is not just an environmental issue, but a structural economic vulnerability. Companies and public institutions that understand this now and start building more sustainable resource management systems will be better positioned to cope with volatile raw material prices, regulatory restrictions and demanding investor and consumer expectations.