Material footprint and the future of resource management

24 November 2025 – Janez Potočnik, member of the Club of Rome, Co-Chair of the International Resource Panel and former EU Commissioner for the Environment, has been a leading voice in putting resource management at the heart of sustainability debates. In this conversation, he explains why material footprint reduction targets matter, the challenges of political will and why the Circular Economy Act is an opportunity to align Europe and the world with planetary boundaries.

The Taskforce recommends the inclusion of material footprint reduction targets in the submission to the EU circular economy act public consultation. What are these targets and why are they important?

When we talk about natural resources, we are talking about everything extracted from the Earth: biomass, fossil fuels, metals and non-metallic minerals. Material footprint measures the resources used to meet final demand, regardless of whether they are sourced domestically or abroad. In other words, it highlights consumption rather than production impacts.

The International Resource Panel’s Global Resource Outlook makes clear that our current economic model is wasteful and unjust. High- income countries consume far more than is sustainable, while low-income ones often do not yet meet essential human needs. Material footprint targets would ensure that wealthy countries reduce overconsumption, while poorer countries increase their material use wisely and efficiently.

These targets would give natural resource management proper recognition in policy debates, complement energy transition policies and encourage innovation in the private sector. They would also bring sufficiency into the conversation alongside efficiency and dematerialisation alongside decarbonisation. Perhaps most importantly, they would place fairness and equity both globally and nationally at the centre of the resource debate.

 From your experience inside EU policymaking, what do you see as the biggest roadblocks to setting binding material footprint targets by 2028? And how might we navigate them?

We live in strange times. Attention has shifted toward immediate concerns like security and competitiveness and many politicians have little appetite for new targets. My message is that this is not about adding new obligations but about delivering on commitments we already agreed to: climate action, biodiversity, equity and the SDGs. Material footprint targets are a tool to make those promises real.

There are two main levers for policymakers: market signals and regulation. At present, market signals push producers and consumers in the wrong direction, rewarding extraction-heavy growth while penalizing responsible behaviour. Regulation, meanwhile, sends mixed signals. To navigate this, we need material footprint targets to provide clarity and align both markets and policy with science and public interest.

Some countries are already moving in this direction. Germany and Australia have adopted material footprint in their policy frameworks and global forums like UNEA-7 and COP30 present opportunities to build coalitions. As Socrates said, “Strong minds discuss ideas, average minds discuss events and weak minds discuss people.” This is the moment for bold ideas and cooperative action

Looking back on your leadership journey, what lessons stand out when it comes to bringing diverse countries together around a shared circular economy vision?

When I first proposed resource productivity targets in the EU back in 2014, I learned that building consensus is about persistence. You must repeat the message until you are tired of hearing yourself and then repeat it once more. Gradually, momentum builds, like a snowball.

The reality is that the climate crisis is becoming brutal and undeniable. Global CO2 emissions are at record highs, global temperatures are already exceeding the targeted  1.5°C in monthly averages, the Earth’s water cycle is destabilised and fossil fuel subsidies remain enormous. These are not signs of progress, but more is needed. Climate breakdown is a symptom of ecological overshoot, driven by material use – including fossil fuels, wasteful economy and population growth.

This is why the sustainability transition is unavoidable and why it is a business opportunity for those who are innovative and courageous. The circular economy is not new; it is as old as nature itself, where nothing is wasted. The only real question is whether humans see themselves as part of nature and if so, why isn’t there behavioural change. The Circular Economy Act is Europe’s chance to set the tone globally and close the gap between knowledge and action.

 What opportunities could reducing our material footprint bring to European businesses and economies?

Reducing material footprint is not in contradiction with business interests. In fact, if we look at the Global Risks Report from the World Economic Forum, the top risks identified by business leaders themselves are environmental. They know the dangers of ecological overshoot. The challenge is that their short-term success is measured by quarterly returns, not long-term resilience.

By embracing material footprint targets, European businesses can gain strategic autonomy, competitiveness and stability in resource supply. Innovation in all circular economy options, particularly in product design and service models will open new markets  More broadly, reducing footprints will align business models with planetary boundaries, ultimately securing the very foundation on which economies depend. The greatest risk is the one we all share: failing to act. The greatest opportunity lies in building an economy that respects limits and creates prosperity within them.

Read the Materials & Consumption Taskforce submission on the Circular Economy Act

Related Content

How decentralised technologies can drive change quickly

How decentralised technologies can drive change quickly

08 December 2025 - How did you first become involved with The Club of Rome, and what drew you to its mission of systems change?  I have spent close to 30 years working across technology, payment systems and finance. In 2013 I shifted more deeply into payment systems...

Systems thinking: the key to solving interconnected crises

Systems thinking: the key to solving interconnected crises

27 November 2025 - Have you ever tried to solve a puzzle with only one piece in your hand? It is impossible to know the full picture if you only focus on one part. You might guess at the image, but without seeing how the other pieces fit together, your understanding...

This article gives the views of the author(s), and not the position of The Club of Rome or its members.

Club of Rome Logo