As the world races toward a circular economy, a new debate is emerging over who bears the true cost of recycling. A recent report by the OECD and International Labour Organization (ILO) reveals that while global recycling markets are projected to reach $630 billion by 2030, much of the sector remains dependent on low-paid, informal, and unsafe labor, particularly in developing nations. In countries like India, Ghana, and Indonesia, informal workers handle over 60% of all recyclable waste, often without protective equipment or fair wages. Meanwhile, corporations in the Global North profit from circularity pledges and “green” branding, while exporting waste and compliance burdens to the Global South.
Experts warn that without stronger global standards, circularity risks deepening inequalities instead of closing material loops. The UN Environment Programme (UNEP) has called for mandatory Extended Producer Responsibility (EPR) policies that hold manufacturers financially accountable for the end-of-life management of their products. Implementing fair pricing for recycled materials and integrating informal workers into formal systems could ensure that the transition to circularity is not just technically efficient but socially just. As governments and companies tout recycling as a climate solution, the report reminds them that a truly circular economy must account for both the environmental and human costs of sustainability. More