Mapping the prevalence and size of the informal circular economy in an industrialised region

As the circular economy (CE) gained significant attention over the past decade, most research focuses on activities in the formal economy, overlooking substantial contributions from the informal economy. The informal economy, encompassing unmeasured productive activities, involves 60 % of workers and 80 % of enterprises globally. While informal waste management in the Global South received substantial scholarly attention, the informal CE in industrialised nations, particularly in activities such as repair, reuse, sharing, and refurbishing, is underexplored. This paper is the first to estimate the encompassing prevalence and economic weight of these informal CE activities in an industrialised region, using administrative and survey data for Flanders (Belgium). Our findings reveal that the informal CE plays a significant role, especially regarding higher circularity strategies. The paper outlines a roadmap for mapping the informal CE in other industrialised regions and discusses perspectives on integrating informal activities into formal CE frameworks to foster a just transition.