The Value Gap

Measured in monetary terms, the Value Gap offers a framework for understanding inefficiencies in today’s linear, take-make-waste economy. Quantifying these losses in monetary terms (in euros) helps not only to quantify the magnitude of wasted value but also to identify opportunities to enhance resource productivity, strengthen economic resilience, and support long-term sustainability.

The scale of these losses is striking. Globally, the initial estimate of the Value Gap is €25.4 trillion (± 4.7 trillion), compared to €82.6 trillion of gross domestic product. These figures highlight the enormous potential for avoidable value loss and recovery: reducing waste generation, improving resource efficiency, and extending asset lifetimes could unlock trillions of euros in value while also reducing environmental pressures and social costs. [21]

The following sections break down value loss into the five key pathways: processing losses, energy losses, food losses and waste, end-of-life waste, and consumption of fixed capital. Each pathway illustrates a different form through which value erodes, from immediate material losses in production and supply chains to the longer-term deterioration of infrastructure, machinery, and other material stocks of physical capital. Together, these pathways provide a comprehensive picture of where the economy loses value and, thus, where the greatest losses can be prevented.

See Table one in the Appendix for a detailed breakdown of value loss estimates by pathway.

The five pathways of value loss