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CGR The Value Gap: Sweden

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Circle Economy

Mobility

Although Sweden has a well-developed transport system, Mobility remains one of the country’s most resource- and emissions-intensive sectors. Transport accounts for the largest share of national emissions, [24] and mobility demands contribute significantly to material use—amounting to 24.6 million tonnes, or 9.2% of Sweden’s total material use. Sweden’s large geographical area and relatively small population create unique mobility challenges, spanning personal car travel, freight logistics, and long-distance connections.

The Mobility sector encompasses a wide range of activities, from vehicle and fuel manufacturing and retail to passenger and freight transport by road, air, and sea.

Together, these activities represent around 9% of Sweden’s economy.

A large share of the sector’s economic value is generated during the distribution stage of the value chain, primarily through passenger travel, freight logistics, and commercial shipping. While these services are essential for moving people and goods across the country, they are not directly tied to material flows and therefore fall outside the quantified losses in this analysis. Nonetheless, they represent a substantial share of the sector’s economic and environmental footprint.

To understand the sector’s full value dynamics, it is necessary to consider the entire life cycle of Mobility—from vehicle production and fuel supply to transportation services and end-of-life disposal. However, due to data limitations, this study quantifies value losses only in relation to land vehicle use. The actual scale of value loss across the sector is therefore likely higher than reported.

Finally, as with other long-lived assets, it is important to recognise that this analysis provides only a one-year snapshot. For vehicles, the Value Gap compounds over decades, amplifying both the challenges and opportunities for circular interventions.

Where value is lost in mobility

As shown in Figure eight, Sweden’s Mobility sector generates approximately SEK 420 billion in consumption value each year, yet at least 15% of this is lost or never created due to linear and inefficient practices. [25]

The largest share of these losses occurs at the end-of-life stage, where an estimated SEK 35 billion worth of goods—primarily vehicles—are discarded each year. Of this, just SEK 2.6 billion (8%) is currently recovered, though existing technologies could enable material recycling of up to SEK 5.5 billion. Additional losses occur during the manufacturing and use phase, though limited data availability—particularly beyond car usage—means the total Value Gap is likely underestimated.

Overconsumption in the Mobility sector can take several forms: over-ownership of vehicles, underutilisation, choosing high-impact modes (such as flying instead of taking the train), and using oversized vehicles. While this study quantifies oversized vehicles—estimated at SEK 8 billion—the impact of other forms is likely even more significant and should not be overlooked.

Even when considering only losses related to land vehicles, we estimate a Value Gap of 16% in the sector. Beyond this, key inefficiencies arise from the use of resource and emissions-intensive transport modes that could be avoided. Though harder to quantify, these losses represent a critical area for further research and circular intervention.

Figure eight shows yearly value creation and losses in the Mobility sector.

Unlocking value through circular design and more resource efficient mobility choices

A major opportunity to retain and recover value in the Mobility sector lies in improving the design and use of transport assets. First, extending the lifespan of vehicles through durable, repairable, and upgradeable design can help preserve value over time and reduce the demand for new production. Second, designing for ‘sufficiency’—such as optimising vehicle size and weight—can reduce material use and prevent overconsumption.

At the same time, increasing the utilisation rate of existing assets is critical. Private cars, for example, are parked for the vast majority of their lifespans. Shifting towards shared mobility, public transport, or active travel can ensure that fewer vehicles are needed to meet the same demand—helping to narrow material flows. Reducing reliance on high-impact transport modes—such as flying or driving when lower-impact alternatives exist—offers a significant but underused opportunity to minimise value loss across the sector. Finally, there is significant potential to reduce overall mobility demand through technological advancements—for example, remote work, which decreases the need for commuting and business travel.

The Circularity Gap Report is an initiative of Circle Economy, an impact organisation dedicated to accelerating the transition to the circular economy.

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