What’s Next for the Circular Economy? Insights from Denver

What’s next for the circular economy in the U.S.?

That’s the question we carried with us into Denver for Circularity 25 — the premier U.S. gathering for professionals advancing the circular economy. Hosted by Trellis, the event brought together more than 1,000 participants across sectors — from corporations and investors to NGOs, policymakers, and academics — all working to build a circular future.

At its core, a circular economy keeps natural resources in production. Materials are reused, repaired, recycled, or composted — minimizing landfill use, lowering operational waste, and reducing environmental impact on ecosystems, air, water, and land. This shift reduces environmental risks while unlocking economic value and delivering social benefits across supply chains and communities.

Canopy’s role in a circular economy

Circularity has been in Canopy’s DNA since we were founded. With a mission to protect the world’s Ancient and Endangered Forests, we work with more than 1,000 brands to transform unsustainable supply chains of forest-derived textiles (like viscose and rayon) and paper packaging.

Championing diverse strategies, from packaging reduction and reuse to certification and material innovation, we’ve helped many brands like HUGO BOSS, LUSH, and Canyon Bicycles to significantly lower their carbon footprints, mitigate supply chain risks, and in many cases, save on sourcing costs.

We work with partners to shift industry demand away from virgin forest fibres and toward low-impact, innovative feedstocks such as recycled textiles and agricultural residues. These materials reduce dependence on extractive supply chains and keep valuable feedstocks in circulation, diverting them from landfills and incinerators. By facilitating partnerships between brands, innovators, and producers, Canopy helps close the loop on material use and build the infrastructure for circularity.

Momentum towards circularity remains strong

The transition towards Circularity is happening even as environmental policy in the U.S. at the federal level is being undermined. The champions of circularity at the conference offered an inspirational view, highlighting how states in the U.S. continue to step up.

Maine, Oregon, California, Colorado, Minnesota, New Jersey, and Washington have now passed Extended Producer Responsibility (EPR) laws for packaging — a key lever to push companies toward waste reduction, better design, and more sustainable materials. Through EPR laws these states are serving as policy laboratories for circularity in practice that will enable companies to put longstanding, long-term circularity goals and commitments into action.

Plastic vs. Forests: A timely reminder

That said, it’s crucial to ensure that the environmental burden isn’t simply shifted from plastics to forests. While five of the state EPRs — Maine, Colorado, Minnesota, California, and Oregon — have paper in scope, EPR schemes often position paper as a ‘sustainable alternative’ to plastics without accounting for its significant ecological impacts.

While meeting regulatory requirements, companies must maintain strong commitments to eliminate deforestation and degradation from their supply chains. Sourcing packaging from old-growth forests undermines the very goals of circularity and climate mitigation. This is where Next Gen fibres made of agricultural residue could serve as a preferred alternative. Their environmental and social impact could especially be unlocked if deployed at scale.

Business driving circular innovation

Our partner EcoEnclose hosted an inspiring open house at their Louisville, CO facility during the conference. Attendees got a firsthand look at circular packaging innovations including and not limited to custom corrugated solutions made from 100% recycled content, algae-based ink from Living Ink Technologies, and seaweed-derived polybags by Sway. With support from customers like Crocs, these innovations are gaining traction across a growing community of eco-conscious brands.

Throughout both events, there was a strong emphasis on the importance of consortiums and pre-competitive partnerships in driving circular solutions, recognizing that collaboration is essential for meaningful progress. The prevailing message was clear: brands must keep pushing forward, even amid political and economic uncertainty. Progress over perfection is the imperative — and those willing to lead, take calculated risks, and invest in circular solutions will be best positioned to unlock long-term value and impact.

Let’s Build the Future Together

Canopy partners with companies to future-proof supply chains, reduce risk, and meet growing market and regulatory expectations, all while safeguarding the world’s most critical forests. Through initiatives like CanopyStyle and Pack4Good, we provide the tools and guidance to help brands take bold, visible action on sustainability. We also collaborate with innovators, industry coalitions, and supply chain leaders to scale Next Gen alternative fibre solutions.

Circularity 25 underscored a key takeaway: there is still strong momentum and reason for optimism. From breakthrough innovations to cross-sector collaboration, it’s clear that with persistence and aligned leadership, a smart, circular, and resilient future is within reach.