A Social and Circular Economy in the Balearic Islands: Closing the Loop and Opening Up Opportunities

Every year, millions of tourists visit the Balearic Islands to enjoy their beaches, scenery and cuisine. But behind this frantic activity is a little-known fact: tourism generates more than 700,000 tonnes of waste per year on the islands. In a region with limited resources and space, this strain on the environment requires a complete rethink of the production model. This is where the social and circular economy comes into play, offering innovative solutions that combine sustainability, social inclusion and economic development.

A great example is the project titled ‘Impuls de l'economia social i circular’ (Driving the Social and Circular Economy), funded by sustainable tourism tax. Its goal is ambitious: to give a second life to tourism waste, while also creating jobs for people at risk of social exclusion. The first scheme, launched back in 2017, gave support to 13 pioneering initiatives that managed more than 6,000 tonnes of waste and created more than 60 stable jobs. Cooperatives, associations and recruitment agencies proved that it’s possible to close the loop: what used to end up in a landfill now returns to the local economy as a resource.

The concept is simple, but powerful: to move from a linear economy—extract, produce, consume and throw away—to a circular model, where materials are recycled, reused or repaired to extend their useful life. The aim is to do this by recruiting people from groups traditionally excluded from the labour market. Thus, people with disabilities, long-term unemployed people or those at risk of exclusion find stable employment in companies that work in textile recycling, repairing electronic products, plastic recycling or restoring materials used in tourism.

This model aligns perfectly within Spain’s 2030 Circular Economy Strategy, which sets ambitious targets: 30% less material consumption, 15% less waste and double the amount of products reused. For the Balearic Islands, with the paradox of being a natural paradise overwhelmed by its own tourism economy, the challenge is even greater: to manage resources sustainably without slowing down economic development.

Beyond its environmental impact, a social and circular economy strengthens social harmony. Cooperatives, recruitment agencies and special job centres work based on democracy and solidarity, prioritising people and social purposes before money. This means the transition to a sustainable model leaves no one behind: waste management is yet another tool for social inclusion and justice.

The impact goes beyond the local area. The OECD and the European Commission recognise that social economy organisations have been pioneers in the circular economy for decades: they not only recycle and reuse, but also drive innovation in areas such as eco-design, ecosystem restoration and water efficiency. In the Balearic Islands, where the scarcity of water resources is another pressing challenge, combining these two models is a strategic commitment to the future.

The combination of circularity and social economy also represents a cultural shift from boundless production and consumption to treating resources as finite goods. It means transformation, not just in terms of how we deal with waste, but also in terms of how we understand economic development. It involves alliances between administrations, companies, social entities and citizens towards a common goal: to create a regenerative, inclusive, resilient economy.

Thanks to their insularity, the Balearic Islands have the chance to serve as a European testing ground for sustainability. Projects such as ‘Impuls de l'economia social i circular’ show that waste can be turned into opportunities; that social and environmental innovation can go hand in hand; and that we can imagine a future where tourism, the environment and social justice come together in harmony.