Circular Economy

What is a Circular Economy

A circular economy is an economic system aimed at minimizing waste and making the most of resources. It is often contrasted with the traditional linear economy, which has a 'take-make-waste' style of production. In a circular economy, we 'reduce, reuse, and recycle' to keep products, equipment, and infrastructure in use for longer, thus improving the productivity of these resources.

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Circular economies are designed to benefit businesses, society, and the environment. They are restorative and regenerative by design, aiming to keep products, components, and materials at their highest utility and value at all times.

The circular economy can be split into two main components:

Technical nutrients: These are non-biodegradable materials, such as metals and most plastics. These should be designed and marketed with reuse in mind from the start, so they can be reused continually, thus preventing them from becoming waste.

Biological nutrients: These are materials that can return to the ecosystem safely. They can be composted or anaerobically digested to produce natural fertilizer, supporting the next cycle of the ecosystem.

Key principles of the circular economy include:

Design out waste and pollution: Design products and systems to reduce waste, use fewer resources, and prevent pollution.

Keep products and materials in use: Use business models that keep products in circulation for as long as possible, maximizing their lifetime value. This might involve sharing, leasing, reuse, repair, refurbishment, and recycling strategies.

Regenerate natural systems: Where possible, use regenerative resources and make sure that renewable, reusable, non-toxic resources are used as materials and energy in a way that respects and enhances the health of natural systems.

Moving to a circular economy does not only amount to adjustments aimed at reducing the negative impacts of the linear economy. Rather, it represents a systemic shift that builds long-term resilience, generates business and economic opportunities, and provides environmental and societal benefits. It is increasingly recognized as a key component of sustainable development goals.