3.2. Circular Economy

Key learning outcomes

To build understanding of circular economy concept and circularity principles
To establish the shortcomings of linear economy and traditional economic systems
To have a deeper understanding of the significance of resource efficiency, waste reduction, and sustainable practices in a circular economy

The current state of our economy and production systems can be described as linear (Figure) i.e. linear economy.

Linear economy representation

This economic approach was established during the industrial revolution and was boosted by the upcoming petrochemical industry. It is based upon excessive extraction of raw materials from the earth which results in significant problems for the environment. Issues like plastic pollution, CO2 emissions and a loss of biodiversity are all consequences of this unbalanced use of resources. (Sørensen, 2018)

Having these issues in mind a new approach towards a more sustainable use of resources was developed. Inspired by the circularity that is expressed in almost all aspects of nature, this approach of circular economy focuses on the following principles according to Ellen MacArthur Foundation:

• Eliminate waste and pollution

• Circulate products and materials

• Regenerate nature

In this approach, waste is seen as a resource that can be returned to the production processes reducing the need for new materials, minimizing pollutions and environmental impacts (Geissdoerfer et al., 2017).

“The circular economy is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources.” (EllenMacArthur Foundation)

The circular economy focuses on reusing, repairing, refurbishing, remanufacturing and recycling to keep using the materials as much as possible and aims to design products that are durable, using resources efficiently while reducing waste by creating closed-loop systems (products are returned to the production process after use).