Technological innovation, environmental sustainability, energy efficiency and the use of renewable resources define the circular economy as a virtuous new system founded on five pillars. With this surge in popularity, many mention the term 'circular economy' or 'circular principles' without really explaining what they mean. In this way, the life cycle of products is extended. Bioeconomy. French; Russian version; Dutch; related News. In their 1976 research report to the European Commission, "The Potential for Substituting Manpower for Energy", Walter Stahel and Genevieve Reday sketched the vision of an economy in loops (or circular economy) and its impact on job creation, economic competitiveness, resource savings and waste prevention. Key research areas. There is some criticism of the idea of the circular economy. [34], Another report by WRAP and the Green Alliance (called "Employment and the circular economy: job creation in a more resource efficient Britain"), done in 2015 has examined different public policy scenarios to 2030. There are so many different definitions in use because the concept is applied by a diverse group of researchers and professionals (Kirchherr, Reike & Hekkert 2017). Why a circular economy is important? The circular economy needs joint efforts by entrepreneurs, researchers, industries, users, government, the civil society, lawmakers, but most all it needs innovation. Supporting this, a Strategic Research and Innovation Agenda for circular economy has been recently published in the framework of the Horizon 2020 project CICERONE that puts digital technologies at the core of many key innovation fields (waste management, industrial symbiosis, products traceability). but also in some fields Portugal, Greece, Croatia and even Germany.[138]. Nevertheless, all the definitions agree on the importance of designing, producing and consuming in a sustainable way. technology, it soon became clear that the technological capabilities increasingly exceed their implementation. [4] Hundreds of thousands of tons of waste are being brought back onshore to be recycled. This page was last edited on 7 April 2021, at 19:35. [70]:217 "Scatolic engagement draws on Reno's analogy of waste as scats and of scats as signs for enabling interspecies communication. Allwood, J. M. (2014). This new form of society is based on the principle of circular economy. The circular economy is grounded in the study of feedback-rich (non-linear) systems, particularly living systems. Although there are many conceptions of the circular economy, they all describe a new way of creating value, and ultimately prosperity, through extending product lifespan and relocating … Download Digest. These cover the cycle from production and consumption, to waste management and the market for secondary raw materials. Circular economy: some definitions. In addition, logistic companies can enable a connection to a circular economy by providing customers incentives to reduce costs through shipment and route optimization, as well as, offering services such as prepaid shipping labels, smart packaging, and take-back options. Underpinned by a transition to renewable energy sources, the circular model builds economic, natural, and social capital. Producers take back their products after use and repair them for a new useful life (Ellen MacArthur Foundation, 2015a). [35], On the other hand, implementing a circular economy in the United States has been presented by Ranta et al. ‍. The following organisations participated in the interviews Philips, GEF, WRI, DSM, UN Environment, Accenture, DSGC, ING, Circle Economy, EMF, IRP. The circular economy appears as a helpful solution to diminish the environmental impact of the industry. Cristoni, Nicolò and Marcello Tonelli (2018). 1 Circular Economy for the SDGs: From Concept to Practice G e n e r a l A s s e m b l y a n d E C O S O C J o i n t M e e t i n g Draft Concept and Programme for the joint meeting of the Economic and [115], Strategic management is the field of management that comes to the rescue allowing companies to carefully evaluate CE-inspired ideas, but also to take a firm apart and investigate if/how/where seeds of circularity can be found or implanted. This model emphasizes the importance of selling services rather than products, an idea referred to as the "functional service economy" and sometimes put under the wider notion of "performance economy". "Perceptions of Firms Participating in a Circular Economy.". [101] The shift from linear flows of packaging to circular flows as encouraged by the circular economy is critical for the sustainable performance and reputation of the packaging industry. Material Concerns: Pollution, Profit and Quality of Life, Cradle to Cradle: Remaking The Way We Make Things, International Organization for Standardization, Learn how and when to remove this template message, Registration, Evaluation, Authorisation and Restriction of Chemicals Regulation, European environmental research and innovation policy, "The Circular Economy – A new sustainability paradigm? In 2018, the International Organization for Standardization (ISO) established a technical committee, TC 323, in the field of circular economy to develop frameworks, guidance, supporting tools, and requirements for the implementation of activities of all involved organizations, to maximize the contribution to Sustainable Development. 3 FOREWORD Since the Nobel Peace Prize was awarded in 2007 to the members of the Intergovernmental Panel on Climate Change (IPCC), a genuine international consensus has formed around the need to curb climate change. [5] The contemporary understanding of the Circular Economy and its practical applications to economic systems evolved incorporating different features and contributions from a variety of concepts sharing the idea of closed loops. Concretely, here are the principal areas concerned by the Action Plan:[126], The Action plan was also a way to integrate a policy framework, an integration of existing policies and legal instruments. The authors of the study concluded that although a circular furniture economy in Denmark is gaining momentum, furniture companies lack knowledge on how to effectively transition, and the need to change the business model could be another barrier.[110]. Definition of circular economy in the Definitions.net dictionary. Our findings indicate that the circular economy is most frequently depicted as a combination of reduce, reuse and recycle activities, whereas it is oftentimes not highlighted that CE necessitates a systemic shift. A circular economy is a transformative economy redefining production and consumption patterns, inspired by ecosystems principles and restorative by design, which increases resilience, eliminates waste and creates shared value through an enhanced circulation of material and immaterial flows. The circular economy as EU environmental policy narrative. Some of the areas are chemical industries, wholesale trade, industry and agriculture, forestry and fisheries because they see a potential reduction of costs when reusing, recycling and reducing raw materials imports. Indeed, stepping away from linear forms of production most often leads to the development of new core competencies along the value chain and ultimately superior performance that cuts costs, improves efficiency, meets advanced government regulations and the expectations of green consumers. In the early 1990s, Tim Jackson began to create the scientific basis for this new approach to industrial production in his edited collection Clean Production Strategies,[27] including chapters from pre-eminent writers in the field, such as Walter R Stahel, Bill Rees and Robert Constanza. The purpose is to be able to form a model that is no longer linear and greedy but circular. (2020, 4 novembre). [73][74] For example, Allwood (2014) discussed the limits of CE 'material circularity', and questioned the desirability of the CE in a reality with growing demand. Belgium is also an consequent actor in the field. Ministère de la Transition écologique. A scatolic approach features waste as a lively matter open for interpretation, within organizations as well as across organizational species.[70]:219. Corvellec, Hervé (2019). Rather, it represents a systemic shift that builds long-term resilience, generates business and economic opportunities, and provides environmental and societal benefits. Zink, T., & Geyer, R. (2017). The European environmental research and innovation policy aims at supporting the transition to a circular economy in Europe, defining and driving the implementation of a transformative agenda to green the economy and the society as a whole, to achieve a truly sustainable development. Over our years of advisory and development work in the field of the circular economy, we at Metabolic have frequently run into the issue of needing to handle trade-offs in circular design and decision-making, or needing to quantify progress towards circular goals. It provides 18 million direct jobs and contributes to about 9% of the EU's GDP. Information and translations of circular economy in the most comprehensive dictionary definitions resource on the web. The circular economy is an economic concept linked to the sustainable development and the green economy but which goes further than the latter. A shift to a circular economy will impact labour markets around the world: while some jobs will disappear or change in nature, new jobs will emerge. Principle n°5:Like living things, the regenerative economy promotes life.The idea is not to grow all the time. The intricacy and fuzziness of the topic is still felt by most companies (especially SMEs), which perceive circular strategies as something not applicable to them or too costly and risky to implement. No singular business is the circular economy. The model distinguishes between technical and biological cycles. Certain persons and organizations have been particularly successful in spreading the concept and its principles to a wider audience, namely Dame Ellen MacArthur (at Ellen MacArthur Foundation), Walter Stahel (at the Product Life Institute) and Michael Braungart and William McDonough (partly through the Cradle to Cradle Products Innovation Institute). They derived from nature systems and translated for industrial production systems. [39] Rheaply, a platform that aims to scale reuse within and between organizations, is an example of a technology that focuses on asset management & disposition to support organizations transitioning to circular business models.[40]. A specific argument has already been made for the strategy direction matrix of product vs market and the 3 × 3 GE-McKinsey matrix to assess business strength vs industry attractiveness, the BCG matrix of market share vs industry growth rate, and Kraljic's portfolio matrix.[116]. The circular economy is more profitable and less harmless to the environment and its main goals include sustainable economic growth, increased competitiveness, and new jobs. [129] Prior to the development of this new action plan, we can also mention the Green Deal of 2019, which integrated ecological and environmental ambitions to make Europe a carbon-neutral continent. McDonough used the Circular Carbon Economy to frame discussions at the G20 workshops in March 2020 before the framework’s formal acceptance by the G20 Leaders in November 2020. Indeed, rather than only think to reduce the ecological impact of the industries and the amount of waste, it aims to produce goods and services by targeting a sustainable management of raw materials and energy sources. A philosopher of science emphasizes a different aspect of the concept than a financial analyst. This comprises recycling measures (closing), efficiency improvements (narrowing), use phase extensions (slowing), a more intense use phase (intensifying), and the substitution of products by service and software solutions (dematerializing). [68] Four new ISO standards are under development and in the direct responsibility of the committee (consisting of 70 participating members and 11 observing members). Une telle économie fonctionne en boucle, se passant ainsi de la notion de « déchet » [1]. The emissions reduction commitments made by 195 countries at the COP 21 Paris Agreement, are not sufficient to limit global warming to 1.5 °C. The circular approach, by contrast, takes insights from living systems. For example, the social dimension of sustainability seems to be only marginally addressed in many publications on the circular economy. [95][96] First prize went to the then US Secretary of Agriculture, second prize to Amory and Hunter Lovins, fourth prize to Peter Senge. They include the functional service economy (performance economy) of Walter Stahel; the Cradle to Cradle design philosophy of William McDonough and Michael Braungart; biomimicry as articulated by Janine Benyus; the industrial ecology of Reid Lifset and Thomas Graedel; natural capitalism by Amory and Hunter Lovins and Paul Hawken; and the blue economy systems approach described by Gunter Pauli. It is based on three principles: There's a world of opportunity to rethink and redesign the way we make stuff. (s. d.). The problem CE overlooks, its untold story, is how displacement is governed mainly by market forces, according to McMillan et al. Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing and recycling to create a closed-loop system, minimising the use of resource inputs and the creation of waste, pollution and carbon emissions. It remains difficult to precisely rank how countries score in terms of circular economy, given the many principles and aspects of it and how differently one single country can score in each of these principles but some tendencies do appear in the average score, when combining the principles. Circular economy, United Nations definition: “The circular economy is a system of production, exchange and sharing allowing social progress, the preservation of natural capital and economic development as defined by the Brundtland commission *. What is the Circular Economy? "Narrating expectations for the circular economy: Towards a common and contested European transition". [61][62], The coalition is hosted by a Secretariat headed by David B. McGinty, former leader of the Human Development Innovation Fund and Palladium International, and Board Member of BoardSource. Publications. : SC043120 Company No. The Ellen MacArthur Foundation works in Education & Training, Business & Government, Insight & Analysis, Systemic Initiatives and Communications to accelerate the transition to a circular economy. The report, commissioned by the Ellen MacArthur Foundation and developed by McKinsey & Company, was the first of its kind[citation needed] to consider the economic and business opportunity for the transition to a restorative, circular model. Like the tree that reaches its optimal size, it stops growing to prosper and live in harmony with the other members of its ecosystem. The Circular Economy In The Automotive Sector: How Far Can We Introduce It? A documentary about the world of fashion, The True Cost (2015),[82] explained that in fast fashion, "wages, unsafe conditions, and factory disasters are all excused because of the needed jobs they create for people with no alternatives." Abrasive grains are produced from crushed, cleaned and selected walnut shells. But despite the multiple examples of companies successfully embracing circular solutions across industries, and notwithstanding the wealth of opportunities that exist when a firm has clarity over what circular actions fit its unique profile and goals, CE decision-making remains a highly complex exercise with no one-size-fits-all solution. [130] It focuses on better management of resource-intensive industries, waste reduction, zero-carbonization and standardization of sustainable products in Europe. [44][45] Also referred to as the data economy, the central role of digital technologies for accelerating the circular economy transition is emphasized within the Circular Economy Action Plan of the European Green deal. Definition of the Circular Economy. (2015, May). The circular economy is closed loop system wherein the focus is on eliminating waste by reusing, recycling and refurbishment of equipment, products, machinery and infrastructure for a longer duration. Recovery can never be 100% (Faber et al., 1987). The "Manifesto for a Resource Efficient Europe" of 2012 clearly stated that "In a world with growing pressures on resources and the environment, the EU has no choice but to go for the transition to a resource-efficient and ultimately regenerative circular economy. To draw the attention of policymakers and other stakeholders to this loophole, the Ecothis, an EU campaign was launched raising awareness about the economic and environmental consequences of not including eco-design as part of the circular economy package. [72] Korhonen, Nuur, Feldmann, and Birkie (2018) argued that "the basic assumptions concerning the values, societal structures, cultures, underlying world-views and the paradigmatic potential of CE remain largely unexplored".[77]. Lazarevic, D., & Valve, H. (2017). It is about enabling economies and societies in general to become « greener » and more sustainable. [22] One example of a circular economy model is the implementation of renting models in traditional ownership areas (e.g. Circular Economy: definition & examples. [105][106] Changes in the Dutch laws and regulations will be introduced. Circular Economy: definition and examples – The model of economic growth that has characterized the last 150 years of history is defined as “linear economics”, an industrial, market economy, based on the extraction of innovative raw materials, on mass consumption and on the production of waste at the end of the useful life of the product.An economy for the masses, through and through. McMillan, C. A., S. J. Skerlos, and G. A. Keoleian (2012). For its part, the term "circular economy" appeared for the first time[citation needed] in 1990 in "the Economics of natural resources and the environment". Circular-Economy-Strategien in europäischen Ländern Eine Reihe europäischer Länder hat bereits Circular-Economy- Roadmaps und -Strategien entwickelt und teilweise schon imple-mentiert. It is argued that by following a circular economy, the textile industry can be transformed into a sustainable business. Today, the climate emergency and environmental challenges have strongly influenced and pushed companies and individuals to rethink their consumption and production patterns. A circular economy seeks to: maximise the value of the materials that circulate within the economy; minimise material consumption, paying particular attention to virgin materials, hazardous substances, and waste streams that raise specific concerns (such as plastics, food, electric and electronic goods); prevent waste from being generated; reduce hazardous components in waste and products. Waste materials and energy should become input for other processes: either a component or recovered resource for another industrial process or as regenerative resources for nature (e.g., compost). In a circular economy, material cycles are closed following the example of an ecosystem. An example of a circular economy within a fashion brand is Eileen Fisher's Tiny Factory, in which customers are encouraged to bring their worn clothing to be manufactured and resold. It is also often pointed out that there are fundamental limits to the concept, which are based, among other things, on the laws of thermodynamics. The core elements of the circular economy relate to direct circular handling of material and energy flows—for example closing loops, extending product lifecycles and increasing usage intensity.