WHAT IS THIS

Our global economy can currently be described as predominantly a linear economy. We take materials from nature, we make them into products, then we discard them as waste. This disrupts the planet’s life support systems and is driving global challenges like climate change, biodiversity loss, waste and pollution.

A circular economy offers an alternative.  It is a systems solution framework which aims at minimising waste, cutting greenhouse gas emissions and pollution and making the most out of resources, by promoting a sustainable use of natural resources through smarter product design, longer use, recycling and more, as well as regenerating nature, and securing prosperity, employment and resilience. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature.

The concept of the circular economy integrates principles from various schools of thought, including industrial ecology, biomimicry, cradle-to-cradle (C2C) design, product as a service (PaaS), and Waste-to-Energy Conversion. These principles focus on sustainable resource use, waste reduction, and emulating nature's efficiency. Through these concepts, businesses can design products and systems that align with circular economy principles.

why this is important

In a world where resources are finite and environmental challenges are escalating, the circular economy has emerged as a beacon of hope. This innovative economic model offers a practical and sustainable solution to our current linear, take-make-dispose system.

HOW WE DO IT : THE METHODOLOGIES AND MODELS

The circular economy's key principles and goals play pivotal roles in guiding sustainable practices. Aligned in their focus on promoting sustainable resource use, reducing waste, and minimising environmental impact, these principles and goals form a holistic framework for the circular economy. Here's how they work together:

KEY PRINCIPLES

1. Eliminate waste and pollution (Design Out Waste and Pollution): Products and systems should be designed with the end in mind, ensuring minimal waste and pollution throughout their life cycle.

2. Circulate products and materials at their highest value (Keep Products and Materials in Use): Encourage the reuse, refurbishment, and recycling of products and materials to extend their lifespan and reduce the demand for new resources.

3. Regenerate nature (Regenerate Natural Systems): Embrace practices that restore and regenerate natural ecosystems, promoting biodiversity and mitigating the adverse effects of climate change by mitigating environmental impact.

By incorporating these principles, businesses can transition from a linear 'take-make-dispose' model to sustainable, circular 'access' models. These models emphasise sharing, leasing, and subscription services, encouraging a circular flow of products and materials and fostering collaboration among industries.

To visualise the circular models, the Ellen MacArthur Foundation created a butterfly diagram, which “illustrates the continuous flow of materials in a circular economy. There are two main cycles – the technical cycle and the biological cycle. In the technical cycle, products and materials are kept in circulation through processes such as reuse, repair, remanufacture and recycling. In the biological cycle, the nutrients from biodegradable materials are returned to the Earth to regenerate nature.”

INNOVATIVE BUSINESS MODELS IN THE CIRCULAR ECONOMY

GOALS OF THE CIRCULAR ECONOMY

1. Minimise Waste: reduce waste by designing products and systems that produce little to no waste and encouraging recycling and reuse.

2. Maximise Resource Efficiency: use resources efficiently by promoting recycling, remanufacturing, and sustainable material sourcing.

3. Promote Sustainable Consumption: encourage responsible consumption patterns, including product-as-a-service models and eco-friendly choices.

4. Foster Innovation: drive innovation in design, materials, and manufacturing processes to create more sustainable products and systems.

5. Reduce Environmental Impact: minimise overall environmental impact, including pollution and greenhouse gas emissions, by adopting circular practices.

6. Create Economic Value: generate economic value through the growth of circular economy-related industries and cost savings for businesses.

7. Enhance Social Well-being: contribute to social well-being by creating jobs, supporting fair labour practices, and fostering community development.

In summary, these principles and goals provide the foundational concepts and specific targets within the circular economy framework. Together, they guide the transition to a more sustainable, circular economic system, minimising waste, conserving resources, and enhancing both environmental and social well-being. Businesses, governments, and communities, by adopting these practices, can contribute significantly to a greener, more sustainable future.

Researched and written by Rebecca Agent with editorial support from Grammarly (English AUS) and ChatGPT