Circular Economy
A circular economy is an economic model designed to eliminate waste and make the most efficient use of resources by keeping materials and products in use for as long as possible, through reuse, repair, remanufacturing, and recycling. It contrasts with the traditional linear economy, which follows a "take–make–dispose" pattern.[1]
Definition
A circular economy aims to decouple economic growth from the consumption of finite resources by closing material loops. Rather than extracting resources, making products, and discarding them, a circular economy seeks to design out waste, circulate materials, and regenerate natural systems.[1]
Principles
| Principle | Description |
|---|---|
| Design out waste and pollution | Products are designed to minimise waste. |
| Keep products and materials in use | Reuse, repair, remanufacture, and recycle. |
| Regenerate natural systems | Enhance rather than deplete natural capital. |
Comparison with the linear economy
| Feature | Linear economy | Circular economy |
|---|---|---|
| Flow | Take–make–dispose | Closed loop |
| Resource use | Consumptive | Regenerative |
| Waste | End product | Design failure |
Economic significance
The circular economy offers potential benefits including reduced resource costs, new business opportunities, and lower environmental impact. It is closely linked to low-carbon and sustainable development goals, and is supported by policies such as extended producer responsibility, eco-design requirements, and recycling targets.[1]