Principles of Circular Economy It promotes the recycling of waste as resource and input to create more finished goods. [18][36] Specifically, in the U.S., the product-oriented company case in the study was Dell, a US manufacturing company for computer technology, which was the first company to offer free recycling to customers and to launch to the market a computer made from recycling materials from a verified third-party source. 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. 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 … [117], On July 2014, a zero-waste program for Europe has been put in place aiming at the circular economy. As opposed to sustainable development, a concept generally … "Circular economy as an essentially contested concept". This shifted attention towards business-model innovation as a key leverage for 'circular' technology adaption. [120] Circular economy is found to play an important role to economic growth of European Countries, highlighting the crucial role of sustainability, innovation, and investment in no-waste initiatives to promote wealth.[121]. Supply chain sustainability and product life cycle sustainability are integral to the circular economy. At the end I also recommend a very good book if you want to learn more. In the natural world most systems function in a circular model. 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? [122] Historically, the policy debate in Brussels mainly focused on waste management which is the second half of the cycle, and very little is said about the first half: eco-design. It includes notably some amendments. : SC043120 Company No. Underpinned by a transition to renewable energy sources, the circular model builds economic, natural, and social capital. Publications. Currently, out of 10,000,000 tonnes of annually discarded furniture in the EU, most of it ends up in landfills or is incinerated. You’ll see… there is a lot more to it than just recycling. There is a potential increase of €4.9 billion in Gross Value Added by switching to a circular model by 2030, and 163,300 jobs could be created. Circular economy. This objective was enshrined during the COP21 1 in Paris, in December 2015. A circular economy is an industrial system in which the potential use of goods and materials is optimized and their elements returned to the system at the end of their viable life cycles. It’s called the circular economy. 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. [131] Those are the following: Two additional sectors on which the CEAP focuses could be added: packaging & food and water.[132]. The study concluded that around 42% of the bulk waste sent to landfills annually (1.6 million tonnes) is furniture. Some car manufacturers such as Volvo are also looking at alternative ownership models (leasing from the automotive company; "Care by Volvo"). In search for an inspirational economic concept producing an economy that is both profitable and sustainable, all these concepts lack essential elements. Recycling initiatives are often described as a circular economy and are likely to be the most widespread models. 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. Horizon 2020: calls. Both China and Europe have taken the lead in pushing a circular economy. The Circular Economy In The Automotive Sector: How Far Can We Introduce It? These systems mimicked and worked with the biological ecosystems they exploited. 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. [123], This first circular economy Action Plan consisted of 54 measures to strengthen Europe's global competitiveness, promote sustainable economic growth and create more jobs. The go-to online location for news and insight on the circular economy and related subjects. The Circular Economy A review of definitions, processes and impacts Vasileios Rizos, Katja Tuokko and Arno Behrens Abstract Transforming the linear economy, which has remained the dominant model since the onset of the Industrial Revolution, into a circular one is by no means an easy task. Their business-centered qualification of take-back systems amounts to an engagement in "market action (...) as leverage to push policymakers to create or repeal particular rules," as Funk and Hirschman (2017:33) put it. The companies either offer flexible pricing in a 'pay as you rent' model like Palanta does,[85] or offer fixed monthly subscriptions such as Rent The Runway or Le Tote. In 2017 North Sea oil and gas decommissioning became a net drain on the public purse. 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. It is argued that by following a circular economy, the textile industry can be transformed into a sustainable business. [71]:26, Research by Zink and Geyer (2017: 593) questioned the circular economy's engineering-centric assumptions: "However, proponents of the circular economy have tended to look at the world purely as an engineering system and have overlooked the economic part of the circular economy. A circular economy is an industrial system that is restorative or regenerative by intention and design. No items found. The definition of a circular economy focuses on using as few resources as possible by keeping materials in circulation and getting the greatest value from them. And in fact, we know that simply choosing renewable materials does not always result in less environmental impact or greater value delivery – nor does adopting a leasing scheme. The New Plastics Economy is an ambitious, three-year initiative to build momentum towards a plastics system that (2017, June). One prominent thinker on the topic is Walter R. Stahel, an architect, economist, and a founding father of industrial sustainability. 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. [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. [13] This notion will be developed further, following 3 major events: the explosion of raw material prices between 2000 and 2010, the Chinese embargo on rare earths and the arrival of the economic crisis. [65], To provide authoritative guidance to organizations implementing circular economy (CE) strategies, in 2017, the British Standards Institution (BSI) developed and launched the first circular economy standard "BS 8001:2017 Framework for implementing the principles of the circular economy in organizations". [111], In the next 30–40 years,[year needed] the oil and gas sector will have to decommission 600 installations in the UK alone. The various approaches to 'circular' business and economic models share several common principles with other conceptual frameworks: Janine Benyus, author of "Biomimicry: Innovation Inspired by Nature", defined Biomimicry as "a new discipline that studies nature's best ideas and then imitates these designs and processes to solve human problems. Three important laws can be mentioned in this regard : ● The Ecodesign Framework Directive, ● The Registration, Evaluation, Authorisation and Restriction of Chemicals Regulation, On 17 December 2012, the European Commission published a document entitled "Manifesto for a Resource Efficient Europe". The following organisations participated in the interviews Philips, GEF, WRI, DSM, UN Environment, Accenture, DSGC, ING, Circle Economy, EMF, IRP. [6] It aims to develop recyclable and sustainable resources in order to protect society from waste. [52][53], PACE is a coalition of CEOs and Ministers—including the leaders of global corporations like IKEA, Coca-Cola, Alphabet Inc., and DSM (company), governmental partners and development institutions from Denmark, The Netherlands, Finland, Rwanda, UAE, China, and beyond. Circular Economy Examples. 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." Definition of circular economy in the Definitions.net dictionary. On this page you can find more information, the work programme … They derived from nature systems and translated for industrial production systems. Information and translations of circular economy in the most comprehensive dictionary definitions resource on the web. Definition of the circular economy. This analogy stresses the impossibility for waste producers to dissociate themselves from their waste and emphasizes the contingent, multiple, and transient value of waste". "Qualification as corporate activism: How Swedish apparel retailers attach circular fashion qualities to take-back systems". Circular initiatives, such as clothing rental startups, are also getting more and more highlight in the EU and in the US as well. (2015, May). A first attempt to measure the success of circular economy implementation was done in a construction company. Thus, new modes of production and consumption are emerging with the main objective of generating billions of dollars while controlling and reducing environmental consequences. 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). ; Laurenti, R. Circular Economy Innovation and Environmental Sustainability Impact on Economic Growth: An Integrated Model for Sustainable Development. For this reason, it became essential for us to define the performance characteristics of a fully circular economy. Meaning of circular economy. Regenerative economy develop life and evolution, rather than destroying it. Focusing on connections between operators within the "industrial ecosystem", this approach aims at creating closed-loop processes in which waste is seen as input, thus eliminating the notion of undesirable by-product.[143]. [93] There are also incentives for carmakers to do so as a 2016 report by Accenture stated that the circular economy could redefine competitiveness in the automotive sector in terms of price, quality, and convenience and could double revenue by 2030 and lower the cost base by up to fourteen percent. Definition of the Circular Economy. As Corvellec (2015) put it, the circular economy privileges continued economic growth with soft "anti-programs", and the circular economy is far from the most radical "anti-program". 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. Popularized by the book Cradle to Cradle: Remaking The Way We Make Things, Cradle to Cradle Design has been widely implemented by architect William McDonough, who was introduced as the “father of the circular economy” while receiving the 2017 Fortune Award for Circular Economy Leadership in Davos during the World Economic Forum. "Perceptions of Firms Participating in a Circular Economy.".
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