Utilizing the sharing economy. Over time, one approach to sustainable development has gained traction among economists, policymakers and business people, and has also caught UNIDO’s attention. 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. 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. [140], Created by Walter R. Stahel and similar theorists, in which industry adopts the reuse and service-life extension of goods as a strategy of waste prevention, regional job creation, and resource efficiency in order to decouple wealth from resource consumption. The book Strategic Management and the Circular Economy defined for the first time a CE strategic decision-making process, covering the phases of analysis, formulation, and planning. Corvellec and Stål (2019) are mildly critical of apparel manufacturing circular economy take-back systems as ways to anticipate and head off more severe waste reduction programs: Apparel retailers exploit that the circular economy is evocative but still sufficiently vague to create any concrete policies (Lüdeke‐Freund, Gold, & Bocken, 2019) that might hinder their freedom of action (Corvellec & Stål, 2017). More and more people are pushing for change, to build a better world for all. Some car manufacturers such as Volvo are also looking at alternative ownership models (leasing from the automotive company; "Care by Volvo"). "Squaring the circular economy: The role of recycling within a hierarchy of material management strategies". 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. 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. Les notions d'économie verte, d’économie de l'usage ou de l'économie de la fonctionnalité, de l'économie de la performance et de l'écologie industrielle font partie de l'économie circulaire. Regenerative system in which resource input and waste, emission, and energy leakage, are minimised, The examples and perspective in this section, Platform for Accelerating the Circular Economy (PACE), Development of ISO/TC 323 circular economy standard, Strategic management and the circular economy, CS1 maint: multiple names: authors list (, Local Government for Sustainability Africa. Currently, out of 10,000,000 tonnes of annually discarded furniture in the EU, most of it ends up in landfills or is incinerated. [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. With this surge in popularity, many mention the term 'circular economy' or 'circular principles' without really explaining what they mean. Download Digest. Resource recovery is using wastes as an input material to create valuable products as new outputs. The … We have detected that you are using an older browser. [9] In other words, the goal is to make the economy as circular as possible,[10] by thinking to new processes and solutions for the optimization of resources and the use and waste. "Evaluation of the metals industry's position on recycling and its implications for environmental emissions". [70]:217, A key tenet of a scatolic approach to waste is to consider waste as unavoidable and worthy of interest. In 2017 North Sea oil and gas decommissioning became a net drain on the public purse. [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". The Netherlands, aiming to have a completely circular economy by 2050,[103] has also foreseen a shift to circular agriculture (kringlooplandbouw[104]) as part of this plan. A circular economy is an economic model designed to minimize resource input, as well as waste and emission production. "Waste as scats: For an organizational engagement with waste". 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 … Supply chain sustainability and product life cycle sustainability are integral to the circular economy. It may concern both construction companies as well as construction projects (where a construction company is one of the stakeholders). [117], On July 2014, a zero-waste program for Europe has been put in place aiming at the circular economy. : 1130306 OSCR Registration No. We have gathered 10 examples of Circular Economy solutions that through practical cases illustrate how circular business models prove to be a sound business strategy that facilitates access to new markets, drives innovative solutions and saves production costs. [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. Discover examples and definition. [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. >> Lire le dossier Ademe&Vous "Ecoconception : les entreprises ont tout à y gagner !" "Circular economy as an essentially contested concept". Unfortunately, what this equates to; is equipment, which is perfectly suitable for continued use, being disposed of. Information and translations of circular economy in the most comprehensive dictionary definitions resource on the web. [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. This analogy stresses the impossibility for waste producers to dissociate themselves from their waste and emphasizes the contingent, multiple, and transient value of waste". Considered as one of the first pragmatic and credible sustainability think tanks, the main goals of Stahel's institute are to extend the working life of products, to make goods last longer, to re-use existing goods and ultimately to prevent waste. The Ellen MacArthur Foundation works in Education & Training, Business & Government, Insight & Analysis, Systemic Initiatives and Communications to accelerate the transition to a circular economy. One of the major causes of our linear lifestyles is the fact that we are … Likewise, whereas the Circular Economy analogy of a circle evokes endless perfection, the analogy of scats evokes disorienting messiness. Another circular initiative is offering a take-back program. Linear "take, make, dispose" industrial processes, and the lifestyles dependent on them, use up finite reserves to create products with a finite lifespan, which end up in landfills or in incinerators. It questions whether with creativity and innovation we can build a restorative economy. In line with this, a circular economy can contribute to meeting the COP 21 Paris Agreement. The 20th century was the linear economy momentum, we need to move forward to a regenerative and circular economy. This shifted attention towards business-model innovation as a key leverage for 'circular' technology adaption. Consumption happens only in biological cycles, where food and biologically-based materials (such as cotton or wood) are designed to feed back into the system through processes like composting and anaerobic digestion. L’économie circulaire, un nouveau modèle de développement. Bioeconomy. This new form of society is based on the principle of circular economy. This regenerative approach is in contrast to the traditional linear economy, which has a "take, make, dispose" model of production.[5]. 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. Companies are like dots along the circle, forming a network between suppliers and customers called a value chain. [127] As a matter of fact, the implementation of this new plan was supported by the European Economic and Social Committee (EESC). [130] It focuses on better management of resource-intensive industries, waste reduction, zero-carbonization and standardization of sustainable products in Europe. All Rights Reserved, Universal circular policy goals: a framework. A circular economy is an alternative to a traditional linear economy (make, use, dispose) in which we keep resources in use for as long as possible, extract the maximum value from them while in use, then recover and regenerate products and materials at the end of each service life. 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. Circular business models can be defined as business models that are closing, narrowing, slowing, intensifying and dematerializing loops, to minimize the resource inputs into and the waste and emission leakage out of the organizational system. These cover the cycle from production and consumption, to waste management and the market for secondary raw materials. A first attempt to measure the success of circular economy implementation was done in a construction company. [112], Organizations such as Zero Waste Scotland have conducted studies to identify areas with reuse potential, allowing equipment to continue life in other industries, or be redeployed for oil and gas . The circular economy needs joint efforts by entrepreneurs, researchers, industries, users, government, the civil society, lawmakers, but most all it needs innovation. No items found. Circle Economy and Ecofys estimated that circular economy strategies may deliver emissions reductions that could basically bridge the gap by half.[33]. If you are unable to upgrade your browser, please see our Technical FAQ page to get tips on how to improve your user experience. Producers take back their products after use and repair them for a new useful life (Ellen MacArthur Foundation, 2015a). On the 10th of February 2021, the European Parliament submitted its proposals to the Circular Economic Action Plan (CEAP) of the Commission, highlighting 5 major areas in particular. Toxic substances are eliminated and residual flows are separated into a biological and a technical cycle. The five principles are Materials Parsimony, Value Cycling, Power Autonomy, Sustainable Product Platforms and Function Over Form. In essence, a circular economy impli… [98] In the EU's ETN-Demeter project (European Training Network for the Design and Recycling of Rare-Earth Permanent Magnet Motors and Generators in Hybrid and Full Electric Vehicles)[99] they are looking at the sustainable design issue. In a circular economy, material cycles are closed following the example of an ecosystem. 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). Key research areas. What is a circular economy? In the UK, Steve D. Parker researched waste as a resource in the UK agricultural sector in 1982, developing novel closed-loop production systems. European Economic and Social Committee (2017). [17], The circular economy can cover a broad scope. The aim is to enable economies and societies in general to become more autonomou… Circular economy. (1988). [108], The EU has seen a huge potential for implementing a circular economy in the furniture sector. [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 is argued that by following a circular economy, the textile industry can be transformed into a sustainable business. Defining a circular economy. Once consumed, they can be used to create biogas, biochemicals or … 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? Charity Registration No. In 1982, Walter Stahel was awarded third prize in the Mitchell Prize competition on sustainable business models with a paper The Product-Life Factor. [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. electronics, clothes, furniture, transportation). [48] PACE follows on the legacy of WEF's CEO-led initiative, Project MainStream, which sought to scale up circular economy innovations. Regenerative economy develop life and evolution, rather than destroying it. Each phase is supported by frameworks and concepts popular in management consulting – like idea tree, value chain, VRIE, Porter's five forces, PEST, SWOT, strategic clock, or the internationalization matrix – all adapted through a CE lens, hence revealing new sets of questions and considerations. Circular economy: some definitions. ", "Developing policies for the end-of-life of energy infrastructure: Coming to terms with the challenges of decommissioning", https://africa.iclei.org/pathways_cat/circular-development-pathway/, https://www.ecologie.gouv.fr/leconomie-circulaire, https://www.escadrille.org/fr/blog/economie-circulaire-nouveau-modele-developpement, https://www.ellenmacarthurfoundation.org/fr/economie-circulaire/concept, https://www.mdpi.com/2071-1050/12/12/4831, "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context", "Modularisation as enabler of circular economy in energy infrastructure", "The Economics of the Coming Spaceship Earth", https://www.crcpress.com/Clean-Production-Strategies-Developing-Preventive-Environmental-Management/Jackson/p/book/9780873718844, https://www.routledge.com/Material-Concerns-Pollution-Profit-and-Quality-of-Life/Jackson/p/book/9780415132497, "Cradle to Cradle | The Product-Life Institute", "Putting a circular economy into practice in China", "Implementing Circular Economy Globally Makes Paris Targets Achievable", Towards the Circular Economy: Economic and Business Rationale for an Accelerated Transition, Estimating Employment Effects of the Circular Economy, "Business models and supply chains for the circular economy", "Circular supply chains in emerging economies – a comparative study of packaging recovery ecosystems in China and Brazil", "The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies", "Intelligent Assets: Unlocking the circular economy potential, by the Ellen MacArthur Foundation and World Economic Forum as part of Project MainStream", "How to transition to a digital circular economy?
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