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A '''circular economy''' (also referred to as '''circularity''' or '''CE''')<ref>{{Cite web|url=https://www.ellenmacarthurfoundation.org/resources/apply/circularity-indicators|title=Circularity Indicators|website=www.ellenmacarthurfoundation.org|access-date=2019-03-14|archive-date=2019-07-31|archive-url=https://web.archive.org/web/20190731195422/https://www.ellenmacarthurfoundation.org/resources/apply/circularity-indicators|url-status=dead}}</ref> is a model of resource [[Production (economics)|production]] and [[Resource consumption|consumption]] in any economy that involves [[sharing]], leasing, [[Reuse|reusing]], repairing, refurbishing, and [[recycling]] existing materials and products for as long as possible.
▲A '''circular economy''' (also referred to as '''circularity''' or '''CE''')<ref>{{Cite web|url=https://www.ellenmacarthurfoundation.org/resources/apply/circularity-indicators|title=Circularity Indicators|website=www.ellenmacarthurfoundation.org|access-date=2019-03-14|archive-date=2019-07-31|archive-url=https://web.archive.org/web/20190731195422/https://www.ellenmacarthurfoundation.org/resources/apply/circularity-indicators|url-status=dead}}</ref> is a model of resource [[Production (economics)|production]] and [[Resource consumption|consumption]] in any economy that involves [[sharing]], leasing, [[Reuse|reusing]], repairing, refurbishing, and [[recycling]] existing materials and products for as long as possible.<ref>{{cite web |title=Circular Economy Ireland |url=https://www.mhc.ie/hubs/esg/circular-economy |website=mhc.ie |publisher=Mason Hayes & Curran |access-date=28 November 2023}}</ref><ref name="europarl.europa.eu">{{Cite web|date=2015-02-12|title=Circular economy: definition, importance and benefits {{!}} News {{!}} European Parliament|url=https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits|access-date=2021-10-07|website=www.europarl.europa.eu|language=en}}</ref><ref>{{cite journal |last1=Iacovidou |first1=Eleni |last2=Hahladakis |first2=John N. |last3=Purnell |first3=Phil |title=A systems thinking approach to understanding the challenges of achieving the circular economy |journal=Environmental Science and Pollution Research |date=2021 |volume=28 |issue=19 |pages=24785–24806 |doi=10.1007/s11356-020-11725-9 |pmid=33289042 |pmc=8144154 |doi-access=free|bibcode=2021ESPR...2824785I }}</ref><ref>{{cite journal |last1=Kirchherr |first1=Julian |last2=Reike |first2=Denise |last3=Hekkert |first3=Marko |title=Conceptualizing the circular economy: An analysis of 114 definitions |journal=Resources, Conservation and Recycling |date=2017 |volume=127 |pages=221–232 |doi=10.1016/j.resconrec.2017.09.005 |doi-access=free}}</ref> The concept aims to tackle global challenges such as [[climate change]], [[biodiversity loss]], [[waste]], and [[pollution]] by emphasizing the design-based implementation of the three base principles of the model. The main three principles required for the transformation to a circular economy are: designing out waste and pollution, keeping products and materials in use, and regenerating natural systems.<ref>{{Cite web|url=https://www.ellenmacarthurfoundation.org/circular-economy/concept|title=Circular Economy Concept|website=www.ellenmacarthurfoundation.org|access-date=2023-04-23}}</ref> CE is defined in contradistinction to the traditional linear economy.<ref name="New to circular economy overview">{{Cite web|title=New to circular economy overview|url=https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview|access-date=2021-12-06|website=ellenmacarthurfoundation.org}}</ref><ref name="Reuter"/> The idea and concepts of a circular economy have been studied extensively in academia, business, and government over the past ten years. It has been gaining popularity because it can help to minimize [[Greenhouse gas emissions|carbon emissions]] and the consumption of raw materials, open up new market prospects, and, principally, increase the [[sustainable consumption|sustainability of consumption]].<ref>{{Cite journal |last1=Tunn |first1=V. S. C. |last2=Bocken |first2=N. M. P. |last3=van den Hende |first3=E. A. |last4=Schoormans |first4=J. P. L. |date=2019-03-01 |title=Business models for sustainable consumption in the circular economy: An expert study |url=https://www.sciencedirect.com/science/article/pii/S095965261833693X |journal=Journal of Cleaner Production |language=en |volume=212 |pages=324–333 |doi=10.1016/j.jclepro.2018.11.290 |s2cid=158627557 |issn=0959-6526}}</ref><ref>{{cite journal |last1=Shpak |first1=Nestor |last2=Kuzmin |first2=Oleh |last3=Melnyk |first3=Olga |last4=Ruda |first4=Mariana |last5=Sroka |first5=Włodzimierz |title=Implementation of a Circular Economy in Ukraine: The Context of European Integration |journal=Resources |date=August 2020 |volume=9 |issue=8 |pages=96 |doi=10.3390/resources9080096 |language=en |issn=2079-9276|doi-access=free }}</ref>
At a government level, a circular economy is viewed as a method of combating [[:simple:Global warming|global warming]], as well as a facilitator of long-term growth.<ref>{{Cite journal |last1=Calisto Friant |first1=Martin |last2=Vermeulen |first2=Walter J. V. |last3=Salomone |first3=Roberta |date=2020-10-01 |title=A typology of circular economy discourses: Navigating the diverse visions of a contested paradigm |journal=Resources, Conservation and Recycling |language=en |volume=161 |pages=104917 |doi=10.1016/j.resconrec.2020.104917 |s2cid=222121823 |issn=0921-3449|doi-access=free }}</ref> CE may geographically connect actors and resources to stop material loops at the regional level.<ref>{{Cite journal |last1=Castro |first1=Camila Gonçalves |last2=Trevisan |first2=Adriana Hofmann |last3=Pigosso |first3=Daniela C. A. |last4=Mascarenhas |first4=Janaina |date=2022-04-15 |title=The rebound effect of circular economy: Definitions, mechanisms and a research agenda |journal=Journal of Cleaner Production |language=en |volume=345 |pages=131136 |doi=10.1016/j.jclepro.2022.131136 |s2cid=247150037 |issn=0959-6526|doi-access=free }}</ref> In its core principle, the [[European Parliament]] defines CE as "a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended."<ref name="europarl.europa.eu" /> Global implementation of circular economy can reduce global emissions by 22.8 billion tons, 39% of global emissions in the year 2019.<ref name=Circle/> By implementing circular economy strategies in five sectors alone: [[cement]], [[Aluminium|aluminum]], [[steel]], [[plastic]]s, and [[food]] 9.3 billion metric tons of {{CO2}} equivalent (equal to all current emissions from transportation), can be reduced.<ref name="ellenmacarthurfoundation.org">{{Cite web |title=Completing the picture: How the circular economy tackles climate change |url=https://ellenmacarthurfoundation.org/completing-the-picture |access-date=2023-06-19 |website=ellenmacarthurfoundation.org}}</ref><ref name=":1522"/><ref>{{Cite web |title=COMPLETING THE PICTURE: HOW THE CIRCULAR ECONOMY TACKLES CLIMATE CHANGE |url=https://circulareconomy.europa.eu/platform/sites/default/files/emf_completing_the_picture.pdf |website=circulareconomy.europa.eu/}}</ref>▼
▲The idea and concepts of a circular economy have been studied extensively in academia, business, and government over the past ten years. It has been gaining popularity because it can help to minimize [[Greenhouse gas emissions|carbon emissions]] and the consumption of raw materials, open up new market prospects, and, principally, increase the [[sustainable consumption|sustainability of consumption]].<ref>{{Cite journal |last1=Tunn |first1=V. S. C. |last2=Bocken |first2=N. M. P. |last3=van den Hende |first3=E. A. |last4=Schoormans |first4=J. P. L. |date=2019-03-01 |title=Business models for sustainable consumption in the circular economy: An expert study |url=https://www.sciencedirect.com/science/article/pii/S095965261833693X |journal=Journal of Cleaner Production |language=en |volume=212 |pages=324–333 |doi=10.1016/j.jclepro.2018.11.290 |bibcode=2019JCPro.212..324T |s2cid=158627557 |issn=0959-6526}}</ref><ref>{{cite journal |last1=Shpak |first1=Nestor |last2=Kuzmin |first2=Oleh |last3=Melnyk |first3=Olga |last4=Ruda |first4=Mariana |last5=Sroka |first5=Włodzimierz |title=Implementation of a Circular Economy in Ukraine: The Context of European Integration |journal=Resources |date=August 2020 |volume=9 |issue=8 |pages=96 |doi=10.3390/resources9080096 |language=en |issn=2079-9276|doi-access=free }}</ref> At a government level, a circular economy is viewed as a method of combating [[:simple:Global warming|global warming]], as well as a facilitator of long-term growth.<ref>{{Cite journal |last1=Calisto Friant |first1=Martin |last2=Vermeulen |first2=Walter J. V. |last3=Salomone |first3=Roberta |date=2020-10-01 |title=A typology of circular economy discourses: Navigating the diverse visions of a contested paradigm |journal=Resources, Conservation and Recycling |language=en |volume=161 |pages=104917 |doi=10.1016/j.resconrec.2020.104917 |s2cid=222121823 |issn=0921-3449|doi-access=free |bibcode=2020RCR...16104917C }}</ref> CE may geographically connect actors and resources to stop material loops at the regional level.<ref>{{Cite journal |last1=Castro |first1=Camila Gonçalves |last2=Trevisan |first2=Adriana Hofmann |last3=Pigosso |first3=Daniela C. A. |last4=Mascarenhas |first4=Janaina |date=2022-04-15 |title=The rebound effect of circular economy: Definitions, mechanisms and a research agenda |journal=Journal of Cleaner Production |language=en |volume=345 |pages=131136 |doi=10.1016/j.jclepro.2022.131136 |s2cid=247150037 |issn=0959-6526|doi-access=free |bibcode=2022JCPro.34531136C }}</ref> In its core principle, the [[European Parliament]] defines CE as "a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended."<ref name="europarl.europa.eu" /> Global implementation of circular economy can reduce global emissions by 22.8 billion tons, 39% of global emissions in the year 2019.<ref name="Circle" /> By implementing circular economy strategies in five sectors alone: [[cement]], [[Aluminium|aluminum]], [[steel]], [[plastic]]s, and [[food]] 9.3 billion metric tons of {{CO2}} equivalent (equal to all current emissions from transportation), can be reduced.<ref name="ellenmacarthurfoundation.org">{{Cite web |title=Completing the picture: How the circular economy tackles climate change |url=https://ellenmacarthurfoundation.org/completing-the-picture |access-date=2023-06-19 |website=ellenmacarthurfoundation.org}}</ref><ref name=":1522" /><ref>{{Cite web |title=COMPLETING THE PICTURE: HOW THE CIRCULAR ECONOMY TACKLES CLIMATE CHANGE |url=https://circulareconomy.europa.eu/platform/sites/default/files/emf_completing_the_picture.pdf |website=circulareconomy.europa.eu/}}</ref>[[File:Linia kontraŭ Cirkulero.svg|thumb|upright=1.35|An illustration showing the difference between the take, make waste linear economy approach, and the circular economy approach]]In a circular economy, business models play a crucial role in enabling the shift from linear to circular processes. Various business models have been identified that support circularity, including product-as-a-service, sharing platforms, and product life extension models, among others.<ref>{{Cite journal|last1=Urbinati|first1=Andrea|last2=Chiaroni|first2=Davide|last3=Chiesa|first3=Vittorio|date=2017-01-01|title=Towards a new taxonomy of circular economy business models|journal=Journal of Cleaner Production|language=en|volume=168|pages=487–498|doi=10.1016/j.jclepro.2017.09.047|s2cid=157679243|issn=0959-6526|doi-access=free|bibcode=2017JCPro.168..487U |hdl=11311/1087435|hdl-access=free}}</ref> These models aim to optimize resource utilization, reduce waste, and create value for businesses and customers alike, while contributing to the overall goals of the circular economy.
Businesses can also make the transition to the circular economy, where holistic adaptations in firms' business models are needed.<ref>{{Cite journal |
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== Definition ==
There are many definitions of the circular economy.<ref name="Kirchherr 221–232">{{Cite journal|last1=Kirchherr|first1=Julian|last2=Reike|first2=Denise|last3=Hekkert|first3=Marko|date=2017-12-01|title=Conceptualizing the circular economy: An analysis of 114 definitions|journal=Resources, Conservation and Recycling|language=en|volume=127|pages=221–232|doi=10.1016/j.resconrec.2017.09.005|issn=0921-3449|doi-access=free|bibcode=2017RCR...127..221K }}</ref> For example, in [[China's circular economy|China]], CE is promoted as a top-down national political objective, meanwhile in other areas, such as the European Union, Japan, and the USA, it is a tool to design bottom-up environmental and waste management policies. The ultimate goal of promoting CE is the decoupling of environmental pressure from economic growth.<ref name="Ghisellini 11–32">{{Cite journal|last1=Ghisellini|first1=Patrizia|last2=Cialani|first2=Catia|last3=Ulgiati|first3=Sergio|date=2016-02-15|title=A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems|url=https://www.sciencedirect.com/science/article/pii/S0959652615012287|journal=Journal of Cleaner Production|series=Towards Post Fossil Carbon Societies: Regenerative and Preventative Eco-Industrial Development|language=en|volume=114|pages=11–32|doi=10.1016/j.jclepro.2015.09.007|bibcode=2016JCPro.114...11G |issn=0959-6526}}</ref> A comprehensive definition could be: "Circular economy is an economic system that targets zero waste and pollution throughout materials lifecycles, from environment extraction to industrial transformation, and final consumers, applying to all involved ecosystems. Upon its lifetime end, materials return to either an industrial process or, in the case of a treated organic residual, safely back to the environment as in a natural regenerating cycle. It operates by creating value at the macro, meso, and micro levels and exploiting to the fullest the [[sustainability]] nested concept. Used energy sources are clean and renewable. Resource use and consumption are efficient. Government agencies and responsible consumers play an active role in ensuring the correct system long-term operation."<ref>{{Cite journal|last1=Nobre|first1=Gustavo Cattelan|last2=Tavares|first2=Elaine|date=2021-09-10|title=The quest for a circular economy final definition: A scientific perspective|url=https://www.sciencedirect.com/science/article/pii/S0959652621021910|journal=Journal of Cleaner Production|language=en|volume=314|pages=127973|doi=10.1016/j.jclepro.2021.127973|bibcode=2021JCPro.31427973N |issn=0959-6526}}</ref>[[File:Circular Economy Explained.webm|thumb|Circular economy explained]]More generally, circular development is a model of economic, social, and environmental production and consumption that aims to build an autonomous and sustainable society in tune with the issue of environmental resources.<ref name="africa.iclei.org">Local Government for Sustainability Africa. (s. d.). Circular development | ICLEI Africa. Circular Development Pathway. Consulté le 15 mars 2021, à l'adresse https://africa.iclei.org/pathways_cat/circular-development-pathway/</ref> The circular economy aims to transform our economy into one that is regenerative. An economy that innovates to reduce waste and the ecological and environmental impact of industries prior to happening, rather than waiting to address the consequences of these issues.<ref>Économie circulaire - Ellen Macarthur Foundation. (s. d.). Ellen Macarthur Foundation. Consulté le 9 mars 2021, à l'adresse https://www.ellenmacarthurfoundation.org/fr/economie-circulaire/concept</ref> This is done by designing new processes and solutions for the optimization of resources, decoupling reliance on finite resources.<ref name="africa.iclei.org" />
The circular economy is a framework of three principles, driven by design: eliminating waste and pollution, keeping products and materials in use, and regenerating natural systems.<ref name="New to circular economy overview"/> It is based increasingly on renewable energy and materials, and it is accelerated by digital innovation. It is a resilient, distributed, diverse, and inclusive economic model. The circular economy is an economic concept often linked to [[sustainable development]], provision of the [[Sustainable Development Goals]] (Global Development Goals), and an extension of a green economy.{{citation needed|date=September 2022}}
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Other definitions and precise thresholds that separate linear from circular activity have also been developed in the economic literature.<ref>{{cite journal |last1=García-Barragán |first1=Juan F. |last2=Eyckmans |first2=Johan |last3=Rousseau |first3=Sandra |title=Defining and Measuring the Circular Economy: A Mathematical Approach |journal=Ecological Economics |date=March 2019 |volume=157 |pages=369–372 |doi=10.1016/j.ecolecon.2018.12.003 |bibcode=2019EcoEc.157..369G |s2cid=158885640 |url=https://lirias.kuleuven.be/handle/123456789/632927 }}</ref><ref name="Kirchherr 221–232"/><ref name="Ghisellini 11–32"/>
In a '''linear economy''', [[natural resource]]s are turned into products that are ultimately destined to become waste because of the way they have been designed and manufactured. This process is often summarized as "take, make, waste."<ref>{{Cite journal|last=Brydges|first=Taylor|date=2021-04-15|title=Closing the loop on take, make, waste: Investigating circular economy practices in the Swedish fashion industry|journal=Journal of Cleaner Production|language=en|volume=293|pages=126245|doi=10.1016/j.jclepro.2021.126245|s2cid=233577453|issn=0959-6526|doi-access=free|bibcode=2021JCPro.29326245B }}</ref> By contrast, a circular economy aims to transition from a 'take-make-waste' approach to a more restorative and regenerative system. It employs [[reuse]], [[Sharing economy|sharing]], repair, refurbishment, [[remanufacturing]] and [[recycling]] to create a closed-loop system, reducing the use of [[Resource depletion|resource inputs]] and the creation of [[Waste minimisation|waste]], pollution, and carbon emissions.<ref name="Geissdoerfer 757–768">{{Cite journal|last1=Geissdoerfer|first1=Martin|last2=Savaget|first2=Paulo|last3=Bocken|first3=Nancy M. P.|last4=Hultink|first4=Erik Jan|date=2017-02-01|title=The Circular Economy – A new sustainability paradigm? |journal=Journal of Cleaner Production|volume=143|pages=757–768|doi=10.1016/j.jclepro.2016.12.048|bibcode=2017JCPro.143..757G |s2cid=157449142|url=https://www.repository.cam.ac.uk/handle/1810/261957}}</ref> The circular economy aims to keep products, materials, equipment, and infrastructure<ref name="Invernizzi2020">{{cite journal |last1=Invernizzi |first1=Diletta Colette |last2=Locatelli |first2=Giorgio |last3=Velenturf |first3=Anne |last4=Love |first4=Peter ED. |last5=Purnell |first5=Phil |last6=Brookes |first6=Naomi J. |title=Developing policies for the end-of-life of energy infrastructure: Coming to terms with the challenges of decommissioning |journal=Energy Policy |date=September 2020 |volume=144 |pages=111677 |doi=10.1016/j.enpol.2020.111677 |s2cid=225307513 |doi-access=free |bibcode=2020EnPol.14411677I |hdl=11311/1204791 |hdl-access=free }}</ref> in use for longer, thus improving the productivity of these resources. Waste materials and energy should become input for other processes through [[waste valorization]]: either as a component for another industrial process or as regenerative resources for nature (e.g., compost). The Ellen MacArthur Foundation (EMF) defines the circular economy as an industrial economy that is restorative or regenerative by value and design.<ref>{{Cite journal|last=Morseletto|first=Piero|date=2020|title=Restorative and regenerative: Exploring the concepts in the circular economy|journal=Journal of Industrial Ecology|language=en|volume=24|issue=4|pages=763–773|doi=10.1111/jiec.12987|s2cid=203500060|issn=1530-9290|doi-access=free|bibcode=2020JInEc..24..763M }}</ref><ref name=":3" />
Circular economy strategies can be applied at various scales, from individual products and services to entire industries and cities. For example, industrial symbiosis is a strategy where waste from one industry becomes an input for another, creating a network of resource exchange and reducing waste, pollution, and resource consumption.<ref>{{Cite journal|last=Chertow|first=Marian R.|date=2000-12-01|title=Industrial symbiosis: Literature and taxonomy|journal=Annual Review of Energy and the Environment|language=en|volume=25|issue=1|pages=313–337|doi=10.1146/annurev.energy.25.1.313|issn=1056-3466|doi-access=free}}</ref> Similarly, circular cities aim to integrate circular principles into urban planning and development, foster local resource loops, and promote sustainable lifestyles among their citizens.<ref>{{Cite journal|last1=Prendeville|first1=Sharon|last2=Cherim|first2=Emma|last3=Bocken|first3=Nancy|date=2018-11-01|title=Circular cities: Mapping six cities in transition|journal=Environmental Innovation and Societal Transitions|language=en|volume=26|pages=171–194|doi=10.1016/j.eist.2017.03.002|s2cid=157408918|issn=2210-4224|doi-access=free|bibcode=2018EIST...26..171P }}</ref> Less than 10% of economic activity worldwide in 2022 and 2023 is circular.<ref name=":1522">{{Cite web |title=Circular economy Overview 2023 |date=26 May 2023 |url=https://www.eib.org/en/publications/20230157-circular-economy-overview-2023 |last1=Bank |first1=European Investment }}</ref><ref name=":2012">{{Cite web |last=Anyiego |first=Beldine |date=2022-08-15 |title=AFRICA: The Clean Oceans initiative will fund twice as many projects as expected? |url=https://www.copip.eu/news/africa-the-clean-oceans-initiative-will-fund-twice-as-many-projects-as-expected/ |access-date=2023-02-23 |website=COPIP}}</ref> Every year, the global population uses approximately 100 billion tonnes of materials, with more than 90% of them being wasted. The circular economy seeks to address this by eliminating waste entirely.<ref name=":2013">{{Cite web |last=Anyiego |first=Beldine |date=2022-08-15 |title=AFRICA: The Clean Oceans initiative will fund twice as many projects as expected? |url=https://www.copip.eu/news/africa-the-clean-oceans-initiative-will-fund-twice-as-many-projects-as-expected/ |access-date=2023-02-23 |website=COPIP}}</ref>
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In the early 2000s, [[China's Circular Economy|China]] integrated the notion into its industrial and environmental policies to make them resource-oriented, production-oriented, waste-oriented, use-oriented, and life cycle-oriented.<ref>{{Cite journal|last1=Zhu|first1=Junming|last2=Fan|first2=Chengming|last3=Shi|first3=Haijia|last4=Shi|first4=Lei|date=2019|title=Efforts for a Circular Economy in China: A Comprehensive Review of Policies|journal=Journal of Industrial Ecology|language=en|volume=23|issue=1|pages=110–118|doi=10.1111/jiec.12754|s2cid=158702257|issn=1530-9290|doi-access=free|bibcode=2019JInEc..23..110Z }}</ref> The Ellen MacArthur Foundation <ref>{{Cite web|title=Let's build a circular economy|url=https://ellenmacarthurfoundation.org/|access-date=2021-10-07|website=ellenmacarthurfoundation.org}}</ref> was instrumental in the diffusion of the concept in Europe and the Americas.<ref name="Press Corner"/>
In 2010, the concept of circular economy started to become popular internationally after the publication of several reports.<ref name="Aggeri 2020"/> The European Union introduced its vision of the circular economy in 2014, with a New Circular Economy Action Plan launched in 2020 that "shows the way to a climate-neutral, competitive economy of empowered consumers".<ref name="Press Corner">{{Cite web|title=Press corner|url=https://ec.europa.eu/commission/presscorner/home/en|access-date=2021-10-07|website=European Commission - European Commission|language=en}}</ref>
The original diffusion of the notion benefited from three major events: the explosion of raw material prices between 2000 and 2010, the Chinese control of rare earth materials, and the 2008 economic crisis.<ref name="ecologie.gouv.fr">L'économie circulaire. (2020, 4 novembre). Ministère de la Transition écologique. https://www.ecologie.gouv.fr/leconomie-circulaire</ref> Today, the climate emergency and environmental challenges induce companies and individuals in rethink their production and consumption patterns. The circular economy is framed as one of the answers to these challenges. Key macro-arguments in favour of the circular economy are that it could enable economic growth that does not add to the burden on natural resource extraction but decouples resource uses from the development of economic welfare for a growing population, reduces foreign dependence on critical materials, lowers CO<sub>2</sub> emissions, reduces waste production, and introduces new modes of production and consumption able to create further value.<ref name="europarl.europa.eu"/> Corporate arguments in favour of the circular economy are that it could secure the supply of raw materials, reduce the price volatility of inputs and control costs, reduce spills and waste, extend the life cycle of products, serve new segments of customers, and generate long-term shareholder value. A key idea behind the circular business models is to create loops throughout to recapture value that would otherwise be lost.<ref>{{Cite web|title=Why the circular economy is all about retaining value {{!}} McKinsey|url=https://www.mckinsey.com/business-functions/sustainability/our-insights/why-the-circular-economy-is-all-about-retaining-value|access-date=2021-10-07|website=www.mckinsey.com}}</ref>
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===Scope===
The circular economy can have a broad scope. Researchers have focused on different areas such as industrial applications with both product-oriented and natural resources and services,<ref name=":22">{{cite journal |last1=Ranta |first1=Valtteri |last2=Aarikka-Stenroos |first2=Leena |last3=Ritala |first3=Paavo |last4=Mäkinen |first4=Saku J. |title=Exploring institutional drivers and barriers of the circular economy: A cross-regional comparison of China, the US, and Europe |journal=Resources, Conservation and Recycling |date=August 2018 |volume=135 |pages=70–82 |doi=10.1016/j.resconrec.2017.08.017 |bibcode=2018RCR...135...70R |hdl=10024/158840 |s2cid=11329865 |hdl-access=free }}</ref> practices and policies<ref>{{Cite journal|last1=Murray|first1=Alan|last2=Skene|first2=Keith|last3=Haynes|first3=Kathryn|date=2015-05-22|title=The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context|journal=Journal of Business Ethics|volume=140|issue=3|pages=369–380|doi=10.1007/s10551-015-2693-2|s2cid=41486703 |url=https://eprint.ncl.ac.uk/fulltext.aspx?url=208884/EB16068A-8D6E-4D8F-9FA3-83DF5775D4FE.pdf&pub_id=208884}}</ref> to better understand the limitations that the CE currently faces, strategic management for details of the circular economy and different outcomes such as potential re-use applications<ref>{{Cite journal|last1=Kaur|first1=Guneet|last2=Uisan|first2=Kristiadi|last3=Lun Ong|first3=Khai|last4=Sze Ki Lin|first4=Carol|date=2017|title=Recent trend in Green sustainable Chemistry & waste valorisation: Rethinking plastics in a circular economy|journal=Current Opinion in Green and Sustainable Chemistry|volume=9|pages=30–39|doi=10.1016/j.cogsc.2017.11.003}}</ref> and waste management.<ref>{{Cite journal|last1=Casarejos|first1=Fabricio|last2=Bastos|first2=Claudio R.|last3=Rufin|first3=Carlos|last4=Frota|first4=Mauricio N.|date=November 2018|title=Rethinking packaging production and consumption vis-à-vis circular economy: A case study of compostable cassava starch-based material|journal=Journal of Cleaner Production|volume=201|pages=1019–1028|doi=10.1016/j.jclepro.2018.08.114 |bibcode=2018JCPro.201.1019C |s2cid=158684066}}</ref>
The circular economy includes products, infrastructure, equipment, services<ref name="nordicwaves.org">{{Cite web |title=Circular Economy Pioneer {{!}} Nordic Waves Group |url=https://www.nordicwaves.org/ |access-date=2022-06-03 |website=Nordic Waves ENG |language=en}}</ref> and buildings <ref>{{cite book |last1=Vaughan |first1=Josephine |last2=Illankoon |first2=I. M. Chethana S. |last3=Beard |first3=Cameron |last4=Sher |first4=Willy |last5=MacKee |first5=Jamie |title=Sustainability and Toxicity of Building Materials |date=2024 |publisher=Woodhead Publishing |isbn=978-0-323-98336-5 |pages=573–599 |url=https://doi.org/10.1016/B978-0-323-98336-5.00026-1 |chapter=26 - Hazardous building materials threaten circular economy and sustainable outcomes|doi=10.1016/B978-0-323-98336-5.00026-1 }}</ref>and applies to every industry sector. It includes 'technical' resources (metals, minerals, fossil resources) and 'biological' resources (food, fibres, timber, etc.).<ref name=":3" /> Most schools of thought advocate a shift from [[fossil fuels]] to the use of [[renewable energy]], and emphasize the role of diversity as a characteristic of resilient and sustainable systems. The circular economy includes a discussion of the role of money and finance as part of the wider debate, and some of its pioneers have called for a revamp of economic performance measurement tools.<ref name=":1">{{Cite web|last=NEWS.in|first=My Digital|date=2021-08-06|title=Scope of Circular Economy|url=https://mydigitalnews.in/scope-of-circular-economy|access-date=2021-08-06|website=My Digital NEWS.in|language=en}}</ref> One study points out how modularization could become a cornerstone to enabling a circular economy and enhancing the sustainability of energy infrastructure.<ref>{{Cite journal|last1=Mignacca|first1=Benito|last2=Locatelli|first2=Giorgio|last3=Velenturf|first3=Anne|date=26 Feb 2020|title=Modularisation as enabler of circular economy in energy infrastructure|journal=Energy Policy|volume=139|page=111371|doi=10.1016/j.enpol.2020.111371|doi-access=free|bibcode=2020EnPol.13911371M |hdl=11311/1204921|hdl-access=free}}</ref> One example of a circular economy model is the implementation of renting models in traditional ownership areas (e.g., electronics, clothes, furniture, transportation). By renting the same product to several clients, manufacturers can increase revenues per unit, thus decreasing the need to produce more to increase revenues. Recycling initiatives are often described as circular economy and are likely to be the most widespread models.<ref name=":1" />
According to a report of the organization "Circle economy" global implementation of circular economy can reduce global emissions by 22.8 billion tons, 39% of global emissions in the year 2019.<ref name=Circle>{{cite web |title=Circular economy strategies can cut global emissions by 39% |url=https://www.circle-economy.com/news/circular-economy-strategies-can-cut-global-emissions-by-39 |website=Circle economy |access-date=6 May 2024}}</ref> By 2050, 9.3 billion metric tons of{{CO2}} equivalent, or almost half of the global greenhouse gas emissions from the production of goods, might be reduced by implementing circular economy strategies in only five significant industries: cement, aluminum, steel, plastics, and food. That would equal to eliminating all current emissions caused by transportation.<ref name="ellenmacarthurfoundation.org"/><ref name=":1522"/><ref>{{Cite web |title=COMPLETING THE PICTURE: HOW THE CIRCULAR ECONOMY TACKLES CLIMATE CHANGE |url=https://circulareconomy.europa.eu/platform/sites/default/files/emf_completing_the_picture.pdf |website=circulareconomy.europa.eu/}}</ref>
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==Towards the circular economy==
In 2013, a report was released entitled ''Towards the Circular Economy: Economic and Business Rationale for an Accelerated Transition''. The report, commissioned by the [[Ellen MacArthur Foundation]] and developed by [[McKinsey & Company]], was the first volume of its kind<ref>{{Cite web|title=Towards the Circular Economy Vol. 3: Accelerating the scale-up across global supply chains {{!}} Shared by Business|url=https://emf.thirdlight.com/link/t4gb0fs4knot-n8nz6f/@/preview/1?o|access-date=2021-12-06|website=emf.thirdlight.com}}</ref><ref>{{Cite web|title=Towards the Circular Economy|url=https://www.ellenmacarthurfoundation.org/assets/downloads/publications/Ellen-MacArthur-Foundation-Towards-the-Circular-Economy-vol.1.pdf|url-status=live|access-date=18 April 2021|archive-url=https://web.archive.org/web/20151123022159/http://www.ellenmacarthurfoundation.org:80/assets/downloads/publications/Ellen-MacArthur-Foundation-Towards-the-Circular-Economy-vol.1.pdf |archive-date=2015-11-23 }}</ref> to consider the economic and business opportunity for the transition to a restorative, circular model. Using product case studies and economy-wide analysis, the report details the potential for significant benefits across the EU. It argues that a subset of the EU manufacturing sector could realize net materials cost savings worth up to $630 billion annually towards 2025—stimulating economic activity in the areas of product development, remanufacturing and refurbishment. ''Towards the Circular Economy'' also identified the key building blocks in making the transition to a circular economy, namely in skills in circular design and production, new business models, skills in building cascades and reverse cycles, and cross-cycle/cross-sector collaboration.<ref>{{cite report |title=Towards the Circular Economy: Economic and Business Rationale for an Accelerated Transition |url=https://www.ellenmacarthurfoundation.org/assets/downloads/publications/Ellen-MacArthur-Foundation-Towards-the-Circular-Economy-vol.1.pdf |publisher=Ellen MacArthur Foundation |date=2013 |access-date=2020-05-15}} And: {{cite book|url=http://www.thecirculareconomy.org|title=Towards the Circular Economy: an economic and business rationale for an accelerated transition|publisher=Ellen MacArthur Foundation|year=2012|page=60|access-date=2012-01-30|archive-url=https://web.archive.org/web/20130110100128/http://www.thecirculareconomy.org/|archive-date=2013-01-10|url-status=dead}}</ref> This is supported by a case study from the [[automotive industry]],<ref name=":11">{{Cite journal|last1=Schmitt|first1=Thomas|last2=Wolf|first2=Christopher|last3=Lennerfors|first3=Thomas Taro|last4=Okwir|first4=Simon|date=2021-10-10|title=Beyond "Leanear" production: A multi-level approach for achieving circularity in a lean manufacturing context|journal=Journal of Cleaner Production|language=en|volume=318|pages=128531|doi=10.1016/j.jclepro.2021.128531|issn=0959-6526|doi-access=free|bibcode=2021JCPro.31828531S }}</ref> highlighting the importance of integrating a circular model holistically within the entire value chain of a company, taking into account the interdependencies between the product, process, and system level.{{citation needed|date=September 2022}}
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. It estimates that, with no policy change, 200,000 new jobs will be created, reducing unemployment by 54,000. A more aggressive policy scenario could create 500,000 new jobs and permanently reduce unemployment by 102,000.<ref>[https://www.iisd.org/library/estimating-employment-effects-circular-economy Estimating Employment Effects of the Circular Economy]</ref> The International Labour Organization predicts that implementing a circular economy by 2030 might result in an additional 7-8 million jobs being created globally.<ref>{{Cite web |date=2023-05-09 |title=Global South circular economy could generate millions of job opportunities |url=http://www.ilo.org/sector/news/WCMS_881334/lang--en/index.htm |access-date=2023-06-19 |website=www.ilo.org |language=en}}</ref><ref name=":1522"/> However, other research has also found that the adoption of circular economy principles may lead to job losses in emerging economies.<ref>{{Cite journal |last1=Repp |first1=Lars |last2=Hekkert |first2=Marko |last3=Kirchherr |first3=Julian |date=2021-08-01 |title=Circular economy-induced global employment shifts in apparel value chains: Job reduction in apparel production activities, job growth in reuse and recycling activities |journal=Resources, Conservation and Recycling |language=en |volume=171 |pages=105621 |doi=10.1016/j.resconrec.2021.105621 |s2cid=236242336 |issn=0921-3449|doi-access=free |bibcode=2021RCR...17105621R }}</ref>
On the other hand, implementing a circular economy in the United States has been presented by Ranta et al.<ref name=":22"/> who analyzed the institutional drivers and barriers for the circular economy in different regions worldwide, by following the framework developed by Scott R.<ref name=":32">{{cite book|url=https://books.google.com/books?id=7Y-0bDCw_aEC&pg=PA50 |title=Institutions and Organization: Ideas and Interest|last1=Scott|first1=W. Richard|date=2008|publisher=Sage Publications|isbn=978-1-4129-5090-9|edition=Third |location=Stanford University|pages=50–51}}</ref> In the article, different worldwide environment-friendly institutions were selected, and two types of manufacturing processes were chosen for the analysis (1) a product-oriented, and (2) a waste management.<ref name=":22"/><ref name=":32" /> 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.<ref name=":22"/> Moreover, the waste management case that includes many stages such as collection, disposal, recycling<ref>{{cite web |url=https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_RSG_2017.pdf |title=Republic Services Annual Report 2017 |last1=Republic Services |website=annualreports.com |access-date=30 March 2019 |archive-url=https://web.archive.org/web/20181216210930/https://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_RSG_2017.pdf |archive-date=16 December 2018 |url-status=dead }}</ref> in the study was [[Republic Services]], the second-largest waste management company in the US. The approach to defining the drivers and barriers was to first identify indicators for their cases in study and then to categorize these indicators into drivers when the indicator was in favor of the circular economy model or a barrier when it was not.<ref name=":22"/>
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===Circular product design and standards===
{{See also|Sustainable design}}
Product designs that optimize durability, ease of maintenance and repair, upgradability, re-manufacturability, separability, disassembly, and reassembly are considered key elements for the transition toward circularity of products.<ref>{{cite journal |last1=Tecchio |first1=Paolo |last2=McAlister |first2=Catriona |last3=Mathieux |first3=Fabrice |last4=Ardente |first4=Fulvio |title=In search of standards to support circularity in product policies: A systematic approach |journal=Journal of Cleaner Production |date=1 December 2017 |volume=168 |pages=1533–1546 |doi=10.1016/j.jclepro.2017.05.198 |pmid=29200663 |pmc=5656090 |bibcode=2017JCPro.168.1533T |language=en |issn=0959-6526}}</ref> [[Standardization#Environmental protection|Standardization]] can facilitate related "innovative, sustainable and competitive advantages for European businesses and consumers".<ref>{{cite web |title=Standardization in a Circular Economy – Closing the Loop |url=https://www.bkv-gmbh.de/files/bkv-neu/brochures-pdf-en/CEN-CENELEC_Standardization_in_a_Circular_Economy_Brochure_Oct19.pdf |access-date=29 May 2022}}</ref> Design for standardization and compatibility would make "product parts and interfaces suitable for other products and aims at multi-functionality and modularity".<ref>{{cite journal |last1=Medkova |first1=Katerina |last2=Fifield |first2=Brett |title=Circular Design - Design for Circular Economy |journal=Lahti Cleantech Annual Review 2016|url=https://www.theseus.fi/bitstream/handle/10024/121322/LAMK_2016_24.pdf?sequence=2#page=32 |access-date=29 May 2022}}</ref> A "Product Family Approach" has been proposed to establish "commonality, compatibility, standardization, or modularization among different products or product lines".<ref>{{cite journal |last1=Parajuly |first1=Keshav |last2=Wenzel |first2=Henrik |title=Product Family Approach in E-Waste Management: A Conceptual Framework for Circular Economy |journal=Sustainability |date=May 2017 |volume=9 |issue=5 |pages=768 |doi=10.3390/su9050768 |language=en |issn=2071-1050|doi-access=free }}</ref>
It has been argued that emerging technologies should be designed with circular economy principles from the start, [[Solar cell#Recycling|including solar panels]].<ref>{{cite news |last1=Davies |first1=Matthew |title=Solar panels: we need to recycle parts of them to use again and avoid a mountain of waste |url=https://techxplore.com/news/2021-11-solar-panels-recycle-mountain.html |access-date=29 May 2022 |work=techxplore.com |language=en}}</ref>
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===Circular business models===
{{Further|Sustainable business}}
While the initial focus of the academic, industry, and policy activities was mainly focused on the development of re-X (recycling, remanufacturing, reuse, etc.) technology, it soon became clear that the technological capabilities increasingly exceed their implementation. To leverage this technology for the transition toward a circular economy, various stakeholders have to work together. This shifted attention towards business-model innovation as a key leverage for 'circular' technology adaption.<ref>{{cite journal |last1=Rashid |first1=Amir |last2=Asif |first2=Farazee M.A. |last3=Krajnik |first3=Peter |last4=Nicolescu |first4=Cornel Mihai |title=Resource Conservative Manufacturing: an essential change in business and technology paradigm for sustainable manufacturing |journal=Journal of Cleaner Production |date=October 2013 |volume=57 |pages=166–177 |doi=10.1016/j.jclepro.2013.06.012 |bibcode=2013JCPro..57..166R }}</ref> [[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.<ref>{{Cite web|title=Solutions|url=https://solve.mit.edu/challenges/circular-economy/solutions/10158|access-date=2020-05-07|website=solve.mit.edu|language=en}}</ref>[[File:Circular business model.png|thumb|Circular business models<ref name="Geissdoerfer2018">{{cite journal |last1=Geissdoerfer |first1=Martin |last2=Morioka |first2=Sandra Naomi |last3=de Carvalho |first3=Marly Monteiro |last4=Evans |first4=Steve |title=Business models and supply chains for the circular economy |journal=Journal of Cleaner Production |date=July 2018 |volume=190 |pages=712–721 |doi=10.1016/j.jclepro.2018.04.159 |bibcode=2018JCPro.190..712G |s2cid=158887458 |url=https://www.repository.cam.ac.uk/handle/1810/280260 }}</ref>]]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. 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).<ref name="Geissdoerfer2018" /> These strategies can be achieved through the purposeful design of material recovery processes and related circular supply chains.<ref name="Batista">{{cite journal|last1=Batista|first1=Luciano|last2=Gong|first2=Yu|last3=Pereira|first3=Susana|last4=Jia|first4=Fu|last5=Bittar|first5=Alexandre|date=December 2019|title=Circular supply chains in emerging economies – a comparative study of packaging recovery ecosystems in China and Brazil|url=https://publications.aston.ac.uk/id/eprint/37859/1/IJPR_TP_Ch_Br_paper_Final.pdf|journal=International Journal of Production Research|volume=57|issue=23|pages=7248–7268|doi=10.1080/00207543.2018.1558295|s2cid=116320263}}</ref> As illustrated in the Figure, these five approaches to resource loops can also be seen as generic strategies or archetypes of circular business model innovation. The development of circular products, circular business models, and, more generally, the circular economy is conditioned upon the affordances of the materials involved, that is the enablement and constraints afforded by these materials to someone engaging with them for circular purposes.<ref>{{Cite journal|last1=Babri|first1=Maira|last2=Corvellec|first2=Hervé|last3=Stål|first3=Herman I.|date=2021-10-11|title=Material affordances in circular products and business model development: for a relational understanding of human and material agency|journal=Culture and Organization|volume=28|issue=1|pages=79–96|doi=10.1080/14759551.2021.1986506|s2cid=240732205|issn=1475-9551|doi-access=free}}</ref>▼
▲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. 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).<ref name="Geissdoerfer2018" /> These strategies can be achieved through the purposeful design of material recovery processes and related circular supply chains.<ref name="Batista">{{cite journal|last1=Batista|first1=Luciano|last2=Gong|first2=Yu|last3=Pereira|first3=Susana|last4=Jia|first4=Fu|last5=Bittar|first5=Alexandre|date=December 2019|title=Circular supply chains in emerging economies – a comparative study of packaging recovery ecosystems in China and Brazil|url=https://publications.aston.ac.uk/id/eprint/37859/1/IJPR_TP_Ch_Br_paper_Final.pdf|journal=International Journal of Production Research|volume=57|issue=23|pages=7248–7268|doi=10.1080/00207543.2018.1558295|s2cid=116320263}}</ref> As illustrated in the Figure, these five approaches to resource loops can also be seen as generic strategies or archetypes of circular business model innovation. The development of circular products, circular business models, and, more generally, the circular economy is conditioned upon the affordances of the materials involved, that is the enablement and constraints afforded by these materials to someone engaging with them for circular purposes.<ref>{{Cite journal|last1=Babri|first1=Maira|last2=Corvellec|first2=Hervé|last3=Stål|first3=Herman I.|date=2021-10-11|title=Material affordances in circular products and business model development: for a relational understanding of human and material agency|journal=Culture and Organization|volume=28|issue=1|pages=79–96|doi=10.1080/14759551.2021.1986506|s2cid=240732205|issn=1475-9551|doi-access=free}}</ref>
Circular business models, as the economic model more broadly, can have different emphases and various objectives, for example: extend the life of materials and products, where possible over multiple 'use cycles'; use a 'waste = food' approach to help recover materials, and ensure those biological materials returned to earth are benign, not toxic; retain the embedded energy, water, and other process inputs in the product and the material for as long as possible; Use systems-thinking approaches in designing solutions; regenerate or at least conserve nature and living systems; push for policies, taxes and market mechanisms that encourage product stewardship, for example 'polluter pays' regulations.<ref>{{Cite book|last=Weetman|first=Catherine|title=A circular economy handbook for business and supply chains : repair, remake, redesign, rethink|publisher=Kogan Page|year=2016|isbn=978-0-74947675-5|location=London, United Kingdom|pages=25|oclc=967729002}}</ref>
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===Circular economy standard BS 8001:2017===
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".<ref>{{cite web|url=https://www.bsigroup.com/en-GB/standards/benefits-of-using-standards/becoming-more-sustainable-with-standards/Circular-Economy/|title=Developing BS 8001 - a world first|publisher=The British Standards Institution|access-date=29 December 2017}}</ref> The circular economy standard BS 8001:2017 tries to align the far-reaching ambitions of the CE with established business routines at the organizational level. It contains a comprehensive list of CE terms and definitions, describes the core CE principles, and presents a flexible management framework for implementing CE strategies in organizations. Little concrete guidance on circular economy monitoring and assessment is given, however, as there is no consensus yet on a set of central circular economy performance indicators applicable to organizations and individual products.<ref>{{cite journal |last1=Pauliuk |first1=Stefan |title=Critical appraisal of the circular economy standard BS 8001:2017 and a dashboard of quantitative system indicators for its implementation in organizations |journal=Resources, Conservation and Recycling |date=February 2018 |volume=129 |pages=81–92 |doi=10.1016/j.resconrec.2017.10.019 |doi-access=free |bibcode=2018RCR...129...81P }}</ref>
=== Development of ISO/TC 323 circular economy standard ===
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The CE does not aim at changing the [[profit maximization]] paradigm of businesses. Rather, it suggests an alternative way of thinking how to attain a sustained [[competitive advantage]] (SCA), while concurrently addressing the environmental and socio-economic concerns of the 21st century. 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, promote brand names, mitigate risks, develop new products,<ref>{{Cite journal |last1=Dezi |first1=Luca |last2=Hysa |first2=Xhimi |last3=Calabrese |first3=Mario |last4=Mercuri |first4=Francesco |date=2022-03-19 |title=Open Total Quality Management in the Circular Economy age: a social enterprise perspective through the case of Patagonia |url=https://www.tandfonline.com/doi/full/10.1080/14783363.2022.2051698 |journal=Total Quality Management & Business Excellence |language=en |pages=1–15 |doi=10.1080/14783363.2022.2051698 |s2cid=247575847 |issn=1478-3363}}</ref> and meets advanced government regulations and the expectations of green consumers. 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. 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.<ref>{{cite journal |last1=Cristoni |first1=Nicolò |last2=Tonelli |first2=Marcello |date=October 2018 |title=Perceptions of Firms Participating in a Circular Economy |journal=European Journal of Sustainable Development |volume=7 |issue=4 |doi=10.14207/ejsd.2018.v7n4p105 |doi-access=free}}</ref> This concern is today confirmed by the results of ongoing monitoring studies like the Circular Readiness Assessment.<ref>"Circular Readiness Assessment website" http://www.worldynamics.com/circular_economy/web/assessment/main Retrieved on 26 July 2018</ref>
[[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. Prior research has identified strategic development for circularity to be a challenging process for companies, demanding multiple iterative strategic cycles.<ref name="sciencedirect.com"/> The book ''Strategic Management and the Circular Economy'' defined for the first time a CE strategic decision-making process,<ref>{{cite journal |last1=Petrović |first1=Nataša |date=2020 |title=Book review of:Strategic Management and the Circular Economy by Marcello Tonelli and Nicoló Cristoni. |url=http://management.fon.bg.ac.rs/index.php/mng/article/view/324 |journal=Management: Journal of Sustainable Business and Management Solutions in Emerging Economies |volume=25 |issue=1 |pages=76–78 |doi=10.7595/management.fon.2020.0005 |doi-broken-date=1 November 2024 |access-date=5 November 2021 |s2cid=225885231|doi-access=free }}</ref> covering the phases of analysis, formulation, and planning. Each phase is supported by frameworks and concepts popular in management consulting—like [[Concept map|idea tree]], [[value chain]], [[VRIO|VRIE]], [[Porter's five forces analysis|Porter's five forces]], [[PEST analysis|PEST]], [[SWOT analysis|SWOT]],<ref>{{cite journal |last1=Pesce |first1=Marco |last2=Tamai |first2=Ilaria |last3=Guo |first3=Deyan |last4=Critto |first4=Andrea |last5=Brombal |first5=Daniele |last6=Wang |first6=Hongguang |last7=Cheng |first7=Antonio |last8=Marcomini |first8=Antonio |date=2020 |title=Circular economy in China: Translating principles into practice |journal=Sustainability |volume=12 |issue=3 |page=832 |doi=10.3390/su12030832 |doi-access=free|hdl=10278/3722091 |hdl-access=free }}</ref> strategic clock, or the [[internationalization]] matrix—all adapted through a CE lens, hence revealing new sets of questions and considerations. Although yet to be verified, it is argued that all standard tools for strategic management can and should be calibrated and applied to a CE. A specific argument has already been made for the strategy direction matrix of product vs market and the [[GE multifactorial analysis|3 × 3 GE-McKinsey matrix]] to assess business strength vs industry attractiveness, the [[Growth–share matrix|BCG matrix]] of market share vs industry growth rate, and Kraljic's portfolio matrix.<ref>{{cite book |last1=Tonelli |first1=Marcello |title=Strategic Management and the Circular Economy |last2=Cristoni |first2=Nicolò |date=2018 |publisher=Routledge |isbn=978-1-351-59269-7 |page=222}}</ref>
== Engineering the Circular Life cycle ==
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==== Lifecycle-Value Stream Matrix ====
The key to implementing the circular lifecycle for complex engineering systems is ensuring the engineering design team have a solid understanding of the product's ecosystem. The [[:File:The life cycle - value stream matrix for a complex engineering systems DESIGNING AND INNOVATING FOR CIRCULARITY SAE INTERNATIONAL MELDRUM REBECCA 2023010988.png|Lifecycle-Value Stream Matrix for complex and certified circular systems]] assists engineers and product design teams in visualizing the product's ecosystem more effectively. It enables engineers to map the intricate ecosystem surrounding their products, leading to the identification of potential strategic partners and novel opportunities for technology and service innovation.
The matrix captures the value stream for various suppliers, providing increasing levels of complexity in products and services. It is important to note that these suppliers will change throughout the life cycle. In the design phase of the complex engineering system, traditionally, the system-level suppliers would only be those suppliers who are integrating the engineering system itself. Later in the life cycle, the initial systems-level suppliers will be joined by other suppliers operating at a systems level, who may deliver products and services that facilitate the operation and usage of the initial engineering system.<ref name=":16" />[[File:The life cycle - value stream matrix for a complex engineering systems DESIGNING AND INNOVATING FOR CIRCULARITY SAE INTERNATIONAL MELDRUM REBECCA 2023010988.png|thumb|The life cycle - value stream matrix for a complex engineering system.]]
=== Circular Engineering Lifecycle Implementation Challenges and Opportunities ===
Adopting an engineering circular lifecycle approach undeniably brings a considerable set of challenges. Complex engineering systems, especially those with extended lifecycles and intricate safety and certification governance frameworks, may encounter difficulties while transitioning to renewable energy sources. However, the circular lifecycle concept is adaptable to a broad range of manufactured and engineered products, affirming its universal applicability.
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Circular initiatives, such as clothing rental start-ups, are also getting more and more highlight in the EU and in the US as well. Operating with circular business model, rental services offer everyday fashion, baby wear, maternity wear for rent. The companies either offer flexible pricing in a 'pay as you rent' model like Palanta does,<ref>{{cite web|url=https://palanta.co/how-it-works|title=how PALANTA works|website=palanta.co|access-date=12 December 2020}}</ref> or offer fixed monthly subscriptions such as [[Rent the Runway|Rent The Runway]] or [[Le Tote]].{{citation needed|date=September 2022}}
Both China and Europe have taken the lead in pushing a circular economy. McDowall et al. 2017 stated that the "Chinese perspective on the circular economy is broad, incorporating pollution and other issues alongside waste and resource concerns, [while] Europe's conception of the circular economy has a narrower environmental scope, focusing on waste and resources and opportunities for business".<ref name="McDowall et al 2017">{{cite journal |last1=McDowall |first1=Will |last2=Geng |first2=Yong |last3=Huang |first3=Beijia |last4=Barteková |first4=Eva |last5=Bleischwitz |first5=Raimund |last6=Türkeli |first6=Serdar |last7=Kemp |first7=René |last8=Doménech |first8=Teresa |title=Circular Economy Policies in China and Europe |journal=Journal of Industrial Ecology |date=June 2017 |volume=21 |issue=3 |pages=651–661 |doi=10.1111/jiec.12597 |bibcode=2017JInEc..21..651M |s2cid=157819895 |url=https://discovery.ucl.ac.uk/id/eprint/1543099/3/McDowall_Circular%2520economy%2520policies%2520in%2520China%2520and%2520Europe%2520SECOND%2520REVISION_CLEAN.pdf }}</ref>[[File:Construction supply chain.jpg|alt=Circular economy in construction industry|thumb|Circular economy in the construction supply chain<ref name=":15" />|369x369px]]▼
▲Both China and Europe have taken the lead in pushing a circular economy. McDowall et al. 2017 stated that the "Chinese perspective on the circular economy is broad, incorporating pollution and other issues alongside waste and resource concerns, [while] Europe's conception of the circular economy has a narrower environmental scope, focusing on waste and resources and opportunities for business".<ref name="McDowall et al 2017">{{cite journal |last1=McDowall |first1=Will |last2=Geng |first2=Yong |last3=Huang |first3=Beijia |last4=Barteková |first4=Eva |last5=Bleischwitz |first5=Raimund |last6=Türkeli |first6=Serdar |last7=Kemp |first7=René |last8=Doménech |first8=Teresa |title=Circular Economy Policies in China and Europe |journal=Journal of Industrial Ecology |date=June 2017 |volume=21 |issue=3 |pages=651–661 |doi=10.1111/jiec.12597 |bibcode=2017JInEc..21..651M |s2cid=157819895 |url=https://discovery.ucl.ac.uk/id/eprint/1543099/3/McDowall_Circular%2520economy%2520policies%2520in%2520China%2520and%2520Europe%2520SECOND%2520REVISION_CLEAN.pdf }}</ref>
=== Construction industry ===
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{{See also|Modular construction systems}}
The [[Construction#Industry scale and characteristics|construction]] sector is one of the world's largest waste generators. The circular economy appears as a helpful solution to diminish the environmental impact of the industry.
Construction is very important to the economy of the European Union and its state members. It provides 18 million direct jobs and contributes to about 9% of the EU's GDP.<ref>{{cite web |title= Construction {{!}} Growth |url=https://ec.europa.eu/growth/sectors/construction_en |publisher=European Commission |access-date= 6 December 2018|date=2016-07-05 }}</ref> The main causes of the construction's environmental impact are found in the consumption of non-renewable resources and the generation of contaminant residues, both of which are increasing at an accelerating pace.<ref>{{cite journal |last1=Nuñez-Cacho |first1=Pedro |last2=Górecki |first2=Jarosław |last3=Molina-Moreno |first3=Valentin |last4=Corpas-Iglesias |first4=Francisco Antonio |title= New Measures of Circular Economy Thinking in Construction Companies |journal=Journal of EU Research in Business |date=2018 |volume=2018 |pages=1–16 |doi= 10.5171/2018.909360 |doi-access=free }}</ref> In the European Union alone, people and companies generate more than 2 billion tonnes of garbage year, or 4.8 tonnes per person, mostly from the building, mining, and manufacturing sectors.<ref name=":1522"/><ref>{{Cite web |date=2018-06-04 |title=EU waste management: infographic with facts and figures {{!}} News {{!}} European Parliament |url=https://www.europarl.europa.eu/news/en/headlines/society/20180328STO00751/eu-waste-management-infographic-with-facts-and-figures |access-date=2023-06-19 |website=www.europarl.europa.eu |language=en}}</ref><ref>{{Cite web |last=Brunn |first=Michael |date=2022-11-07 |title=EU: 4.8 tonnes of waste generated per inhabitant |url=https://www.recycling-magazine.com/2022/11/07/eu-4-8-tonnes-of-waste-generated-per-inhabitant/ |access-date=2023-06-19 |website=RECYCLING magazine |language=en-US}}</ref> Each individual in Europe generates half a tonne of municipal garbage annually, less than half of which gets recycled.<ref>{{Cite web |title=Municipal waste management across European countries — European Environment Agency |url=https://www.eea.europa.eu/publications/municipal-waste-management-across-european-countries |access-date=2023-06-19 |website=www.eea.europa.eu |language=en}}</ref>
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=== Oil and gas industry ===
{{See also|Oil platform#Repurposing}}
Organizations such as Zero Waste Scotland have conducted studies to identify areas with reuse potential, allowing equipment to continue life in other industries, or to be redeployed for oil and gas.<ref>{{Cite web | url=https://www.zerowastescotland.org.uk/content/north-sea-oil-and-gas-rig-decommissioning-re-use-opportunity-report-0/ |title = North sea oil and gas rig decommissioning & re-use opportunity report|date = 2015-10-08}}</ref>▼
▲In the next 30–40 years,{{Year needed|date=December 2019}} the oil and gas sector will have to decommission 600 installations in the UK alone. Over the next decade around 840,000 tonnes of materials will have to be recovered at an estimated cost of £25Bn. In 2017 North Sea oil and gas decommissioning became a net drain on the public purse. With UK taxpayers covering 50%–70% of the bill, there is an urgent need to discuss the most economic, social and environmentally beneficial decommissioning solutions for the general public.<ref>{{Cite web | url=https://rrfw.org.uk/2019/07/24/apply-circular-economy-to-oil-and-gas-decommissioning/ | title=New project to apply circular economy to oil and gas decommissioning| date=2019-07-24}}</ref>
▲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.<ref>{{Cite web | url=https://www.zerowastescotland.org.uk/content/north-sea-oil-and-gas-rig-decommissioning-re-use-opportunity-report-0/ |title = North sea oil and gas rig decommissioning & re-use opportunity report|date = 2015-10-08}}</ref>
=== Renewable energy industry ===
{{See also|Energy transition}}
Oil and gas energy resources are incompatible with the idea of a circular economy, since they are defined as "development that meets the needs of the present while compromising the ability of future generations to meet their own needs".<ref>{{Cite web|title=Report of the World Commission on Environment and Development: Our Common Future - A/42/427 Annex - UN Documents: Gathering a body of global agreements|url=http://www.un-documents.net/wced-ocf.htm|access-date=2021-10-21|website=www.un-documents.net}}</ref> A sustainable circular economy can only be powered by renewable energies, such as wind, solar, [[hydropower]], and geothermal.<ref>{{Cite journal|last1=Desing|first1=Harald|last2=Widmer|first2=Rolf|last3=Beloin-Saint-Pierre|first3=Didier|last4=Hischier|first4=Roland|last5=Wäger|first5=Patrick|date=2019-12-11|title=Powering a Sustainable and Circular Economy—An Engineering Approach to Estimating Renewable Energy Potentials within Earth System Boundaries|journal=Energies|language=en|volume=12|issue=24|pages=4723|doi=10.3390/en12244723|issn=1996-1073|doi-access=free}}</ref>
What gives entities the ability to achieve 'net zero' carbon-emissions, is that they can offset their fossil fuel consumption by removing carbon from the atmosphere. While this is a necessary first step, global smart grid technologist, Steve Hoy, believes that in order to create a circular economy we should adapt the concept of 'True Zero' as opposed to 'net zero', which is eliminating fossil fuel consumption entirely so that all energy is produced from renewable sources.<ref>{{Cite web|title=Net zero no more: We are entering the era of honest electricity|url=https://www.canarymedia.com/articles/clean-energy/net-zero-no-more-we-are-about-to-enter-the-era-of-honest-electricity|access-date=2021-10-21|website=Canary Media|date=26 May 2021 |language=en}}</ref><ref>{{Cite web|date=2021-10-13|title=Enosi raises $1.5 million for clean energy tech, as demand for renewables ramps up|url=https://www.smartcompany.com.au/startupsmart/news/enosi-powertracer-1-5-million-clean-energy-renewables/|access-date=2021-10-21|website=SmartCompany|language=en-US}}</ref>
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One study suggests that by 2050, up to 40 to 75% of the EU's clean energy metal needs could come from local recycling.<ref>{{cite news |title=Study quantifies metal supplies needed to reach EU's climate neutrality goal |url=https://techxplore.com/news/2022-04-quantifies-metal-eu-climate-neutrality.html |access-date=29 May 2022 |work=K. U. Leuven |language=en}}</ref>
A study estimates losses of 61 metals, showing that use spans of, often scarce, [[Technology-critical element|tech-critical metals]] are short.<ref>{{cite news |title=New life cycle assessment study shows useful life of tech-critical metals to be short |url=https://techxplore.com/news/2022-05-life-tech-critical-metals-short.html |access-date=23 June 2022 |work=University of Bayreuth |language=en}}</ref><ref>{{cite journal |last1=Charpentier Poncelet |first1=Alexandre |last2=Helbig |first2=Christoph |last3=Loubet |first3=Philippe |last4=Beylot |first4=Antoine |last5=Muller |first5=Stéphanie |last6=Villeneuve |first6=Jacques |last7=Laratte |first7=Bertrand |last8=Thorenz |first8=Andrea |last9=Tuma |first9=Axel |last10=Sonnemann |first10=Guido |title=Losses and lifetimes of metals in the economy |journal=Nature Sustainability |date=19 May 2022 |volume=5 |issue=8 |pages=717–726 |doi=10.1038/s41893-022-00895-8 |bibcode=2022NatSu...5..717C |s2cid=248894322 |language=en |issn=2398-9629|url=https://hal.archives-ouvertes.fr/hal-03702553/file/I2M-NS-Charpentier-2022.pdf }}</ref> A study using [[Project Drawdown]]'s modeling framework indicates that, even without considering costs or bottlenecks of expansion of renewable energy generation, metal recycling can lead to significant [[climate change mitigation]].<ref>{{cite journal |last1=Gorman |first1=Miranda R. |last2=Dzombak |first2=David A. |last3=Frischmann |first3=Chad |title=Potential global GHG emissions reduction from increased adoption of metals recycling |journal=Resources, Conservation and Recycling |date=1 September 2022 |volume=184 |pages=106424 |doi=10.1016/j.resconrec.2022.106424 |s2cid=249321004 |language=en |issn=0921-3449|doi-access=free |bibcode=2022RCR...18406424G }}</ref>
===Chemistry===
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In July 2014, a zero-waste program for Europe has been put in place aiming at the circular economy.<ref>{{cite journal |last1=Leipold |first1=Sina |title=Transforming ecological modernization 'from within' or perpetuating it? The circular economy as EU environmental policy narrative |journal=Environmental Politics |date=2021-01-11 |volume=30 |issue=6 |pages=1045–1067 |doi=10.1080/09644016.2020.1868863 |doi-access=free |bibcode=2021EnvPo..30.1045L }}</ref> Since then, several documents on this subject have been published. The following table summarizes the various European reports and legislation on the circular economy that have been developed between 2014 and 2018.<ref name=":7">{{cite journal |last1=Völker |first1=Thomas |last2=Kovacic |first2=Zora |last3=Strand |first3=Roger |title=Indicator development as a site of collective imagination? The case of European Commission policies on the circular economy |journal=Culture and Organization |date=2020-03-03 |volume=26 |issue=2 |pages=103–120 |doi=10.1080/14759551.2019.1699092 |hdl=1956/23327 |s2cid=214278775 |hdl-access=free }}</ref>
[[File:Table 1 - Core set of circular economy policy documents and reports.png|center|thumb|645x645px]]In addition to the above legislation, the EU has amended the Eco-design Working Plan to add circularity criteria and has enacted eco-design regulations with circular economy components for 7 product types (refrigerators, dishwashers, electronic displays, washing machines, welding equipment and servers and data storage products).<ref name=":12">{{Cite journal|last1=Calisto Friant|first1=Martin|last2=Vermeulen|first2=Walter J. V.|last3=Salomone|first3=Roberta|date=2021-07-01|title=Analysing European Union circular economy policies: words versus actions|journal=Sustainable Production and Consumption|language=en|volume=27|pages=337–353|doi=10.1016/j.spc.2020.11.001|s2cid=228878623|issn=2352-5509|doi-access=free|bibcode=2021SusPC..27..337C }}</ref> These eco-design regulations are aimed at increasing the reparability of products by improving the availability of spare parts and manuals.<ref name=":12" /> At the same time, the European research budget related to the circular economy has increased considerably in the last few years: it has reached 964 million euros between 2018 and 2020.<ref name=":7" /> In total, the European Union has invested 10 billion euros on Circular Economy projects between 2016 and 2019.<ref name=":12" />
One waste atlas aggregates some data about waste management of countries and cities, albeit the data is very limited.<ref>{{cite web |title=Waste Atlas |url=http://www.atlas.d-waste.com/ |access-date=29 May 2022 |archive-date=7 October 2014 |archive-url=https://web.archive.org/web/20141007045220/http://www.atlas.d-waste.com/ |url-status=dead }}</ref>
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The "Circularity Gap Report" indicates that "out of all the minerals, biomass, fossil fuels and metals that enter the [[world economy|world's economy]], only 8.6 percent are reused".<ref>{{cite news |title=World's consumption of materials hits record 100bn tonnes a year |url=https://www.theguardian.com/environment/2020/jan/22/worlds-consumption-of-materials-hits-record-100bn-tonnes-a-year |access-date=29 May 2022 |work=The Guardian |date=22 January 2020 |language=en}}</ref><ref>{{cite web |title=The world is now only 8.6% circular - CGR 2020 - Circularity Gap Reporting Initiative |url=https://www.circularity-gap.world/2020 |website=www.circularity-gap.world |access-date=29 May 2022 |language=en}}</ref>
The [[European Commission|European Commission's]] [[European Green Deal|Circular Economy Action Plan]] has resulted in a wide range of projects, with an emphasis on waste and material sustainability, as well as the circularity of consumer items. Despite a huge number of EU legislative measures, the European Union's circularity rate was 11.5% in 2022 and is slowing down currently.<ref name=":201">{{Cite web |last=Anyiego |first=Beldine |date=2022-08-15 |title=AFRICA: The Clean Oceans initiative will fund twice as many projects as expected? |url=https://www.copip.eu/news/africa-the-clean-oceans-initiative-will-fund-twice-as-many-projects-as-expected/ |access-date=2023-02-23 |website=COPIP}}</ref>
=== Programs ===
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In 2018, the newspaper [[Politico]] made a ranking of the (by then) 28 European countries by making an aggregation of the seven key metrics of the commission for each country. The advantage here is that it gives a general view of how countries work towards circular development and how they compare to each other but the main drawback is that, as mentioned in the article, the seven metrics all have equal weight and importance in Politico's calculations, which is not the case in real life. Indeed, it is said in the same article that the countries that score the highest in CE are not necessarily the greenest according to the [[Environmental Performance Index]].<ref>{{Cite web|date=2018-05-17|title=Ranking how EU countries do with the circular economy|url=https://www.politico.eu/article/ranking-how-eu-countries-do-with-the-circular-economy/|access-date=2021-04-18|website=POLITICO|language=en-US}}</ref> For example, Germany, which scores 1st in the Politico ranking, only scores 13th worldwide in the EPI and is behind 10 European countries.<ref>{{Cite web|title=2018 environmental performance index|url=https://epi.yale.edu/downloads/epi2018reportv06191901.pdf|url-status=live|archive-url=https://web.archive.org/web/20200827141511/https://epi.yale.edu/downloads/epi2018reportv06191901.pdf |archive-date=2020-08-27 }}</ref>
=== China ===
Beginning in the early 2000s, China started passing a series of laws and regulations to promote the circular economy.<ref name=":17">{{Cite book |last=Zhan |first=Jing Vivian |title=China's Contained Resource Curse: How Minerals Shape State-Capital-Labor Relations |date=2022 |publisher=[[Cambridge University Press]] |isbn=978-1-009-04898-9 |location=Cambridge, United Kingdom}}</ref>{{Rp|pages=182-183}} Policymakers' views expanded from a focus on recycling to broad efforts to promote efficiency and closed-loop flows of materials at all stages, from production to distribution to consumption.<ref name=":17" />{{Rp|page=182}} As part of its efforts to enhance the circular economy, China is attempting to decrease its reliance on [[Mining industry of China|mining for its mineral supply]].<ref name=":17" />{{Rp|page=182}} Academic Jing Vivian Zhan writes that promoting the circular economy helps China to avoid the resource curse and helps to alleviate overreliance on extractive industries.<ref name=":17" />{{Rp|pages=182-183}}
===Calendar===
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The [[Netherlands]] set a plan of action for circular economy in 2016 and have been doing additional efforts for a transition towards a 100% circular economy by 2050 (and 50% by 2030). The Netherlands Organization for Applied Scientific Research estimates that a full shift towards Circular Economy will, at the long term, generate not less than 7.3 billion euros and 540,000 new jobs in the sector. The work will be developed around the five pillars mentioned above: plastics, biomass and food, the construction sector, the manufacturing industry, and consumer goods.<ref name=":8" /> The government has also put a fund in place to facilitate and accelerate the shift. These funds are part of the 300 million € annually spent by the government for climate-related decisions and actions. The envelope is also completed by the ministry of infrastructure, which allocated €40 million for circular economy-related actions in 2019 and 2020. Other actions such as an allocation of subsidies for enterprises that make change or invest in the field have been taken. Initiatives at the subnational level are also encouraged and regions such as Groningen, Friesland, the Northern Netherlands, etc. ere taking actions to not only reduce their environmental impact but accelerate and accentuate their actions towards Circular economy.<ref>{{Cite web|title=Assessing and unlocking the circular economy in Groningen, Netherlands {{!}} The Circular Economy in Groningen, the Netherlands {{!}} OECD iLibrary|url=https://www.oecd-ilibrary.org/sites/fdda19f3-en/index.html?itemId=/content/component/fdda19f3-en|access-date=2021-05-03|website=www.oecd-ilibrary.org|language=en}}</ref>
====
CE is one of the major deals of the 2018-2023 Luxembourg government.
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* An implementation of tools and methods such as a regulatory framework (laws), a financial framework (financial helps and sanctions), creation, management and sharing of knowledge on the subject, etc.;<ref name=":10" /><ref>{{Cite book |last=Palmiter |first=Alan R. |url=https://books.google.com/books?id=mmOVEAAAQBAJ |title=Sustainable Corporations |date=2022-09-14 |publisher=Aspen Publishing |isbn=978-1-5438-4901-1 |language=en}}</ref>
* A coordination of the Luxembourg goals with the [[Sustainable Development Goals|SDGs]]<ref>{{Cite web |title=SDGs |url=https://www.nordicwaves.org/sdgs |access-date=2022-06-03 |website=Nordic Waves ENG |language=en}}</ref> and the [[2030 Agenda|2030 agenda]].<ref name=":10" />
=== United Kingdom ===
In 2020, the UK government published its Circular Economy Package policy statement in coordination with the Welsh and Scottish governments.<ref>{{cite web | url = https://www.gov.uk/government/publications/circular-economy-package-policy-statement/circular-economy-package-policy-statement| last = | first = | title = Circular Economy Package policy statement| date = 2020-07-30| website = GOV.UK| publisher = United Kingdom Government | access-date = 2024-08-15 | quote = A statement issued jointly by the Department for Environment, Food and Rural Affairs (Defra), the Department of Agriculture, Environment and Rural Affairs (DAERA), the Welsh Government and the Scottish Government. }}</ref>
====England====
From 1 October 2023, certain single-use plastic items have been placed under bans or restrictions in England.<ref>{{cite web | url = https://www.gov.uk/government/news/new-bans-and-restrictions-on-polluting-single-use-plastics-come-into-force | title = New bans and restrictions on polluting single-use plastics come into force | last = | first = | date = 2023-09-29 | website = GOV.UK | publisher = UK Government| access-date = 2024-08-15 | quote = Government action to tackle the scourge of litter and protect the environment from plastic pollution ramps up this weekend (Sunday 1 October), with bans and restrictions on a range of polluting single-use plastic items coming into force.}}</ref>
====Scotland====
In 2021 the Scottish Parliament banned single use plastics being provided by businesses.<ref>{{Cite legislation Scotland| type = ssi | year = 2021 | number = 410 | ssi = The Environmental Protection (Single-use Plastic Products) (Scotland) Regulations 2021}}</ref>
In 2024, the Scottish Parliament passed the Circular Economy (Scotland) Act 2024, which would require the setting of targets and providing updates to the strategy to achieve those targets as frequently as 5 years or more frequently than that.<ref>{{Cite legislation Scotland | type = act | year = 2024 | chapter = 13 | act = Circular Economy (Scotland) Act 2024}}</ref>
====Wales====
In 2021, the Welsh Government published its Circular Economy strategy.<ref>{{cite web | url = https://www.gov.wales/wales-aims-become-world-number-one-recycler-it-announces-circular-economy-strategy | title = Wales aims to become world number one recycler as it announces Circular Economy strategy | last = Griffiths | first = Lesley | date = 2021-03-02 | website = Welsh Government | access-date = 2024-08-15 | quote = Welsh Government has today published an ambitious strategy to support a green recovery in Wales by transitioning into a ‘circular economy’, as we deal with the triple challenge of the pandemic, climate change and Brexit.}}</ref>
In 2023, the Senedd banned single use plastics, which would require the setting of targets and providing updates to the strategy to achieve those targets as frequently as 5 years or more frequently than that.<ref>{{Cite legislation Wales | type = seneddact | year = 2023 | chapter = 2 | title = The Environmental Protection (Single-use Plastic Products) (Wales) Act 2023}}</ref>
====Northern Ireland====
In 2022, the Northern Ireland Executive held a Circular Economy consultation.<ref>{{cite web | url = https://www.economy-ni.gov.uk/consultations/circular-economy-strategy-northern-ireland| title = Circular Economy Strategy for Northern Ireland| last = | first = | date = 2022-01-09 | website = Northern Ireland Executive| access-date = 2024-08-15 | quote = The Department for the Economy launched a public consultation on the draft Circular Economy Strategy for Northern Ireland in January 2023.}}</ref>
=== Circular bioeconomy ===
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===Circular Carbon Economy===
During the 2019 [[COP25]] in Madrid, [[William McDonough]] and marine ecologist [[Carlos M. Duarte|Carlos Duarte]] presented the Circular Carbon Economy at an event with the BBVA Foundation. The Circular Carbon Economy is based on McDonough's ideas from Carbon Is Not The Enemy<ref>{{cite journal |last1=McDonough |first1=W |title=Carbon is not the enemy |journal=Nature |date=2016 |
==Critiques of circular economy models==
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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. Recent research has started to question the core of the circular economy—namely, whether closing material and product loops do, in fact, prevent primary production."<ref name="Zink">{{cite journal |last1=Zink |first1=Trevor |last2=Geyer |first2=Roland |date=June 2017 |title=Circular Economy Rebound |journal=Journal of Industrial Ecology |volume=21 |issue=3 |pages=593–602 |doi=10.1111/jiec.12545 |doi-access=free |bibcode=2017JInEc..21..593Z |s2cid=157110158}}</ref>
There are other critiques of the circular economy (CE).<ref>{{cite journal |last1=Lazarevic |first1=David |last2=Valve |first2=Helena |date=September 2017 |title=Narrating expectations for the circular economy: Towards a common and contested European transition |journal=Energy Research & Social Science |volume=31 |pages=60–69 |doi=10.1016/j.erss.2017.05.006|bibcode=2017ERSS...31...60L }}</ref><ref>{{cite journal |last1=Valenzuela |first1=Francisco |last2=Böhm |first2=Steffen |date=2017 |title=Against wasted politics: A critique of the circular economy |url=http://www.ephemerajournal.org/contribution/against-wasted-politics-critique-circular-economy |journal=Ephemera |volume=17 |issue=1 |pages=23–60}}</ref> For example, Allwood (2014) discussed the limits of CE 'material circularity', and questioned the desirability of the CE in a reality with growing demand.<ref name="Allwood2014" /> Do CE secondary production activities (reuse, repair, and remake) actually reduce, or instead displace, primary production (natural resource extraction)? The problem CE overlooks, its untold story, is how displacement is governed mainly by market forces, according to McMillan et al. (2012).<ref>{{cite journal |last1=McMillan |first1=Colin A. |last2=Skerlos |first2=Steven J. |last3=Keoleian |first3=Gregory A. |date=June 2012 |title=Evaluation of the Metals Industry's Position on Recycling and its Implications for Environmental Emissions: Journal of Industrial Ecology |journal=Journal of Industrial Ecology |volume=16 |issue=3 |pages=324–333 |doi=10.1111/j.1530-9290.2012.00483.x |s2cid=59069446}}</ref> It's the tired old narrative, that the invisible hand of market forces will conspire to create full displacement of virgin material of the same kind, said Zink & Geyer (2017).<ref name="Zink" /> 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".<ref>{{cite journal |last1=Korhonen |first1=Jouni |last2=Nuur |first2=Cali |last3=Feldmann |first3=Andreas |last4=Birkie |first4=Seyoum Eshetu |date=February 2018 |title=Circular economy as an essentially contested concept |journal=Journal of Cleaner Production |volume=175 |pages=544–552 |doi=10.1016/j.jclepro.2017.12.111|doi-access=free |bibcode=2018JCPro.175..544K }}</ref>
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]].<ref name="Reuter"/> According to the [[second law of thermodynamics]], all spontaneous processes are [[Irreversible process|irreversible]] and associated with an increase in [[entropy]]. It follows that in a real implementation of the concept, one would either have to deviate from the perfect reversibility in order to generate an entropy increase by generating waste, which would ultimately amount to still having parts of the economy which follow a linear scheme, or enormous amounts of energy would be required (from which a significant part would be dissipated in order to for the total entropy to increase).<ref>{{cite journal |last1=Korhonen |first1=Jouni |last2=Honkasalo |first2=Antero |last3=Seppälä |first3=Jyri |date=January 2018 |title=Circular Economy: The Concept and its Limitations |journal=Ecological Economics |volume=143 |pages=37–46 |doi=10.1016/j.ecolecon.2017.06.041|bibcode=2018EcoEc.143...37K }}</ref> In its comment to concept of the circular economy the European Academies' Science Advisory Council (EASAC) came to a similar conclusion:
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{{Blockquote|Recovery and recycling of materials that have been dispersed through pollution, waste and end-of-life product disposal require energy and resources, which increase in a nonlinear manner as the percentage of recycled material rises (owing to the second law of thermodynamics: entropy causing dispersion). Recovery can never be 100% (Faber et al., 1987). The level of recycling that is appropriate may differ between materials.<ref>{{Cite journal|title=Circular economy: a commentary from the perspectives of the natural and social sciences|url=https://www.easac.eu/fileadmin/PDF_s/reports_statements/EASAC_Circular_Economy_Web.pdf|journal=European Academies' Science Advisory Council (EASAC)}}</ref>}}
In addition to this, the circular economy has been criticized for lacking a strong [[social justice]] component.<ref>{{Cite journal |last1=Genovese |first1=Andrea |last2=Pansera |first2=Mario |date=2021-04-03 |title=The Circular Economy at a Crossroads: Technocratic Eco-Modernism or Convivial Technology for Social Revolution? |url=https://doi.org/10.1080/10455752.2020.1763414 |journal=Capitalism Nature Socialism |volume=32 |issue=2 |pages=95–113 |doi=10.1080/10455752.2020.1763414 |issn=1045-5752 |s2cid=219477616}}</ref> Indeed, most circular economy visions, projects and policies do not address key social questions regarding how circular economy technologies and solutions will be controlled and how their benefits and costs will be distributed.<ref name=":13">{{Cite journal |last1=Calisto Friant |first1=Martin |last2=Vermeulen |first2=Walter J. V. |last3=Salomone |first3=Roberta |date=2020-10-01 |title=A typology of circular economy discourses: Navigating the diverse visions of a contested paradigm |journal=Resources, Conservation and Recycling |language=en |volume=161 |pages=104917 |doi=10.1016/j.resconrec.2020.104917 |issn=0921-3449 |s2cid=222121823|doi-access=free |bibcode=2020RCR...16104917C }}</ref> To respond to these limitations some academics and social movements prefer to speak of a circular society rather than a circular economy.<ref name=":13" /> They thereby advocate for a circular society where knowledge, political power, wealth, and resources are sustainably circulated in fundamentally democratic and redistributive manners, rather than just improving resource efficiency as most circular economy proposals do.<ref>{{Cite journal |last1=Calisto Friant |first1=Martin |last2=Vermeulen |first2=Walter J. V. |last3=Salomone |first3=Roberta |date=2023-05-25 |title=Transition to a Sustainable Circular Society: More than Just Resource Efficiency |journal=Circular Economy and Sustainability |volume=4 |pages=23–42 |language=en |doi=10.1007/s43615-023-00272-3 |issn=2730-5988|doi-access=free }}</ref>
Moreover, it has been argued that a [[Sustainable consumption#Degrowth|post-growth approach]] should be adopted for the circular economy where material loops are put (directly) at the service of wellbeing, instead of attempting to reconcile the circular economy with GDP growth.<ref>{{cite journal |last1=Bauwens |first1=Thomas |title=Are the circular economy and economic growth compatible? A case for post-growth circularity |journal=Resources, Conservation and Recycling |date=1 December 2021 |volume=175 |pages=105852 |doi=10.1016/j.resconrec.2021.105852 |language=en |issn=0921-3449|doi-access=free |bibcode=2021RCR...17505852B }}</ref> For example, efficiency improvements at the level of individual products could be offset by a growth in total or per-capita consumption,<ref>{{cite journal |last1=Corvellec |first1=Hervé |last2=Stowell |first2=Alison F. |last3=Johansson |first3=Nils |title=Critiques of the circular economy |journal=Journal of Industrial Ecology |date=April 2022 |volume=26 |issue=2 |pages=421–432 |doi=10.1111/jiec.13187 |s2cid=238087986 |language=en |issn=1088-1980|doi-access=free |bibcode=2022JInEc..26..421C }}</ref> which only beyond-circularity measures like [[choice editing]] and [[rationing]] unsustainable products or emissions may be able to address.
==Related concepts==
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===Cradle to cradle===
{{main|Cradle to cradle design}}
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]].<ref name="zhong">{{cite journal|last1=Zhong|first1=Shan|title=Tightening the loop on the circular economy: Coupled distributed recycling and manufacturing with recyclebot and RepRap 3-D printing|journal=Resources, Conservation and Recycling|date=2018|volume=128|pages=48–58|doi=10.1016/j.resconrec.2017.09.023|bibcode=2018RCR...128...48Z |s2cid=13833024 |url=https://hal.archives-ouvertes.fr/hal-02111399/file/Tightening_the_Loop_on_the_Circular_Econ.pdf}}</ref><ref name=":0">{{Cite journal|last=Cooper|first=Tim|year=2005|title=Slower Consumption Reflections on Product Life Spans and the "Throwaway Society"|journal=Journal of Industrial Ecology|volume=9| issue = 1–2|pages=51–67|doi=10.1162/1088198054084671|url=http://irep.ntu.ac.uk/id/eprint/994/1/NPS_1081a_Cooper.pdf|doi-access=free|bibcode=2005JInEc...9...51C }}</ref>
===Industrial ecology===
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*[[Circular procurement]]
*[[Container-deposit legislation]]
*[[Degrowth]]
*[[Digital Product Passport]]
*[[Doughnut (economic model)]]
*[[Downcycling]]
*[[Durable good]]
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{{Industrial Ecology}}
{{Sustainability}}
{{Sharing economy}}
{{Authority control}}
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