The circular economy is an economic model that aims to avoid waste, save resources and promote sustainability. In a circular economy, products, components and materials are kept in use as long as possible, through repair, refurbishment and eventually recycling, rather than being discarded after a single use.
The circular economy model is based on three principles:
- Keeping products and materials in use: This means extending the life of products so that they can be used again and again without downgrading the value, e.g. through repair, renovation, sharing and eventually recycling.
- Designing out waste and pollution: This means rethinking the design of products and production processes to eliminate waste and pollution. Doing it right from the start.
- Create economic systems that make the above long-term financially sustainable: In many contexts this means a system shift, a transformation, with new partnerships and new business models to create long-term profitability.
The circular economy also seeks to regenerate natural systems. This means supporting the restoration and regeneration of natural systems and resources.
The circular economy model offers a way to decouple economic growth from resource consumption and environmental impact, by creating a system where resources are reused and regenerated, rather than extracted and discarded. It has the potential to promote economic growth, create jobs and reduce environmental impact, while improving resource efficiency and reducing waste.
CircularHub works in accordance with the Ellen McArthur foundation’s definition of Circular Economy.
Contact us if you want to understand how your company should take steps towards a more circular economy!