> The notion of a circular economy has attracted increased attention in recent years. The concept is characterised, more than defined, as an economy that is restorative and regenerative by design and aims to keep products, components, and materials at their highest utility and value at all times, distinguishing between technical and biological cycles. It is conceived as a continuous positive development cycle that preserves and enhances natural capital, optimises resource yields, and minimises system risks by managing finite stocks and renewable flows. It works effectively at every scale. This economic model seeks to ultimately decouple global economic development from finite resource consumption.
How do we get there?
1. A key feature of a circular economy is to be restorative and regenerative by design. The recovery of materials and products is not only addressed at end of use, but is enabled at the design level (e.g., by the choice of materials or a design for disassembly). Companies will need to build core competencies in circular design to facilitate product reuse, recycling and cascading.
2. Business models that move from ownership to performancebased payment models are instrumental in translating products designed for reuse into attractive value propositions. By prioritising access over ownership, these models drive a shift from consumers to users. Companies with significant market share and capabilities along several vertical steps of the linear value chain could play a major role in driving circularity into the mainstream by leveraging their scale and vertical integration.
3. A value preserving materials backbone is a core requirement for the transition to a circular economy. To create value from materials and products after their use, they need to be collected and brought back.
The "circular economy" sounds like a buzzword for more aggressive recycling and eco-friendly materials use. Disposable goods are cheap. What incentives do companies/governments have to make their products more expensive?