Circular Economy

The circular economy is a sustainable development and consumption model focused on reusing, repairing, and recycling material resources to prolong their life cycle. This approach minimizes waste by continuously reintroducing materials and adds value in the process. It stands in contrast to the traditional linear economic model of 'extract, produce, use, and dispose'.

What is the circular economy and how is it applied today?

6. Action Plan for the Circular Economy in Europe

5. Sustainability in practice: examples of circular economy

4. Circular economy: advantages and disadvantages

3. Circular Economy and Agenda 2030

2. What are the principles of the circular economy

1. Circular economy, definition

this is an index

The circular economy is a production and consumption model that prioritizes sharing, lending, reusing, repairing, reconditioning, and recycling existing materials and products to maximize their lifespan. Sustainable products and services circulate within a target market, facilitated by design approaches like ecodesign and sustainable design, which focus on creating low-impact goods. Rigorous methodologies such as Life Cycle Assessment (LCA) ensure that products have minimal waste, pollution, and waste rates throughout their life cycles.

According to the European Parliament:

1.1. Circular economy: what is it?

To get a better grasp of the issue, let us start with the basics: what is the definition of circular economy?

1. Circular economy, definition

- low impact at every stage of their existence; - embedded in sustainable consumption practices such as rental

- made of environmentally sustainable materials and produced with clean energy; - durable and easily repairable (against planned obsolescence); - easily reusable and/or recyclable;

Eco-designed products are generally (as a unit and/or in their individual parts):

1.2. What is the design pattern of the circular economy?

By definition, circular economy and linear economy are opposing models. The latter represents the economic and production system currently prevalent but increasingly questioned due to the environmental, economic and social unsustainability of its principles. It is based on linear schemes that involve the use of large volumes of resources and energy to create products that, at the end of the finite succession of their phases of existence (from the extraction of raw materials to their end of life), become waste to be disposed of.

1.3. Circular economy and linear economy

The Ellen MacArthur Foundation identifies three basic 'design-driven' principles: elimination of waste and refuse, circulation of products and materials, and regeneration of nature. Let us look at them in detail.

2. What are the principles of the circular economy

The second principle of circularity is based on the recirculation of products and materials. In this way, the objects and elements of which they are made re-enter the economy and are reused to make new ones that are themselves circular according to their technical and/or biological cycles. Thus 'nothing becomes waste and the intrinsic value of products and materials is maintained'.

2.2. Circulation of products and materials

The current economic system follows a linear 'take-make-waste' sequence, where resources are extracted, processed into products, and then disposed of after use. In contrast, the circular design of object life cycles considers their end fate after use. The Ellen MacArthur Foundation advocates for treating waste as a design flaw and emphasizes that in a circular economy, materials must reenter the economy at the end of their use, thus promoting a shift in mindset towards sustainable resource management.

2.1. Elimination of waste

The circular economy supports the reinvigoration of natural processes and nature. It therefore also makes possible economic activities that promote biodiversity and engage in the fight against climate change. In this way, 'we must not simply focus on doing less damage to the environment, but on how we can actively improve it'.

2.3. Regenerating nature

The circular economy, as defined by the Ellen MacArthur Foundation, is a resilient system that benefits businesses, people, and the environment. Its adoption signifies a significant move towards achieving sustainable and inclusive growth, aligning with the UN's 2030 Agenda and its Sustainable Development Goals (SDGs). These goals encompass various aspects of environmental, economic, and social development. The promotion and adoption of circular models have the potential to positively impact all SDGs, including efforts to combat climate change, promote responsible consumption and production, and foster sustainable cities and communities. Achieving these objectives requires the collaboration of all stakeholders, including businesses, which must reevaluate their practices and processes to prioritize sustainability and circularity.

3. Circular Economy and Agenda 2030

The advantages for companies are:- improvement of environmental performance, e.g. through approaches aimed at reducing CO2 emissions and decreasing waste and waste;- optimisation of the use of available energy and resources (and thus also costs);- opportunity to make a concrete contribution to the protection and reinvigoration of the environment and biodiversity;- boost to innovation;- creation of new business opportunities and new jobs (also in new markets);- development of a sustainable offer through eco-designed products and services;- improvement of the company's image and reputation with consumers and institutions increasingly attentive to the issue of sustainability.

4.1. The benefits of the circular economy

For companies, the circular economy represents an important horizon for sustainable evolution and innovation. Contrary to the idea that green vocation and business objectives are irreconcilable, there are several benefits and growth opportunities that circularity offers to companies.

4. Circular economy: advantages and disadvantages

While the circular economy offers significant advantages for businesses, there are still concerns hindering its full implementation. These include challenges such as justifying potentially higher prices for circular products to consumers, limitations in reusing and recycling certain materials, and a lack of thorough understanding of the benefits and opportunities associated with circularity. This lack of preparation can lead to ineffective approaches that may harm a company's reputation and economic standing. To successfully integrate sustainability and circularity into their operations, companies should seek assistance from experienced eco-design firms. HENRY & CO. offers support in circular design thinking for businesses looking to adopt these practices.

4.2. The disadvantages of the circular economy

Among the most obvious examples of circularity are companies dealing in refurbished electronics: among them is Swappie, now a leading player in the sale and purchase of refurbished iPhones. The Finnish start-up's work is based on the conviction that 'technology should not cost us the planet'. 'Circularity,' reads the Swappie Enviromental Impact Report 2021, 'is our answer to reducing e-waste, directing choices in favour of the environment and promoting a sustainable future'.

5.1. Swappie

The circular economy is fertile ground for business growth and development. This is why there are an increasing number of examples of businesses with a vocation for sustainability and of companies that are gradually aligning themselves with this vision. Here is a review of some examples.

5. Sustainability in practice: examples of circular economy

Circular fashion is gaining traction within the fashion industry, with Patagonia emerging as a leading example. The company's commitment to environmental and social responsibility has propelled it to the top of Kearney's Circular Fashion Index 2022. Patagonia's history showcases how it successfully aligns business objectives, innovation, and sustainability, achieving noteworthy results. Utilizing fabrics made from recycled plastic bottles and offering free garment repairs are among the strategies through which Patagonia has solidified its position as a sustainability champion in the industry.

5.3. Patagonia

Another virtuous example of circularity is Too Good To Go, an app born in Denmark and now successfully active in many markets. Its aim is to reduce food waste by helping traders and consumers to participate in this mission. In it, traders offer their unsold food products at reduced prices and users can buy them at a lower cost: by preventing them from becoming waste, they both contribute to the fight against food waste.

5.2. To Good To Go

By 2030, IKEA wants to be circular and to do this it is intervening in the design of its products and the way people buy and experience them. In terms of its offering, the Swedish company is increasingly focusing on 'fully circular products (recycled, reclaimed, refurbished and reused)' and the exclusive use of renewable and recycled materials. Rental, buy-back, resale and support for reuse, recycling or repair are the initiatives being tested in the second area.

5.4. IKEA

Action Plan for the Circular Economy:In March 2020, the European Commission presented an action plan for the circular economy with more than 30 points on sustainable product development, circularity in production processes, consumer empowerment, waste reduction and focus on key sectors.Designing Sustainable Products:Since 2009, the ecodesign directive has set energy efficiency requirements for various product groups. On 5 December 2023, a provisional agreement was reached on new ecodesign requirements for sustainable products, aiming to establish environmental sustainability requirements for almost all goods on the EU market.Consumer Empowerment:The Commission proposes new rules to prevent misleading claims about the environmental merit of products and services. The new measures, agreed on 19 September 2023, will give EU consumers access to reliable information for informed green choices.

6. Action Plan for the Circular Economy in Europe

The European Union is taking significant steps to address various aspects of waste management and promote circularity across different sectors. In electronics and ICT, measures such as the common charger directive aim to standardize chargers and reduce e-waste. Similarly, the EU Battery Regulation targets the entire life cycle of batteries to foster a circular economy, especially crucial with the rise of electric mobility.In packaging, the proposed revision of the Packaging Waste Directive aims for all packaging to be reusable or recyclable by 2030, promoting reuse systems and harmonizing labeling. Plastics are also a focus, with efforts to improve recyclability and reduce microplastics through mandatory recycled content and waste reduction requirements.Textiles and construction are also in the spotlight, with plans to make products more durable, repairable, and recyclable by 2030. Proposals include making manufacturers responsible for textile life cycles and setting new requirements for construction products to enhance recyclability and remanufacturing.Overall, these initiatives underscore the EU's commitment to transitioning towards a circular economy by addressing waste streams, improving product design, and promoting sustainable practices across various industries.

6.1. Key Sectors in the Circular Economy

The EU wants to create a functioning market for secondary materials. The Critical Raw Materials (CRM) Act, proposed by the Commission, aims to strengthen all stages of the value chain for critical materials, improving circularity and recycling.

6.4. Secondary Materials

For chemicals, it aims to ensure that chemicals are safe for human health and the environment. A revision of the POPs (persistent organic pollutants) regulation was adopted on 24 October 2022 to reduce POP concentration limits in waste.

6.3. Environment Without Toxicity

The EU is working on measures to strengthen and better implement waste laws. For example, the Waste Framework Directive, in force since July 2020, sets rules for Member States to increase the reuse and recycling of municipal waste.

6.2. Waste Reduction

In conclusion, the circular economy is an essential approach for a sustainable future and the achievement of the EU's climate goals. With action plans, regulations and incentives, the EU is committed to transforming its economic model into a more sustainable and circular one.

CONCLUSION