The Circular Economy

In a linear economy, resources are extracted, used and disposed of

Economic growth is directly linked to an increased use of resources

This includes two problems:

1. For extracting materials, energy is needed. This energy emits greenhouse gases that induce global warming - 2/3 of all GHG emissions linked to extraction of resources

2. Continuing this take-make-waste economy will cause us to run out of non-renewable resources

To be able to continue economic growth, we have to counteract both problems

The circular economy promises to help in this regard, by following the mantra “reduce, reuse and recycle”

• decouple use of resources from economic growth

• Decouple environmental impacts from economic growth

The circular economy concept was made prominent by the Ellen MayArthur Foundation, which also introduced the Butterfly diagram:

The smaller the cycle the better

to reach a circular economy, not only products have to be designed in a circular way, but companies also have to rethink their business models

• e.g. fairphone

Unfortunately, a circular economy may not always lead to a more sustainable company. To ensure that a company proposes a sustainable & circular solution, assessments have to be made

The concept of a circular economy promises to save resources and reduce environmental impact while economic growth might still be possible. However, not every circular product or service is sustainable.

e.g. children toy with recycled plastic but contains toxic substances due to the recycling, steel recycling - heavier than aluminium