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Circular Economy Concepts and Principles

Key Take-Aways

• This resource provides small and medium sized enterprises (SMEs) with the information they need to know about the transition from our current linear economy to a circular economy model.
• Circular economy is an economic model based on material and energy recovery, regeneration, and restoration in an effort to maximize the value of the materials and energy used throughout the entire value chain, minimize waste and align with nature. In this model, waste generation and demand for raw materials is significantly reduced.
• The three principles of a circular economy include:
  • Eliminate waste and pollution
  • Circulate products and materials at their highest value
  • Regenerate nature
• There are five standard circular business models including:
  • Use of Circular Inputs
  • Asset Sharing
  • Product / Performance as a Service (XaaS)
  • Product Life Extension
  • Resource Recovery & Recycling
• Implementation of circular economy principles does not come without challenges and risks.
• All job roles and economic actors have a role to play in the circular economy.