Elements of Circular Economy

Elements of Circular Economy

The economy in its current form needs a transition from a linear system to a circular one. But how can this transition be approached? First, the existing systems and frameworks of how things are produced need to be assessed in order to find elements where circular economy objectives can be applied. The Value Hill Model and the Butterly diagram show different phases of a product’s life cycle and how value is generated, kept and value loss can be decreased or slowed. The main principles here are resource efficiency, business opportunities and environmental sustainability.

Materials need to be kept in use, waste can be a resource and consequently the need for virgin material decreases. By deploying repair services, remanufacturing and recycling new revenue streams can be created for businesses. Lastly, the reduction of waste and pollution helps protect ecosystems and supports the regeneration of natural systems which can then in return provide new resources for the economy.