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French; Russian version; Dutch; related News. Allwood, J. M. (2014). An illustration of the circular economy concept [1] Linear versus circular economy Circular economy A circular economy (also referred to as "circularity" [2]) is an economic system aimed at eliminating waste and the continual use of resources. One prominent thinker on the topic is Walter R. Stahel, an architect, economist, and a founding father of industrial sustainability. What does circular economy mean? This objective was enshrined during the COP21 1 in Paris, in December 2015. We can use circularity for the economy or individual companies, as in: “XXX Corporation has achieved circularity across its … [44][45] Also referred to as the data economy, the central role of digital technologies for accelerating the circular economy transition is emphasized within the Circular Economy Action Plan of the European Green deal. The circular economy is based on 7 fundamental principles:[12] sustainable procurement, eco-design, industrial and territorial ecology, the economy of functionality, responsible consumption, extension of the lifespan, improvement of waste prevention, management and recycling. At the end I also recommend a very good book if you want to learn more. These countries are mostly the eastern european countries (Romania, Hungary, Bulgaria, Slovakia, etc.) We have detected that you are using an older browser. Whereas total quality sees in waste a sign of failure, a scatolic understanding sees a sign of life. [101] The shift from linear flows of packaging to circular flows as encouraged by the circular economy is critical for the sustainable performance and reputation of the packaging industry. Both China and Europe have taken the lead in pushing a circular economy. The model distinguishes between technical and biological cycles. In the UK, Steve D. Parker researched waste as a resource in the UK agricultural sector in 1982, developing novel closed-loop production systems. Consulté le 15 mars 2021, à l’adresse. To draw the attention of policymakers and other stakeholders to this loophole, the Ecothis, an EU campaign was launched raising awareness about the economic and environmental consequences of not including eco-design as part of the circular economy package. Concretely, here are the principal areas concerned by the Action Plan:[126], The Action plan was also a way to integrate a policy framework, an integration of existing policies and legal instruments. McMillan, C. A., S. J. Skerlos, and G. A. Keoleian (2012). Circular development is a model of economic, social and environmental production and consumption that aims to build a sustainable society based on a circular model. First prize went to the then US Secretary of Agriculture, second prize to Amory and Hunter Lovins, fourth prize to Peter Senge. The circular economy is an economic concept linked to the sustainable development and the green economy but which goes further than the latter. These cover the cycle from production and consumption, to waste management and the market for secondary raw materials. Indeed, stepping away from linear forms of production most often leads to the development of new core competencies along the value chain and ultimately superior performance that cuts costs, improves efficiency, meets advanced government regulations and the expectations of green consumers. (2019). Utilizing the sharing economy. [123], This first circular economy Action Plan consisted of 54 measures to strengthen Europe's global competitiveness, promote sustainable economic growth and create more jobs. Principles of Circular Economy It promotes the recycling of waste as resource and input to create more finished goods. Definition of the circular economy. [11] Circular development is directly linked to the circular economy and aims to build a sustainable society based on recyclable and renewable resources, in order to protect society from waste and to be able to form a model that is no longer considering resources as infinite. Material Concerns: Pollution, Profit and Quality of Life, Cradle to Cradle: Remaking The Way We Make Things, International Organization for Standardization, Learn how and when to remove this template message, Registration, Evaluation, Authorisation and Restriction of Chemicals Regulation, European environmental research and innovation policy, "The Circular Economy – A new sustainability paradigm? [59][60] In January 2019, PACE released a report entitled "A New Circular Vision for Electronics: Time for a Global Reboot" (in support of the United Nations E-waste Coalition. The products are used and then thrown away, ending the lifecycle of the materials. The book Strategic Management and the Circular Economy defined for the first time a CE strategic decision-making process, covering the phases of analysis, formulation, and planning. One of the answers to these challenges is presented by the circular economy model. Zink, T., & Geyer, R. (2017). The Circular Economy Applied to the Automotive Industry, End-of-Life Vehicle Recycling in the European Union, Robot-Assisted Disassembly for the Recycling of Electric Vehicle Batteries, Riding the wave of change in the automotive industry with circular economy, "Towards a Circular Economy: The Role of Dutch Logistics Industries and Governments", "A Circular Economy in the Netherlands by 2050 - Policy note - Government.nl", Omslag naar duurzame en sterke landbouw definitief ingezet, Realisatieplan Visie LNV: Op weg met nieuw perspectief, "Is Prolonging the Lifetime of Passive Durable Products a Low-Hanging Fruit of a Circular Economy? The notion of circularity has deep historical and philosophical origins. The authors of the study concluded that although a circular furniture economy in Denmark is gaining momentum, furniture companies lack knowledge on how to effectively transition, and the need to change the business model could be another barrier.[110]. Roadmap for the circular economy: 50 measures for a 100% circular economy (PDF - 5.69 Mo) Un nouveau plan d’action européen ambitieux L'économie circulaire constitue une des priorités du Pacte vert de la Commission présidée par Ursula Von Der Leyen, installée en décembre 2019. The five principles are Materials Parsimony, Value Cycling, Power Autonomy, Sustainable Product Platforms and Function Over Form. [6] It aims to develop recyclable and sustainable resources in order to protect society from waste. Germany: Germany is a leader in some aspects of circular economy, like waste management and recycling. This shows that fast fashion is harming the planet in more ways than one by running on a linear system. Their business-centered qualification of take-back systems amounts to an engagement in "market action (...) as leverage to push policymakers to create or repeal particular rules," as Funk and Hirschman (2017:33) put it. To reach the 1.5 °C ambition it is estimated that additional emissions reductions of 15 billion tonnes CO2 per year need to be achieved by 2030. Rather, it suggests an alternative way of thinking how to attain a sustained competitive advantage (SCA), while concurrently addressing the environmental and socio-economic concerns of the 21st century. Circular Economy Policies in China and Europe : Circular Economy Policies in China and Europe. [91] According to Gorecki,[92] one of such posts may be the Circular economy manager employed for construction projects. Currently, out of 10,000,000 tonnes of annually discarded furniture in the EU, most of it ends up in landfills or is incinerated. In addition, logistic companies can enable a connection to a circular economy by providing customers incentives to reduce costs through shipment and route optimization, as well as, offering services such as prepaid shipping labels, smart packaging, and take-back options. Circular economy aims to reach the maximum efficiency in the use of finite resources, the gradual transition to renewable resources, and recovery of the materials and products at the end of their useful life. The core elements of the circular economy relate to direct circular handling of material and energy flows—for example closing loops, extending product lifecycles and increasing usage intensity. Although there are many conceptions of the circular economy, they all describe a new way of creating value, and ultimately prosperity, through extending product lifespan and relocating … [141][142], Industrial Ecology is the study of material and energy flows through industrial systems. Information and translations of circular economy in the most comprehensive dictionary definitions resource on the web. Already since 2006, the European Union has been concerned about environmental transition issues by translating this into directives and regulations. A documentary about the world of fashion, The True Cost (2015),[82] explained that in fast fashion, "wages, unsafe conditions, and factory disasters are all excused because of the needed jobs they create for people with no alternatives." For this reason, it became essential for us to define the performance characteristics of a fully circular economy. With the vehicle recycling industry (in the EU) only being able to recycle just 75% of the vehicle, meaning 25% isn't recycled and may even end up in landfills,[97] there is much to improve here. Another example that fits the idea of circular economy in the construction sector on the operational level, there can be pointed walnut husks, that belong to hard, light and natural abrasives used for example in cleaning brick surfaces. As Corvellec (2015) put it, the circular economy privileges continued economic growth with soft "anti-programs", and the circular economy is far from the most radical "anti-program". Économie circulaire - Ellen Macarthur Foundation. [102], Several statistics have indicated that there will be an increase in freight transport worldwide, which will affect the environmental impacts of the global warming potential causing a challenge to the logistics industry, however, If you are unable to upgrade your browser, please see our Technical FAQ page to get tips on how to improve your user experience. [citation needed]. circular economy: A circular economy is an industrial system in which the potential use of goods and materials is optimized and their elements returned to the system at the end of their viable life cycles. [48] PACE follows on the legacy of WEF's CEO-led initiative, Project MainStream, which sought to scale up circular economy innovations. [137], Even if Europe as a whole is a good actor in the field, some european countries are still struggling to make the shift faster. Circular economy, United Nations definition: “The circular economy is a system of production, exchange and sharing allowing social progress, the preservation of natural capital and economic development as defined by the Brundtland commission *. [22] One example of a circular economy model is the implementation of renting models in traditional ownership areas (e.g. This new form of society is based on the principle of circular economy. [95][96] The Netherlands is an example of a country from the EU that has increasingly moved towards incorporating a circular economy given the vulnerability of the Dutch economy (as well as other EU countries) to be highly dependable on raw materials imports from countries such as China, which makes the country susceptible to the unpredictable importation costs for such primary goods. The fundamental need for an alternative to the traditional linear model of growth has led to the emerging debate about circular economy (CE), described as an economy with closed material loops. Our circular jobs definition framework defines circular jobs, with examples of jobs that contribute to the circular economy, and explains how this is used in Circle Economy's Circular Jobs Monitor, an online tool that gathers and displays the number and range of jobs that are part of the circular economy. The purpose is to be able to form a model that is no longer linear and greedy but circular. As early as 1966 Kenneth Boulding raised awareness of an "open economy" with unlimited input resources and output sinks, in contrast with a "closed economy", in which resources and sinks are tied and remain as long as possible a part of the economy. Indeed, rather than only think to reduce the ecological impact of the industries and the amount of waste, it aims to produce goods and services by targeting a sustainable management of raw materials and energy sources. APPENDIX: SOME DEFINITIONS OF A CIRCULAR ECONOMY 83 www.institutmontaigne.org. The construction sector is one of the world's largest waste generators. Each phase is supported by frameworks and concepts popular in management consulting – like idea tree, value chain, VRIE, Porter's five forces, PEST, SWOT, strategic clock, or the internationalization matrix – all adapted through a CE lens, hence revealing new sets of questions and considerations. These systems mimicked and worked with the biological ecosystems they exploited. Dr h c Walter R. Stahel is widely recognised as one of the key thinkers in the circular economy. The circular economy has seen a significant increase in interest over the past few years and is continuing to gain steady momentum. The circular economy is grounded in the study of feedback-rich (non-linear) systems, particularly living systems. Boulding's essay "The Economics of the Coming Spaceship Earth"[23] is often cited as the first expression of the "circular economy",[24] although Boulding does not use that phrase. Supporting this, a Strategic Research and Innovation Agenda for circular economy has been recently published in the framework of the Horizon 2020 project CICERONE that puts digital technologies at the core of many key innovation fields (waste management, industrial symbiosis, products traceability). The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. [66] The circular economy standard BS 8001:2017 tries to align the far-reaching ambitions of the CE with established business routines at the organizational level. Technical cycles recover and restore products, components, and materials through strategies like reuse, repair, remanufacture or (in the last resort) recycling. The definition of a circular economy focuses on using as few resources as possible by keeping materials in circulation and getting the greatest value from them. In this system, it is there… This model also advocates "more localization of economic activity". A circular economy means maintaining the economic value of materials and minimising their environmental impacts. Some key points in this plant include: When it comes to the furniture industry, most of the products are passive durable products, and accordingly implementing strategies and business models that extend the lifetime of the products (like repairing and remanufacturing) would usually have lower environmental impacts and lower costs. For its part, the term "circular economy" appeared for the first time[citation needed] in 1990 in "the Economics of natural resources and the environment". Waste materials and energy should become input for other processes: either a component or recovered resource for another industrial process or as regenerative resources for nature (e.g., compost). More than 100 different definitions of circular economy are used in scientific literature and professional journals. In recent years the circular economy has received increasing attention worldwide due to, inter alia, the recognition that security of supply of resources and There is no such thing as waste, because every residual stream can be used to make a new product. Circular Economy: definition & examples. In 2018, the International Organization for Standardization (ISO) established a technical committee, TC 323, in the field of circular economy to develop frameworks, guidance, supporting tools, and requirements for the implementation of activities of all involved organizations, to maximize the contribution to Sustainable Development. France is also adding several texts and measures for a better circular economy in the country such as the roadmap for circular economy in 2018, consisting of 50 measures for a successful transition to circular economy. A plant grows using energy from the sun, water and nutrients from the soil, this plant is consumed by an animal, which in turn is consumed by another animal and eventually the animal at the top of the food chain dies and all the nutrients are returned to the soil to be used by a new plant. "Squaring the circular economy: The role of recycling within a hierarchy of material management strategies". The circular economy includes discussion of the role of money and finance as part of the wider debate, and some of its pioneers have called for a revamp of economic performance measurement tools. While it may sound like a simple task, only a handful of designers in the fashion industry have taken charge, including Patagonia, Eileen Fisher, and Stella McCartney. In the early 1990s, Tim Jackson began to create the scientific basis for this new approach to industrial production in his edited collection Clean Production Strategies,[27] including chapters from pre-eminent writers in the field, such as Walter R Stahel, Bill Rees and Robert Constanza. The circular economy is beginning to catch on inside the automotive industry. Toxic substances are eliminated and residual flows are separated into a biological and a technical cycle. : 6897785 Ellen MacArthur Foundation ANBI RSIN nummer: 8257 45 925, © Copyright 2017 Ellen MacArthur Foundation. Another circular initiative is offering a take-back program. [14] Through renting the same product to several clients, manufacturers can increase revenues per unit, thus decreasing the need to produce more to increase revenues. Remember, in a circular economy, everything is healthy food for something else so nothing goes to landfill. It estimates that, with no policy change, 200,000 new jobs will be created, reducing unemployment by 54,000. This model emphasizes the importance of selling services rather than products, an idea referred to as the "functional service economy" and sometimes put under the wider notion of "performance economy". For this purpose, we have gathered 114 circular economy definitions which were coded on 17 dimensions. A Multiple Case Study", "Furn 360 Project | Circular Economy in furniture sectors", "Circular economy in the Danish furniture sector", "New project to apply circular economy to oil and gas decommissioning", "North sea oil and gas rig decommissioning & re-use opportunity report", http://www.worldynamics.com/circular_economy/web/assessment/main, https://www.amazon.com/Strategic-Management-Circular-Routledge-Research/dp/1138103632, "Manifesto for a Resource Efficient Europe", https://doi.org/10.1080/09644016.2020.1868863, "Indicator development as a site of collective imagination? In Economics of Natural Resources and the Environment,[25] they pointed out that a traditional open-ended economy was developed with no built-in tendency to recycle, which was reflected by treating the environment as a waste reservoir.[26]. However, the definition of the circular economy remains a debate in the sense that there is no official and unique definition, and therefore leaves room for multiple descriptions. That is to say, the circular economy is not one single vertically-integrated business. A circular economy within the textiles industry refers to the practice of clothes and fibers continually being recycled, to re-enter the economy as much as possible rather than ending up as waste. Circular cities and regions initiative. The approach to measuring the drivers and barriers was to first identify indicators for their cases in study and then to categorize these indicators into drivers when the indicator was in favor of the circular economy model or a barrier when it was not. The smart circular economy framework illustrates this by establishing a link between digital technologies and sustainable resource management. Nevertheless, all the definitions agree on the importance of designing, producing and consuming in a sustainable way. No items found. Resource recovery is using wastes as an input material to create valuable products as new outputs. To leverage this technology for the transition towards a circular economy, various stakeholders have to work together. : SC043120 Company No. [75] Do CE secondary production activities (reuse, repair, & remake) actually reduce, or instead displace, primary production (natural resource extraction)?

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