[75] Do CE secondary production activities (reuse, repair, & remake) actually reduce, or instead displace, primary production (natural resource extraction)? Allwood, J. M. (2014). It is argued that by following a circular economy, the textile industry can be transformed into a sustainable business. It follows that in a real implementation of the concept, one would either have to deviate from the perfect reversibility in order to generate an entropy increase by generating waste, which would ultimately amount to still having parts of the economy which follow a linear scheme, or enormous amounts of energy would be required (from which a significant part would be dissipated in order to for the total entropy to increase). [18][36] Specifically, in the U.S., the product-oriented company case in the study was Dell, a US manufacturing company for computer technology, which was the first company to offer free recycling to customers and to launch to the market a computer made from recycling materials from a verified third-party source. "Waste as scats: For an organizational engagement with waste". Another report in the UK saw a huge potential for reuse and recycling in the furniture sector. No items found. The Circular Economy is a strategic ally in tackling a scarcity of resources, global warming and waste management. It may concern both construction companies as well as construction projects (where a construction company is one of the stakeholders). The Commission is undertaking a range of actions to support the move to a more circular economy. First prize went to the then US Secretary of Agriculture, second prize to Amory and Hunter Lovins, fourth prize to Peter Senge. [98] In the EU's ETN-Demeter project (European Training Network for the Design and Recycling of Rare-Earth Permanent Magnet Motors and Generators in Hybrid and Full Electric Vehicles)[99] they are looking at the sustainable design issue. Corvellec and Stål (2019) are mildly critical of apparel manufacturing circular economy take-back systems as ways to anticipate and head off more severe waste reduction programs: Apparel retailers exploit that the circular economy is evocative but still sufficiently vague to create any concrete policies (Lüdeke‐Freund, Gold, & Bocken, 2019) that might hinder their freedom of action (Corvellec & Stål, 2017). Circular Jobs Definition Framework. What is the Circular Economy? In line with this, a circular economy can contribute to meeting the COP 21 Paris Agreement. There is a potential increase of €4.9 billion in Gross Value Added by switching to a circular model by 2030, and 163,300 jobs could be created. [119], At the same time, the European research budget related to the circular economy has increased considerably in the last few years: it has reached 964 million euros between 2018 and 2020[119]. I think of it as 'innovation' inspired by nature". [49] PACE's original intent has three focal areas: (1) developing models of blended finance for circular economy projects, especially in developing and emerging economies; (2) creating policy frameworks to address specific barriers to advancing the circular economy; and (3) promoting public–private partnership for these purposes. You can promote much-needed change in your … Linear "take, make, dispose" industrial processes, and the lifestyles dependent on them, use up finite reserves to create products with a finite lifespan, which end up in landfills or in incinerators. They are for example making designs of electric motors of which the magnets can be easily removed for recycling the rare earth metals. The circular approach, by contrast, takes insights from living systems. What is a circular economy? Nevertheless, all the definitions agree on the importance of designing, producing and consuming in a sustainable way. Credited with having coined the expression "Cradle to Cradle" (in contrast with "Cradle to Grave", illustrating our "Resource to Waste" way of functioning), in the late 1970s, Stahel worked on developing a "closed loop" approach to production processes, co-founding the Product-Life Institute in Geneva. [105][106] Changes in the Dutch laws and regulations will be introduced. 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. It remains difficult to precisely rank how countries score in terms of circular economy, given the many principles and aspects of it and how differently one single country can score in each of these principles but some tendencies do appear in the average score, when combining the principles. More than 100 different definitions of circular economy are used in scientific literature and professional journals. Circular business models, as the economic model more broadly, can have different emphases and various objectives, for example: extend the life of materials and products, where possible over multiple 'use cycles'; use a 'waste = food' approach to help recover materials, and ensure those biological materials returned to earth are benign, not toxic; retain the embedded energy, water and other process inputs in the product and the material for as long as possible; Use systems-thinking approaches in designing solutions; regenerate or at least conserve nature and living systems; push for policies, taxes and market mechanisms that encourage product stewardship, for example 'polluter pays' regulations. There are cases that might require different or additional strategies, like purchasing new, more energy-efficient equipment. The uptake to reuse within the oil and gas industry is very poor, the opportunity to reuse is never more evident, or possible, as when the equipment is being decommissioned. We have gathered 10 examples of Circular Economy solutions that through practical cases illustrate how circular business models prove to be a sound business strategy that facilitates access to new markets, drives innovative solutions and saves production costs. [73][74] For example, Allwood (2014) discussed the limits of CE 'material circularity', and questioned the desirability of the CE in a reality with growing demand. (s. d.). The New Plastics Economy is an ambitious, three-year initiative to build momentum towards a plastics system that [46], In 2018, the World Economic Forum, World Resources Institute, Philips, Ellen MacArthur Foundation, United Nations Environment Programme, and over 40 other partners launched the Platform for Accelerating the Circular Economy (PACE). [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. Three important laws can be mentioned in this regard : ●       The Ecodesign Framework Directive, ●       The Registration, Evaluation, Authorisation and Restriction of Chemicals Regulation, On 17 December 2012, the European Commission published a document entitled "Manifesto for a Resource Efficient Europe". It contains a comprehensive list of CE terms and definitions, describes the core CE principles, and presents a flexible management framework for implementing CE strategies in organizations. There is some criticism of the idea of the circular economy. It contrasts with the linear economy, which has traditionally used the production model of “take, make, and dispose.” Wikipedia.org has the following definition of the term: “A circular economy (often referred to simply as ‘circularity’ is an economic system aimed at … Another circular initiative is offering a take-back program. [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. There is no such thing as waste, because every residual stream can be used to make a new product. A circular economy (also referred to as "circularity"[2]) is an economic system aimed at eliminating waste and the continual use of resources. 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? ; Laurenti, R. Circular Economy Innovation and Environmental Sustainability Impact on Economic Growth: An Integrated Model for Sustainable Development. No items found. Recovery can never be 100% (Faber et al., 1987). In their 1976 research report to the European Commission, "The Potential for Substituting Manpower for Energy", Walter Stahel and Genevieve Reday sketched the vision of an economy in loops (or circular economy) and its impact on job creation, economic competitiveness, resource savings and waste prevention. The Biosphere Rules is a framework for implementing closed-loop production processes. [93] There are also incentives for carmakers to do so as a 2016 report by Accenture stated that the circular economy could redefine competitiveness in the automotive sector in terms of price, quality, and convenience and could double revenue by 2030 and lower the cost base by up to fourteen percent. The aim is to enable economies and societies in general to become more autonomou… [3] In addition, it is important to underline the innovation aspect in the heart of sustained development based on circular economy components. Research and innovation in Europe are financially supported by the program Horizon 2020, which is also open to participation worldwide. [3] The circular economy aims to keep products, equipment and infrastructure[4] in use for longer, thus improving the productivity of these resources. (2012). The ability to understand how things influence one another within a whole. It estimates that, with no policy change, 200,000 new jobs will be created, reducing unemployment by 54,000. [125] In addition, the development of this Action Plan was also intended to enable the development of a new market for secondary raw materials. Core elements. Through renting the same product to several clients, manufacturers can increase revenues per unit, thus decreasing the need to produce more to increase revenues. With current advances, digital technology has the power to support the transition to a circular economy by radically increasing virtualisation, de-materialisation, transparency, and feedback-driven intelligence. But in the end, the circular bioeconomy defined in this way is just the overlap between the bioeconomy and the circular economy, each having a space of their own that is not related to the other. The generic circular economy label can be applied to or claimed by several different schools of thought, but all of them gravitate around the same basic principles. The circular economy is a new way of doing business that extracts as much value as possible from resources by recycling, repairing, reusing, repurposing, or refurbishing products and materials—eliminating waste and greenhouse gas emissions at the design stage. The aim is to reduce the amount of waste generated, therefore reducing the need for landfill space and also extracting maximum value from waste. Our findings indicate that the circular economy is most frequently depicted as a combination of reduce, reuse and recycle activities, whereas it is oftentimes not highlighted that CE necessitates a systemic shift. but also in some fields Portugal, Greece, Croatia and even Germany.[138]. Circular initiatives, such as clothing rental startups, are also getting more and more highlight in the EU and in the US as well. The various approaches to 'circular' business and economic models share several common principles with other conceptual frameworks: Janine Benyus, author of "Biomimicry: Innovation Inspired by Nature", defined Biomimicry as "a new discipline that studies nature's best ideas and then imitates these designs and processes to solve human problems. [52][53], PACE is a coalition of CEOs and Ministers—including the leaders of global corporations like IKEA, Coca-Cola, Alphabet Inc., and DSM (company), governmental partners and development institutions from Denmark, The Netherlands, Finland, Rwanda, UAE, China, and beyond. The "Manifesto for a Resource Efficient Europe" of 2012 clearly stated that "In a world with growing pressures on resources and the environment, the EU has no choice but to go for the transition to a resource-efficient and ultimately regenerative circular economy. 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. [15] This new model of economic development focuses on the production of goods and services taking into account environmental and social costs. Bioeconomy. ‍. Circular business models can be defined as business models that are closing, narrowing, slowing, intensifying and dematerializing loops, to minimize the resource inputs into and the waste and emission leakage out of the organizational system. Circular Jobs Definition Framework. Towards the Circular Economy also identified the key building blocks in making the transition to a circular economy, namely in skills in circular design and production, new business models, skills in building cascades and reverse cycles, and cross-cycle/cross-sector collaboration. As opposed to sustainable development, a concept generally … This shows that fast fashion is harming the planet in more ways than one by running on a linear system. Zink, T., & Geyer, R. (2017). [31] The Ellen MacArthur Foundation has more recently outlined the economic opportunity of a circular economy, bringing together complementary schools of thought in an attempt to create a coherent framework, thus giving the concept a wide exposure and appeal. One of the answers to these challenges is presented by the circular economy model. ESCadrille Toulouse Junior Conseil. [78] In its comment to concept of the circular economy the European Academies' Science Advisory Council (EASAC) came to a similar conclusion: Recovery and recycling of materials that have been dispersed through pollution, waste and end-of-life product disposal require energy and resources, which increase in a nonlinear manner as the percentage of recycled material rises (owing to the second law of thermodynamics: entropy causing dispersion). This shift foresees having a "sustainable and strong agriculture" by as early as 2030. The problem CE overlooks, its untold story, is how displacement is governed mainly by market forces, according to McMillan et al. In 2020, the European Union released its Circular Economy Action Plan. 'Re-Thinking Progress' explores how through a change in perspective we can re-design the way our economy works - designing products that can be 'made to be made again' and powering the system with renewable energy. [68] Four new ISO standards are under development and in the direct responsibility of the committee (consisting of 70 participating members and 11 observing members). A 2017 report, "A New Textiles Economy",[83] stated the four key ambitions needed to establish a circular economy: "phasing out substances of concern and microfiber release; transforming the way clothes are designed, sold and used to break free from their increasingly disposable nature; radically improving recycling by transforming clothing design, collection, and reprocessing; and making effective use of resources and moving to renewable input." Transitioning to a circular economy does not only amount to adjustments aimed at reducing the negative impacts of the linear economy. Ministère de la Transition écologique. [112], Organizations such as Zero Waste Scotland have conducted studies to identify areas with reuse potential, allowing equipment to continue life in other industries, or be redeployed for oil and gas . During the 2019 COP25 in Madrid, William McDonough and marine ecologist Carlos Duarte presented the Circular Carbon Economy at an event with the BBVA Foundation.