Today’s linear ‘take, make, dispose’ economic model relies on large quantities of cheap, easily accessible materials and energy, and is a model that is reaching its physical limits. It is necessary to adopt radically more efficient means of recycling materials as well as totally new innovative business models.
A circular economy is an attractive and viable alternative that businesses have already started exploring today. It aims to decrease the environmental impact of material usage by enhancing their life cycle by circulating higher value added products and services. Adopting circular economy requires an extensive systemic change.
In circular economy focus is on practices such as maintenance, reuse and remanufacturing of equipment. Products are designed so that its materials are separable and recyclable. People and industry share products and services instead of owning them. Digitalisation boosts the development. The starting point is the optimization of value circulation, not only the prevention of waste generation.