[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. Gradually these SDGs are being adopted in corporate strategies. It is a source of opportunity for business that improves quality of life and tackles global challenges like climate change. Definition of the circular economy. In essence, a circular economy impli… Horizon 2020: calls. 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. (2020, 4 novembre). 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. McDowall, W. & Geng, Y. 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. 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. ” * The United Nations World Commission on Environment and Development has published a book in 1987: “Our common future”. © 2012 - CNRTL 44, avenue de la Libération BP 30687 54063 Nancy Cedex - France Tél. It aims to develop recyclable and sustainable resources in order to protect society from waste. 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. As opposed to sustainable development, a concept generally … It is argued that by following a circular economy, the textile industry can be transformed into a sustainable business. [5] Most schools of thought advocate a shift from fossil fuels to the use of renewable energy, and emphasize the role of diversity as a characteristic of resilient and sustainable systems. We have gathered 10 solutions that unlock the potential of the Circular Economy. An action-oriented set of methods, mindsets and thought starters to help innovators design circular solutions that are fit for the future. [130] It focuses on better management of resource-intensive industries, waste reduction, zero-carbonization and standardization of sustainable products in Europe. Considered as one of the first pragmatic and credible sustainability think tanks, the main goals of Stahel's institute are to extend the working life of products, to make goods last longer, to re-use existing goods and ultimately to prevent waste. [90] The circular economy can contribute to creating new posts and economic growth. Today, the climate emergency and environmental challenges have strongly influenced and pushed companies and individuals to rethink their consumption and production patterns. [43] This allows assessment of different digital circular economy strategies with their associated level of maturity, providing guidance on how to leverage data and analytics to maximize circularity (i.e., optimizing functionality and resource intensity). Consumption happens only in biological cycles, where food and biologically-based materials (such as cotton or wood) are designed to feed back into the system through processes like composting and anaerobic digestion. The circular economy is grounded in the study of feedback-rich (non-linear) systems, particularly living systems. [108], The EU has seen a huge potential for implementing a circular economy in the furniture sector. However, it is argued by some that these assumptions are simplistic; that they disregard the complexity of existing systems and their potential trade-offs. It may concern both construction companies as well as construction projects (where a construction company is one of the stakeholders). [3] The circular economy aims to keep products, equipment and infrastructure[4] in use for longer, thus improving the productivity of these resources. "Squaring the circular economy: The role of recycling within a hierarchy of material management strategies". ", "New Circular Economy Strategic R&I Agenda now available", "WEF Launches Public-Private Platform on Circular Economy | News | SDG Knowledge Hub | IISD", "The Platform for Accelerating the Circular Economy (PACE)", "The world is now only 8.6% circular - CGR 2020 - Circularity Gap Reporting Initiative", "Philips delivers on commitment to the circular economy at DAVOS 2019", "A New Circular Vision for Electronics: Time for a global reboot", "RELEASE: PACE Welcomes David McGinty as Global Director", "Critical appraisal of the circular economy standard BS 8001:2017 and a dashboard of quantitative system indicators for its implementation in organizations", "New directions for management and organization studies on waste", "Against wasted politics: A critique of the circular economy", "Circular economy: a commentary from the perspectives of the natural and social sciences", "In Copenhagen, Gearing up for a Circular Fashion System", "Dame Ellen MacArthur on Building Momentum for Sustainability in Fashion", https://circularthreads.com/pages/about-us, "New Measures of Circular Economy Thinking in Construction Companies", "What Gets Measured, Gets Done: Development of a Circular Economy Measurement Scale for Building Industry", "How to convince players in construction market? 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. L’économie circulaire. "Qualification as corporate activism: How Swedish apparel retailers attach circular fashion qualities to take-back systems". It argues that a subset of the EU manufacturing sector could realize net materials cost savings worth up to $630 billion annually towards 2025—stimulating economic activity in the areas of product development, remanufacturing and refurbishment. More than 100 different definitions of circular economy are used in scientific literature and professional journals. It entails gradually decoupling economic activity from the consumption of finite resources, and designing waste out of the system. Circular Development Pathway. The European Union plans for a circular economy are spearheaded by its 2018 Circular Economy Package. [63][64] Board Members include Inger Andersen, Frans van Houten, Ellen MacArthur, Lisa P. Jackson, and Stientje van Veldhoven. 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. 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. 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. The intricacy and fuzziness of the topic is still felt by most companies (especially SMEs), which perceive circular strategies as something not applicable to them or too costly and risky to implement. An example of a circular economy within a fashion brand is Eileen Fisher's Tiny Factory, in which customers are encouraged to bring their worn clothing to be manufactured and resold. Circular cities and regions initiative. Abrasive grains are produced from crushed, cleaned and selected walnut shells. Bioeconomy. 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. Some of the areas are chemical industries, wholesale trade, industry and agriculture, forestry and fisheries because they see a potential reduction of costs when reusing, recycling and reducing raw materials imports. [6] It aims to develop recyclable and sustainable resources in order to protect society from waste. Circular economy. Sustainability 2020, 12, 4831., Clift & Allwood, "Rethinking the economy", The Chemical Engineer, March 2011. L’économie circulaire, un nouveau modèle de développement. [107] Companies such as GGMS are supporting a circular approach to furniture by refurbishing and reupholstering items for reuse. 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. In this way, the life cycle of products is extended. 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. It considers that our systems should work like organisms, processing nutrients that can be fed back into the cycle — whether biological or technical — hence the "closed loop" or "regenerative" terms usually associated with it. Rather, it represents a systemic shift that builds long-term resilience, generates business and economic opportunities, and provides environmental and societal benefits. Intuitively, the circular economy would appear to be more sustainable than the current linear economic system. Elements are considered as 'fitting in' their infrastructure, environment and social context. Plastics in a circular economy. Le ministère de l'environnement, de l'énergie et de la mer propose la définition suivante : "L’économie circulaire désigne un concept économique qui s’inscrit dans le cadre du développement durable et dont l’objectif est de produire des biens et des services tout en limitant la consommation et le gaspillage des matières premières, de l’eau et des sources d’énergie. [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. A circular economy (also referred to as "circularity"[2]) is an economic system aimed at eliminating waste and the continual use of resources. 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. ‍. In the electric vehicle industry, disassembly robots are used to help disassemble the vehicle. The Ellen MacArthur Foundation works in Education & Training, Business & Government, Insight & Analysis, Systemic Initiatives and Communications to accelerate the transition to a circular economy. The Circular Economy: A review of definitions, processes and impacts :: Abstract Transforming the linear economy, which has remained the dominant model since the onset of the Industrial Revolution, into a circular one is by no means an easy task. Population and Development Review, 14, 281-309. doi:10.2307/2808100. (2012). The 20th century was the linear economy momentum, we need to move forward to a regenerative and circular economy. (1988). 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]. [54][55] Initiatives currently managed under PACE include the Capital Equipment Coalition with Philips and numerous other partners[56][57][58] and the Global Battery Alliance with over 70 partners. Businesses can use circular designs to save money or open up new market opportunities, from turning pulp-and-paper-mill … 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. You can promote much-needed change in your … This shows that fast fashion is harming the planet in more ways than one by running on a linear system. The notion of circularity has deep historical and philosophical origins. Circular development | ICLEI Africa. The circular economy as EU environmental policy narrative. The idea of feedback, of cycles in real-world systems, is ancient and has echoes in various schools of philosophy. 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]. The Biosphere Rules is a framework for implementing closed-loop production processes. 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. Consulté le 15 mars 2021, à l’adresse. Nevertheless, all the definitions agree on the importance of designing, producing and consuming in a sustainable way. The products are used and then thrown away, ending the lifecycle of the materials. 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). The companies either offer flexible pricing in a 'pay as you rent' model like Palanta does,[85] or offer fixed monthly subscriptions such as Rent The Runway or Le Tote. Download digest. Regenerative system in which resource input and waste, emission, and energy leakage, are minimised, The examples and perspective in this section, Platform for Accelerating the Circular Economy (PACE), Development of ISO/TC 323 circular economy standard, Strategic management and the circular economy, CS1 maint: multiple names: authors list (, Local Government for Sustainability Africa. The following organisations participated in the interviews Philips, GEF, WRI, DSM, UN Environment, Accenture, DSGC, ING, Circle Economy, EMF, IRP. The Circular Economy is a strategic ally in tackling a scarcity of resources, global warming and waste management. The Netherlands, aiming to have a completely circular economy by 2050,[103] has also foreseen a shift to circular agriculture (kringlooplandbouw[104]) as part of this plan. In a circular economy, products and materials keep circulating in a high value state of use, through supply chains, for as long as possible. It’s called the circular economy. Research and innovation in Europe are financially supported by the program Horizon 2020, which is also open to participation worldwide. [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. [41] The government-wide program for a circular economy is aimed at developing a circular economy in the Netherlands by 2050. It provides 18 million direct jobs and contributes to about 9% of the EU's GDP. This regenerative approach is in contrast to the traditional linear economy, which has a "take, make, dispose" model of production.[5]. 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". Funding opportunities . Circular Economy: definition and examples – The model of economic growth that has characterized the last 150 years of history is defined as “linear economics”, an industrial, market economy, based on the extraction of innovative raw materials, on mass consumption and on the production of waste at the end of the useful life of the product.An economy for the masses, through and through. It questions whether with creativity and innovation we can build a restorative economy. A circular economy means maintaining the economic value of materials and minimising their environmental impacts. Utilizing the sharing economy. The construction sector is one of the world's largest waste generators. 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. The circular flow model of economics shows how money moves through an economy in a constant loop from producers to consumers and back again. Thus, new modes of production and consumption are emerging with the main objective of generating billions of dollars while controlling and reducing environmental consequences. The case of European Commission policies on the circular economy", http://europa.eu/rapid/press-release_MEMO-13-1085_en.htm, https://www.mdpi.com/2071-1050/12/12/4831/htm, "Circular Economy Strategy – Environment – European Commission", https://ec.europa.eu/commission/presscorner/detail/fr/ip_20_420, https://www.eesc.europa.eu/en/agenda/our-events/events/circular-economy-one-year-after-adoption-working-together-future, "Changing how we produce and consume: New Circular Economy Action Plan shows the way to a climate-neutral, competitive economy of empowered consumers", https://watereurope.eu/european-parliament-adopts-resolution-on-the-new-circular-economy-action-plan/, https://www.cambre-associates.com/the-european-parliaments-position-on-the-circular-economy-action-plan-ceap-spotlight-on-five-key-sectors/, https://docs.wbcsd.org/2020/11/WBCSD_Circular_Economy_Action_Plan_2020%E2%80%93Summary_for_business.pdf, "Accelerating the transition to a circular economy", "50 measures for a 100% circular economy", "Tightening the loop on the circular economy: Coupled distributed recycling and manufacturing with recyclebot and RepRap 3-D printing", "Slower Consumption Reflections on Product Life Spans and the "Throwaway Society, "International Society for Industrial Ecology – Home", https://en.wikipedia.org/w/index.php?title=Circular_economy&oldid=1016550039, Wikipedia introduction cleanup from March 2021, Articles covered by WikiProject Wikify from March 2021, All articles covered by WikiProject Wikify, Articles with unsourced statements from April 2021, Articles with unsourced statements from January 2009, Articles with unsourced statements from May 2020, Articles with limited geographic scope from October 2019, Articles needing the year an event occurred from December 2019, Wikipedia articles with SUDOC identifiers, Creative Commons Attribution-ShareAlike License, reducing the use of artificial fertilizers in favor of natural manure, providing the chance for farms within experimentation areas to deviate from law and regulations, implementing uniform methods to measure the soil quality, providing the opportunity to agricultural entrepreneurs to sign an agreement with the, providing initiatives to increase the earnings of farmers, Innovation, investment an 'horizontal' measures, The Netherlands: the government aims to reuse 50% of all materials as far as possible by 2030. One prominent thinker on the topic is Walter R. Stahel, an architect, economist, and a founding father of industrial sustainability. The level of recycling that is appropriate may differ between materials.[79]. Popularized by the book Cradle to Cradle: Remaking The Way We Make Things, Cradle to Cradle Design has been widely implemented by architect William McDonough, who was introduced as the “father of the circular economy” while receiving the 2017 Fortune Award for Circular Economy Leadership in Davos during the World Economic Forum. [38] These strategies can be achieved through the purposeful design of material recovery processes and related circular supply chains. The materials that are biodegradable automatically decompose and become part of nature. [18] who analyzed the institutional drivers and barriers for the circular economy in different regions worldwide, by following the framework developed by Scott R.[36] In the article, different worldwide environment-friendly institutions were selected, and two types of manufacturing processes were chosen for the analysis (1) a product-oriented, and (2) a waste management. 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. Toxic substances are eliminated and residual flows are separated into a biological and a technical cycle. 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. Little concrete guidance on circular economy monitoring and assessment is given, however, as there is no consensus yet on a set of central circular economy performance indicators applicable to organizations and individual products.[67]. The circular economy is more profitable and less harmless to the environment and its main goals include sustainable economic growth, increased competitiveness, and new jobs. These systems mimicked and worked with the biological ecosystems they exploited. Nevertheless, all the definitions agree on the importance of designing, producing and consuming in a sustainable way. It estimates that, with no policy change, 200,000 new jobs will be created, reducing unemployment by 54,000. [65], To provide authoritative guidance to organizations implementing circular economy (CE) strategies, in 2017, the British Standards Institution (BSI) developed and launched the first circular economy standard "BS 8001:2017 Framework for implementing the principles of the circular economy in organizations". [9] In other words, the goal is to make the economy as circular as possible,[10] by thinking to new processes and solutions for the optimization of resources and the use and waste. 3 FOREWORD Since the Nobel Peace Prize was awarded in 2007 to the members of the Intergovernmental Panel on Climate Change (IPCC), a genuine international consensus has formed around the need to curb climate change. This analogy stresses the impossibility for waste producers to dissociate themselves from their waste and emphasizes the contingent, multiple, and transient value of waste". 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? Some car manufacturers such as Volvo are also looking at alternative ownership models (leasing from the automotive company; "Care by Volvo"). What does circular economy mean? This model also advocates "more localization of economic activity". This new action was adopted by the European Commission in March 2020. A circular economy seeks to: maximise the value of the materials that circulate within the economy; minimise material consumption, paying particular attention to virgin materials, hazardous substances, and waste streams that raise specific concerns (such as plastics, food, electric and electronic goods); prevent waste from being generated; reduce hazardous components in waste and products. Certain combinations of skills will become more important, and workers and employers will be required to develop new … The report, commissioned by the Ellen MacArthur Foundation and developed by McKinsey & Company, was the first of its kind[citation needed] to consider the economic and business opportunity for the transition to a restorative, circular model. For this reason, it became essential for us to define the performance characteristics of a fully circular economy. Die Analyse dieser Circular-Economy-Roadmaps und -Strategien sowie Experteninterviews mit den verantwortlichen politischen Akteuren … [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. 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. 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. [129] A total of 574 out of 751 MEPs voted in favour of the action plan. Over the last years, the notion of a circular economy has been widely promoted across Europe, North America and Asia. Consulté le 9 mars 2021, à l’adresse, Kneese, A. Definition of circular economy in the Definitions.net dictionary. [75] Do CE secondary production activities (reuse, repair, & remake) actually reduce, or instead displace, primary production (natural resource extraction)? 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. 1 Circular Economy for the SDGs: From Concept to Practice G e n e r a l A s s e m b l y a n d E C O S O C J o i n t M e e t i n g Draft Concept and Programme for the joint meeting of the Economic and It scored second in the circular material use rate, before France but after the Netherlands. A circular economy is a transformative economy redefining production and consumption patterns, inspired by ecosystems principles and restorative by design, which increases resilience, eliminates waste and creates shared value through an enhanced circulation of material and immaterial flows. "Circular economy as an essentially contested concept". 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. 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. Circular Economy: definition & examples. 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. [42], Building on circular business model innovation, digitalization and digital technologies (e.g., Internet of Things, Big Data, Artificial Intelligence, Blockchain) are seen as a key enabler for upscaling the circular economy. It is based on three principles: There's a world of opportunity to rethink and redesign the way we make stuff. [35], On the other hand, implementing a circular economy in the United States has been presented by Ranta et al. Une telle économie fonctionne en boucle, se passant ainsi de la notion de « déchet » [1]. The European leaders in terms of circular economy are designated mostly by their current efforts for a shift towards circular economy but also by their objectives and the means implemented in this shift. Zink, T., & Geyer, R. (2017). 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. French; Russian version; Dutch; related News. The ability to understand how things influence one another within a whole. In a circular economy, economic activity builds and rebuilds overall system health. 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. ‍. We often use the term Circularity with the same meaning. Strategies for effective implementation of circular economy in construction sector", "Simulation-Based Positioning of Circular Economy Manager's Skills in Construction Projects", European Circular Economy Stakeholder Platform. [105][106] Changes in the Dutch laws and regulations will be introduced.

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