CIRCULAR ECONOMY

The circular economy is an economic system that aims to circulate products and materials in cycles modelled on nature, use resources responsibly and avoid waste. Instead of linear “make-use-dispose”, the circular economy aims to reuse, repair or recycle products in order to promote a more sustainable and environmentally friendly economy. The circular economy is an essential approach to tackling climate change and other global challenges such as biodiversity loss, waste and pollution.

The new Circular Economy Action Plan is a strategic framework and catalogue of measures as part of the European Green Deal and aims to achieve climate neutrality in the EU by 2050, decouple economic growth from resource use and secure the EU’s long-term competitiveness. The plan includes various regulatory measures, initiatives & proposals as well as guidelines and recommendations. The following topics take centre stage:

• Design of sustainable products
• Limitation of single use and measures against premature obsolescence
• Digitalisation of product information
• Promotion of sectors with a high environmental impact and circular potential, such as electronics, ICT, textiles, furniture and intermediate products such as steel, cement and chemicals
• Initiative for circular electronics

The circular economy is a pioneering economic model that focuses on the integration of technical and biological cycles. In the technical cycles, products and materials are designed in such a way that they retain their usefulness over time through reuse, repair, remanufacturing and recycling. These measures are aimed at extending the life of products and utilising resources more efficiently or not exhausting them.

At the same time, the biological cycle plays a crucial role by returning organic materials and waste to ecological systems. Through composting or other biological utilisation processes, nutrients are reintroduced into the environment to support the natural cycle and regenerate ecological resources.

The integration of technical and biological cycles thus creates a holistic approach to resource utilisation. It aims not only to minimise waste and reduce environmental impact, but also to protect the diversity and functionality of natural resources. The circular economy strives to create both economic and ecological benefits by combining the principles of sustainability, longevity and resource efficiency.

Cradle-to-cradle and circular economy are both related topics that have different focal points of application and have grown historically in their concepts. A clear definition is not possible or useful in all areas.

Cradle to Cradle according to Braungart & Mcdonough is primarily concerned with the topic of material health and the principle of eco-effectiveness. It goes beyond the mere minimisation of environmental damage and aims to create positive ecological effects. Products and processes should therefore be designed in such a way that they are both economically advantageous and environmentally friendly or healthy for people. The idea is to create systems and products that are not only less harmful, but actually beneficial for the environment and society. To this end, there is a separate certification process for companies to design their products according to Cradle to Cradle.

The circular economy according to the Ellen Mac Arthur Foundation is a concept based on the cradle-to-cradle principle. They focus on creating closed systems in which resources are used, reused, repaired and recycled for as long as possible with the aim of avoiding or minimising waste and regenerating ecosystems. While cradle to cradle plays an important role in the circular economy, the circular economy also includes other aspects such as business models, consumer behaviour, logistics and policy.

The central concept of cradle-to-cradle is eco-efficiency and aims to create products and systems that are not only less harmful, but actively good for the environment and society. It promotes a rethink in product design and business models towards a regenerative and sustainable economy. In detail, the cradle-to-cradle principle strives for a sustainable transformation of products in the following areas:

• Safe and reusable materials: products are made from materials that are safe for people and the environment and can be fully recycled or degraded in natural systems at the end of their useful life.
• Use of renewable energies: Renewable energy sources are used as much as possible in the manufacture of products to minimise the environmental footprint.
• Water stewardship: Efficient and environmentally friendly water utilisation and treatment are important in order to protect water resources and support natural water cycles.
• Social responsibility: The cradle-to-cradle approach also emphasises the importance of corporate social responsibility, including fair working conditions and community involvement.
• Continuous improvement: Companies that apply cradle-to-cradle principles strive to continuously improve their products and processes to achieve greater eco-effectiveness.

The implementation of the circular economy is possible in various areas and ambition levels. The following list are examples of possible developments:

1. Decoupling from fossil or toxic raw materials or use of secondary materials:
   – Identification and reduction of dependence on fossil or toxic raw materials.
   – Integration of secondary materials in production in order to minimise the use of primary resources.
2. Transparency and reduction of leakages in the current value chain. Increasing eco-efficiency:
   – Introduction of transparency measures along the value chain to identify and reduce leakages.
   – Implementation of strategies to increase eco-efficiency, including efficient resource utilisation and waste reduction.
3. Design and validation of circular product & business model:
   Development of circular products targeting desirability (attractiveness to customers), viability (economic viability), feasibility (practicability) and impact (environmental and social impact).
4. Development of a prototype and cooperation with partnerships / enablers as well as integration in the entire value chain:
   – Creation of prototypes for circular products.
   – Cooperation with partners and enablers (companies, organisations) for holistic integration into the entire value chain.
5. After-use efficiency within new value creation systems:
   – Implementation of business models that take into account the economic value after use of products, such as resale, repair services or recycling.
6. Positive impact for the environment / society through transparent network-based value creation systems
   – Implementation of eco-effectiveness instead of a pure focus on eco-efficiency