Publication: Jul 24, 2023 Last updated: Apr 25, 2024

What is Circular Economy?

 

There are more than 100 definitions of Circular Economy (CE). The Ellen McArthur Foundation, for example, defines CE as follows: Circular Economy is a systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. 

The circular economy is based on three principles, driven by design:

  • Eliminate waste and pollution
  • Circulate products and materials (at their highest value)
  • Regenerate nature

 

It is underpinned by a transition to renewable energy and materials. 

According to the European Parliament's definition, 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. In this way, the life cycle of products is extended.