A circular economy is an economic system where the value and utility of products and materials are maintained for as long as possible, while minimizing waste, emissions, and energy leakages. [41] [42]
This system decouples economic growth from the consumption of finite resources by circulating materials within the economy in closed loops, while prioritizing the use of regenerative resources. [43] [44] [45]
The traditional economic model follows a linear pattern (also known as a cradle-to-grave system) of take-make-waste where resources are extracted to make products that eventually end up as waste at the end of their useful life. [46] [47] [48] The circular economy aims to transition out of this linear take-make-waste economic model. [44]
The term ‘circular economy’ is defined differently by different organisations depending on the problems being addressed, the audience, or the lens through which the author views the world. [44] [49] Some of the definitions are listed below:
UNEP The circular economy is one in which the value of products, materials and resources is maintained in the economy for as long as possible, and the generation of waste is minimized. This is in contrast to a ‘linear economy’, which is based on the “extract, make and dispose” model of production and consumption. [50]
WBCSD The circular economy is an economic model that is regenerative by design. The goal is to retain the value of the circulating resources, products, parts and materials by creating a system with innovative business models that allow for renewability, long life, optimal (re)use, refurbishment, remanufacturing, recycling and biodegradation. By applying these principles, organizations can collaborate to design out waste, increase resource productivity and maintain resource use within planetary boundaries. [51]
Ellen MacArthur Foundation A systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. [43]
ISO 59004:2024 economic system that uses a systemic approach to maintain a circular flow of resources, by recovering, retaining or adding to their value, while contributing to sustainable development. [52]
Commission Delegated Regulation (EU) 2023/2772 - European Commission
An economic system in which the value of products, materials and other resources in the economy is maintained for as long as possible, enhancing their efficient use in production and consumption, thereby reducing the environmental impact of their use, minimising waste and the release of hazardous substances at all stages of their life cycle, including through the application of the waste hierarchy. [53]
Save Our Seas 2.0 Act - 116th United States Congress The term ‘‘circular economy’’ means an economy that uses a systems-focused approach and involves industrial processes and economic activities that— (A) are restorative or regenerative by design; (B) enable resources used in such processes and activities to maintain their highest values for as long as possible; and (C) aim for the elimination of waste through the superior design of materials, products, and systems (including business models). [54]
PBL Netherlands Environmental Assessment Agency A circular economy is centred around the significant reduction and more efficient use of material resources to lower negative environmental risks and supply risks. [55]
The circular economy as defined by the Ellen MacArthur Foundation is based on three principles, driven by design. [56] These principles are widely accepted and aligns with the definitions set by other organisations. [57] The three principles are:
Circle Economy has conducted a deep-dive into the various circular economy terms and definitions used across organisations and has distilled the common themes of a circular economy in their ‘Key Elements’ framework. [58] The framework separates Core elements and Enabling elements where core elements consists of “Activities directly handling product or material flows” while enabling elements consists of “(Activities)…that remove obstacles for core actors”. [45] The core and enabling elements have been detailed below: