Circular economy

How to shape a sustainable future?

The circular economy aims to change the paradigm in relation to the linear economy, by limiting the environmental impact and waste of resources, as well as increasing efficiency at all stages of the product economy. The recent warnings about waste pollution and the limits of natural resources are encouraging the development of a circular economy. What is the definition of circular economy, what are its benefits and the solutions to achieve it?

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01. Definition

What is the circular economy?

The circular economy refers to an economic model whose objective is to produce goods and services in a sustainable way, by limiting the consumption and waste of resources (raw materials, water, energy) as well as the production of waste. It is breaking with the model of the linear economy, based on a take-make-consume-throw away pattern, by proposing to transform waste into recycled raw material for product design or other uses. The circular economy model fits directly into the more general framework of sustainable development. It is part of a global strategy that also uses, among other things, the principles of the green economy, industrial ecology, eco-design or the economy of functionality.

02. Causes

Circular economy principles

The circular economy encompasses a very large number of sectors of activity and can be broken down into 7 complementary patterns of production and consumption which, when combined, make sense and reinforce each other:

  1. Sustainable procurement: development and implementation of a responsible purchasing policy
  2. Ecodesign: process of reducing the environmental impacts of a product or service throughout its life cycle
  3. Industrial and territorial ecology: search for eco-industrial synergies at the scale of a business area - the waste of one company can become the resources of another one
  4. Economics of functionality: collaborative economy that favors use over possession and thus tends to sell services related to products rather than the products themselves
  5. Responsible consumption: rational consumption and choice of products according to social and ecological criteria
  6. Extending the duration of use: through repair, reuse and repurpose
  7. Recycling: treatment and recovery of the materials contained in collected waste.

03. Impacts

Circular economy benefits

The main goals and advantages of a circular economy are:

  1. Environmental: the first advantage of a circular economy is the protection of the environment, reducing waste and the emissions of greenhouse gases, systematizing recycling, and ending planned obsolescence. The circular economy also allows to decrease the dependence on importation of resources (raw materials, water, energy).

  2. Economic: another huge benefit of the circular economy is that it stimulates innovation and boost economic growth, and could in the long run enhance the competitiveness of national companies.

  3. Social: in addition, the circular economy creates jobs and enables people to save money, cutting unemployment and poverty as well as reducing the social impacts of pollution and climate change.

05. Implementations

Circular economy solutions implementations

PlasticFri by Grale implemented by Scandinavian Airlines (SAS) in Solna (Sweden) in 2024

PlasticFri by Grale implemented by Sodexo in Issy-les-Moulineaux (France) in 2024

Madaster by Madaster implemented by City of Heidelberg in Heidelberg (Germany) in 2022

Agrocrete by GreenJams implemented by Mr. Rishi in Gudivada (India) in 2024

Agrocrete by GreenJams implemented by 5-storey building owner in Vizianagaram (India) in 2023

Pyrowave by Pyrowave implemented by Michelin in Clermont-Ferrand (France) in 2020

NetHire by NetHire implemented by Solar A/S in Copenhagen (Denmark) in 2020

Net-zero production of sustainable fertiliser by CCm Technologies Limited implemented by PepsiCo in Leicester (United Kingdom) in 2022

MIWA - Smart Reusable Packaging by MIWA implemented by Nestlé in Rorschach (Switzerland) in 2021

AI shopping concierge with the planet in mind by SOORT AG implemented by Decathlon in Villeneuve d'Ascq (France) in 2025

AI shopping concierge with the planet in mind by SOORT AG implemented by Good on you in Sidney (Australia) in 2025

RePack by RePack implemented by Decathlon in Brossard (Canada) in 2021

Minimac Total Lubricant Management Solution by Minimac Systems Pvt. Ltd. implemented by Indian Oil Corporation Ltd. in Haldia (India) in 2019

The Fossilizator® by Néolithe implemented by the City of Avrillé in Maine-et-Loire (France) in 2023

NOMA Collections by NOMA implemented by Paris 2024 Olympic Games in Saint Denis (France) in 2024

ValueWaste by CETENMA implemented by Municipality of Murcia in Murcia (Spain) in 2022

06. Challenges

Circular economy challenges

  1. Institutional: rules and regulations need to be adapted to encourage and promote the development of the circular economy, both nationally and internationally. In fact, strengthening local governmental policies to support its implementation, as well as bringing clear legislation are key to promote the transition towards circular economy business models.
  2. Economic: business transformation is costly. Therefore, financial incentives are essential to achieve circular economy. Lowering VAT on recycled products and increasing tax on virgin raw materials are examples of solutions that could be adopted to accelerate the uptake of circular economy initiatives.

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pauline.michiels@solarimpulse.com