Circular Economy
What is the Circular Economy?
The Circular Economy is an economic system designed to eliminate waste and keep materials in use for as long as possible.
The circular economy model is a shift away from the linear economy, where fossil fuels and raw materials are used once and then discarded.
Key Principles of Circular Economy
The key principles of a circular economy include:
- Eliminating waste and pollution by designing products that can be reused or repurposed.
- Circulating materials at their highest value, ensuring they remain in use rather than becoming waste.
- Regenerating nature, supporting sustainable practices that replenish ecosystems.
This means that everything is used at its highest possible value for as long as possible and that natural systems are regenerated.
The concept of circularity closely mimics nature, where there is no waste: all materials have value and are used to sustain life in a myriad of ways.
Why do we need a circular economy?
We need a circular economy to avoid the risk of environmental collapse.
If we continue with current consumption trends, we’d need the resources of three Earths by 2050 to sustain ourselves. The circular economy offers a smarter, more sustainable path forward.
Every year humans generate billions of tonnes of waste much of which ends up in landfill or the ocean. At the same time the earth’s natural resources are being extracted at unsustainable rates. The use of natural resources increases pressure on the environment risking environmental collapse.
According to the Circularity Gap Report, of the 100 billion tonnes of resources used by the global economy each year, only 8.6% are cycled back.
By embedding circular economy principles in major policy frameworks, the UK could deliver 80% of the additional emissions cuts needed to meet its fifth carbon budget, which covers 2028-2032.
In terms of monetary value, it is reported that a comprehensive circular economy could boost the wider UK economy by £75 billion, while creating half a million new jobs.
Benefits of A Circular Economy
A circular economy is beneficial to the environment, the economy, and socially. Here are some key advantages:
Environmental Benefits
- Reduces waste and pollution: By designing products for reuse, repair, and recycling, a circular economy minimises landfill waste and pollution.
- Cuts carbon emissions: Circular practices can significantly lower greenhouse gas emissions.
- Conserves natural resources: Instead of continuously extracting raw materials, circular systems keep resources in use, reducing strain on ecosystems.
Economic and commercial benefits
- Boosts economic growth: Transitioning to circularity could generate £3.4 trillion in global economic benefits by 2030, creating new business opportunities.
- Encourages innovation: Companies develop new models for product longevity, repairability, and material recovery, driving sustainable innovation.
- Supports job creation: Circular industries, such as re-manufacturing and recycling, create employment opportunities in sustainable sectors.
- Enhanced brand reputation: improve brand reputation and value by improved customer perceptions and relationships.
- Reduces risk: from price volatility and pressure from new legislation to supply chain failures.
Social Benefits
- Job creation: By shifting toward reuse, repair, re-manufacturing, and recycling, the UK alone could see up to over 450,000 new circular jobs by 2035.
- Inclusive employment: Circular jobs span all skill levels from refurbishing electronics to managing reuse hubs. This creates opportunities for both skilled professionals and those entering or
re-entering the workforce. - Lower cost of living: Products designed to last longer and be repaired easily can save consumers money over time. Think refurbished phones, shared tools, or clothing rental models.
- Community resilience: Local repair cafés, sharing platforms, and reuse centres foster stronger community ties and empower people to participate in sustainable living.
- Healthier environments: Reducing pollution and waste improves air and water quality, especially in lower-income areas often hit hardest by environmental degradation.
- Empowerment through design: When products are made to be repaired or reused, people gain more control over what they own. With a less throwaway culture more value is retained.
A circular economy can help build a fairer, more resilient society – where prosperity is shared, not extracted.
Circular Economy Package
The Circular Economy Package (CEP) UK is a set of policies aimed at transitioning the UK towards a more sustainable, resource-efficient economy. It was introduced to align with the EU’s Circular Economy Package before Brexit and was transposed into UK legislation in December 2020.
In the UK, compliance with the Circular Economy Package (CEP) primarily affects businesses involved in waste generation, product manufacturing, packaging, and resource management. The CEP sets out obligations that apply across sectors. Here’s a breakdown of who’s most affected:
- Manufacturers and producers
- Retailers and importers
- Waste management and recycling firms
- Construction and demolition firms
- Public sector bodies
How to integrate a circular economy
We look in depth at how you an integrate a circular economy in this article. The top line information is below.
- Using sustainable procurement practices: Supply chains account for a significant share of an organisation’s environmental impact, particularly in sectors reliant on imported raw materials.
- Product design: Product design determines around 80% of a product’s environmental impact. When done right, it keeps materials in use, reduces waste, and enables new business models that are regenerative by design.
- Packaging: According to Accenture, 40% of plastic pollution comes from packaging. Businesses are under growing pressure from regulators and consumers alike.
- Distribution: It’s vital to reimagine logistics to support reuse, repair, re-manufacturing, and recycling.
Embracing circular economy
If you’re ready to embrace the idea of a circular economy for your business, or are figuring out where and how to start, we can help to turn your circular ambitions into reality.
Our experienced circular economy team can help you to develop and apply a circular economy strategy, we will create a bespoke plan that is tailored to your organisation, including:
- Mapping how resources move through your business
- Identifying resource hotspots such as raw materials with supply risks
- Assessing and developing areas for improvement
References
[1] https://climatepromise.undp.org/news-and-stories/what-is-circular-economy-and-how-it-helps-fight-climate-change
[2] https://resource.co/article/circular-economy-could-boost-uk-economy-75bn-says-wrap
[3] Ellen MacArthur Foundation
[4] https://green-alliance.org.uk/press-release/transforming-approach-to-repair-and-remanufacture-would-create-thousands-of-jobs-and-help-define-levelling-up-report-finds/
