Unleashing the Power of the Circular Economy

Executive summary
This report for Circle Economy (CE) outlines the general direction and
concrete steps that must be taken to accomplish a breakthrough to a circular
economy - an industrial system that is regenerative by design. It also provides
a knowledge base behind the concept, connecting it to sustainability.
There are several reasons for the recent interest in the circular economy.
On the downside, our economic model is currently hitting a brick wall.
Industrial development has brought enormous economic growth, but
the linear economic model is unsustainable. Resource-scarcity risks are
increasing, leading to more volatile prices and supply chains. Our society
is headed for global overshoot and collapse. Steering away from this
course requires breaking the current bond between prosperity and material
consumption, or “decoupling”.
The circular economy aims to address resource scarcity and environmental
impacts. The current take-make-waste model is to be replaced by a circular
one containing a so-called biocycle for biomass and a technocycle for
inorganic materials, both involving cascades of reused, recycled or repaired
materials and products.
On the upside, the circular model offers enormous opportunities including
cost savings by waste reduction, better management of supply chains,
companies becoming less sensitive to price volatility of resources, and
building a longer and better relationship with their customers. It also boosts
innovation, creates new jobs and is good for the environment.
The shift from our current economy to a circular one will take many years.
There is no blueprint; we will have to invent it. Major investments are
needed with as yet uncertain returns; the hundreds of billions of euros to
be gained, as identified by recent reports, still have to be translated into
concrete propositions. While some front-running companies are in the lead,
cooperation between companies, governments, science and NGOs is crucial
for success. This is why Circle Economy aims to accelerate the transition
to the circular economy by acting as a go-between platform where the
stakeholders can share knowledge and best practices in a safe environment.
To set the wheels of the circular economy in motion, a series of parallel steps
are described to guide the way into this uncharted territory (see Table 1).
The steps are based on our analysis of obstacles impeding the transition,
ranging from financial, institutional, infrastructural and societal to
technological barriers.
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