DELIVERING THE CIRCULAR ECONOMY A TOOLKIT FOR POLICYMAKERS

DELIVERING THE CIRCULAR ECONOMY – A TOOLKIT FOR POLICYMAKERS • 19
1 WHY THE CIRCULAR ECONOMY MATTERS
The linear ‘take, make, dispose’ economic model relies on large quantities
of cheap, easily accessible materials and energy and is reaching its physical
limits. The circular economy is an attractive and viable alternative that
businesses are already exploring today.
The circular economy is one that is restorative and regenerative by design
and aims to keep products, components, and materials at their highest utility
and value at all times, distinguishing between technical and biological cycles.
This new economic model seeks to ultimately decouple global economic
development from finite resource consumption. It enables key policy
objectives such as generating economic growth, creating jobs, and reducing
environmental impacts, including carbon emissions.
A favourable alignment of factors makes the transition possible. Resourcerelated
challenges to businesses and economies are mounting. An
unprecedented favourable alignment of technological and social factors
enables the transition to the circular economy.
As many circular economy opportunities have a sound underlying
profitability, businesses are driving the shift towards the circular economy.
Yet there are often non-financial barriers limiting further scale-up or holding
back pace. Policymakers therefore can play an important role to help
overcome these barriers and to create the right enabling conditions and,
as appropriate, set direction for a transition to the circular economy. This
toolkit aims to complement existing literature by offering policymakers an
actionable step-by-step methodology to design a strategy to accelerate the
transition towards the circular economy.
1.1 From linear to circular – Accelerating a proven concept
CIRCULAR ECONOMY – AN INDUSTRIAL SYSTEM THAT IS RESTORATIVE AND
REGENERATIVE BY DESIGN
The linear ‘take, make, dispose’ model, the dominant economic model of our time, relies
on large quantities of easily accessible resources and energy, and as such is increasingly
unfit for the reality in which it operates. Working towards efficiency – a reduction of
resources and fossil energy consumed per unit of economic output – will not alter the
finite nature of their stocks but can only delay the inevitable. A deeper change of the
operating system is necessary.
The notion of the circular economy has attracted attention in recent years. The concept
is characterised, more than defined, as an economy that is restorative and regenerative
by design and aims to keep products, components, and materials at their highest
utility and value at all times, distinguishing between technical and biological cycles. It
is conceived as a continuous positive development cycle that preserves and enhances
natural capital, optimises resource yields, and minimises system risks by managing finite
stocks and renewable flows. It works effectively at every scale.