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2.2 Circular Economy Further Explained
The precise wording of experts differs, but the following definition
of the circular economy generally encapsulates their shared
meaning: ‘a cyclical, closed-loop, regenerative system in which
resource input and waste, emissions and energy leakage are
minimised, and redesign and reuse of products are prioritised.’ 8
The dynamics of the transition to a circular economy can be
viewed as iterative processes of building up the new system and
breaking down ways of thinking, acting and organising that have
been established over several decades. Pressures on the existing
regime to transform thus increase, leading to destabilisation; at the
same time, newcomers in the market (‘niches’) start to accelerate,
emerging and growing into a new regime. In this process, elements
of an old regime that do not transform are broken down and phased
out 9 .
Moving to a circular economy usually leads to strategies in which
the value of products, materials and resources is maintained as
long as possible. To achieve this, manufacturers develop new
circular business models that focus on retained ownership, such as
operational leasing, renting or selling of services instead of goods.
Another strategy is sharing costs and benefits proportionally
among partners.
When discussing circularity, a clear distinction should be made
between two material cycles: biological and technical. 10 The
8 Murray, A. et al., The Circular Economy: An Interdisciplinary Exploration
of the Concept and Application in a Global Context, Journal of Business
Ethics, 2017, 140, 369–380, https://doi.org/10.1007/s10551-015-2693-2.
9 Loorbach, D. et al., Sustainability Transitions Research: Transforming
Science and Practice for Societal Change, Annual Review of
Environment and Resources, 2017, 42, 1, 599-626,
https://doi.org/10.1146/annurev-environ-102014-021340.
10 Ellen MacArthur Foundation, Towards the Circular Economy: Economic
and Business Rationale for an Accelerated Transition, Cowes, 2013,
https://www.ellenmacarthurfoundation.org/assets/downloads/publications/Ellen-MacArthur-Foundation-Towards-the-Circular-Economy-vol.1.pdf.