Transition to a Circular Economy
The definition of the circular economy continues to be controversial, insofar as no official and specific definition exists. There are many different interpretations. EANDO chooses to follow the definition of the EU:
The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended.
Simply put, circular economy is about minimizing the amount of waste that is generated. A transition to a circular economy can create high business value through new business models, secured supply of materials, reduced costs and reduced climate impact for improved market positioning.
Achieving a change may require innovation and digitalization, but it can also be a simple change such as small alterations to a product design.
Mattias Jönsson
Head of Business Development
Experienced business developer with deep knowledge within circular economy, strategical marketing and digitalization.
The elements of circular economy:
It takes into account these main elements – Closed-loop, Renewable resources and Systems thinking
Closed-loop: There is no waste, as any remaining flow is used to produce a new commodity. It eliminates toxic compounds and divides the remaining circulation into a biological and a technological loop. Manufacturers take their goods back and rebuild for a new existence. Good quality resources and material utilization are essential for a circular economy to encourage a proper circular flow.
Renewable resources: Non-renewable energy resources are well, non-renewable after all. So circular economy promotes the expenditure and use of renewable energy resources to manufacture goods.
Systems thinking: Circular economy operates on a devised plan which holds all the participants taking part in the process responsible. Mapping all the details and putting forward a solid plan makes a circular economy work at the best level possible. The network of humans and machinery together leads to sustainable economic development.
If you want to know more about the transition to a circular economy you can read our article Transition to Circular Economy – Here is All You Need to Know!.
