As per the Ellen MacArthur Foundation, a circular economy seeks to rebuild capital, whether this is financial, manufactured, human, social or natural. This ensures enhanced flows of goods and services.
In a circular economy, economic activity builds and rebuilds overall system health. The concept recognizes the importance of the economy needing to work effectively at all scales – for large and small businesses, for organisations and individuals, globally and locally.
Transitioning to a circular economy does not only amount to adjustments aimed at reducing the negative impacts of the linear economy. Rather, it represents a systemic shift that builds long-term resilience, generates business and economic opportunities, and provides environmental and societal benefits.
Outline of a Circular Economy
Image by Ellen MacArthur Foundation..
Three Principles
Preserve and enhance natural capital by controlling finite stocks and balancing renewable resource flows
ReSOLVE levers: regenerate, virtualise, exchange
Optimize resource yields by circulating products, components and materials in use at the highest utility at all times in both technical and biological cycles
ReSOLVE levers: regenerate, share, optimise, loop
Foster system effectiveness by revealing and designing out negative externalities
All RESOLVE levers
For more information and resources on the circular economy, please visit the Ellen McArthur Foundation.
