The circular economy is a production and consumption model in which existing materials and products are shared, reused, repaired, refurbished and recycled for as long as possible. The aim is to extend the life cycle and life span of products in this way. In terms of conversion, this means that waste is reduced to a minimum. when a product reaches the end of its life, the materials are left in the economy as far as practicable. This model is based on a closed loop and also relies on large quantities of cheap, easily accessible materials and energy.

When and how to apply Circular Economy:

We must change our way of thinking and create a circular economy, in which waste and pollution are designed out from the start, products and materials have a far longer lifespan, and natural systems can renew.

Transitioning to a circular economy would significantly contribute to environmental preservation and climate change mitigation. Creating a circular economy for five essential industries — cement, aluminum, steel, plastics, and food — may reduce CO2 emissions by 3,7 billion tons by 2050, which is equivalent to eliminating emissions from all types of transportation.

This is not merely an environmental concern. It makes societal and economic sense to make more efficient use of scarce resources by building a system to prevent waste and extend the lifespan of materials. Consider the fact that a ton of abandoned mobile phones contains 100 times more gold than a ton of gold ore. If we could minimize food loss and waste by only a quarter, we could feed 870 million people who are hungry.

According to research, developing a circular economy presents a $4.5 trillion economic opportunity by reducing waste, while simultaneously fostering business expansion and job creation. The objective is to sever the connection between economic expansion and the consumption of natural resources, so that global economic prosperity is not related to environmental degradation.

Well-known companies that use this pattern are Freitag and Living packets.