Exploratory Study on Circular Economy Approaches A Comparative Analysis of Theory and Practice

2.3 Circular Economy 21

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technical cycle means that material can be recycled without a loss of quality.

The biological cycle means that material is fully biodegradable and can be used

as fertilizer for growing new resources.

2. Diversity results in resilience against external shocks and is therefore one of the

objectives of the circular economy.

3. Production systems should run on renewable sources.


4. Understanding the interdependence between elements and the relationship

amongst them is crucial in the circular economy.

5. In case of biological raw material the complete biological entity should be con-

sidered. In doing so additional value can be generated through using ‘waste’

which would usually not have been considered as valuable.

In addition to these five principles the Ellen MacArthur Foundation sees in the

circular economy a concept that aims to use material instead of consuming it. This

means that manufacturers and retailers retain ownership of products and become

the service provider by selling the use of a product. Furthermore, decoupling

economic growth from consumption of natural resources is an essential aspect of

circular economy (Ellen MacArthur Foundation 2012)

Although, there is no consensual definition for the circular economy, the

summary of principles above provides a good understanding of what constitutes a

circular economy. Moreover, it delineates the multitude of opportunities the concept

provides for corporations willing to implement the circular economy.

In order to implement a circular economy, it is necessary to create products that

belong either to the biological or technical cycle. Products belonging to the biological

cycle consist of biodegradable material. Products belonging to the technical cycle

consist of materials that are able to stay in the material cycle endlessly and without

a loss in quality. Literature review and internet searches showed that there is no

appropriate term in English for this second type of material. Therefore the term

‘circulatable’ (in German: kreislauffähig) has been invented and used throughout

the course of this research project.