WHAT IS A CIRCULAR ECONOMY?
Looking beyond the current take-make-waste extractive industrial model, a circular economy aims to redefine growth, focusing on positive society-wide benefits. It entails gradually decoupling economic activity from the consumption of finite resources, and designing waste out of the system. Underpinned by a transition to renewable energy sources, the circular model builds economic, natural, and social capital. It is based on three principles:
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Design out waste and pollution
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Keep products and materials in use
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Regenerate natural systems
In a circular economy, economic activity builds and rebuilds overall system health. The concept recognises the importance of the economy needing to work effectively at all scales – for large and small businesses, for organisations and individuals, globally and locally.
![System_diagram_cropped.jpg](https://static.wixstatic.com/media/ad724e_dff782ddf2d648a68bcf6513fde17d52~mv2_d_2000_1735_s_2.jpg/v1/crop/x_0,y_53,w_1997,h_1643/fill/w_113,h_93,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto/System_diagram_cropped.jpg)
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.
Source: Ellen MacArthur Foundation