The circular economy is regenerative by design. The objective of a circular economy is to shift from the traditional “take – make – dispose” paradigm towards a circular paradigm, which systematically returns and revalorizes products, components and materials for further use and as feedstock for future value creation.
The resulting de-coupling of economic growth from material throughput creates financially attractive arbitrage opportunities. The embedded materials, labor, capital and energy can be recaptured to prolong utility in the current usage cycle and to provide utility in the next usage cycle. The reduced and more resilient input cost boosts profitability. The ability to systematically return products, components and materials creates opportunities to innovate business models to drive growth from improved franchise with customers and to benefit from strategic initiatives with business partners along the reverse value streams.
The overall potential of this shift is taxed to exceed one trillion USD annually. The rapidly increasing case repository of start-ups, SME’s and large corporates demonstrates the attractiveness and feasibility to deliver distinctive and lasting value by going circular.