A circular economy is an economic system of closed loops in which raw materials, components, and products lose their value as little as possible, renewable energy sources are used and systems thinking is at the core.
Circular economy principlesThere are ten principles that define how circular economy should work:
- Waste becomes a resource: is the main feature. All the biodegradable material returns to nature and the not biodegradable is reused.
- Second use: reintroduce in the economic circuit those products that no longer correspond to the initial consumer’s needs.
- Reuse: reuse certain products or parts of those products that still work to elaborate on new artifacts.
- Reparation: find damaged products a second life.
- Recycle: make use of materials founded in waste.
- Valorization: harness energy from waste that can’t be recycled.
- Functionality economy: circular economy aims to eliminate the sale of products in many cases to establish a system of rental property. When the product completes its main function returns to the company, where it is dismantled for reusing the valid parts.
- Energy from renewable sources: elimination of fossil fuels to produce the product, reuse, and recycle.
- Eco-design: considers and integrates into its conception the environmental impacts throughout the life cycle of a product.
- Industrial and territorial ecology: the establishment of an industrial-organizational method in a territory characterized by optimized management of stocks and flows of materials, energy, and services.