The circular economy
A circular economy is based on a simple idea. Can the present, dominant ‘take-make-dispose’ way of doing things work long term? We are experiencing increasing signs that the current linear system is no longer working, such as increasing unemployment, material price volatility, financial and ecological crises.
Suppose instead of this linear model of production we have an economy that is regenerative by design, and it recaptures materials, embedded energy and labour, whilst growing employment? This is called a circular economy. Many major corporations, emerging innovators and governments are beginning to investigate the circular model, thanks in part to potential business opportunities of USD2 trillion from a switch to a circular economy, through energy and materials savings.
A new approach to design
The circular economy requires designers to consider the subsequent use of materials, components and the embedded energy in a product. This can only be achieved by innovative design and consideration of further cycles of development. Designers must ask themselves the question, “How can this product be made to be made again?” There are three central strands to this: cradle-to-cradle design thinking, design for disassembly, and design inspired by nature in which there is no waste (biomimicry). Innovative design techniques might include the use of smart memory screws, adhesives and circuit boards that can be dissolved, the use of clips rather than adhesives or screws, and biological materials which can be safely returned to the biosphere with no toxic dyes or other materials. Equally important are the systems in which the product moves: how will the materials be recovered and made use of again? One way forward is to develop different business models where users buy performance through leasing rather than purchasing. This offers interesting job opportunities in creating reverse supply chains as well as engaging design challenges and opportunities.
Figure 1: The linear and circular models of the economy (Ellen MacArthur Foundation)
The left diagram shows the current linear model. In the right hand, circular model biological and technical materials are kept separate. Note also the different approaches to sources of energy.
Some definitions:
Circular economy – The circular economy offers the opportunity to move away from our "take - make - dispose" economy, by ensuring, through careful design and innovative business models, that technical and biological materials continuously flow, and stocks and flows of resources are rebuilt as opposed to

degraded. It aims to achieve economic resilience by decoupling economic development from the consumption of finite resources. This results in lower and less volatile costs, and holds huge potential for innovation and job creation.
Biological nutrients are made from things that grow and which ultimately can go back into the soils
(perhaps by composting, or through anaerobic digestion) and improve it. They are natural materials that can be safely disposed of in a manner which allows the soil to regenerate; thus they must not contain any toxins.
Technical nutrients are metals, polymers, etc. They are materials designed to continually flow at high quality in closed industrial cycles.
Cradle-to-cradle design is a key principle of the circular economy. Cradle to Cradle ® (C2C) is a holistic approach to design popularised by Professor Michael Braungart and William McDonough. Braungart and
McDonough offer Cradle to Cradle® certification to products which measure up to the standards they set.
According to their website: “the target is to develop and design products that are truly suited to a biological or technical metabolism, thereby preventing the recycling of products which were never designed to be recycled in the first place.
Frequently asked questions
Is a circular economy all about recycling?
No. Using more recycling/recycled material does not solve problems or material shortages – it simply delays them; it buys time. In any case, most recycling systems are very ‘leaky’: much material is lost or degraded in every cycle and, therefore, within a circular economy we we’d rather see materials upcycled rather than recycled. We need to focus on systems thinking and optimising systems for multiple benefits.
Is a circular economy about using less stuff?
No. ‘Using less’ only results in slowing down the linear ‘take-make-dispose’ system and does not affect real systems change. Using less only makes economic sense if the material is returned for reuse at high quality and with minimal energy inputs. In some cases using more of a material makes sense because it can make the process of extracting the material from a product more cost-effective.
What are the financial advantages in the circular economy?
In developing systems that allow companies to use materials and components again and again at high quality, the companies remove themselves from the game of volatile resource prices. In addition, remanufacturing and repairing products requires a great deal less energy (75% less in some cases) than manufacturing from virgin materials. This generates wealth and jobs as well as addressing resource insecurity. Part of the growth in jobs will come from new patterns of use, with people leasing a service rather than buying a product.
How can I find out more?
Google ‘circular economy’ and ‘cradle to cradle’. See the Ellen MacArthurFoundation’s short animations
‘Rethinking Progress’ and ‘From User to Consumer’ on YouTube.