Circular Economy - Definition, Principles, Benefits
                     CIRCULAR ECONOMY - DEFINITION, 
PRINCIPLES, BENEFITS, AND BARRIERS
What is the circular economy?
The circular economy is a model of production 
and consumption, which involves sharing, 
leasing, reusing, repairing, refurbishing and 
recycling existing materials and products as long 
as possible. In this way, the life cycle of products 
is extended.
Source: www.europarl.europa.eu
About circular economy?
In practice, it implies reducing waste to a 
minimum. When a product reaches the end of its 
life, its materials are kept within the economy 
wherever possible. These can be productively 
used again and again, thereby creating further 
value.
Source: www.europarl.europa.eu
Why do we need to switch to a 
circular economy?
The world's population is growing and with it the 
demand for raw materials. However, the supply of 
crucial raw materials is limited.
Source: www.europarl.europa.eu
What are the benefits?
 
Moving towards a more circular economy could 
deliver benefits such as reducing pressure on the 
environment, improving the security of the supply 
of raw materials, increasing competitiveness, 
stimulating innovation, boosting economic 
growth.
Source: www.europarl.europa.eu
Environmental benefits
The initial goal of the circular economy is to have 
a positive impact on the ecological systems, 
which will not deplete or overload them. This is 
reflected in the ecological benefits of the circular 
economy. 
Source: kenniskaarten.hetgroenebrein.nl
Benefits for businesses
The benefits of the circular economy translate 
into opportunities for entrepreneurs. This creates 
new profit opportunities, a more stable supply of 
materials, a growing demand for certain services, 
and strengthened customer relationships. 
Source: kenniskaarten.hetgroenebrein.nl
Elements 
• Closed cycles
• Renewable energy
• Systems thinking
Source: www.europarl.europa.eu
How is a circular economy 
different from a linear economy?
A circular economy is fundamentally different 
from a linear economy. To put it simply, in a linear 
economy we mine raw materials that we process 
into a product that is thrown away after use. In a 
circular economy, we close the cycles of all these 
raw materials.
Source: kenniskaarten.hetgroenebrein.nl
How does circularity relate to 
sustainability?
Circularity contributes to a more sustainable 
world, but not all sustainability initiatives 
contribute to circularity. Circularity focuses on 
resource cycles, while sustainability is more 
broadly related to people, the planet and the 
economy.
Source: kenniskaarten.hetgroenebrein.nl
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