1 Introduction
The circular economy (CE) is both a critique of what its advocates refer to as the
‘linear economy’ and a concept that promotes the preservation of the natural
environment by minimizing resource extraction and waste generation. As opposed
to disposing of products at the end of their use, CE seeks to extend the life of
products and the materials embodied in products. Products that reach the end of their
use-phase should then be re-used, remanufactured, and recycled as far as possible to
prevent or postpone eventual incineration and landfilling. According to the Ellen
MacArthur foundation (2015), re-use should be prioritized over remanufacturing
which in turn should be prioritized over recycling. In other words, a hierarchy of
product end-of-life processes exists, with the intention of preserving the embedded
effort in the original product and the embedded energy in the material composition of
the original product.
Circular business models recover value from used products and the materials
embodied in products. This circular view on product manufacturing, product use,
and end-of-life return options is illustrated in the Ellen MacArthur butterfly diagram
(2015), shown in Fig. 1.1. As can be seen in Fig. 1.1, a distinction is made between
the biological cycle (on the left) and the technical (on the right). The biological cycle
includes products created from materials derived from living organisms but not
fossil resources. The biological cycle is synonymous with the biobased economy.
Fig. 1.1 Butterfly diagram illustrating a circular economy. (Adapted from the Ellen MacArthur
Foundation 2015)
2
A. Beames et al.
The circular economy (CE) is both a critique of what its advocates refer to as the
‘linear economy’ and a concept that promotes the preservation of the natural
environment by minimizing resource extraction and waste generation. As opposed
to disposing of products at the end of their use, CE seeks to extend the life of
products and the materials embodied in products. Products that reach the end of their
use-phase should then be re-used, remanufactured, and recycled as far as possible to
prevent or postpone eventual incineration and landfilling. According to the Ellen
MacArthur foundation (2015), re-use should be prioritized over remanufacturing
which in turn should be prioritized over recycling. In other words, a hierarchy of
product end-of-life processes exists, with the intention of preserving the embedded
effort in the original product and the embedded energy in the material composition of
the original product.
Circular business models recover value from used products and the materials
embodied in products. This circular view on product manufacturing, product use,
and end-of-life return options is illustrated in the Ellen MacArthur butterfly diagram
(2015), shown in Fig. 1.1. As can be seen in Fig. 1.1, a distinction is made between
the biological cycle (on the left) and the technical (on the right). The biological cycle
includes products created from materials derived from living organisms but not
fossil resources. The biological cycle is synonymous with the biobased economy.
Fig. 1.1 Butterfly diagram illustrating a circular economy. (Adapted from the Ellen MacArthur
Foundation 2015)
2
A. Beames et al.