Circular Economy
A circular economy is an economic model that aims to eliminate waste and pollution, keep products and materials in use for as long as possible, and regenerate natural systems.
What is Circular Economy?
The circular economy contrasts with the traditional linear model of “make, use, dispose” by designing products for longevity, repairability, and recyclability. It encompasses strategies such as product-as-a-service models, remanufacturing, refurbishment, material recycling, and industrial symbiosis (one company’s waste becoming another’s input).
From a carbon perspective, the circular economy reduces emissions in two main ways: it reduces the demand for virgin materials (avoiding extraction and manufacturing emissions), and it reduces waste disposal emissions (less landfill and incineration). The Ellen MacArthur Foundation estimates that circular economy strategies could reduce global GHG emissions by 45% in key industrial sectors.
The EU’s Circular Economy Action Plan and the UK’s Environment Act 2021 are driving regulatory support for circular business models. Extended Producer Responsibility (EPR) schemes, deposit return systems, and eco-design requirements create incentives for circular design and material use.
Practical Examples
A furniture manufacturer implements a take-back scheme, refurbishing returned products and reselling them at 60% of the new price, reducing material emissions and creating a new revenue stream.
An electronics company designs its products for disassembly, enabling 95% material recovery at end of life and reducing its Category 12 Scope 3 emissions.
A construction company specifies 30% recycled content in its concrete mix, reducing embodied carbon by 20% while maintaining structural performance.
How Climatise Helps
Climatise quantifies the carbon benefits of circular economy initiatives — reduced material procurement emissions, lower waste emissions, and avoided virgin production — within your Scope 3 inventory.
Book a DemoRelated Terms
Frequently Asked Questions
Need help understanding your carbon data?
Climatise turns complex emissions data into clear, useful reports. Book a call and we'll walk you through it.
Book a Demo