Introduction to the Circular Economy

1. Unit 1.1
Introduction to Circular Economy
(CE)

2. Learning objectives
• The aim of this unit is to introduce participants to the concept of
Circular Economy (CE). The unit will introduce key terms,
definitions, work done on EU level, reflect on the issue of energy
efficiency and how CE is applicable throughout a product cycle.
Once you have completed this unit you will be able to:
Learning
objectives
1. Analyse the term circular economy and present it,
2. Familiarise yourself with basic concepts around CE,
3. Describe how CE relates to energy efficiency.
EQF Levels: This Content is mainly suitable for EQF level 5

3. Introduction
• The linear approach to material production and consumption, is
now being challenged by the concept of circular economy
approach.
• Organizations are exploring how CE can aid their product design,
while at the same time, considering the environment and coping
with waste management.

4. Circular Economy Definition
CE: is an alternative to a traditional linear
economy (make, use, dispose) in which we keep
resources in use for as long as possible, extract
the maximum value from them whilst in use,
then recover and regenerate products and
materials at the end of each service life.
(definition taken from wrap.org.uk)
Why is this important? Can you think of 2
reasons why CE is considered as the next viable
economy model?
Next slide shows the video link to learn more
about Circular Economy.
https://www.youtube.com/watch?v=zCRKvDyy
HmI

5. European Agenda
• The EU Commission aims to ensure coherence between industrial,
environmental, climate and energy policies in order to enable an
optimal business environment for European businesses. Part of this
is the EU’s agenda on circular economy which aims to deliver a
business environment optimal to foster sustainable growth, job
creation and innovation.
• The Commission is working towards facilitating an EU economy
towards becoming a circular one, where value of products is
maintained and materials are reused and recycled to their
maximum efficiency. This is reported to bring major economic and
environmental benefits.

6. European Agenda
The EU Policy agenda for 2017 onwards includes CE as a priority. EU
member are considering the following proposals:
• A common EU target for recycling 65% of municipal waste by
2030.
• EU to be characterized as a low carbon economy.
• Implement actions leading to innovation and growth.

7. CE concept: Regenerative Economy
The CE concepts address various
topics such as:
▪ Waste management,
▪ Renewable energy sources and
energy efficiency,
▪ Becoming a competitive low-
carbon economy, guide
organisations and consumers
to think differently in the way
they are conducting business
and consuming products.

8. Waste management
• In Europe, we currently use 16 tonnes of material per person per
year, of which 6 tonnes become waste. The economy thus, loses
secondary raw material (such as metals, glass, paper etc) which
could be recycled from waste.
• Turning waste into resources is the key in a circular economy.
Improved waste management also helps to reduce health and
environmental problems, reduce greenhouse gas emissions
(directly by cutting emissions from landfills and indirectly
by recycling materials which would otherwise be extracted and
processed).

9. Waste Hierarchy
• Prioritising the efficient use of
materials and their use, is key. The
waste hierarchy pyramid is a series of
steps and options on how to deal with
waste.
• It should be read from bottom
upwards with the bottom options
being the least favourable.
• Waste hierarchy principles are
generally applicable and also
contribute to formulate national
policies.

10. Exercise
• Consider the waste
hierarchy pyramid
• Think of a product that
you use every day and
consider how you might
process the product as
waste at each step in the
waste hierarchy

11. Renewable energy sources
• Regenerative
Unlike fossil fuels, renewable energy sources regenerate.
They do not produce waste.
We are living beyond what earth can provide and
countries are now turning towards alternative sources for
energy.
• Renewable energy sources are:
• sunlight,
• wind,
• rain,
• tides,
• waves,
• geothermal heat.

12. Renewable energy sources
• Energy Efficiency or efficient energy
“Efficient energy use, is the goal to reduce the amount of energy
required to provide products and services. For example, insulating a
home allows a building to use less heating and cooling energy to
achieve and maintain a comfortable temperature”. (Wikipedia)
• Consider how organisations in your area use energy efficiency and
the benefits they provide to their community.
• Consider how energy efficiency helps the environment.
• Consider the consumers, how can they help?

13. Energy Efficiency
• Design decisions directly influence energy efficiency and use of
resources.
• Energy efficiency helps the environment. Some examples:
• Reduced demand for coal, oil or gas power plants,
• Decrease greenhouse gas through the use of wind and sun,
• Design products and manufacturing processes in such a way to
reduce energy consumption.

14. Design for energy efficiency
• Products that use energy are starting to be
covered by new regulations (under the
European Energy Using Products Directive)
which set out eco-design requirements, mostly
to do with energy efficiency in use.
• Therefore, manufacturers are starting to have
to document and reduce the energy used in
standby, on and powered-down modes.
• Although energy efficiency does not contribute
directly to circular economy since it doesn’t
involve materials directly, it involves the use of
fossil fuels in the production of energy – hence
it is indirectly relevant.
Source: https://www.goedkope-keuring.be/

15. Low Carbon Economy
• The European Union needs to gain energy independence and
transition to a low carbon economy.
• New business models need to be implemented and adopted
where optimal use of waste is a central notion.
• The EU is pushing forward many proposals. They have
underlined moving towards a circular economy and more
efficient use of resources, which will lead to new opportunities
for economic growth and will create more jobs.

16. Can CE be applied anywhere?
• Not every company is active in manufacturing or production where
most CE examples are evident and can be directly applied and the
results measured. What if a company works with services or in
retail?
• If you are working in a university or a shop, there are opportunities
to influence the supply of products or indeed organise recycling or
re-use.

17. Renault – the CE electric vehicle
batteries
• Next slide shows the video link to learn how Renault re-uses
vehicle batteries.
https://www.youtube.com/watch?v=4zSWTT0qCzQ

18. Circular economy as an organization
principle: real examples and initiatives
• Next slide shows the video link to learn about real business
examples
https://www.youtube.com/watch?v=0Rw9vgFXQEI

19. Business case study: NIKE
• Next slide shows the video link to learn more about the company
NIKE and closed loop model.
https://www.youtube.com/watch?v=hDOHExtc7WY

20. Textiles in the Circular Economy
• Next slide shows the video link to learn more about textile
recycling and re-use.
https://www.youtube.com/watch?v=Wu95zWnW8Dg

21. Unit Summary
1. Circular Economy business models are gaining ground and
changing the way SMEs work.
2. Work on CE is conducted at different levels. The EU is setting
strategic goals for the members states to consider.
3. The main CE concepts are:
• Waste hierarchy,
• CE applies to the whole manufacturing/consumption/
remanufacturing cycle,
• Regenerative economy
4. CE principles and concepts apply even outside the fields of
manufacturing and production.

22. Check these Links
• Towards a Circular Economy – European Commission
https://ec.europa.eu/commission/priorities/jobs-growth-and-investment/towards-
circular-economy_en
• Sustainability and Circular Economy
https://ec.europa.eu/growth/industry/sustainability_es
• Ellen MacArthur Foundation
https://www.ellenmacarthurfoundation.org/
• How to become a Green SME in a Circular Economy
https://www.youtube.com/watch?v=V1Tszs48xCI