What is "Circular Economy"?
When discussing business opportunities with potential collaborators, friends or colleagues I always start by saying I have designed my business model based on Circular Economy principles. Since people ask me what that is, I figured I give you a quick insight explained in my own words. So here it is:
A Circular Economy is a new economic model that offers a balanced industrial ecosystem, one that mimics natural ecosystems.
As opposed to the current linear economy, it aims to radically limit the extraction of raw materials and the production of waste. It does this by increasing product life and recovering and reusing as many of the products and materials as possible, in a systemic way, over and over again.
You can think of Circular Economy as the water cycle on Earth: evaporates from oceans, lakes & streams ➡ condensates ➡precipitates ➡ back into the oceans, lakes & streams.
So, the circular economy is a mimic of the natural system : as one creatures reaches the end of its life, it becomes the fuel for another. The cycle in never-ending.
Further down you can see the Butterfly Diagram from Ellen MacArthur Foundation :"A circular economy seeks to rebuild capital, whether this is financial, manufactured, human, social or natural. This ensures enhanced flows of goods and services. The system diagram illustrates the continuous flow of technical and biological materials through the ‘value circle’ ."
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