An economy is the collective system through which societies organize the flow of resources—materials, energy, labor, and knowledge—to meet human needs. It’s not just about money or markets; it’s about how we produce, distribute, and consume in relation to the world we inhabit.
Now, with this overall picture of an economy in our minds, let us focus on a definition for the circular economy. We’ve all heard the simple pitch: the circular economy is about recycling. About giving products a second life. About turning yesterday’s waste into tomorrow’s resource. And while that’s not wrong, while looking at a proper definition of an economy being a collective system, this simplified view on the circular economy is dangerously incomplete.
To define the circular economy merely as a smarter way to reuse materials is like describing a forest as a collection of trees. Technically true, but clearly missing the point.
The circular economy is not a fix to be implemented. It’s a transformation to be executed.
It asks us to look beyond the linear model that has shaped our economies for centuries: take, make, waste. This model, born in an era of perceived abundance, assumes that resources are infinite, ecosystems resilient, and social inequalities tolerable side effects of progress. But we now know better. And knowing better demands doing better.
Beyond Recycling: A System Shift
At its core, the circular economy is about growing within planetary boundaries. That means respecting the ecological limits of our planet—its capacity to regenerate forests, purify water, absorb carbon, and sustain biodiversity. But it also means acknowledging the social boundaries that define a just and inclusive society.
This is where the circular economy intersects with the UN Sustainable Development Goals (SDGs). It’s not just about materials—it is, like every economy as I stated in the first paragraph of this tekst, also about societies. About decent work, gender equality, reduced inequalities, resilient communities, personal growth, cultural growth and the way we organize all this into one flowing whole.
Circular ≠ Closed Loop
Let’s be clear: circularity is not about closing loops for the sake of it. It’s about designing loops that regenerate, not deplete. That restore ecosystems, not just maximize the output of supply chains. That empower workers, not just optimize logistics.
Here are some real-world examples that show what this could look like:
• Green Chemistry: Companies are replacing fossil-based inputs with bio-based, recyclable materials like bioplastics. In some cases, waste heat from chemical processes is repurposed to generate electricity—an example of industrial symbiosis A.
• Smartchain Food Projects: Uses open data to shorten food supply chains, reduce waste, and improve food security. Data on temperature, biodiversity, and water levels helps farmers and distributors make better decisions B.
• Circular Buildings: Modular architecture allows buildings to be disassembled and reused. Materials like cross-laminated timber and recycled concrete are gaining traction in Europe A.
• Shared Mobility & Electrification: Car-sharing platforms and electric vehicle networks extend product lifecycles and reduce emissions. Some cities are integrating these into public transport systems.
• Product-as-a-Service Models: Instead of selling devices, companies lease them and take responsibility for maintenance and end-of-life recycling. This incentivizes design for repairability and longevity A.
A Compass, Not a Map
Getting to a circular economy isn’t just like ticking off a checklist. It takes a compass. One that points us toward a future where economic activity is in service of life, not the other way around. Where we can experiment with better ways. Where growth is measured not only by GDP, but by wellbeing—of people, places, and the planet.
And yes, that’s messy. It requires rethinking everything from tax systems to product design, from education to urban planning. But it’s also exhilarating. Because for the first time in a long time, we’re not just patching up a broken system. We’re imagining a new one.
From here on: embrace and transition
So let’s stop selling the circular economy short. It’s not just a recycling program. It’s a radical invitation to reimagine what our economy can be.
Not linear. Not extractive. Not disposable.
But circular. Regenerative. And deeply human.
I am investigating the future of a circular economy and how digitalization can help speed up the transformation. Care to join me in my quest? Just hit subscribe and be sure you don’t miss out on new insights!
