Economicscalendar_todayLast updated: Apr 2026
What is Circular Economy?
/ˈsɜːkjʊlər ɪˈkɒnəmi/
A circular economy is an economic model designed to eliminate waste by keeping products, components, and materials in use for as long as possible through reuse, repair, remanufacturing, and recycling.
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Everyday Example
Instead of buying a new phone every two years and discarding the old one, a circular economy model would have you return it to the manufacturer who refurbishes it and resells it.
publicReal-World Application
“Renault's factory in Flins, France, remanufactures 15,000 engines and gearboxes a year from returned parts, selling them at 50-70% of new prices with the same warranty.”
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Did you know?
The Ellen MacArthur Foundation formalised the circular economy concept in 2010, building on industrial ecology research from the 1990s.
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Key Insight
The linear "take-make-dispose" model was only possible when resources seemed unlimited. As resource scarcity grows, circular models become economically necessary, not just environmentally virtuous.
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