Circular economy is the transition from the linear production model of goods and services, to a circular model. This model argues that waste must be transformed, through innovation, into potential by-products or other materials, which promote reuse, recovery and recycling.
The linear model assumes that products and services originate from nature and that, at the end of their useful life, they return to nature through waste or through other forms with less environmental impact. On the other hand, in the circular model, product life cycles are optimized – from design to consumption over the life of the product, to the production process and management of waste that was not possible to eliminate.
Around the world, there are many companies of different dimensions with projects of circular economy.
- Scarcity of natural resources
- High raw material prices
- Higher raw material price fluctuation
- Promotes eco-innovation
- Creates business opportunities for new products and services
- Keeps products, materials and resources in the economy for as long as possible
- Creates new business models
- Reduces dependence on fossil fuels
- Minimizes waste generation
- Conserves natural capital
- Decreases carbon emissions
- Contributes to the fight against climate change