7. Circular Economy: Origins and Future Orientations

The circular economy is increasingly attracting the attention of various actors in Europe and globally. It refers to closing material loops and prolonging the lifetime of materials; and, as such, presents a radically different socio-technological future compared to the unsustainable conventional ‘take-make-dispose’ economic model. The concepts underpinning the circular economy are not new, and ecological economics, environmental economics and industrial ecology have been highlighted as its significant antecedents. The circular economy requires involvement of all the societal actors: companies, which bring new circular economy business models; consumers, who create the demand for products and services that apply circular economy principles and decision makers, who support the transition with ‘better’ policy instruments and governance. The circular economy is expected to bring multiple benefits to the environment and the economy, but only a few examples have demonstrated the circular economy’s potential economic benefits for industrial actors. This chapter provides an overview of the concepts, principles, expectations, strategies, business models, indicators and future trends connected to the circular economy.