Circular economy introduction (2024)

The circular economy is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources.

The circular economy is based on three principles, driven by design:

  • Eliminate waste and pollution

  • Circulate products and materials (at their highest value)

  • Regenerate nature

Underpinned by a transition to renewable energyrenewable energyEnergy derived from resources that are not depleted on timescales relevant to the economy, i.e. not geological timescales. and materials, the circular economycircular economyA systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. is a resilient system that is good for business, people, and the environment.

In our current economy, we take materials from the Earth, make products from them, and eventually throw them away as waste – the process is linear. In a circular economy, by contrast, we stop waste being produced in the first place.

We must transform every element of our take-make-waste system: how we manage resources, how we make and use products, and what we do with the materials afterwards. Only then can we create a thriving circular economy that can benefit everyone within the limits of our planet.

A way to transform our system

What will it take to transform our throwaway economy into one where waste is eliminated, resources are circulated, and nature is regenerated?

The circular economy gives us the tools to tackle climate change and biodiversity loss together, while addressing important social needs.

It gives us the power to grow prosperity, jobs, and resilience while cutting greenhouse gas emissions, waste, and pollution.

How the circular economy works

Get the basics or explore the circular economy in detail.

Learning resourceThe butterfly diagram: visualising the circular economy The 'butterfly diagram' shows the continuous flow of materials in a circular economy.
  • Circular economy explained
VideoExplaining the circular economy: re-thinking progressWatch our beginner's guide to understanding how a circular economy works.
  • Circular economy explained
Learning resource | CollectionCircular economy key ideasGet up to speed with the fundamentals of the circular economy with these content pills or dive deep...
  • Circular economy explained

Circular economy principles

A circular economy is based on three principles, all driven by design.

ArticleEliminate waste and pollutionThe first principle of the circular economy is to eliminate waste and pollution....
  • Circular economy explained
ArticleCirculate products and materialsThe second principle of the circular economy is to circulate products and materials at their...
  • Circular economy explained
ArticleRegenerate natureBy shifting our economy from linear to circular, we shift the focus from extraction to...
  • Circular economy explained

Circular economy examples

See the circular economy in action with these case studies from brands, businesses and policy makers.

    Working with nature to make food last longer

    Apeel is a company that has come up with an innovative way to eliminate single-use shrink wrap plastic packaging on fresh fruit and veg, while at the same time tackling food waste.

    Apeel is a layer of edible, plant-based coating applied to fresh products that mimics and enhances the natural defences of fruit and vegetables. This slows down the two main things that cause spoilage – water loss and oxidation.

    explore the example

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    Dig deeper

    Circular economy principlesA circular economy is based on three principles, all driven by design.
    • Circular economy explained
    Collection | Case studyCase studies Our curated collection of case studies presents circular economy success stories from around the...
    • Circular economy explained
    Learning resource | PodcastPodcast: What is the circular economy?Ellen MacArthur discusses a range of topics in a conversation about the circular economy.
    • Circular economy explained
    CollectionCircular economy videos, playlists, and seriesSit back and watch our video content exploring a diverse range of topics related to the circular...

    Video series: What is the circular economy?

    VideoBuilding a Regenerative, Restorative EconomyAn Introduction to the Ellen MacArthur Foundation
    • Circular economy explained
    VideoBasics of a circular economyOur team discuss what the circular economy means to them.
    • Circular economy explained
    Learning resource | VideoDiscussing Circular Economy and What It MeansIn this live conversation, members of the Ellen MacArthur Foundation team will discuss and debate...
    • Circular economy explained
    VideoWhat If We Don’t Buy Products and We Buy Service? Circular Economy Explained With the price of resources and energy becoming increasingly volatile, can today's linear economy...
    • Circular economy explained
    VideoExplaining the circular economy: re-thinking progressWatch our beginner's guide to understanding how a circular economy works.
    • Circular economy explained

    Explore the circular economy by topic

    Biodiversity and the circular economyThis topic area examines how the circular economy can help shape a nature-positive future.
    • Biodiversity
    Built environment and the circular economyIn a circular economy our built environment can be a force for good
    • Built environment
    Cities and the circular economyThis topic area looks at the role cities play in the transition to a circular economy.
    • Cities
    Design and the circular economyDesign is a force for change. From innovative products or disruptive business models to entire...
    • Design
    Climate and the circular economyThis topic area looks at how fixing the economy can help fix climate change.
    • Climate
    Fashion and the circular economyThis topic area explores how the circular economy works for the fashion industry.
    • Fashion
    Finance and the circular economyThis topic area looks at the role of the financial sector in the shift to a circular economy.
    • Finance
    Food and the circular economyThis topic area shows how moving to a circular economy for food will help people and nature thrive.
    • Food
    CollectionPlastics and the circular economyThis topic area shows how the circular economy can help keep plastic in the economy and out of the...
    • Plastics
    Government and policy for a circular economyThe circular economy provides a framework which allows governments and cities to realise many of...
    • Policy
    Education and learning towards a circular economyWe support circular economy learning across a growing global community of schools, colleges and...
    • Education
    Business and the circular economyA circular economy transformation will empower us with the tools to tackle global challenges, and...
    • Business
      Circular economy explained
    Circular economy introduction (2024)

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