Circular Economy policy aims for increasing the value of products and raw materials by decreasing the waste production. To change the conventional use of products and its effect on the environment, the circular economy policy should be adopted by governments and even private sectors.

1. Circular
Economy Policy

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What Is Circular Economy
Policy?
• Circular economy is about changing the way
we produce, assemble, sell and use products
to minimise waste, and to reduce our
environmental impact
• A circular economy is an economic system of
closed loops in which raw materials,
components and products lose their value as
little as possible, renewable energy sources
are used and systems thinking is at the core
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4. Current Linear Economy
• The linear economy results from business
practices that assume a constant supply of
natural resources.
• This has resulted in the take-make-dispose
mentality.
• This mentality is based on the extraction of
resources, the production of goods and
services and the disposal of post-consumer
waste.
• However, this approach is coming under
increasing pressure because of its
environmental and economic
disadvantages.

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Disadvantages of linear
economy
Ecological disadvantages
• The plastic soup as an example
Economic disadvantages
• Fluctuating raw material prices
• Critical materials
• Interdependence
• Increase in material demand

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• Circularity has several advantages for the
economy.
• Globally, the economy would benefit $2
trillion a year from more effective
resource management.
• This is because the cost of raw materials
will decrease substantially, while
promoting employment and innovation
• Growth of employment
• Innovation stimulus
• Changing demand
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Economic benefits of the
circular economy?

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Comparison of linear and circular economy

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Examples of circular economy
• Circular companies show how circular business models work in practice.
• There are many examples of this among start-ups, but also SMEs,
multinationals and semi-public organisations give examples of circular
entrepreneurship.
Start-up
• Closing the Loop
• Smartcrusher
Multinational
• Philips
• Vanderlande
• H & M

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Circular countries
• Circularity offers many advantages to countries, but it does require facilitating
policies.
• Many countries are aware of this and are rolling out a circular strategy nationally.
• In terms of size and design, these strategies differ considerably.
• To show the diversity, here is an example of three countries from a different
continent: Chile, China and Scotland.
Chile
• In 2018, Chile launched the first programme for the circular economy in Latin
America
• The program started with a competition to select 25 excellent companies that
contribute to the Chilean circular economy. This programme of the Chilean
Production Development Corporation (Corfo) helped to increase awareness of the
concept and public appreciation of the companies involved.

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China
• China has included circular economy in its policy since the beginning of the
2000s.
• In the beginning, the main focus was on how the waste of one company could
become a source of income for another. The emphasis was on the three Rs:
Reduce, reuse and recycle.
• The latest policy, inspired by the Circular Economy Policy Portfolio released in
2017, looks at eco-design and extended producer responsibility.
• It is not only the world’s factory that brings cheap products to the market.
• It is also an economy that is growing in investment capacity, in innovation, that
embraces the digital economy en masse and that has serious environmental
problems that it has to deal with
• All these angles of approach are converging towards a new form of the overall
system.
• And because they already have the building blocks of a circular economy in their
legislation, they are taking these gradual steps towards something more
comprehensive

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Scotland
• In 2016, the Scottish Executive developed a strategy to move the country towards
a more circular economy, aligning its economic and environmental objectives.
• The aim is to bring business sectors and individuals together to work towards that
goal.
• Two of the key elements of the strategy are to develop a more comprehensive
producer responsibility and to reduce food wastage by 33% by 2025.
The Scottish Executive has set priorities for four sectors:
1. Bio-economy: the beer, whisky and fishing industries can reduce costs by
£500-800 million a year through a more circular approach.
2. Re-fabrication: contributes £1.1 billion a year to Scottish GDP and could
contribute £1.7 billion a year by 2020.
3. Construction: generates about half of all waste produced in Scotland, and thus
has an important opportunity to improve resource efficiency.
4. Energy infrastructure: significant potential for reusing equipment from
decommissioned oil, gas and renewable energy infrastructure

13. Thank you
Pranali Kurhade
MT19MCL007

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• https://kenniskaarten.hetgroenebrein.nl/en/knowledge-map-circular-
economy/what-is-the-definition-a-circular-economy/
• https://www.epa.nsw.gov.au/your-environment/recycling-and-
reuse/response-to-china-national-sword/circular-economy-policy
• http://www.technologystudent.com/prddes_2/matecon1.html
References