Circular Economy: Definition and Basics

Circular economy is a business model aimed at prolonging product lifecycles, minimising waste and using resources more efficiently. What is the underlying idea? Which challenges does it bring? And why is it so very relevant – also for the glass industry?

Circular economy is a business model that aims to prolong the lifecycle of products, reduce waste and use resources more efficiently. Unlike the traditional linear business model where products are manufactured, used and disposed of, the circular economy banks on reuse, repair and the recycling of materials. This approach aims to create closed-loop cycles that reduce the impact on the environment and the dependency on natural resources. The concept is also very relevant for the glass industry.

A pivotal principle of the circular economy is the cradle-to-cradle concept developed in the late 90s. It looks at the complete lifecycle of products and interprets all materials as biological or technical feedstock in closed-loop cycles. In the biological cycle so-called consumables circulate that are completely biodegradable. In contrast, “consumer durables” circulate in the technical cycle. After use, they are broken down into their base materials to serve as raw materials for new products. Following this logic raw materials are no longer lost after use and can potentially be reused an infinite number of times.
Ideally, the original quality of the raw materials is retained avoiding any waste.

Achieving a circular economy requires rethinking design and products. Products must – from the outset – be engineered and manufactured in such a way that they are as durable as possible, easy to repair and, after their end of life, can be converted into raw materials for new products as efficiently as possible. To this end, all manufacturing processes as well as the required steps for disassembly and reclamation of raw material and/or material components also have to be planned and realised anew – as in the construction sector, for example, using components containing flat glass like glazed façades or windows.

Reclaiming and returning materials into the production cycle requires efficient waste sorting and recycling technologies. To this end, the necessary infrastructures must be promoted. At present, the reclamation of materials from linear manufacturing products is still labour and energy intensive. Like for the reclamation of circularity-compliant products only energy from renewable – i.e. circularity-compliant – sources qualifies for this work. The success of a recyclable product will always depend on whether its reclamation saves energy versus its linear new production.

Finally, for a circular economy to work properly changed consumer habits are needed: companies are called upon to develop innovative business models that are based on selling services rather than products such as equipment leasing instead of purchasing. Consumers are called upon to act more sustainably by using products longer and having them repaired. In the medium term the circular economy creates new markets and business models as is already evidenced by the rising number of leasing, sharing and repair services offered.

The circular economy is a sustainable and future-proof economic model that combines substantial ecological, economic and social benefits. However, it also requires a fundamental change in the way business and society handle resources. The close collaboration between companies, consumers and political actors is essential for implementing change successfully. The transition to a circular economy is a long-term process that needs to be supported by targeted measures and closer cooperation on global, national and local levels – also in the glass industry.