A circular economy is an economic system aimed at eliminating waste and the continual use of resources. Looking beyond the current take-make-waste extractive industrial model, a circular economy aims to redefine growth, focusing on positive society-wide benefits. It entails gradually decoupling economic activity from the consumption of finite resources and designing waste out of the system. Underpinned by a transition to renewable energy sources, the circular model builds economic, natural, and social capital.
It is based on three principles:
- Design out waste and pollution.
- Keep products and materials in use.
- Regenerate natural systems.