Circular Economy

What is circular economy?

Circular economy is a global approach to production, consumption, and waste management. It seeks to create a system where materials never become waste and nature is regenerated. In a circular economy, production of harmful products like plastics is kept at a minimum, existing products are kept in circulation for as long as possible through processes like maintenance and reuse, and waste is managed in a way that doesn't cause further harm to the environment. Circular economy tackles climate change and other global challenges, like biodiversity loss and pollution, by decoupling economic activity from the consumption of finite resources.

R-Strategies for a Circular Economy

The R-strategies, sometimes also referred to as the R-Hierarchy or the R-Ladder, fall under a hierarchy. It is a useful tool for visualising and understanding the different stages of resource use and waste management in a circular economy. We have classified them into three sub-groups based on an intended closed loop system.

Narrowing the loop: using fewer materials and products
Slowing the loop: extending product life
Closing the loop: recycling and recovering materials from discarded products

Narrowing the loop

R0: Refuse

R1: Rethink

R2: Reduce

Slowing the loop

R3: Reuse

R4: Repair

R5: Remanufacture

R6: Refurbish

R7: Repurpose

Closing the loop

R8: Recycle

R9: Recover

R10: Remine

An important extra step...

Operating the loop

The current system is still largely linear rather than circular. To achieve as many environmental gains as possible on the way to a closed loop, we encourage industry to extend the R-ladder with an essential extra step, 'Operating the loop'.

Operating the loop involves making circular choices in the design, production, and use phases of products. We call these O-strategies. We distinguish 3 such strategies:

Procuring sustainable, renewable raw materials for production
Using renewable energy in all processes
Reducing materials losses at all stages, from production to use

The figure shows how we add these O-strategies to the R-ladder. You do not have to make a choice in applying the O-strategies, as all 3 should be applied at the same time and as comprehensively as possible.

Back to the R-ladder...

The higher up the R-ladder, the greater the gain

If we bring fewer harmful products like plastics into the world, we will also need to reuse and recycle less. The highest category of the R-ladder, narrowing the loop, therefore enables us to make the greatest environmental gains. This highest category consists of three R-strategies:

Narrowing the loop : Less is better

Refuse: refuse unnecessary products and packaging. One example is water fountains instead of plastic bottles.
Rethink: reconsider why you should use a disposable cup when you can choose a reusable one?
Reduce: reduce the use of materials, such as vegetables in a plastic bag instead of a plastic tray with a bag around it.

Slowing the loop by extending service life

Once a product has been made, the next category on the ladder is slowing the loop: extending its service life. R-strategies at this level include reuse, repair, remanufacture, refurbish, and repurpose.

Reuse: reusing products such as clothes and offering refillable bottles
Repair: repairing broken products and stocking parts
Remanufacture: disassembling and reassembling products to make them like new
Refurbish: refurbishing and reconditioning, for example of phones and laptops
Repurpose: repurposing for other uses, such as making glasses from used wine bottles

Finally: closing the loop

If a product can no longer be made usable, we enter the lowest category: closing the loop by recycling, recovering, and remining. Recycling is seen by many people as sustainable. But although it is important, recycling is lower on the ladder because it uses energy, and losses always occur. The bottom steps of the R-ladder are therefore:

Recycle: reusing materials, such as making fleeces from PET bottles
Recover: recovering energy from materials that cannot be recycled – for example, generating energy from waste incineration
Remine: collecting ocean plastic to make new products

Together, we can close the loop

The R-ladder, combined with the O-strategies, provides a structured approach to using less material and making the economy circular. In this process, it is important at all times to consider measures at the highest possible level. These yield the most gains in terms of circularity and sustainability. Both companies and consumers play a crucial role in this transition. Together, we can work towards a more sustainable future where we can use materials sustainably. So that waste becomes a thing of the past and raw materials are reused again and again.

Would you like to make strides towards a circular economy? Lustre makes it possible to identify opportunities and obstacles and work on promising circular solutions

Our classifications for ease of application

Reduce, Reuse, Recover

Circular economy as a shift from the traditional linear model of take–make–dispose towards a system that is restorative and regenerative by design. It emphasizes designing products and systems that eliminate waste, keep materials in use for as long as possible, and regenerate natural systems.

Reduce

Design out waste: Products are designed from the start to minimize material use and eliminate waste. Efficiency is built in through better design, modularity, and resource optimization.

Reuse

Keeping products and components in use as long as possible through reuse, repair, refurbishment, and remanufacturing.

Recover

This process includes recycling and energy recovery. Recycling materials in closed, uncontaminated loops that maintain their quality (as opposed to traditional downcycling). Includes upcycling - creating materials of higher quality and function from waste. Energy recovery: Using non-recyclable waste to produce energy via anaerobic digestion or waste-to-energy processes.

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