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The circular economy is closely linked to sustainable development, since it is the connecting link between the economy and the environment.

According to the Ellen MacArthur Foundation, today's linear "take, make, dispose" economic model is reaching its physical limits. The circular economy, the alternative to the linear model, provides numerous value creation mechanisms not linked to the consumption of finite resources.

The circular economy is based on three key principles:

  • Preserve and enhance natural capital by controlling finite stocks and balancing renewable resource flows.
  • Optimize resource yields by circulating products, components, and materials at the highest utility at all times.
  • Foster system effectiveness by revealing and designing out negative externalities.