Business case

Impact on the availability of resources as well as their effect on living organisms, ecosystems, and components of the environment.

Ecological Impact

Impacts on the financial condition of a company, as well as the the economicconditions of its stakeholders and on economic systems at local, national, andglobal levels.

Economic Impact

Direct and indirect reduction in economic costs

Cost Savings

Reduced use of virgin materials and/or an increase of the use of secondary and bio-based materials

Reduce Material Consumption (SDG12)

Minimise waste through diversion: Instead of sending waste to landfill, it is redirected into other industrial processes for handling, treatment, recycling, recovery, or reuse in various forms. 

Minimise waste through design: At the outset of a process of project, plan and design such that there is zero waste or minimal waste during production, use, and at end of life. 

Minimise Waste (SDG12)

Reduced use of fossil fuel energy sources and/or increased use of renewable energy

Reduce Energy Consumption

Producing building materials and providing services to create residential and non-residential infrastructure and real estate


Construction and Infrastructure

Producing building materials and finished and semi-finished building products for construction

Construction Materials and Products

Utilise waste streams as a source of secondary resources and recover waste for reuse and recycling

Use waste as a resource

Use digital, online platforms and technologies that provide insights to track and optimise resource use, strengthen connections between supply chain actors, and enable the implementation of circular models



Incorporate digital technology

Buildings are where we live, work and play, and also where we store machinery and goods for later consumption. Buildings are but one component of the greater built environment which includes urban infrastructure such as roads, bridges and utilities. 
Current construction techniques have buildings consuming the bulk of materials globally. With increasing urbanisation and therefore demand for buildings of every kind, we drastically need to re-imagine how we design, utilise and decommission buildings.

BUILDINGS

Cycle strategies aim to cycle and reuse materials at their highest value: they maximise the volume of secondary materials re-entering the economy, ultimately minimising the need for virgin material inputs and therefore also narrowing flows. Of course, virgin materials will always be needed to a degree: all materials degrade and can’t be cycled infinitely, use energy, and require blending with virgin materials to maintain strength and functionality.

Cycle

Impacts

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Industries

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The principles of a circular economy concern designing out waste, regenerating ecosystems and keeping items in use. Decoupling the economy from material flows—improving the rate of resource productivity faster than the economic growth rate—is also a consistent guide. By evolving with the growing number of applications of circular economy principles, and consolidating these strategies across thematic areas, Circle Economy’s Key Elements Framework (KE) renders the elements of the circular economy salient and serves as a basis to derive contextual strategies and interventions. 


The Framework consists of:
- Core Elements: Activities directly handling product or material flows; and uniquely,
- Enabling Elements: those that remove obstacles for core actors.


Key elements of the circular economy

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Circle Economy's framework of strategies and activities that define the circular economy

Urban Opportunities

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Based on the work of [Bocken et al. (2016)](https://www.researchgate.net/publication/309699661_Product_design_and_business_model_strategies_for_a_circular_economy), the Four Flows Framework serves as a simple framework for managing resource flows in a circular economy by using less (Narrow), using for longer (Slow), using again (Cycle), and using clean, regenerative materials and energy (Regenerate).

These different principles of circular economy can be applied to our socioeconomic metabolism: we can design stocks like buildings, infrastructure, machinery, and vehicles to be rich resource mines for the future, and design manufactured goods and consumables to be cycled and made regenerative. Furthermore, the focus must also centre on getting more value out of fewer materials. Achieving the aims of a circular economy—minimising material use, regenerating the Earth, and preventing material losses—can be done through these four key strategies mentioned above.

Source: Circle Economy. (2023). *[The circularity gap report 2023](https://www.circularity-gap.world/2023)* (p.22). Amsterdam: Circle Economy. 

Four Flows Framework

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Amsterdam

Madaster

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Municipality of Amsterdam

<p>Madaster, a circular construction organisation that aims to ‘make materials available forever by giving them an identity’, has partnered with the Amsterdam Metropolitan Area to initiate a materials passports pilot project. The enterprise strives to create value in materials used for construction—an industry characterised by excessive waste generation—and ultimately stimulate circular construction in the region. Madaster serves as a public, digital platform that catalogues the products and materials used in a building, thus creating documented ‘storage units’ of materials that are easy to recover and reuse. Circular and financial information flows are also linked, which records past, present and future values of such materials.&nbsp;So far under the project, eight Amsterdam municipalities have been awarded certificates for their implementation of materials passports.&nbsp;</p>