What does the term "circular economy" refer to?

The term "circular economy" refers to an economic model that promotes the continued use of resources while striving to eliminate waste. This concept contrasts with a linear economy, where resources are extracted, used, and then discarded. In a circular economy, the design of products and services emphasizes sustainability and longevity, encouraging practices that allow for reusability, recycling, and recovery of materials at the end of their life cycle. This approach not only conserves resources but also minimizes environmental impact, supports economic growth by creating new business models, and fosters innovation in product design and usage.

The emphasis on resource efficiency and waste reduction is critical because it enables a system where products can re-enter the supply chain, thus creating a closed-loop system. This model helps address pressing environmental issues such as landfill waste and resource depletion, making it a key concept in sustainability and environmental management.