BENEFICIAL FOR THE ENVIRONMENT? PERFORM A LIFE-CYCLE ASSESSMENT A life-cycle assessment is the only way to ensure that projects or measures in the circular economy actually help to reduce the environmental impact. A life-cycle assessment includes all the relevant environmental effects over the full life-cycle of products.
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The circular economy
Figure 1 A schematic diagram of the circular economy. In this paper, the term 'business model' refers to all of the steps shown in the outer circle and the term 'strategies' refers to the steps shown by the inner arrows. Source: Swiss Federal Office for the Environment (FOEN)
WHAT IS THE CIRCULAR ECONOMY? The circular economy is an economic system of production, trade and consumption that, from the design of a product through to its end of life, is designed to optimise the use of resources and reduce the impact of economic activity on the environment. Figure 1 is a schematic representation of the circular economy. It is not exhaustive, but illustrates the basic principle: the circularity of resources and the extension of the use phase. The circular economy offers a set of strategies and business models designed to limit the consumption and wastage of raw materials, water and energy (see page 10). This innovative system represents a paradigm shift that accommodates the concept of sustainable development and offers an alternative to the current – linear – economic system.
INTRODUCTION
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