Sandra Rousseau – Circular Economy

Question 1

Circular economy and its building blocks

Answer 1

Circular economy=
a concept describing a zero-waste industrial economy that profits from two types of material use:
* biological materials
* technical materials

The circular economy is a vital system to facilitate reduction in the depletion of resources and to maximize the creation of value.

Question 2

Circular economy its building blocks (9)

Answer 2

• industrial symbiosis
• material and resource efficiency
• renewable energy & energy efficiency
• biological products
• product lifetime extension
• performance economy
• functionality economy
• sharing economy
• platform economy

Question 3

Industrial symbiosis

Answer 3

Industrial symbiosis is the process by which waste or by-products of one industry or industrial process become the raw materials for another. Application of this concept allows materials to be used in a more sustainable way and contributes to the creation of a circular economy

Question 4

Performance economy

Answer 4

• The performance economy represents a full shift to servitization, with revenue obtained from providing services rather than selling goods
• Key elements of the performance economy are re-use and re-manufacturing, to maintain the quality of stock and extend its service life by reducing material intensity, i.e. the material flow required to create and maintain the stock

Shifts revenue to services instead of product sales

Question 5

Functionality economy

Answer 5

The functionality economy replaces the sale of a product with the sale of a service fulfilling the same functions as the product. It is based on the value of using the product rather than owning the product

Consumer pays for product usage rather than ownership

Question 6

Difference functionality and performance economy

Answer 6

While both models promote efficiency and sustainability, the performance economy is more service-based and focused on maintaining products longer, while the functionality economy aims to make the most of an asset by maximizing shared use.

Question 7

Sharing economy

Answer 7

All systems aim to match what one person has with another person’s wants to unlock the value of underused assets, result in a more distributed power, and often rely on new digital and communication technologies for trust and efficiency.

Optimizes use of underutilized assets (eg. Airbnb, Zipcar)

Question 8

Platform economy

Answer 8

Platform economy is the tendency for commerce to increasingly move toward and favor digital platform business models. Platforms are underlying computer systems that can host services that allow consumers, entrepreneurs, businesses and the general public to connect, share resources or sell products

Digital business models (Uber, Amazon, Peerby)

Question 9

7 R’s of the circular economy

Answer 9

Rethink – change how products are designed or used

Refuse – avoid products with high environmental cost

Reduce – minimize resource use

Reuse – directly reuse products

Repair – fix products to extend lifespan

Refurbish/Remanufacture – restore to good condition

Recycle – convert waste into new materials

Question 10

R-ladder

Answer 10

See picture!
The more outer layers are less desirable
The R-ladder prioritizes higher-value strategies like rethinking and refusing over lower-value ones like recycling. It helps evaluate environmental benefit and guide decision-making in product design and policy.

Question 11

Strategies to build a circular economy

Answer 11

• RESOLVE
• PSS (product to service - see picture page 21)

Question 12

Strategies to build a circular economy (RESOLVE)

Answer 12

REgenerate (shift to renewable energy & materials)
Share (e.g. cars, rooms, appliances)
Optimise (increase performance/efficiency of product)
Loop (remanufacture products or components)
Virtualise (books, music, travel, online shopping..)
Exchange (apply new technologies)

Question 13

Circular business models

Answer 13

• circular activities
• R-ladder

Question 14

Environmental impacts of circular strategies

Answer 14

• Positive environmental effects
  a. Reduction virgin material usage
  b. Reduce waste (disposal)
  c. Increased lifespan
• Do not assume a positive environmental effect
  a. Rebound effects due to lower use costs
  b. The platforms are creating new markets
  c. Transportation needs
  d. Mental spillover effects

Question 15

Consumers and circular economy

Answer 15

Drivers:

Cost savings, environmental concern, novelty

Barriers:
Trust (in provider, product, contract)

Preference for ownership (especially for personal items like smartphones)

Complexity and uncertainty