The Circular Economy

Benefits to businesses

Longer-established companies are beginning to incorporate circular practices as well. The benefits include: 

• Minimising risk from resource scarcity
• Improving profits through costs-savings on virgin-material requirements and reducing the cost of waste-management
• Deriving more value from materials and resources
• Reducing obsolecence of equipment and materials
• Developing new markets and customers
• Improving customer interaction and loyalty
• Increasing security and price stability of your supply chain
• Attracting, retaining, and engaging employees
• Minimising risk and maximising return to investors
• Staying ahead of new regulations

Economic benefits 

"It is estimated that annual savings of €2.3 billion are achievable by boosting Ireland’s circularity. In other words, by eliminating wasteful practices and making better use of the resources we already have, we can significantly reduce the cost of doing business." 

(Whole of Government Circular Economy Strategy 2022 - 2023)

Examples of the circular economy in practice

The circular economy often thrives within different business models:

• Designing products in such a way that they are easier to repair - e.g. electrical devices.
• Reusing products and raw materials as much as possible, e.g. by recycling plastic into pellets for making new plastic products.
• Deposit-return schemes 
• Sharing schemes - for tools, bikes and cars
• Zero-waste dining
• Leasing arrangements - for home appliances, furniture, bikes, even clothes

"Rental and repair businesses can be found in most cities and towns, and many charities operate networks of shops re-selling a wide range of pre-owned goods. The use of digital platforms facilitating the sharing economy (e.g. DublinBikes, GoCar) is also well established, in addition to the many informal, self- organising, local and community-based networks which facilitate re-use of household goods (e.g. local ‘Swap Groups’ for baby clothes and toys)."

(Whole of Government Circular Economy Strategy 2022 - 2023)

Policy

Ireland's Circular Economy Strategy

In December 2021, the Irish Government launched Ireland’s first Whole of Government Circular Economy Strategy. It explains the concept of the circular economy, and describes what initiatives are already happening, what opportunities are available and how the Irish Government will drive the changes required.

Ireland's Circular Economy Programme

The Environmental Protection Agency (EPA) in December 2021 launched its new Circular Economy Programme (2021 to 2027). This will support the Government’s circular economy policy agenda. It's vision is for an Ireland where everyone uses less resources and prevents waste to achieve sustainable economic growth.

EU's Second Circular Economy Action Plan

Circularity is central to the European Green Deal, which sets out a roadmap for a transition to a new economy, where climate and environmental challenges are turned into opportunities. The Green Deal aims not only to help deliver on its environmental aspirations but to ensure that resources are kept within the local economy for as long as possible. The EU's Second Circular Economy Action Plan - For a Cleaner and More Competitive Europe -  launched in March 2020. It recognises the need to accelerate this transition to the entire mainstream economy.

Not for Profit

Ellen MacArthur Foundation

The Ellen MacArthur Foundation is a UK-based charity that works to accelerate the transition to a circular economy. It develops and promotes the idea of a circular economy, and works with business, academia, policymakers, and institutions to mobilise systems solutions at scale, globally. It also provides case studies, guidance and tools on creating circularity. 

Business in the Community NI

Business in the Community NI, the network for responsible business, has an online Circular Economy Hub with guides to explain the concept and actions businesses can take to integrate it into their organisation to capitalise from the economic opportunities which this approach can provide.