The Circular Economy Glossary – Part 1

“Circular economy” is a widely used phrase these days, yet it often means different things to different people. At its heart, it is a straightforward idea: keep products and materials in use for as long as possible, and design so that very little becomes waste. Part 1 of this glossary is a handy companion with short, easy-to-understand meanings you can skim, share, and return to whenever a term comes up.

1) Core Concepts

1. Circular economy

   A system that keeps products and materials in use at their highest value for as long as possible while preventing waste and regenerating nature.
   Example: Leasing equipment with servicing included so it stays productive for years.

2. Linear economy

   The take, make, use, dispose model.
   Example: Buying a cheap appliance, using it briefly, then binning it when it breaks.

3. Core principles

   Eliminate waste and pollution. Circulate products and materials at their highest value. Regenerate natural systems.
   Example: Packaging that is reusable, then recyclable, and made from responsibly sourced fibres.

4. Durability

   The ability of a product to remain functional and relevant when used as intended.
   Example: A casing that resists heat and daily wear so it does not crack.

5. Lifespan or lifetime

   The period from first use to the point a product becomes obsolete beyond recovery at product level.
   Example: Extending lifespan through scheduled servicing and part replacement.

6. Finite materials

   Materials that are not renewed on timescales relevant to the economy.
   Example: Metals, minerals, and fossil carbon sources.

2) Material Flows

1. Technical cycle

   Durable materials such as metals, polymers, textiles, and electronics kept in use through maintenance, repair, reuse, refurbishment, remanufacture, and recycling.
   Example: Recovering motors and aluminium from retired machines.

2. Biological cycle

   Biological materials designed to return safely to nature through processes like composting or anaerobic digestion.
   Example: Turning kitchen scraps into compost for landscaping.

3. Virgin materials

   Materials that have not yet been used in the economy.
   Example: Newly mined copper in wiring.

4. Non-virgin or secondary materials

   Materials previously used in products that are now reused, refurbished, remanufactured, or recycled.
   Example: Recycled PET pellets moulded into new parts.

5. Recyclability

   How easily a material can be recycled in practice and at scale.
   Example: Clear PET bottles are widely recycled while multi-layer films are harder.

6. Leakage

   When materials escape intended loops into landfill, uncontrolled incineration, or the environment.
   Example: E-waste exported without proper processing and ending up in open dumps.

3) Design and Assessment

1. Circular design

   Designing from the outset for long life, repair, reuse, remanufacture, and safe material recovery.
   Example: Modular parts secured with standard screws instead of glue.

2. Design for disassembly

   Building so products can be opened and parts separated without damage.
   Example: Clip-in filters that lift out in seconds for cleaning.

3. Design for durability

   Prioritising reliable performance in real conditions to avoid premature replacement.
   Example: Robust hinges and fasteners that withstand frequent use.

4. Repairability

   How easily a product or component can be repaired.
   Example: Access panels and standard fasteners that allow quick part swaps.

5. Life Cycle Assessment (LCA)

   A method to measure environmental impacts across a product’s life, from raw materials to end of life.
   Example: Comparing two models by total energy use and materials footprint over five years.

6. Embodied carbon

   Greenhouse gas emissions from materials and manufacturing before first use.
   Example: Choosing longer lasting products to avoid frequent replacements and the carbon they carry.

4) Value Retention Strategies

1. Maintain or maintenance

   Planned care that keeps a product in good working order.
   Example: Routine filter cleaning that prevents failures.

2. Predictive maintenance

   Using data and sensors to spot issues early and extend life.
   Example: Detecting abnormal power draw and fixing a failing motor before it stops.

3. Repair

   Fixing faults so a product returns to service.
   Example: Replacing a fan belt rather than scrapping the unit.

4. Reuse

   Using a product or component again for the same purpose.
   Example: Moving a working unit from a closed site to a new site.

5. Refurbishment

   Restoring a used product to good working condition through cleaning, minor part replacement, and testing.
   Example: Swapping worn bearings and redeploying the product.

6. Remanufacturing

   Industrial rebuild to as new performance with rigorous testing and warranty.
   Example: Factory remanufactured compressors certified to original specifications.

7. Repurposing

   Giving a product or component a new function without heavy reprocessing.
   Example: Turning a metal enclosure into secure storage.

8. Redistribute

   Diverting a product to a different user so it remains at high value.
   Example: A supermarket moving surplus edible food to a food bank.

9. Recycling

   Processing materials so they become inputs for new products.

   • Closed loop: back into the same system.
   • Open loop: into a different system.
   • Downcycling: lower value output.
     Example: Aluminium returned to aluminium cans is closed loop.

10. Upcycling

    Creating higher value outcomes from discarded materials.
    Example: Using offcut timber to make premium tablet stands.

11. Cascading use

    Using materials in a sequence of applications before final recovery.
    Example: Office chairs moved to training rooms, then parts harvested.

Up Next: Part 2

With the groundwork set, it is time to zoom out. With these foundations in place, you and your team can better understand and make cleaner choices. In Part 2, we step into the wider system: biological processes, policy and procurement, materials and inputs, business models, and the standards that tie it all together.