Transformational change through a circular economy

This briefing by the Stockholm Environment Institute (SEI) advocates for a transition from a linear 'take>make>waste' economy to a circular economy to address environmental degradation and resource depletion. It outlines the principles of circularity, the economic and environmental benefits of such a transition, and provides examples of corporate implementation and SEI's own related projects.

• The traditional linear economy is characterized by high rates of natural resource extraction, processing, distribution, use, and disposal, which leads to unsustainable production and consumption levels, environmental degradation, and the destruction of essential ecosystem functions.
• A circular economy aims to drastically reduce waste by repurposing resources through recycling, reuse, remanufacturing, and refurbishment. Key principles include waste segregation with composting, the use of non-recyclable products for energy generation, the establishment of a sharing economy via product rental, and replacing non-renewable fuels with renewable energy and biofuels.
• Transitioning to circularity offers significant economic and environmental advantages, including the reduction of greenhouse gas emissions and the conservation of natural reserves. Specifically, circularity in manufacturing could result in net material cost savings of up to USD 700 billion annually, while measures like eco-design and waste prevention could save companies USD 665 billion per year and lower total annual greenhouse gas emissions by 2-4%. Additionally, land degradation is estimated to cost USD 40 billion annually worldwide.
• Several companies have integrated circularity into their business models: Philips has shifted to providing 'lighting as a service' to retain ownership of equipment; H&M uses a collection initiative to replace 20-25% of raw materials in new jeans with recycled fibre; and Trina Solar is developing standards to recycle end-of-use photovoltaic cells.
• The Stockholm Environment Institute (SEI) manages several circularity-focused initiatives, including the Smart Circular Procurement (CircPro) project in Europe, the 'Closing the Loop' project for plastic waste management in the Asia-Pacific region, and the ESSENCE project which explores novel business methods and economic policies to scale circular models.

APA

Trang, N. T. (n.d.). Transformational change through a circular economy. Stockholm Environment Institute. https://www.sei.org/wp-content/uploads/2019/11/circular-economy-discussion-brief-final.pdf

Chicago

Trang, Nguyen Thi. Transformational change through a circular economy. Stockholm Environment Institute, n.d. https://www.sei.org/wp-content/uploads/2019/11/circular-economy-discussion-brief-final.pdf.

Wikipedia

{{cite report |last1=Trang |first1=Nguyen Thi |title=Transformational change through a circular economy |publisher=Stockholm Environment Institute |url=https://www.sei.org/wp-content/uploads/2019/11/circular-economy-discussion-brief-final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{trangndtransformational, author = {Trang, Nguyen Thi}, title = {{Transformational change through a circular economy}}, institution = {Stockholm Environment Institute}, url = {https://www.sei.org/wp-content/uploads/2019/11/circular-economy-discussion-brief-final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }