Transformational change through a circular economy

The document advocates for replacing the 'linear economy'—characterized by resource extraction and waste—with a 'circular economy' that emphasizes recycling, reuse, and remanufacturing. It outlines the environmental and economic benefits of circularity, including significant potential cost savings in manufacturing and reduced greenhouse gas emissions. The briefing also highlights corporate examples from Philips, H&M, and Trina Solar, and details several Stockholm Environment Institute (SEI) projects focused on circular procurement, plastic waste management, and sustainable production-consumption systems.

• A circular economy reduces environmental stress and greenhouse gas emissions, as emissions are significantly higher during the extraction and production phases of a product than during its use. Additionally, systemic changes to improve land productivity can mitigate land degradation, which is estimated to cost USD 40 billion annually on a global scale.
• Implementing circularity in manufacturing can lead to substantial economic gains, including net material cost savings of up to USD 700 billion per year. Furthermore, the adoption of eco-design, reuse, and waste prevention measures could save companies 665 billion USD annually and lower total annual greenhouse gas emissions by 2-4%.
• Various companies have adopted circular business models: Philips transitioned to 'lighting as a service' to retain equipment ownership; H&M uses a collection initiative to replace 20-25% of raw materials in jeans with recycled fibers; and Trina Solar is developing standards to recycle photovoltaic cells to recover secondary materials.

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} }