Circular economy introduction

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Circular economy explained
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The circular economy is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources.

The circular economy is based on three principles, driven by design:

Underpinned by a transition to renewable energyrenewable energyEnergy derived from resources that are not depleted on timescales relevant to the economy, i.e. not geological timescales. and materials, the circular economycircular economyA systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. is a resilient system that is good for business, people, and the environment.


In our current economy, we take materials from the Earth, make products from them, and eventually throw them away as waste – the process is linear. In a circular economy, by contrast, we stop waste being produced in the first place.


We must transform every element of our take-make-waste system: how we manage resources, how we make and use products, and what we do with the materials afterwards. Only then can we create a thriving circular economy that can benefit everyone within the limits of our planet.

A way to transform our system

What will it take to transform our throwaway economy into one where waste is eliminated, resources are circulated, and nature is regenerated?

The circular economy gives us the tools to tackle climate change and biodiversity loss together, while addressing important social needs.

It gives us the power to grow prosperity, jobs, and resilience while cutting greenhouse gas emissions, waste, and pollution.

How the circular economy works

Get the basics or explore the circular economy in detail.

Butterfly Diagram Infographic
Learning resource

The butterfly diagram: visualising the circular economy

The 'butterfly diagram' shows the continuous flow of materials in a circular economy.

  • Circular economy explained

Circular economy principles

A circular economy is based on three principles, all driven by design.

Circular economy examples

See the circular economy in action with these case studies from brands, businesses and policy makers.

    Working with nature to make food last longer

    Apeel is a company that has come up with an innovative way to eliminate single-use shrink wrap plastic packaging on fresh fruit and veg, while at the same time tackling food waste.

    Apeel is a layer of edible, plant-based coating applied to fresh products that mimics and enhances the natural defences of fruit and vegetables. This slows down the two main things that cause spoilage – water loss and oxidation.

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    Dig deeper

    Video series: What is the circular economy?

    Explore the circular economy by topic

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    Built environment and the circular economy

    In a circular economy our built environment can be a force for good

    • Built environment
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    Cities and the circular economy

    This topic area looks at the role cities play in the transition to a circular economy.

    • Cities
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    Design and the circular economy

    Design is a force for change. From innovative products or disruptive business models to entire...

    • Design
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    Fashion and the circular economy

    This topic area explores how the circular economy works for the fashion industry.

    • Fashion
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    Finance and the circular economy

    This topic area looks at the role of the financial sector in the shift to a circular economy.

    • Finance
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    Food and the circular economy

    This topic area shows how moving to a circular economy for food will help people and nature thrive.

    • Food
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    Plastics and the circular economy

    This topic area shows how the circular economy can help keep plastic in the economy and out of the...

    • Plastics
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    Government and policy for a circular economy

    The circular economy provides a framework which allows governments and cities to realise many of...

    • Policy