EMF, 2013 - From linear to circular - Sources of value creation in a circular economy

4 important questions on EMF, 2013 - From linear to circular - Sources of value creation in a circular economy

What are the four simple principles of circular value creation that hold true?

  1. Power of the inner circle
  2. Power of circling longer
  3. Power of cascaded (small steep waterfall) use and inbound (heading inwards) material/product substitution
  4. Power of pure, non-toxic, or at least easier-to-separate inputs and designs

When speaking of the power of the inner circle, what is meant? Reusing identical products and materials within the circular setup.

The tighter the circle (less a product has to be changed in reuse, refurbishment and remanufacturing) the faster it returns to use and thus the higher the savings on material, labour, energy etc.

What is the power of cascaded use and inbound material/product substitution, all about?

Value creation is rooted in the lower marginal costs of reusing the cascading material as a substitute for virgin material inflows and their imbedded costs.
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What is the power of pure, non-toxic, or at least easier-to-separate inputs and designs, all about?

To generate maximum value, each of the earlier mentinoed sources require purity of material and quality.

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