The circular economy is a way of making and using things so that waste is designed out from the start. Instead of take, make and throw away, materials stay in use as long as possible.
The basic idea
The Ellen MacArthur Foundation, which helped popularize the idea, describes three principles: eliminate waste and pollution, keep products and materials in use, and regenerate natural systems.
What it looks like in business
A manufacturer designs a product so it can be repaired and its parts reused. A builder salvages steel and concrete from a demolition. A retailer takes back used items for resale. Each step keeps value in the economy and cuts the cost of buying new material.
Why it matters in construction
Construction creates a large share of the world’s waste. Reusing materials on site, specifying recycled content and planning for disassembly can lower both cost and emissions. Our piece on circular practices in construction goes deeper.
The catch
Circular models need good design, reliable collection and customers who are willing to buy refurbished goods. They work best when the economics are clear, which is why finance teams are now part of the conversation.
Related reading
Keep going with more explainers in Eco Explained, or see the latest in News.
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