The circular economy is “a huge opportunity for Europe” said Jamie Butterworth, from Circularity Capital, at a Midday Goes Social seminar.
According to a report by the Ellen MacArthur Foundation, with analysis by McKinsey & Co, the economic opportunity of the transition from a linear economy to the circular economy could lead to net material cost savings for the EU manufacturing sector worth up to EUR 600 bn (USD 630bn) p.a. by 2025, and stimulate economic activity in the areas of product development, remanufacturing and refurbishment.
Today’s “linear economy” relies on finite resources, depends on fossil fuel energy, and leads to pollution, waste generation and the depletion of eco-system services, Jamie Butterworth explained. By contrast, a circular economy aims to ‘design out’ waste. Products are designed and optimised to re-enter the economy whilst maintaining maximum value.
Led by technological changes and the “user revolution”, the circular economy is beginning to pick up, he concluded, quoting examples from French car maker Renault and Dutch multinational company Philips but also many SMEs, which are playing a key role in the process.
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