Chapter 07 · Materials & footprintsCircular Economy & Materials

Circular economy

Meaning statusEstablishedSource recordDirect document linkedWhy these are different

Definition

A circular economy is an economic model that aims to keep products, materials and resources in use for longer while reducing waste and virgin resource extraction.

References

European CommissionWaste Framework Directive

This reference provides supporting context for how “Circular economy” is defined and used.

Overview

What it means in practice

Circular economy should be read as a materials and product-life-cycle term. Its meaning depends on the product boundary, material flow, evidence and intended claim.

In practice, users should state the standard, boundary, method and evidence behind the term. That keeps circular economy useful without overstating assurance or performance.

Why it matters

Circular economy matters because circular-economy language can shape design choices, procurement, reporting and product claims. Clear boundaries help readers see whether the term describes intention, process or measured outcome.

Common misconception

A common error is to use Circular economy as a broad environmental improvement claim. The stronger approach is to state the product boundary, material pathway, evidence and trade-offs.

Review questions

What criteria or boundary gives the term meaning? Who assessed or evidenced it? What limitation should be stated so a reader does not treat the term as broader than it is?

How it is used

Designers, manufacturers, procurement teams, life-cycle practitioners and waste managers use “Circular economy” in product design, procurement, footprinting, material selection, production and end-of-life decisions.

In each case, the user should state the product system, life-cycle stages, functional unit, geography, timeframe and measurement method; otherwise, the same term may be applied to materially different situations. In this context, it refers to an economic model that aims to keep products, materials and resources in use for longer while reducing waste and virgin resource extraction.

Have evidence, context, or a correction to share? Every suggestion is considered by an editor before publication.

Meaning status
Established
Last verification recorded
22 Aug 2026
Last updated
22 Aug 2026
What the classifications mean

Meaning status: Established

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