What is Circular Economy?

It’s all about “How”

One could easily get lost in current terminology that is used to show a bit of care for the environment or future generations. Green economy, blue economy, sustainability, circularity, SDGs, ESG, LCA. Why, on Earth, out of all these things, ReThink has been focusing on circularity for the last seven years?

While concepts like "sustainable development" and "green economy" might paint a picture of an ideal future—a world where human activities operate in harmony with the environment—circularity and circular design offer practical tools and strategies to achieve this vision.

Every system has
its boundaries

The thing is, our living environment we call planet Earth has some boundaries. And depending on how we, humans, act in relation to those boundaries, nature reacts with harsh reminders of our impact – droughts, floods, raging wildfires, and the creeping specter of climate change. These aren't just isolated events; they trigger a domino effect of problems: forced migration, deepening inequality, a decline in the quality of life, and even rendering some regions uninhabitable.

In 2009, the concept of planetary boundaries① was introduced by Johan Rockstrom (+28 other people) from the Stockholm Resilience Centre to illustrate aspects in which humanity is exhausting the planet. As of September 2023, six out of nine boundaries have been crossed.

But can we thrive without
crossing the boundaries?

Does staying within planetary boundaries mean we shall go back to
the Stone Age

Not really.
Later, in 2012, the concept of Doughnut Economics② by Kate Raworth suggested we could cover human needs without crossing the limits of our ecosystem. And for that – we need a much better design. For our products, buildings, cities, industries, and organizations. True circular economy plays one of the central roles in making this possible.

From systems thinking
to circular design

The crucial aspect of our view on circular economy is the systems thinking approach, which means looking at the whole life cycle of a product or object, rather than just one part of it. Think about a water bottle: from oil extraction, the plastic used to make it, to its use, and finally how it's disposed of.

Life Cycle of a PET Bottle

①
Oil for Production

②
Production of PET Granules for Bottles

③
Production of PET Bottles

④
3L of Water and 250ml of Oil for 1L of Bottled Water

⑤
Delivery to Stores

⑥
PET Bottle Purchased and Disposed by Consumer

⑦
91% of PET Bottles End Up in Landfills

⑧
2% - New Bottles, the Rest Other Products

“By considering every stage – how materials are sourced, how the bottle is made, how long it lasts, and how it can be reused or recycled — we can make the entire process more sustainable and less harmful to the environment” – This could be a classical approach of an environmental NGO. And not a bad one!

But we, at ReThink, would ask first – do consumers really need a bottle or do they need water? How could we establish inclusive, distributed, and environmentally friendly access to drinking water as a basic human right? And then would move from there.

Our approach emphasizes the importance of design over waste management, with which circularity is often associated. Imagine if every product you used was designed to last longer and be easily repaired. By designing products this way from the start, we can prevent waste before it occurs. It's like fixing the problem at its root instead of just dealing with the trash afterward. This proactive strategy works better than just managing waste, which often only deals with the symptoms rather than solving the actual problem.

Facilitating green restoration
of Ukraine

In our efforts to facilitate Ukraine's reconstruction after the war, ReThink is focusing on circular design, a practical approach rooted in systems thinking.

When working with cities, communities, or central government, we constantly question ourselves:

What does it mean to have a truly ‘green’ reconstruction?

Does the community need this building back,
or are they missing certain services?

How do we tackle the issue of embodied carbon?

How could we explore the potential of revitalization and adaptive reuse before building something new?

What and how are we going to rebuild?

If we build new – do we design for longevity, disassembling, modularity, or change of purpose in 30 years?

How do we ensure local reuse of fossil-based materials and gradually shift to bio-based options?

How can we encourage people to think about using resources wisely?

If you also find these questions relevant and would like to contribute to the green reconstruction of Ukraine – we should have a talk.