Circular Economy
Definition
An economic model in which products, components and materials are kept in circulation at their highest useful value through durability, reuse, repair, remanufacture and recycling, in contrast to a linear model of extraction, use and disposal.
Expanded Explanation
In European Union policy the circular economy is the objective that the Ecodesign for Sustainable Products Regulation is intended to serve. The regulation’s instruments, such as durability, reparability, recycled content and information requirements, are means of making circular outcomes possible at scale rather than dependent on individual goodwill.
The model is usually described as a hierarchy. Keeping a product in use through maintenance and repair preserves the most value; reuse and remanufacture preserve less; material recycling preserves least but still avoids primary extraction. Each step depends on information: a repairer needs part identity and disassembly guidance, a recycler needs material composition and substance data.
This is where the Digital Product Passport fits. Circular activity is limited less by willingness than by the fact that the information needed at end of life sits with the manufacturer and is not available to the party holding the product years later.
Why It Matters
Framing passport work as a purely regulatory cost misses the operational point. The same data that satisfies a delegated act also supports resale, take back, warranty and spare part programmes, which is where organisations recover value from the investment.
Common Misconceptions
Recycling is the last resort in the hierarchy, not its definition. Extending product life through durability and repair retains far more of the embedded value and energy.
Related Terms
Related Knowledge Base Articles
Related Articles
- Extended Producer Responsibility
- Product Lifecycle
- Sustainability Data
- ESPR
- Authorised Representative
- Authoritative Source
- Battery Passport
- Conformity Assessment
See Also
References
- Regulation (EU) 2024/1781, Official Journal of the European Union: https://eur-lex.europa.eu/eli/reg/2024/1781/oj
- European Commission, Circular Economy Action Plan: https://environment.ec.europa.eu/strategy/circular-economy_en
- Directive 2008/98/EC on waste, waste hierarchy: https://eur-lex.europa.eu/eli/dir/2008/98/oj
About This Article
tieback Knowledge is a continuously maintained reference library covering Digital Product Passports, product traceability, product compliance and related regulations. Articles are reviewed regularly as legislation, standards and implementation guidance evolve.