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3This article investigates the phenomenon of rebound effects in relation to a transition to a Circular Economy (CE) through qualitative inquiry. The aim is to gain insights in manifestations of rebound effects by studying the Dutch textile industry as it transitions to a circular system, and to develop appropriate mitigation strategies that can be applied to ensure an effective transition. The rebound effect, known originally from the energy efficiency literature, occurs when improvements in efficiency or other technological innovations fail to deliver on their environmental promise due to (behavioral) economic mechanisms. The presence of rebound in CE contexts can therefore lead to the structural overstatement of environmental benefits of certain innovations, which can influence reaching emission targets and the preference order of recycling. In this research, the CE rebound effect is investigated in the Dutch textile industry, which is identified as being vulnerable to rebound, yet with a positive potential to avoid it. The main findings include the very low awareness of this effect amongst key stakeholders, and the identification of specific and general instances of rebound effects in the investigated industry. In addition, the relation of these effects to Circular Business Models and CE strategies are investigated, and placed in a larger context in order to gain a more comprehensive understanding about the place and role of this effect in the transition. This concerns the necessity for a new approach to how design has been practiced traditionally, and the need to place transitional developments in a systems perspective. Propositions that serve as theory-building blocks are put forward and include suggestions for further research and recommendations about dealing with rebound effects and shaping an eco-effective transition. Thomas Siderius, Kim Poldner, Reconsidering the Circular Economy Rebound effect: Propositions from a case study of the Dutch Circular Textile Valley, Journal of Cleaner Production, Volume 293, 2021, 125996, ISSN 0959-6526, https://doi.org/10.1016/j.jclepro.2021.125996.
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This paper explores the relationship between Circular Economy (CE) and Environmental, Social, and Governance (ESG) frameworks—a connection that remains ambiguous in both academic literature and practical application. This lack of clarity hinders corporate accountability and progress toward sustainability goals. To address this, we examine how CE and ESG intersect by integrating relevant theories and practical approaches. We identify key strategic overlaps across diverse CE and ESG indicators and frameworks, demonstrating how each can inform and strengthen the other. We begin by outlining foundational theories and current practices in both CE and ESG, then explore how their integration can enhance organisational alignment and accountability, particularly in the environmental dimension of ESG. To support this synergy, we propose an updated 10-R framework for qualitative reporting, incorporating new dimensions such as Regeneration (e.g., Rewilding and Restoration) to reflect biodiversity considerations. Additionally, we introduce the Circularity Scoring Model (CSM) to assess organisational CE performance concerning ESG objectives quantitatively. Our findings suggest that embedding CE principles into accounting and investment practices can highlight opportunities for improvement, such as transitioning to renewable energy, sourcing alternative materials, extending product lifespans, enhancing repairability, minimising waste, and increasing use of recycled or regenerative resources.
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This document combines four reports on existing regional business support programmes for inclusion or understanding of circular economy (CE) objectives, deliverable DT3.1.2 from the transform-CE project. Besides a general overview on national and regional level, the focus is on a selection of national and regional programmes aimed at the plastics industry. After explaining the format to structure the programmes, the results for the four regions are presented: Greater Manchester (UK), Rhineland Palatinate and North-Rhine Westphalia (DE), Wallonia (BE), Central Netherlands (NL).
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White paper: Financing the circular economy in the tourism sector For SMEs in tourism, a transition to a circular economy can often be costly. Crowdfunding is a promising financing approach for a circular economy in tourism as it can help avoid the bureaucratic and often complex funding application procedures as well as the possible absence of appropriate loans and grants. It is essential, however, for entrepreneurs to follow guidance on how to initiate, develop and propose a crowdfunding campaign. In addition, the white paper has also highlighted the importance of creating and promoting a destination-based crowdfunding platform. Such a platform would allow the destination to create a collective effort and potentially joint crowdfunding campaigns, target tourists and communities, and ultimately promote the destination and its sustainability successes. Entrepreneurs should also consider different aspects after the implementation of the circular project, this for instance may include assessing the benefits of the circular project and communicating these to the funders and all customers. Such communication would ensure support for future campaigns, and a sense of participation in a successful project by the funders and it would also enhance customer experience. Local authorities can have a pivotal role in both cases, when a destination-based platform is created and used, and when entrepreneurs use existing crowdfunding platforms. Authorities can for example provide technical and financial support to SMEs to develop a circular project and can provide promotional support to the campaigns potentially reaching a wider audience through the destination website and by using social media. Tourism is very much a fashion-based industry, and, as such, it needs to have effective marketing. It is increasingly known that sustainability can be a marketing asset for a destination. The circular economy, as a concept, is not well-known, partly because it is new. The wider concept of sustainable tourism is not fully understood by the market, even after its emergence and first implementation nearly forty years ago (Bausch et al., 2021). Steps should be taken to explain and market the concept of the circular economy as often as possible, using a multi-media marketing strategy. The issue of governance might need to be considered if the circular economy is undertaken by a partnership of several SMEs, by an entire destination, or even perhaps by several destinations in one region. It is to ensure equity between partners, maximise benefits, and publicise the benefits of the process. Evidence for the need for effective governance comes from the now abundant experience obtained from efforts to implement sustainable tourism strategies (Bramwell, 2011; Bramwell & Lane, 1993; Bramwell et al., 2017). To conclude: crowdfunding for a circular economy in tourism has the potential to raise essential funds for SMEs that cannot easily be accessed through more conventional financing options, but as in using every funding channel, it requires time and resources to be successful. This white paper provides initial guidance to tourism entrepreneurs that are seeking to engage in fundraising for their circular projects.
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This lessons learned report gives an overview of the output and results of the first phase of the REDUCES project. The introduction states the relevance of combining a policy approach with business model analysis, and defines the objectives. Next, an overview is given of circular economy good business practices in the regions involved. Examining these business practices helped to define the regional needs for circular economy policy. This business approach proved to be a solid base for developing regional circular economy action plans, the last chapter of this report.
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The circular economy (CE) is heralded as reducing material use and emissions while providing more jobs and growth. We explored this narrative in a series of expert workshops, basing ourselves on theories, methods and findings from science fields such as global environmental input-output analysis, business modelling, industrial organisation, innovation sciences and transition studies. Our findings indicate that this dominant narrative suffers from at least three inconvenient truths. First, CE can lead to loss of GDP. Each doubling of product lifetimes will halve the related industrial production, while the required design changes may cost little. Second, the same mechanism can create losses of production jobs. This may not be compensated by extra maintenance, repair or refurbishing activities. Finally, ‘Product-as-a-Service’ business models supported by platform technologies are crucial for a CE transition. But by transforming consumers from owners to users, they lose independence and do not share in any value enhancement of assets (e.g., houses). As shown by Uber and AirBNB, platforms tend to concentrate power and value with providers, dramatically affecting the distribution of wealth. The real win-win potential of circularity is that the same societal welfare may be achieved with less production and fewer working hours, resulting in more leisure time. But it is perfectly possible that powerful platform providers capture most added value and channel that to their elite owners, at the expense of the purchasing power of ordinary people working fewer hours. Similar undesirable distributional effects may occur at the global scale: the service economies in the Global North may benefit from the additional repair and refurbishment activities, while economies in the Global South that are more oriented towards primary production will see these activities shrink. It is essential that CE research comes to grips with such effects. Furthermore, governance approaches mitigating unfair distribution of power and value are hence essential for a successful circularity transition.
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This report describes the Utrecht regio with regard to sustainability and circular business models.
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White paper: Accelerating the adoption of the circular economy in the tourism and leisure sector: the 3-M Framework as the foundation of circular entrepreneurship The white paper proposed several recommendations that could be considered by tourism entrepreneurs to accelerate their adoption of circular economy solutions.The white paper proposed several recommendations that could be considered by tourism entrepreneurs to accelerate their adoption of circular economy solutions. Firstly, the white paper suggested that the entrepreneurs need to establish their own take on the meanings and purpose of being circular. This is essential in motivating their willingness to adopt circular solutions. Entrepreneurs’ meaning was associated with the entrepreneurs’ knowledge and concern with global challenges and their understanding of the many benefits that circular economy solutions can generate, both for the business, destination and for the global community. Yet, while it is the role of public sector led planning stakeholders to develop and promote awareness programmes, tourism entrepreneurs can still adopt actions that improve their understanding of challenges and the role of the circular economy. These actions were associated with the entrepreneurs’ effort to master their skills for a circular economy, such as by improving their understanding of the environmental footprint of their business operations, what circular economy solutions can be implemented, their benefits, and how they can be successfully managed. Moreover, it was deemed relevant – to the successful implementation and management of circular economy solutions - for the entrepreneurs to identify and prioritise sustainable promotional channels. Moreover, where necessary, it was highlighted the need to appoint a circular economy manager or extend responsibilities of existing staff, find and access alternative financing options, and support awareness campaigns on the circular economy within the organisation and the destination community. The white paper concluded by suggesting the importance for entrepreneurs to be part of innovative networks and communities which would allow them to gain and share knowledge and implement and manage circular economy solutions at the destination level. Therefore, working together is crucial for a successful circular economy in destinations. This white paper is the last of a series of three white papers published by the 2Seas Interreg project FACET. A First white paper provided recommendations to local authorities on how to support tourism entrepreneurs, and especially SMEs, in the implementation of circular solutions, and a second white paper, mainly targeted towards tourism SMEs presented reward-based crowdfunding as one of the available financing options to fund the implementation of a circular economy in tourist destinations.
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This communication aims to provide a framework on how to integrate the concept of Circular Economy (CE) when addressing real-life urban challenges such as resource scarcity, greenhouse gas emissions, pollution, waste, and high consumerism (Williams, 2019), through delivery of courses to students of various educational backgrounds. As part of the mission of Amsterdam University of Applied Sciences (AUAS) to be at the forefront of promoting sustainability through education and research, the Faculties of Technology and of Business and Economics joined forces to launch a new minor namely Circular Amsterdam: Mission Zero Waste. This minor focuses on the challenges and opportunities towards the circular transition in Amsterdam as well as in other European cities, by applying system level of thinking and real-life practical cases.
CE model is a shift from the traditional linear “take, make, and dispose” way of doing business, to promoting circularity of the waste product through the 3R principles (reduce, reuse, recycle), which is nowadays extended to using 9R principles (0-Refuse, 1-Rethink, 2-Reduce, 3-Reuse, 4-Repair, 5-Refurbish, 6-Remanufacture, 7-Repurpose, 8-Recycle, and 9-Recover) (Potting et al., 2017). Transitioning to CE model needs intervention and multidisciplinary approach at different levels, hence requiring systems level of thinking. This means that technical, organizational, economic, behavioral, and regulatory aspects should be taken into account when designing business models, policies, or framework on CE. In the case of the minor, a system change including the challenges and opportunities needed in the cities, will be approached from different perspectives. In order to do this, the minor requires collaboration on a real-life problem using multiple backgrounds of students that include technical, economic, creative and social domains, as well as various stakeholders such as businesses, policy makers, and experts in circular economy.
This minor will provide in-depth knowledge and skills based on its two tracks. The first track is called Circular Design & Technology. It focuses on the role of technology in CE, technological design, material use, production, use of circular resources in production, and impact analysis. The second track is called Circular Governance & Management. This track focuses on viable business case development, circular supply chain management, finance, regulations, entrepreneurship, and human capital. The focus of this communication will be the second track.
Multidisciplinary teams each consisting of approximately four students will work on different projects. Examples of real-world, practical cases related to Circular Governance & Management track include: (1) development of business models addressing resource shortages and waste in the cities, (2) influencing consumer mindset when it comes to recycling and use of circular materials and products, (3) development of financially viable circular businesses, with due consideration of different instruments such as traditional bank loans, green/social bonds and loans, crowdfunding, or impact investing, and (4) tracking and reporting their sustainability performance with the voluntary use of sustainability metrics and reporting standards in order to better manage their risk and attract capital. These projects are linked to research expertises in AUAS. The course activities include (guest) lectures, workshops, co-creation sessions, excursions, presentations and peer reviews. The learning goals in the Circular Governance & Management track include being able to:
1. Understand the foundations of CE and theory of change;
2. Apply systems thinking to show how different interventions, such as consumer products, logistics models, business models or policy designs, can affect the transition from the existing linear to a CE model;
3. Design an intervention, such as a product, logistic concept, business model, communication strategy or policy design supporting the CE, using students‘ backgrounds, ambitions and interests;
4. Understand the financial and regulatory framework affecting the management and governance of (financially viable) circular businesses, including government incentives;
5. Evaluate the economic, environmental and social impacts of developed intervention design on the city and its environment;
6. Provide justification of students‘ design according to sustainability performance indicators;
7. Collaborate with stakeholders in a multidisciplinary team; and
8. Present, defend and communicate the results in English.
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The construction and demolition is a resource intensive sector, with Construction and Demolition Wastes (CDWs) considered as the largest waste streams accounting for 374 million tonnes in Europe. Although the 70% target for material recovery of CDWs set in the European Union Waste Directive Framework has been achieved by most European countries, the majority of these Circular Economy (CE) practices are through backfilling and downcycling [1]. This poses opportunities for improving the circular practices in CDWs.
With the increasing population and urbanization, cities have important role in realizing the CE ambitions for three reasons. These are (1) CE is incorporated in policy frameworks focusing on closing material loops in production and consumption in cities [2]; (2) City governments have the capabilities and resources to transition towards circularity of CDWs; and (3) City governments serve as the link between various stakeholders such as citizens, companies, and knowledge institutes, and therefore can drive changes towards the city.
This study analyzes how four European cities namely Riga, Tartu, Barcelona, and Kavala use different forms of governance to address the challenges and barriers and ultimately increase the circularity in CDWs. The methodology is qualitative, multiple case study using interviews, city reports, site visits, and validation workshop. Results show that cities deploy various forms of governance to address barriers and speed up the transition to a circular economy. These include contracting waste management companies, collaborating in local and international projects, fines for improper waste separation and illegal dumping, subsidies for recycled materials, and green procurement. Despite the use of different forms of governance, the majority of CE practices in the city are still focus on recycling and recovery, which is the lowest degree of circular practices. There is also an increasing focus on middle-level activities, such as repair and remanufacture, as well as on high-level activities such as rethink and reduce, yet these activities are mostly small scale and experimental. Therefore, cities are still learning on the process and have potential to further explore and integrate higher level circular practices.
The implications of this study for city governments include to (1) set stricter standards for circular procurement, (2) collaborate and establish strategic (long-term) partnerships between universities, citizen groups, NGOs and businesses, and (3) provide creative spaces for developing and implementing circular ideas.
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