The circular economy is no longer a theory, there are many examples of how it is changing the world right now. Below are six fascinating examples of the circular economy in action.
The concept of a circular economy has rapidly moved from the margins to the mainstream, becoming essential to addressing global challenges like climate change, biodiversity loss, and resource depletion.
As Europe and the UK position themselves at the forefront of this transformation, practical examples are emerging across various sectors, demonstrating significant environmental and economic benefits.
In March 2020, the European Commission adopted the Circular Economy Action Plan (CEAP), an integral component of the European Green Deal. This ambitious plan targets the entire lifecycle of products – from design and manufacturing to consumption and disposal.
The CEAP aims to establish sustainable product norms, empower consumers, minimise waste, and ensure resource retention within the EU economy. Key sectors, such as electronics, textiles, plastics, construction, and vehicles, are specifically targeted due to their high potential for circular innovation.
The EU’s transition to a circular economy is foundational for achieving its 2050 climate neutrality goal and addressing biodiversity loss. By encouraging resource efficiency, reuse, recycling, and sustainable practices, the EU hopes to set a global example and position itself as a leader in circular economy practices.
Parallel to EU initiatives, the UK has made significant commitments toward fostering a circular economy. Environment Secretary Steve Reed recently highlighted the importance of transitioning away from Britain’s traditional “throwaway” culture.
Speaking at a recent industry gathering, Reed emphasised that adopting circular economy practices is essential to spur innovation, strengthen supply chains, and reduce environmental impact.
The UK Government has established the Circular Economy Taskforce to identify strategies within five key sectors: textiles, transport, construction, agri-food, and plastics. By creating tailored roadmaps for each sector, the taskforce aims to facilitate sustainable growth and net-zero emissions.
So, how has this policy landscape helped develop the circular economy around the globe? Check out these six fascinating examples of the circular economy in action below.
Built Environment – Copenhagen’s Green-Blue Infrastructure
In July 2011, Copenhagen faced an unprecedented climate crisis – a catastrophic flood that inflicted around €1 billion in damages.
This event catalysed an ambitious climate adaptation strategy emphasising nature-based solutions. Copenhagen’s response has revolutionised urban water management through green-blue infrastructure, significantly reducing flood risk while simultaneously enhancing urban liveability.
Copenhagen implemented an extensive network of parks, wetlands, and permeable surfaces to manage stormwater naturally, easing pressure on traditional sewage infrastructure.
These interventions created new habitats, boosted biodiversity, improved air quality, and enhanced the city’s aesthetic appeal. Analysis demonstrated that such nature-based solutions reduced mitigation costs by over $200 million compared to traditional infrastructure.
This approach fostered cross-sector collaboration, uniting municipalities, utilities, and citizens. Inspired by Copenhagen, cities worldwide, including New York City, are adopting similar green infrastructure strategies, recognising the dual benefits of climate resilience and improved urban environments.
Automotive – Riversimple’s Hydrogen-powered Rasa
UK-based Riversimple exemplifies circular economy principles in the automotive industry. Established in 2007, Riversimple confronts traditional auto industry wastefulness through radical innovation in technology and business models.
Its hydrogen-powered car, Rasa, embodies a zero-emission vision, achieving minimal environmental impact and drastically reduced resource usage.
Riversimple’s business model is distinctive – vehicles are leased, not sold, and customers pay based on mileage. This approach incentivises the creation of durable, long-lasting vehicles designed for continual reuse.
The car itself incorporates lightweight carbon-fibre components, regenerative braking, and a small hydrogen fuel cell, drastically reducing energy consumption.
Additionally, Riversimple’s governance structure uniquely aligned interests among stakeholders, including customers, suppliers, and the environment. Decisions require unanimous stakeholder approval, promoting sustainability and efficiency.
This holistic approach has positioned Riversimple as a pioneer in sustainable mobility, offering a replicable template for the automotive industry’s circular transformation.
Fashion and Textiles – Teemill’s Circular Supply Chain
The fashion industry’s reputation for wastefulness and environmental harm is undergoing a profound transformation through circular economy initiatives like Teemill, established in 2009 on the Isle of Wight.
Teemill’s revolutionary circular supply chain creates t-shirts on demand, minimising waste and resource usage at every production stage.
From organic cotton farming using rainwater irrigation and chemical-free pest control to efficient production processes powered by renewable energy, Teemill’s model prioritises environmental sustainability.
The brand’s real-time manufacturing strategy eliminates surplus inventory and waste by only producing items after purchase.
Teemill’s innovation extends to product lifecycle management, with garments designed to be returned for recycling into new apparel.
Customers participate actively by scanning QR codes to facilitate garment return, receiving credit for future purchases, effectively turning consumers into contributors to sustainability.
Teemill’s approach democratises access to sustainable practices, providing open access to its circular supply chain technology, enabling thousands of brands to adopt similar strategies without upfront costs.
City of Phoenix and Arizona State University – Collaboration Towards a Circular Economy
Since 2011, the City of Phoenix and Arizona State University (ASU) have partnered to accelerate the city’s transition to a circular economy.
The collaboration, initially driven by applied research and later evolving into implementation-focused pilot projects, has played a pivotal role in doubling Phoenix’s waste diversion rate in six years.
Mayor Greg Stanton’s 2015 launch of “Reimagine Phoenix: Transforming Trash into Resources” set a goal of 40% waste diversion by 2020. To support this, the city formalised its partnership with ASU’s Rob and Melani Walton Sustainability Solutions Service. ASU also introduced the Resource Innovation and Solutions Network (RISN) to connect stakeholders and remove barriers to circular economy solutions.
ASU’s Circular Living Lab (CLL) emerged to test small-scale plastic recycling and remanufacturing across ASU’s 500-building campus. This interdisciplinary lab pilots grassroots models to convert plastic waste into new products – lessons from which are now being scaled up.
By 2020, Phoenix achieved a 38% waste diversion rate. The partnership fostered business development, job creation, and enhanced community engagement. RISN also launched an incubator in 2016, supporting 19 circular startups that generated USD 4.14 million in revenue, created 68 jobs, and filed 14 patents.
Challenges included bureaucratic hurdles, limitations on seed funding, and unreliable feedstock data, prompting more data-driven planning and broader cross-jurisdictional collaboration. A dedicated project manager at both the City and ASU helped the partnership remain agile and aligned.
Circular by Design – Signify’s Lighting-as-a-Service
Signify, formerly Philips Lighting, exemplifies circular design through its innovative Lighting-as-a-Service (LaaS) model. Rather than selling lighting products, Signify offers managed lighting services to commercial and public-sector customers who pay monthly for usage, not ownership.
This model incentivises Signify to design durable, modular lighting fixtures that are easy to maintain, repair, and eventually recycle. By maintaining ownership, Signify ensures materials remain in use longer, significantly reducing waste.
Signify’s lighting systems incorporate IoT and AI technologies, optimising efficiency and energy usage, leading to substantial savings. Notably, Schiphol Airport achieved a 50% reduction in energy consumption under the LaaS model.
The LaaS model eliminates upfront costs for customers, promoting broader adoption. This innovative business approach conserves resources, reduces environmental impact, and exemplifies how circular economy principles can be seamlessly integrated into established industries.
Incentivising Reuse – Mud Jeans’s Plan to Close the Loop on Denim
MUD Jeans are another strong example of the textile circular economy in action. Their business model is built around durability, reuse, and recycling, with a unique leasing system that encourages customers to return old jeans rather than discard them.
These returned jeans are then either resold as vintage or broken down and used to create new denim products, reducing the need for virgin materials.
By designing for longevity and closing the loop on production and consumption, MUD Jeans demonstrates how fashion can shift toward a more sustainable, circular future. Mud Jeans founder Bert Van Son will be speaking at this year’s Festival of Circular Economy.
From Vision to Reality
Europe and the UK are setting precedents that inspire global change, proving that sustainability and economic growth can coexist harmoniously.
The transition to a circular economy is more than an environmental imperative – it represents a strategic economic opportunity, enabling industries to innovate sustainably, create new jobs, and drive meaningful progress toward global climate goals.
To better understand how these strategies are being put into action – and to learn from innovators like the above are shaping the future of sustainability – the Festival of Circular Economy offers a vital opportunity.
This three-day event combines virtual sessions with an in-person gathering, facilitating a dynamic exchange of ideas and fostering collaborations aimed at accelerating the transition to a sustainable, net-zero future.
Day 1: Online – May 20: The inaugural day focuses on “Unleashing the Power of Design for Circularity.” Sessions will delve into how innovative design principles can drive circular economy initiatives, emphasising the role of design in resource efficiency and sustainability.
Day 2: Online – May 21: The second day centres on “Circular Business Models and Innovation,” exploring transformative business strategies that prioritise sustainability, such as product-as-a-service models, reverse logistics, and closed-loop supply chains.
Day 3: In-Person – May 22: The final day transitions to an in-person format at Second Home Spitalfields, London. This day emphasises a UK-focussed day of networking and collaboration, offering attendees the opportunity to engage directly with speakers, participate in co-labs and idea-sharing sessions, and build partnerships.
The practical implementations set to feature at the Festival of Circular Economy will demonstrate tangible successes, highlighting the economic and environmental benefits of circular strategies as well as serving as powerful blueprints for future innovations.
