{"id":4004,"date":"2024-06-10T11:19:15","date_gmt":"2024-06-10T11:19:15","guid":{"rendered":"https:\/\/verso.de\/blog\/how-the-circular-economy-works-and-what-it-can-achieve-in-germany\/"},"modified":"2026-03-09T09:20:46","modified_gmt":"2026-03-09T09:20:46","slug":"how-the-circular-economy-works-and-what-it-can-achieve-in-germany","status":"publish","type":"post","link":"https:\/\/verso.de\/en\/blog\/how-the-circular-economy-works-and-what-it-can-achieve-in-germany\/","title":{"rendered":"How the circular economy works and what it can achieve in Germany"},"content":{"rendered":"\t
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10.06.2024<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t

How the circular economy works and what it can achieve in Germany<\/h1>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\tCircular economy and circular economy are terms that you come across more and more often in the context of sustainability.\nWhat is behind them, why is the circular economy presented as an important system change and what would it look like in everyday life? \t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\t\n\n\n\t

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Circular<\/span> Economy and circular economy are terms that you come across more and more frequently in the context of sustainability.
\nWhat is behind them, why are <\/span>Circular<\/span> Economy as an important system change <\/span> and what would that look like in everyday life?
\nWe have for you <\/span>a brief insight with the most important topics<\/span> compiled.
\nOne <\/span>really small<\/span>. <\/span>D<\/span>because the <\/span>whole<\/span> is so ramified and comprehensive that we could probably write a whole book about it.<\/span>n could<\/span>nten<\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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Circular economy and circular economy – what are they? <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

Circular economy and circular economy – what are they?<\/span> <\/span><\/p>\n

Let’s start with a classic definition.
\nBecause – spoiler – the terms <\/span>“<\/span>Circular economy” and <\/span>“<\/span>Circular Economy” are often used synonymously, but are strictly speaking different.<\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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Circular Economy<\/span> <\/span><\/h3>\n

Circular economy describes an economic model in which resources and products are used for as long as possible within a closed cycle.
\nOnce they have reached the end of their useful life, they are not simply disposed of, but returned to the cycle – i.e. made usable again. <\/span> <\/span><\/p>\n

The reference point is ISO 59004:2024<\/a>.
\nIt describes the basic principles and concepts of the circular economy, but also provides assistance for implementation in the company.
\nCircular economy is defined here as: <\/span> <\/span><\/p>\n

“Economic system that takes a systemic approach to maintaining the cycle of resources by recovering, preserving or enhancing their value while contributing to sustainable development.”<\/span><\/i> <\/span><\/p>\n

The WWF<\/a>‘s definition is somewhat clearer and more direct: <\/span> <\/span><\/p>\n

“<\/span><\/i>‘<\/span>Circular Economy<\/span><\/i>‘<\/span><\/i> [ist] a regenerative system, powered by renewable energy, which replaces the current linear industrial model <\/span><\/i>‘<\/span>Take – produce – dispose<\/span><\/i>‘<\/span><\/i> replaced.
\nMaterials are instead retained in the economy, products are shared, while waste and negative impacts are avoided.
\nCE creates positive effects and benefits for the environment and society and works within planetary boundaries.
\nIt is made possible by rethinking the current understanding of growth and consumption.” <\/span><\/i> <\/span><\/p>\n

A helpful overview of all relevant standards relating to the circular economy can be found at the German Institute for Standardization (DIN)<\/a>.<\/span> <\/span><\/p>\n

For companies subject to CSRD, ESRS E5<\/a> (Resource use and circular economy) is also important in this context.<\/span> <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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Circular economy<\/span> <\/span><\/h3>\n

“<\/span>Circular economy<\/span>“<\/span> means exactly the same thing in theory.
\nIn Germany, however, the circular economy actually only means avoiding waste: <\/span>“<\/span><\/i>The circular economy within the meaning of [the Circular Economy Act<\/a>] is the prevention and recycling of waste<\/span><\/i>“<\/span><\/i>.<\/span><\/p>\n

If we talk about the circular economy here in Germany, the correct term would be “circular economy”.
\nAfter all, we like to make life difficult for ourselves with unwieldy terms. <\/span> <\/span><\/p>\n

However, when the term “circular economy” is used at EU level (e.g. on the website of the EU Commission or EU Parliament), it always refers to the circular economy in the true sense of the word.<\/span> <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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Why do we need a circular economy? <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

Global consumption of raw materials has tripled since 1970.
\nWe live and do business as if we had unlimited resources at our disposal.
\nEarth Overshoot Day – the day on which all resources are used up globally for the year – is taking place earlier and earlier<\/a>. <\/span><\/p>\n

What is no longer needed is disposed of and replaced by something new.
\nAnd then it disappears from the scene for us.
\nBut it ends up somewhere else.
\nEurope exports around 3,000,000 kilograms<\/a> of plastic waste to countries in the Global South every day.
\nThis is sometimes referred to as <\/span>“Garbage colonialism”<\/span> labeled.
\nAnd it doesn’t stop with plastic.
\nGrowing mountains of old clothes, scrap metal, batteries, tires – our waste is piling up in other parts of the world. <\/span><\/p>\n

On top of this comes the extraction of ever more resources for products that are produced in abundance worldwide.
\nFar too often, extraction and production go hand in hand with environmental damage and the violation of human rights. <\/span><\/p>\n

The CSRD and supply chain directives such as the LkSG<\/a>, CSDDD<\/a>, CBAM<\/a> and EUDR<\/a> are intended to gradually prevent the latter.
\nHowever, what we actually need is a new economic system that tackles the underlying problems at the root. <\/span><\/p>\n

Curtain up for circular economy. <\/span><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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Linear Economy vs. Recycling Economy vs. Circular Economy – from the 3 Rs to the 10 Rs <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

Our current economic system is a one-way street.
\nIt is therefore also known as <\/span>“linear economy”.
\nThere are already initial attempts to counteract the high consumption of raw materials and the throwaway mentality.
\nThe focus here is on <\/span> currently mainly on the so-called 3 Rs:<\/span> <\/span><\/p>\n