Explaining the circular economy: re-thinking progress
Watch our beginner's guide to understanding how a circular economy works.
In our current economy, we take materials from the Earth, make products from them, and eventually throw them away as waste – the process is linear. In a circular economy, by contrast, we stop waste being produced in the first place.
It is underpinned by a transition to renewable energy and materials. A circular economy decouples economic activity from the consumption of finite resources. It is a resilient system that is good for business, people and the environment.
The circular economy is a systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution.
We must transform every element of our take-make-waste system: how we manage resources, how we make and use products, and what we do with the materials afterwards. Only then can we create a thriving circular economy that can benefit everyone within the limits of our planet.
What will it take to transform our throwaway economy into one where waste is eliminated, resources are circulated, and nature is regenerated?
The circular economy gives us the tools to tackle climate change and biodiversity loss together, while addressing important social needs.
It gives us the power to grow prosperity, jobs, and resilience while cutting greenhouse gas emissions, waste, and pollution.
Get the basics or explore the circular economy in detail.
A circular economy is based on three principles, all driven by design.
We need to consider waste and pollution as design flaws rather than inevitable by-products of the things we make. By changing our mindset and harnessing new materials and technology, we can ensure they’re not created in the first place.
Read: Eliminating wasteWe can design products to be reused, repaired, or remanufactured. But making things last forever isn’t the only solution. When it comes to products like food or packaging, we should be able to keep them in circulation, so they don’t end up in landfill.
Read: Circulating materialsThere’s no concept of waste in nature. Everything is food for something else – a leaf that falls from the tree feeds the forest. By returning nutrients to the soil and other systems, we can enhance natural resources.
Read: Regenerating natureSee the circular economy in action with these case studies from brands, businesses and policy makers.
Working with nature to make food last longer
Apeel is a company that has come up with an innovative way to eliminate single-use shrink wrap plastic packaging on fresh fruit and veg, while at the same time tackling food waste.
Apeel is a layer of edible, plant-based coating applied to fresh products that mimics and enhances the natural defences of fruit and vegetables. This slows down the two main things that cause spoilage – water loss and oxidation.


Use our practical tools and resources to put circular principles into practice and find courses and materials for learners and teachers.
The Ellen MacArthur Foundation works to accelerate the transition to a circular economy. We develop and promote the idea of a circular economy, and work with business, academia, policymakers, and institutions to mobilise systems solutions at scale, globally.
Charity Registration No.: 1130306
OSCR Registration No.: SC043120
Company No.: 6897785
Ellen MacArthur Foundation ANBI RSIN nummer: 8257 45 925
The work of the Ellen MacArthur Foundation is supported by our Strategic Partners and Partners.