Ecoloop

CIRCULAR ECONOMY MODELS

Business models for circular economy

The closed-loop economy model, also referred to as the circular economy model, operates on the principle of minimizing resource waste and waste generation. In this model, the necessity for extracting new natural resources is minimized, and all products, materials, and waste are regarded as valuable resources, being maximally utilized rather than being disposed of in landfills.

Business models for a circular economy (GOZ) are becoming increasingly important in the face of growing pressure on natural resources and the necessity to reduce greenhouse gas emissions.

There are several different business models that can be applied in a closed-loop economy to promote sustainable development and minimize environmental impact. Their selection depends on the industry and type of business, but all of them focus on minimizing resource consumption, reducing waste generation, and promoting sustainable resource utilization.

Product as a Service (PaaS) model, where customers pay for the usage of the product rather than its ownership;
Remanufacturing model involves restoring products to their original condition and reselling them ;
Service and Maintenance Model for products, emphasizing repair and maintenance services instead of selling new products;
Barter model facilitating the exchange of products for other goods o or services;
Resource or service-sharing model;
Circular model based on the closed-loop principle of resource circulation, where products and materials are consistently repaired, reclaimed, and reused instead of being sent to landfills;
Model based on recycling raw materials or creating products from recycled materials.