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With the global population rapidly increasing, it's become essential to review our current system to adapt to the growing demand for basic goods and decrease the waste that mass production generates.

The circular economy offers an alternative solution to our current model of 'take-make-dispose'. It reduces waste and extraction of raw materials, as resources are continuously reused and repurposed to create new products.

At the same time, digitalisation is progressing rapidly. For the first time, we have the opportunity to scale up circular economy business models swiftly and widely to put us on course for a more sustainable future.

With sustainability becoming a key part of the global agenda, the circular economy is a crucial tool for decoupling economic growth from further unsustainable resource use and increased CO2 emissions. But why aren't more businesses opting for circular business models?

We interviewed 14 EIT Climate-KIC start-ups and innovation projects to learn more about the benefits of adopting circularity, and to better understand the challenges that hinder its uptake.

The study identifies four key drivers in the digital circular space: Technology, market structure, policy and skills, and knowledge - evidenced by the real-world experience of our partners. Their insights reveal tremendous opportunities, but also expose the systemic barriers which need to be addressed before we can fully benefit from the potential of innovative circular business models.
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How can digitalisation unlock the potential of the circular economy?

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With the global population rapidly increasing, it's become essential to review our current system to adapt to the growing demand for basic goods and decrease the waste that mass production generates. The circular economy offers an alternative solution to our current model of 'take-make-dispose'.

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Digitisation and the Circular Economy: A Review of Current Research and Future Trends

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Digitisation and the Circular Economy: A Review of Current Research and Future Trends

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The digital circular economy:can the digital transformation pave the wayfor resource-efficient materials cycles?

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The digital circular economy:can the digital transformation pave the wayfor resource-efficient materials cycles?

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Totti Könnölä defends the role of 'big data', industry 4.0 or the economy and collaborative platforms as spurs to achieve economic and environmental sustainability.

A total of 16 tons. That is the amount of materials that each European consumes during a year. Of them, six tons end up turned into waste. And, of these, around 50% end up forgotten in a landfill with the consequent environmental impact and for the health of all.

This is an untenable situation for anyone with some common sense and who has driven political efforts of various kinds (recycling, restrictions on industrial waste, ...), BUT often without addressing the root of the matter: the real nature of products and how they are generated, consumed and reused. We better talk about designing products thinking of their future beyond the life-cycle. To change our mindset from a model with beginning and end, to another where there are no extremes and everything flows forever.

"What we have now is a totally linear value chain, in contrast to what is being proposed by the circular economy: a systemic change that will allow us to reuse the products to create new ones and thus close the entire life cycle of the goods. ", Says Totti Könnölä, executive director of the Insight Foresight Institute. This man, whose life is halfway between Finland and Spain, is a recognized expert in innovation and sustainability.

The reason that the circular economy has not been firmly committed is that "typical chains have many actors and each of them seeks to optimize its business, but only does so with its share". That inevitably results in a problem that is not technical (the recycling of materials takes years), but a business model. "The question is mainly organizational. Even in many cases, the waste is separated and then it ends up coming together again because it can not be used," says Könnölä in an interview with INNOVADORES held at the Ramón Areces Foundation.

Faced with this panorama, marked by the dissonance between theory and practice, we asked Könnölä about the disruptor that makes this philosophy take off once and for all, not from production, but from survival as a species. "Digitization is key. Thanks to trends such as big data, we can take full traceability of the materials, know what their history is and how we can make better use of them, "he explains.

"concepts such as the collaborative platforms [e.g. Airbnb] allow better use of existing resources, avoiding the production of more goods than necessary. In addition, digitalization also facilitates that many products that were previously bought and sold, are now marketed as a service. By controlling the whole life cycle of the product, companies can design for future recycling or perform a more efficient preventive maintenance that reduces the need for spare parts.

Betting on the circular economy is the simplest solution to avoid reputational potholes derived from the purchase of materials (such as metals or minerals used in electronics) to countries in conflict, while reducing installed volatility in the commodity markets.

The platforms, adds this guru of the second opportunities, are especially interesting because, "as has happened with the music industry, intermediaries are removed from the chain, causing the different agents to abandon their traditional roles to connect or even be themselves both the producers and consumers of the same good ".

Some meeting points between two vertices can also be extended to the less glamorous area of ​​waste. "In Atlanta (USA) they have created a platform to coordinate the collection of garbage and make matching with companies that can take advantage of it. That is to make an innovative use of waste. turning the problem of garbage into tremendous opportunities ". If we add to this equation the 4.0 industry and its capacity to personalize products and adjust the use of materials to the maximum, we have the perfect bases to make the circular economy a reality.

The interview available in English in El Mundo.

Find out also about our training on platforms.

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Digitalisation as the gear for circular economy

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A total of 16 tons. That is the amount of materials that each European consumes during a year. Of them, six tons end up turned into waste. And, of these, around 50% end up forgotten in a landfill with the consequent environmental impact and for the health of all.

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When talking about the circular economy, the role of digitalisation is almost always mentioned. The deployment of digital solutions may reduce the use of resources and facilitate the implementation of circular economy systems. However, as yet not much research has been done on how digitalisation enables the transition to a circular economy in practice. The CloseLoop strategic research project of the Academy of Finland systematically assesses challenges associated with the development of new business models, and brainstorms new circular economy business models and concepts for Finnish companies. These concepts are developed and tested in collaboration with companies and stakeholders, including end-users and consumers.
Digitalisation may provide assistance for achieving three objectives of the circular economy. The digitalisation of the industrial sector increases resource efficiency, helps to close the loop of material cycles and contributes to keeping materials in use for a longer time. Intelligent solutions enable, for example, the reduction of energy consumption, optimisation of logistics chains and more efficient use of capacity. Digitalisation can be used to gain access to material-specific data and resource consumption, which enables the product life cycle to be optimised for circular economy solutions. Good examples of this include Resq Club and Lunchie, which offer restaurant food for consumers through a digital platform. They reduce food waste by providing an easy way to buy food that would otherwise go to waste. eRENT offers companies a platform for the digital sharing and tracking of machines and devices, making it possible to improve their usage rates.

Circular economy systems with interconnected cycles often contain large amounts of data. Digitalisation offers new ways to collect and use it in real time. This data can be put to use when decisions need to be made about the phases of the product's life cycle, reuse of waste materials, logistical arrangements and the operators needed in the value network. For example, Konecranes offers warehouse management as a service that includes remote monitoring and preventive equipment maintenance and advanced digitalisation, enabling the monitoring of the entire supply chain. The solution allows Konecranes customers to efficiently provide their suppliers with information on warehouse usage levels.

In the circular economy, the coordination of materials and information flows is of crucial importance. Information on the quantity and quality of products and the raw materials they contain must be collected, stored and used efficiently. It must be possible to do this in a reliable and transparent manner, for which such methods as block chain technology may provide a solution. Digital technologies enable data storage combined with materials and the use of waste as a resource.

Digitalisation comes with a lot of challenges

The key challenges of digitalisation are related to business models, data ownership, data sharing, data integration, collaboration and competence. Issues related to the availability and ownership of data are of crucial importance. There are also challenges related to the sharing of data between competitors, protection of privacy, the IPR rights and confidence building. Integration of the large amounts of data owned by various operators is also needed, because the management of data flows is also a big challenge.

Other important issues include the organisation of cooperation between different partners, the definition of joint processes, search for suitable partners and pooling of different areas of competence. The pooling of the competences in information and communication technology and sustainable development also has its own challenges. At the moment, many organizations lack sufficient competence related to the basic concepts of the circular economy and sustainable business models.

Hackathons, training and research projects promote cooperation across disciplines

Cooperation, networking, increased transparency and the provision of information are key methods for promoting digitalisation. Collaboration can be practiced by sharing expertise between organisations and pooling competences between different actors. The operators should come from different fields and include both small and large organisations. In training, the cooperation between schools and enterprises could be increased. Various competitions and hackathons could be increasingly used for cooperation purposes. Participation in research and development projects is also a good way of creating cooperation networks.

It is important to involve consumers or end-users in the planning and implementation of a service, because consumers themselves function as service providers in many services that use platforms. In such a case, getting a critical mass involved in the process from the outset is of paramount importance, and the service must offer a first-rate solution to consumer needs in terms of both attractiveness and usability. One example is Zadaa, which provides consumers with a mobile application that makes it easy to put used clothes up for sale and to find clothes that fit. Digital solutions make it possible to reach consumers and end users in a more efficient way than before. It is important to note that instead of the earlier one-way communication, the solutions needed today must allow end-users to give feedback on products and services.

Read more: www.closeloop.fi

Principal Scientist
maria.antikainen(a)vtt.fi
@MariaAntikainen

Teuvo Uusitalo
Senior Scientist, VTT
teuvo.uusitalo(a)vtt.fi
@TeuvoU

Under the theme "Digitalisation as enabler of the circular economy", we organized a workshop at the From Waste to Valuables event held at the Hotel Torni of Tampere on 23 November 2017. It was attended by 62 representatives of business and research organisations. The workshop presented three innovative examples in which digitalisation forms an essential part of the operations: Uusioaines Oy, Hiedanranta and Resq Club. We discussed in small groups how digitalisation contributes to the circular economy, what challenges this entails and how they can be solved

Find out more on VTT's AI pages here:
https://www.vttresearch.com/services/artificial-intelligence-ai/

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Digitalisation accelerates the circular economy

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When talking about the circular economy, the role of digitalisation is almost always mentioned. The deployment of digital solutions may reduce the use of resources and facilitate the implementation of circular economy systems. However, as yet not much research has been done on how digitalisation enables the transition to a circular economy in practice.

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Organisasjon som jobber med sirkulærøkonomi i Norden

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I Norden er det en variabel grad av sirkulærbar modenhet. har tatt mål av seg å bli verdens første sirkulære nasjon innen 2020 - og har per i dag 100 pågående pilotprosjekter innen offentlig- og privat sektor. I sommer fikk den danske regjeringen utlevert en liste med 27 konkrete punkter fra en gruppe ledende aktører innen dansk næringsliv. Arbeidsgruppen var ledet av Carlsbergfondets styreleder, Flemming Besenbacher - som i ett år jobbet med en spesifikk kravliste overfor danske myndigheter for å legge til rette for en mer sirkulær tankegang i næringslivet. I Sverige har store kommersielle aktører som Ikea og H&M gått foran og kommet langt innen sirkulærøkonomien. Svenske myndigheter har også foretatt en større utredning for å gå gjennom regelverk og rammebetingelser som står i veien for en sirkulær overgang.
Sirkulærøkonomi i Norge
I Norge sier regjeringen at vi skal bli et foregangsland innen grønn sirkulærøkonomi. I januar 2018 la regjeringen frem en politisk plattform for de neste fire årene for å bygge et bærekraftig velferdssamfunn og omstille norsk økonomi for å skape vekst, nye arbeidsplasser og sikre flere ben å stå på. Circular Norway er en bransjeorganisasjon som skal samle og bidra til å sette Norge på kartet.

For vi henger etter på noen områder i forhold til våre naboland. I Norge har aktører innen avfallsindustrien kommet langt, mens det står dårligere til i andre deler av næringslivet.

Circular Norway vil være det grønne skifterommet for å øke kunnskapen om sirkulærøkonomi, bygge fellesskap og jobbe frem sirkulære forretningsområder for å få norske virksomheter til å lykkes med en overgang til sirkulærøkonomi.

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Sirkulærøkonomi i Norden - Circular Norway

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I Norden er det en variabel grad av sirkulærbar modenhet. har tatt mål av seg å bli verdens første sirkulære nasjon innen 2020 - og har per i dag 100 pågående pilotprosjekter innen offentlig- og privat sektor. I sommer fikk den danske regjeringen utlevert en liste med 27 konkrete punkter fra en gruppe ledende aktører innen dansk næringsliv.

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Bakgrunn om sirkulær økonomi, verktøy og mange eksempler

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The circular economy is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources.

The circular economy is based on three principles, driven by design:

Underpinned by a transition to renewable energy renewable energy circular economy circular economy Energy derived from resources that are not depleted on timescales relevant to the economy, i.e. not geological timescales. and materials, the A systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. is a resilient system that is good for business, people, and the environment.

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.

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.

A way to transform our system

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.

How the circular economy works

Get the basics or explore the circular economy in detail.

Circular economy principles

A circular economy is based on three principles, all driven by design.

Circular economy examples

See 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.

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Definition and principles of the circular economy model. Find out why it's much more than recycling and how companies are creating circular economy products.

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Forretningsmodeller for en sirkulær økonomi

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Forretningsmodeller og eksempler av mange prosjekter som støtter en sirkulær økonomi

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The resource revolution is on it's way. This grid aims to inspire businesses to reconceive how they operate and to become more future proof. To grab the opportunities of a sustainable future, innovations need to introduce environmental and social considerations at the core of the business model.

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Hvordan å designe (for) en sirkulær økonomi

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What if you could redesign everything? The Circular Design Guide is a collaboration between IDEO and the Ellen MacArthur Foundation. It's an action-oriented set of methods, mindsets and thought starters to help innovators design circular solutions that are fit for the future.