CIRCULA

R
ECONOM
Y
PRESENTED BY:
MR. DEEPAK AGRAWAL
(2022RME9070)
MR. PRAVEEN KUMAR
(2022RME9073)
 What is Circular Economy
Definition of Circular Economy
Linear to Circular Economy
TABLE OF Ladder of Circularity– 10 R's 
CONTENT Solving the 3Cs
S Types of Waste Eliminated
Emerging business Models in Circular Economy
Illustrative Circular Economy Initiatives- Case Studies
Circular Economy in India
Benefits of Circular economy
 “Exploiting of the nature is a crime but milking of the
nature by humans is a right.”
Honorable Prime Minister of India, Shri Narendra Modi 

"Vasudhaiva Kutumbakam"
One earth - One family - One future 
G20 Summit, India ,2023
WHAT IS CIRCULAR ECONOMY
• Cycles, such as of water and nutrients, abound in nature —
waste becomes resources. It’s a central tenet of Hindu
philosophy too – all life goes through the cycle of samsara,
birth, life, death and rebirth. Yet humans have strayed from
nature’s cycles: We make, use, dispose. 
• The Circular Economy seeks to mirror the cycles of the natural
world. Reuse what we can, recycle what can't be reused, repair
what is broken, remake what can't be repaired.
• Circular goods are essentially reborn at the end of their lives as
resources for others, closing industrial loops and minimizing
waste.
DEFINITION OF CIRCULAR ECONOMY
In 2021, the European Parliament defined, "The circular economy is a model of
production & consumption, involving sharing, leasing, reusing, repairing,
refurbishing and recycling existing materials and products for as long as
possible. It implies reducing waste to a minimum and extending the life cycle of
products.

“Circular Economy as a regenerative system in which resource input and waste,

emission, and energy leakage are minimized by slowing, closing, and narrowing
material and energy loops. This can be achieved through long-lasting design,
maintenance, repair, reuse, remanufacturing, refurbishing, and recycling” [1]

Emphasized the need to combine a longevity-based (i.e., length of resource

utilization through initial-use, refurbishment, and recycle) metric with the material-
recirculation-based metrics. [2]
LINEAR TO CIRCULAR ECONOMY

DEFINITION OF
CIRCULAR ECONOMY
SOLVING THE 3C'S: THE WAY FORWARD FOR THE CIRCULAR
ECONOMY

Convenience:-
•Quality
•Functionality
Cost
•Value for Money
Consciousness
•Awareness on climate
issues
TYPES OF WASTE ELIMINATED

• Wasted resources - Material and energy that cannot

effectively be regenerated over time 
• Wasted capacities - Products and assets that are not utilized
fully 
• Wasted lifecycles - Products reaching end of life prematurely
due to planned obsolescence or lack of second life options
• Wasted embedded values - Components, material and
energy not recovered from waste streams 
EMERGING BUSINESS
MODELS IN
CIRCULAR ECONOMY

• Recovery & Recycling

• Product Life
Extension
• Sharing as a Service
• Product as a Service
RECOVERY & RECYCLING
• Extracting value from end-of-life products: 71% of Nike shoes
have material made from waste products.
• Extracting residual value from waste products: . Japan plans to
manufacture gold, silver and bronze medals for the 2020 Olympics
games by extracting precious metals from the electronic waste.
• Can be achieved through initiatives such as
• Recycling, upcycling
• Industrial symbiosis
• Downcycling
PRODUCT LIFE EXTENSION
• Build to last: This involves creating high quality durable products
charging the customers either a premium or using alternate
revenue models like pay per use.  Longer lifespan Products as
stainless steel utensils
• Refurbish: This model entails restoring products to an almost
original state or remanufacturing them in industry-setting.  OLX,
Quickr, and Amazon, which offer refurbished electronic items
• Trade-in: Setting up reverse logistics to take back pre-owned
goods for trade and reselling. 
 PRODUCT LIFE EXTENSION

• Upgrade: This involves adding new features and functionalities,

keeping the core product the same. 
• Refill: Replacing the functionality that may have
depleted/degraded faster than the core product. 
• Repair: This is the simplest model, involving fixing broken
functions to extend product longevity.
• Servify and Onsitego, which provide trade-in, repair, and
refurbishment for electronic items. 
•
SHARING AS A SERVICE

• Co-access or co-utilization.
• Consumer-focused businesses include platforms that allow C2C
(customer to customer) sharing. 
• Examples of some start-ups include Ola, Uber, BlaBlaCar.
• B2B: This is especially useful for businesses with expensive
assets and low utilization rates.
 PRODUCT AS A SERVICE
• Pay for use: Customers buy a product's output rather than the
product and pay based on a metric which measures usage such as
miles driven, hours used etc. 
• Leasing: Customers buy contractual rights to use a product over an
extended period and exclusive access, without transfer of
ownership. 
• Rental: Customers buy rights to use a product over a short period of
time. 
• Performance agreement: Customers buy a pre-defined service and
quality level with companies guaranteeing achievement for a specific
tangible result.
PRODUCT AS A SERVICE
• This model follows the principle of reduce waste and pollution.
• It aims to tap the shift in consumer behavior towards “access-over-ownership.” 
• In this model, the manufacturers bear the total cost of product ownership,
offering it to customers as a service. The customers become users rather than
product owners. Consumer-focused businesses include asset leasing companies
and subscription-based companies. 
• Examples of some startups include Revv and Zoomcar, which allow users to take
assets on lease for an extended period.
• Additionally, some OEMs such as Nissan and Volkswagen offer direct leases to
consumers. It is a win-win situation for both companies as well as customers.
The companies gain a new revenue stream while customers realize significant
cost savings, superior performance, and reduced risk of ownership.
ILLUSTRATIVE CIRCULAR ECONOMY
INITIATIVES – CASE STUDIES
 CREATE ADDITIONAL INCOME FROM THE
EXISTING PRODUCTS AND PROCESSES (TATA
PROFILE, TATA MOTORS)
• The company Tata Prolife, a pioneering after-
market product support strategy for Tata Motors'
customers. Use of Tata Motors Prolife aggregate
ensures original equipment-like-performance of
the vehicle even after the first life cycle.
• The ambition is to minimize the product life cycle
cost, allowing the company to offer high quality
products at a reduced price
• Tata Motors reused products from engine long
blocks, gear boxes, turbo chargers and air
compressors to electrical components such as
starter motors and alternators. Tata Motors
business reconditions about 23,000 equivalent
engines in a year.
INNOVATION OF NEW PRODUCTS AND
SERVICES (LYFT)
• Launched in 2012, Lyft is the first peer-to-peer
ridesharing platform.
• The company recognized the underused capacity of
personal vehicles on the road as an opportunity for
direct transportation services at a fraction of the cost of
taxis while providing income to drivers.
• Lyft launched Lyft Line in 2014, an additional service
that uses a real-time on-demand ridesharing model to
maximize every seat in the car.
• Lyft aims to shift society’s perception from “needing a
car” to “needing a ride.”
• Demonstrating successful implementation of the
sharing economy through turning products into
services. And had 162.5 million rides in 2016, three
times the amount in 2015.
REDUCE OPERATING COSTS (RENAULT,
FRANCE)
• Renault has implemented circular strategies at
all stages of the vehicle life cycle.
• In 2008, Renault entered a joint venture with
SUEZ to acquire 100% of vehicle recycling
services.
• The objective of the partnership was to recover
95% of all end-of-life vehicles addressing the
European Community.
• The large amount of recycled plastics
reintroduced into the system saves between 10%
and 15% of the cost virgin material.
• Simultaneously, Renault is increasing recycled
content in its vehicles, achieving over 32% by
2016.
ENGAGE CUSTOMERS AND EMPLOYEES
(DOW CHEMICAL'S PACKAGING GROUP ,
US)
Dow Chemical’s packaging group has observed that:
• 84% of students would choose to work for a company with good
environmental practices.
• 44% of students are willing to accept a lower salary to work for a
company with better environmental practices.
• Companies who can demonstrate that employees can contribute to
corporate sustainability programs that create positive change.
• New recruits are often some of the most enthusiastic and
innovative employees in helping Dow achieve its 2025 Sustainability
Goals.
 DISTINGUISH FROM COMPETITION
(TERRA CYCLE, US)
• Terra Cycle has cemented a market niche as the
company that can recycle anything.
• The company has found those opportunities in the
most difficult to recycle products, including cigarette
butts and chewing gum.
• Since 2012, Terra Cycle has worked with
municipalities to implement Cigarette Waste
Recycling Programs across 363 cities, diverting over
75 million tons of cigarette waste from landfill.
• Collected cigarette butts, filters and packaging are
manufactured into industrial products like plastic
pallets.
• Their innovative business model to solve the circular
economy’s biggest challenges distinguishes them
from other recycling and resource management
companies.
DISTINGUISH FROM COMPETITION
(DSM-NIAGA, NETHERLANDS)
• Carpet is not easily recyclable due to
challenges in deconstruction and material
blends.
• DSM recognized the risk associated with
the current carpet life cycle and identified
how it could turn it into an economic
opportunity.
• In partnership with Niaga, DSM
redesigned carpet manufacturing.
• DSM-Niaga used its technology to create a
100% recyclable carpet product with no
Volatile Organic Compounds (VOCs).
 DISTINGUISH FROM COMPETITION (DSM-
NIAGA)
• This product differentiates from others based on characteristics that allow
manufacturers to easily separate the carpet fibre and backing without
compromising the quality of the original product.
• Additional Benefits: no water use and 85% energy reduction during the
lamination step in production, reduced product weight, easier installation and
maintenance, as well as better fire safety and indoor air quality.
• DSM-Niaga sees the potential of this technology extending beyond carpets to
other products like car mats and diapers.
• DSM-Niaga Technology enables simple recycling through DSM engineered
adhesive technology, which replaces energy-intensive process.
ALIGN WITH CORPORATE STRATEGY (M-
JUNCTION, INDIA)
• In 2001, Tata Steel and SAIL established a joint
venture called mjunction services limited.
• mjunction has become the world’s largest
eMarketplace for steel and India’s biggest B2B
eCommerce company.
• mjunction sells hazardous wastes like batteries,
e-waste, coal and chemicals.
• For the last five years, mjunction has facilitated
the sales of approximately $900M USD worth of
hazardous materials.
• mjunction has increased its business volumes
from $13.8M USD in 2002 to $10.27B USD in
2016.
 CIRCULAR ECONOMY OPPORTUNITY IN
INDIA

• Rising material use and economic development in India 

CURRENT RESOURCE CONSTRAINTS IN INDIA – AN
ILLUSTRATION
Overview of strained metal supply in India [4-8]
Metal Overview of current supply constraint
Rare India is 100% import dependent on China for 7 out of 12 rare earth elements deemed
earths most critical for the economy

Iron Ore In 2015, India's iron ore production (142.5mn tons) lagged its total demand (147.8mn
tons), thereby making a net importer of iron ore

Steel According to National Steel Policy 2017, the domestic per capita steel consumption may
increase to kg by 2030. To meet the rising demand, the policy aims at increasing crude
steel capacity to 300mn tons (from 122mn tons in 2016) through an investment of INR
10 lakh crores
Copper India currently accounts for 4% share Of global copper demand. However, it accounts
for
just 2-3% Of the world's copper reserves and mining production is 0.2% Of world
production
Gold In 2017, India's annual gold demand was 727 tone in comparison to its annual
production of 1.5 ton
CIRCULAR ECONOMY RELATED REGULATIONS IN INDIA [9-11]
Regulations Key Highlights
The rules mandate producers and brand owners to introduce collect back systems as
per extended producer responsibility
Minimum thickness of plastic bags increased to reduce free distribution by retailers
and facilitate collection and recycling
Plastic Waste The rules also ban the manufacture of multi-layer plastic (non-recyclable or non-
Management Rules, 2016 and energy recoverable or with no alternate use) packaging and lay down penalties on
Plastic Waste Management their manufacture or use by retailers
(Amendment) Rules Introduction of plastic waste management fee through pre-registration of the
producers, importers and vendors
The rules lay the responsibility of collection and recycling of e-waste generated
E-Waste Rules, 2016 during manufacture of any electrical/electronic equipment on the manufacturer
The responsibility of producers is extended through an EPR to collect EOL E-Waste
and properly store, transport and treat it before recycling or disposal
Consumers need to properly segregate and dispose the e-waste generated by them
Construction &Demolition Require 'local bodies to utilize 10-20% material from construction and demolition
Waste Management Rules waste in municipal and government contracts
2016
Upcoming Metals Recycling The government has proposed setting up of 5 scrap-based steel plants with an
Policy investment of 500 crores in the coming year
"If You think you are too small to make a
difference, try sleeping with a mosquito"
Dalai Lama
REFERENCES

[1] Geissdoerfer, M., Savaget, P., Bocken, N. M. P., & Hultink

, E. J. (2017). The circular economy – A new sustainability paradigm? Journal of Clean
er Production, 143, 757–768. 
[2] Figge
, F., Thorpe, A. S., Givry, P., Canning, L., & Franklin-Johnson, E. (2018). Longevity and ci
rcularity as indicators of eco-efficient resource use in the circular economy. Ecological
Economics, 150, 297–306. 
[3]
Business cases for the circular economy - World Business Council for Sustainable Dev
elopment (WBCSD)
[4]
http://www.thehindu.com/sci-tech/India-to-run-short-of-high-tech minerals/article1
4553324.ece
REFERENCES

[6]
https://economictimes.indiatimes.com/news/economy/policy/cabinet-clears-na
tional-steel-policy-2017-formore-capacity/articleshow/58499733.cms
[7]
https://ibm.gov.in/index.php/writereaddata/-les/01182018162047Copper%202
016%20(Advance%20Release).pdf
[8]
http://www.thehindubusinessline.com/markets/gold/indias-gold-demand-grew-
9-to-727-tonnes-in-2017/article22665922.ece
[9]https://www.statista.com/statistics/667473/india-gold-production-volume/
[10] https://pib.gov.in/newsite/PrintRelease.aspx?relid=138144
[11]
• Thanks, any Query?