Content of this unit
The three principles of Circular Economy

1) Preserve and enhance natural capital by controlling finite stocks and balancing renewable resources.

2) Optimize resource yields by circulating products, components and materials in use with the greatest possible use, in technological and biological cycles.

3) Promote system effectiveness by revealing and designing out negative externalities.

Circular economy seeks to rebuild capital, whether this is financial, manufactured, human, social or natural. This ensures enhanced flows of goods and services. The system diagram illustrates the continuous flow of technical and biological materials through the ‘value circle’.