Many regulations in Germany and the European Union act as a catalyst for the transformation to circular business models. Examples include the right to repair and the End-of-Vehicle Act, which is currently being voted on. The concept of the circular economy aims to keep materials and products in closed value creation cycles. Problems of the linear economy (‘take, make, waste’) should be avoided. The circular economy does not just start with recycling, but determines the entire value chain. This requires innovations at various levels.
Linz/Austria, December, 11th, 2024. Many regulations in Germany and the European Union are providing impetus for the transformation to circular business models. Examples include the right to repair and the End-of-Vehicle Act, which is currently being voted on and opens up new opportunities for the market for remanufactured spare parts in the automotive sector. Erik G. Hansen, founder and director of the Institute of Integrated Quality Design (IQD) at the Johannes Kepler University Linz, explains why the circular economy offers European companies a strategic approach to combining sustainability, resource efficiency and economic success.
Potential of the circular economy
The concept of the circular economy aims to keep materials and products in closed value-added cycles. Problems of the linear economy (‘take, make, waste’) should be avoided. Technical cycles such as maintenance, repair, remanufacturing and recycling as well as biological cycles that return materials to natural systems are key pillars of the circular economy.
Innovative product design and new business models
The circular economy does not just start with recycling, but determines the entire value chain. This requires innovations at various levels:
– Product design: The focus is on durability and ease of repair, such as the modular approach of Fairphone.
– Product service systems: The transition from product sales to service-based models, such as Hilti’s leasing-based fleet management for tools, maximises the use of resources.
– Business models: Companies such as Caterpillar show how the remanufacturing and recycling of products can both reduce costs and achieve market leadership.
Contribution to the EU taxonomy
The EU taxonomy promotes activities that support environmental goals such as climate protection and resource conservation. Companies that integrate circular business models not only fulfil regulatory requirements, but also strengthen their competitiveness. By emphasising the service nature of repair, recycling and reprocessing by local workers, the circular economy also contributes to regional economic growth and social sustainability. Companies that consistently pursue this approach set new standards in resource productivity and environmental compatibility.
Originalpublication:
Further Information:
(https://www.vhbonline.org/services/vhb-experts)
Image source Shubham Dhage, Circular economy: A challenge for product design
Schreibe einen Kommentar