The central theme of this report is how to greatly enhance resource efficiency. The proposition is that a circular economy, where products are designed for ease of recycling, reuse, disassembly and remanufacturing should replace the traditional, linear ’take, make & dispose’ model that has dominated the economy so far. This, no doubt, is a major prerequisite to stay within the Planetary Boundaries.

The report identifies ten attractive circular innovation and investment priorities for Europe until 2025, totalling €320 billion. Despite the favourable financial context,   investment in circular economy opportunities is still generally too low. The Foundation's previous research Growth Within outlined a long-term circular economy vision for Europe; this new report identifies the most important investment opportunities along with the policy reforms and business actions needed to unlock them. The report focuses on the mobility, food and built environment value chains, which together represent 60% of consumer expenditure and 80% of resource use.

In a circular economy, growth comes from ‘within’, by increasing the value derived from existing economic structures, products and materials. This major report quantifies the benefits for Europe – in terms of growth, household income, and environmental outcomes – of adopting a circular development path compared with our current linear one. Incorporating in-depth analysis of three of Europe’s largest basic needs, mobility, food and the built environment, the report provides a vision of how the circular economy could look, and highlights wide-ranging implications for government and business leaders.

The report describes the concept of the circular economy and outlines its key characteristics. It draws attention to both the benefits and challenges in transitioning to such an economy and highlights possible ways to measure progress.

The report explores the circular economy from a product perspective, applying a systemic approach and transition theory. Drivers of product design and usage are discussed in the context of emerging consumption trends and business models. For governance to be effective, it has to address the product life-cycle and the societal context determining it. Indicators and assessment tools are proposed that can help fill the current data and knowledge gaps.

The Circular Phone report provides practical answers to common financing pitfalls for circular businesses, using Fairphone as the real-life example.

So far, businesses striving to implement “Product-as-a-Service” models have had the challenge of reconciling the need to find financing parties with the complexities of their own business model.

To achieve a financeable model for the Circular Fairphone Service, the Community of Practice created a blueprint for Fairphone’s business model. Through the creation of a legal template – a 1st Circular Service Contract - and a financial cash flow tool, the group has proven that the gap between the businesses and financiers can be bridged.