The Circular Economy Model

What is a Circular Economy?

There are many definitions for the term “circular economy,“ all of them with different variations. The main concept refers to an economic/production system where resources are seen as something circular rather than linear. By having a circular vision of resources, these are not manufactured for a unique purpose after which they are to be disposed of, but as a renewable source of production. In other words, things are not produced to waste, but to be reused (or at least their components) for a different final product.

What are the Advantages of this Model?

The circular economy model has several obvious advantages, such as reducing the exploitation of natural resources, decreasing the environmental burden of production, and achieving zero waste. However, there are many other structural benefits:

• Environmental Benefits: In a circular economy, the CO2 emissions of manufacturing processes can be reduced by up to 70% (depending on the study). This is due to the decreased extraction and use of virgin raw materials. In the fashion industry, for example, a 70% reduction in greenhouse gas emissions could translate to saving 1.4 billion metric tons per year.
• Economic Benefits: According to a study by Wijkman and Skånberg, a circular economy model can reduce unemployment rates significantly by creating new job opportunities in designing, recycling, and reusing materials. While some jobs related to raw material extraction may disappear, new roles requiring a range of skills are created.
• Consumer Benefits: The average product life of items is doubled compared to traditional manufacturing practices. Programmed obsolescence becomes obsolete, as products are designed to last longer or to be easily repaired or recycled.

How Does Closet Contribute to the Circular Economy Model?

At Closet, we are strongly committed to the goal of a circular economy by providing access to clothes repair services and reliable information on local thrift shops. Clothes repair services play a key role in extending the life of garments and reusing their materials. Studies show that reusing 1 kg of clothes can save up to 20 kg of CO2 emissions. The World Bank recommends repairing clothing as a key step toward a sustainable fashion industry.

Another way to contribute to the circular economy is by buying from second-hand shops. Even if not all donated clothing is resold, raw materials are still given a second life, often transformed into wipers or other products. Studies indicate that consumers often replace one new purchase with two second-hand items. By buying 20 second-hand pieces a year, you could save the production of 10 new clothes.

Closet provides a guide to thrift shops based on location and pricing to help you find the perfect spot to donate your old clothes and acquire new ones.

References

• Bressanelli, G., Pigosso, D. C. A., Saccani, N., & Perona, M. (2021). Enablers, levers and benefits of circular economy in the electrical and Electronic Equipment Supply Chain: A literature review. Journal of Cleaner Production, 298, 126819. https://doi.org/10.1016/j.jclepro.2021.126819
• Corvellec, H., Stowell, A. F., & Johansson, N. (2021). Critiques of the circular economy. Journal of Industrial Ecology, 26(2), 421–432. https://doi.org/10.1111/jiec.13187
• Farrant, L., Olsen, S. I., & Wangel, A. (2010). Environmental benefits from reusing clothes. The International Journal of Life Cycle Assessment, 15(7), 726–736. https://doi.org/10.1007/s11367-010-0197-y
• Wijkman, A., & Skånberg, K. (2015). The Circular Economy and Benefits for Society Jobs and Climate Clear Winners in an Economy Based on Renewable Energy and Resource Efficiency. The Club of Rome - supported by MAVA Foundation.
• Humana People To People. (2021, November 22). Reusing textiles is key for the circular economy and the creation of green jobs. Read More
• McKinsey & Company. (2020, August 26). Fashion on climate. Read More
• UPC Universitat Politècnica de Catalunya. (n.d.). Reusing 1 kg of clothing saves 25 kg of CO2 according to a study by INTEXTER. Read More
• World Bank Group. (2019, October 8). How much do our wardrobes cost to the environment? Read More