The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended.

When a product reaches the end of its life, its materials are kept within the economy wherever possible. These can be productively used again and again, thereby creating further value. In practice, it implies reducing waste to a minimum.

This is a departure from the traditional, linear economic model, in which raw materials are used, things are made from them then are consumed and the remains are thrown away. Traditional liner economic model is based on a take-make-consume-throw away pattern. This model relies on large quantities of cheap, easily accessible materials and energy.

Also, part of this model is planned obsolescence, when a product has been designed to have a limited lifespan to encourage consumers to buy it again or the value of the defective part of the product is the same as a new one.