Business Models in a Circular Economy

The circular economy is a key objective of the European Green Deal. In order to keep materials and products in the economy for as long as possible, circular business models need to be implemented and scaled up. This report presents an analytical framework to study the successful implementation of circular business models, identifying the needs in terms of business model innovation, technological innovation and social innovation, and the enabling conditions of policy and behavioural change. The framework is applied to textiles system as a test case, distinguishing four business model types supporting the shift towards a circular textiles system: (1) ensuring products’ longevity and durability; (2) access-based models (renting and leasing); (3) textile collection and resale; and (4) recycling and reusing materials.