Critics say true circularity is impossible. They might have a point - but only if we cling to outdated definitions.
We need to expand our circular economy model beyond just biological and technical cycles to fully encompass our modern, service-oriented economy. It's time for a renaissance in how we think about the circular economy. Research from Accenture estimates that the circular economy could generate $4.5 trillion in economic output by 2030, and a significant portion of this value is tied to service-based models. Here are a few examples of emerging service models:
- ESB’s lighting as a service solution helps to reduce energy consumption upto 70-80% than usual, reduces operational and maintenance costs and improves lighting levels.
- Rent the Runway's clothing rental platform has displaced the need for over 1.3 million new garments.
- Rolls-Royce's "Power-by-the-Hour" service, where airlines pay for engine performance rather than the engines themselves, has led to significant reductions in fuel consumption and emissions over traditional engine ownership models.
These cases demonstrate how circular strategies like product-as-service, sharing platforms, and performance models can decouple growth from resource consumption in service sectors.
Growth isn't monolithic. It can and should evolve. 21st century growth doesn't need to mirror 19th century industrialization. The 21st century demands a shift towards qualitative growth—growth driven by efficiency gains, and innovation that decouples growth from pure material output.
Look at consulting, tech, finance, health - these booming sectors generate immense value through experiences, digital services, and innovation rather than physical goods. They're proving economic expansion can happen with minimal material input.
So let's reimagine circularity for this new reality. One that embraces service models, digital transformation, and qualitative improvements. An economy that grows not by depleting resources, but by optimising their use and value.
