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The circle is closing: The closed loop economy in an industrial world


The circle is closing: The closed loop economy in an industrial world

The industrial sector, which has always been the flywheel of the global economy, is moving towards a concept that is changing the way we think about production and consumption: the closed loop economy (GOZ). But what is really behind this idea, what are the challenges involved and, most importantly, what benefits can it bring to industry?

What is it?

In a nutshell, a closed-loop economy is a system where there is no waste. All products, at the end of their life cycle, are reused or recycled in such a way that they become raw materials for other products. It is a model in which there is no landfill and resources are used optimally.

Challenges for industry

Implementing a circular economy in the industrial sector is not a simple task. It requires significant technological investment, both in terms of research and development and the implementation of new systems.

Companies also need to carefully examine and often rethink their current processes, which may lead to the need to reorganise or transform existing business models. A change of mindset among designers, engineers and managers is also important. Products need to be created with their entire life cycle in mind, which means that designing for long-term use, repairability, remanufacturing or recycling becomes a priority.

In addition, for a circular economy to be economically viable, there must be an adequate market for recovered materials and products. This means that companies must not only create products that can be easily recycled, but also develop markets for these recovered materials.

Benefits for industry

Despite the challenges, the circular economy offers many attractive benefits to industry. One of the most obvious is cost reduction. As companies begin to reuse materials, they can see significant savings in the purchase of new raw materials. This not only brings financial benefits, but can also lead to increased competitiveness in the market.

In addition to the economic benefits, companies that adopt the principles of the circular economy can enjoy a better image among consumers who are increasingly environmentally conscious. Ultimately, this can lead to innovations in product design, processing technologies and business models, putting these companies at the forefront of the market revolution. In addition, the reduction of waste and harmful emissions has a positive impact on the environment, which translates into a long-term benefit for society as a whole.


While the closed-loop economy presents numerous challenges for the industrial sector, the potential benefits for both businesses and the environment are enormous. In an era of sustainability, this approach could be the key to a future where industry and the environment walk hand in hand.

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