Measuring Circularity: Tools for monitoring a smooth transition to Circular Economy

Abstract

The linear economy of today's society conflicts with many environmental, social, and economic challenges. Therefore, the implementation of the Circular Economy model is prioritized by policymakers and the research community. The European Union is in accord with the smooth transition towards a Circular Economy through the Circular Economy Strategy, The European Green Deal (carbon neutrality by 2050) as well as the Sustainable Development Goals (SDGs) of the United Nations. Replacing the conventional business models with circular business models entails a change in technological aspects involving the R strategies (refuse, reduce, recycle, etc.). For a beneficial transition, Circular Economy should be monitored to give out quantitative measurable data. Quantifying Circular Economy can be achieved through the use of Key Performance Indicators, Life Cycle Analysis, Material Flow Analysis as well as the use and development of quality protocols (ISO/TC 323). Such tools will aid with measuring Circular Economy performance (urban or industrial), support decision-making (policymakers, CEOs, etc.) and highlight strengths, weaknesses, blind spots and opportunities regarding circularity. This research analyses the use of monitoring of three main monitoring tools in the framework of Circular Economy using SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to provide a collective understanding on the implementation of Circular Economy in different settings (urban, industrial, domestic) and provide a clearer pathway towards this transition. The three tools analysed were Key Performance Indicators, quality protocols and digitalization while a hybrid approach was proposed to tackle the shortcomings and utilize the strengths of each of the three methods. The results of the study are expected to provide context to policy makers, academics, the industry, economists and other key players into the synergies necessary for circular economy implementation as well as the necessity of data collection and continuous monitoring for a smooth transition towards circularity.