Business Models in a Circular Economy

This report focuses on delivering an in-depth perspective on circular business models through the development of an analytical framework for studying the successful implementation of such models. The analytical framework identifies the needs in terms of business model innovation, technological innovation and social innovation as well as the enabling conditions related to policy and behavioural change. In a specific section, the framework is applied to the textiles system as a test case, distinguishing four business model types that support the shift toward 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. The report underpins and builds upon the work of European Environment Agency (EEA) via the ETC-WMGE project on circular economy topics.