Natural resources, and the materials derived from them, represent the physical basis for the economic system. Recent decades have witnessed an unprecedented growth in demand for these resources, which has triggered interest from policymakers in transitioning to a more resource efficient and CE. The report reviews the current market penetration and assesses the potential scalability of each business model. Environmental potential is also discussed, as well as risks and unintended consequences that could result from a more widespread adoption of these business models. The report provides a broad set of policy approaches that could help alleviate some of the barriers that currently hinder the widespread adoption of circular business models.

The report discusses key characteristics of circular business models, the environmental potential of circular business models, the potential scalability of circular business models and key policy messages. It highlights that a circular business model could be a combination of different business models and can involve multiple stakeholders. The report shows that the environmental benefits can be huge, but there are also some risks such as exposure to harmful chemical substances. The last chapter is important for public authorities as it provides an overview of policy interventions such as ensuring that all the environmental costs of production and consumption activities are reflected in market prices or ensuring that existing regulatory frameworks are coherent and fit for the intended purpose. Public authorities can use this report to gain understanding and awareness of how CE addresses current climate issues. Ultimately, this document is a nice snapshot of opportunities and challenges of CE. Cities and regions can use the insights provided in this report to further promote among and explain the benefits of circular business models to local and regional stakeholders, and therefore support the design, implementation and uptake of Circular Systemic Solutions.