CIRCULAR ECONOMY: TENDENCIES AND DEVELOPMENT PERSPECTIVES

Abstract

The research represents the analysis of the circular economy and its essential characteristics of circular economy in the modern world. The circular economy makes it possible to "detach" the country's GDP growth from the consumption of natural resources and environmental pollution. It explains how the circular economy should stimulate sustainable development and inclusion in the system of Sustainable Development Goals. The research presents how the circular economy can ensure labor productivity, efficient environmental and energy conservation, and the creation of new jobs. It analyzes principles and tools of the circular economy. This research shows how economies should move from the current linear take, make, use, dispose practice to reuse and longer product life. It shows how current business models change and what principles are used to develop a circular economy. It examines the circular approaches based on the 3-R principle: Reduce: reduce resource use and prioritize renewable materials; Reuse: make the most of the products; Recycle: recover by-products and waste for further use in the economy. The research shows how seven key tools of the circular economy may be applied. It reveals the international experience in implementing the circular economy principles. The research describes the benefits that the transition to a circular economy brings. It analyses major circular economy barriers, such as financial, social, and technical. The research distinguishes the benefits of a circular economy. They include a decrease in costs, a cleaner and safer environment, sensitive use of natural resources, new job creation, reducing dependence on imports. This research presents the examples of Norrköping Industrial Symbiosis Network in Sweden, Latvia’s circularity business models.