Circular economy vs linear economy: Impact on sustainability

In sustainability, circular economy vs linear economy is an important topic. They represent different ways of using resources and handling waste. This article explains their differences and why choosing the circular economy is better for a greener future.

What is the difference between a linear economy and a circular economy?

A circular economy works differently from a linear economy. In simple terms, a linear economy follows a “take-make-dispose” model, where raw materials are extracted, turned into products, and discarded after use. In contrast, a circular economy keeps resources in use for as long as possible by closing material loops. This goes beyond just recycling—it transforms how value is created and preserved, promotes more sustainable production, and introduces new business models. The following sections explain these ideas in more detail.

Linear economy

Imagine a straight line. In a linear economy, resources are extracted, used to make products, and then discarded after their "useful" life. It’s a one-way street from production and consumption to waste—this has been the traditional model for most societies for centuries.

The linear economy is simple but not sustainable. It starts with the extraction of raw materials like minerals, metals, and fossil fuels from the earth. These materials go through a production phase, where they are transformed into the products we use every day. Once products hit the shelves, consumers buy, use, and eventually discard them.

The drawbacks of linear economy:

After a relatively short lifespan, the products reach the end of their life cycle. At this point, they are treated as waste and often end up in landfills. While the “take-make-dispose” model may seem convenient, it comes at a high environmental cost. The linear economy operates with little regard for resource sustainability or the environmental impact of constant extraction and disposal. It prioritizes short-term convenience over long-term ecological well-being.

Circular economy

Instead of a straight line, imagine an endless loop—a system where resources are used, reused, and recycled continuously. This is the foundation of a circular economy. Instead of throwing things away after use, we find ways to extend their lifespan and repurpose their materials.

The main goal is to reduce waste. Rather than always producing new products from raw materials, we recycle old ones or return them safely to nature when they are no longer needed. In a circular economy, everything is designed to be reused. But it’s not just about recycling—it’s also about responsible production and efficient resource use to minimize environmental impact.

For example, products can be designed to last longer and be easily repaired or upgraded. Instead of discarding an entire item when one part breaks, individual components can be replaced, reducing unnecessary waste. This approach not only helps conserve resources but also promotes a more sustainable and responsible way of producing and consuming goods.

Linear vs circular economy: How we use and waste resources

The biggest difference between a linear economy and a circular economy is how we use resources and manage waste. Let’s break it down and see how circular vs linear economy impact our environment.

1. How we use resources

The world is consuming natural resources at an alarming rate. According to the UN, material extraction has nearly tripled since 1970. In a linear economy, we use things once and then throw them away—like drinking from a plastic bottle and tossing it in the trash. This wastes valuable resources and creates a lot of garbage.

In a circular economy, we try to make things last longer. Instead of throwing away a plastic bottle, we recycle it to create new bottles or other useful products. This reduces the need for new raw materials and helps minimize waste.

Even better, instead of constantly recycling disposable bottles, we can switch to reusable bottles, like a stainless steel thermos. This eliminates the need for single-use plastics altogether and significantly reduces resource consumption.

2. How we handle waste

In a linear economy, most products are discarded after use, often ending up in landfills or being burned, which harms both the environment and human health. Even before a product reaches consumers, a lot of raw materials are wasted during production. If current trends continue, the World Bank predicts a 70% increase in global waste by 2050, leading to more pollution in our air, water, and land—worsening climate change and destroying ecosystems.

A circular economy takes a different approach: instead of simply throwing things away, we recycle, reuse, and repurpose them whenever possible. This reduces pollution, conserves natural resources, and helps keep the environment cleaner and healthier for future generations.

10 advantages of adopting a circular economy

We’ve seen how a circular economy offers a smarter, more sustainable way to use resources compared to the linear "take-make-dispose" model. Hopefully, it’s now clear that transitioning to a circular economy isn’t just a choice—it’s a necessity for a sustainable future. Below, we explore 10 advantages of making this shift.

By switching to circular economy we:

1. Reduces waste – Minimizes landfill and incineration by reusing, recycling, and repurposing materials.

2. Conserves natural resources – Reduces the need for raw materials, preserving finite resources like metals, water, and fossil fuels.

3. Lowers carbon emissions – Decreases pollution and greenhouse gas emissions by promoting energy efficiency and sustainable production.

4. Boosts economic growth – Creates new business opportunities in recycling, remanufacturing, and product-as-a-service models.

5. Enhances job creation – Generates employment in sectors like repair, refurbishment, and sustainable design.

6. Encourages innovation – Drives companies to develop more durable, modular, and eco-friendly products.

7. Improves supply chain resilience – Reduces dependence on volatile raw material markets and imports by using recycled and local materials.

8. Promotes sustainable consumer behavior – Encourages responsible consumption, longer product lifespans, and shared ownership models.

9. Saves costs for businesses and consumers – Reduces material costs, extends product life cycles, and lowers production expenses.

10. Protects ecosystems and biodiversity – Minimizes resource extraction and pollution, helping to preserve natural habitats and wildlife.

    
    

How does Digital Product Passport contribute to the circular economy?

As we've explored, transitioning from a linear economy to a circular economy requires more than just recycling—it demands smarter ways to track, reuse, and extend the life of products. This is where Digital Product Passport (DPP) plays a crucial role.

The Digital Product Passport is a crucial part of the EU Green Deal, which aims for net zero emissions by 2050. It falls under the Ecodesign for Sustainable Products Regulation (ESPR), an initiative designed to transform how industries design products and production processes to reduce long-term environmental impact.

The main goals of DPP include:

1. Encouraging sustainable production by increasing transparency and accountability in product design.

2. Extending product lifetimes through better tracking of materials and components to support reuse and remanufacturing.

3. Empowering consumers with data to make informed, sustainable choices.

4. Boosting resource efficiency by optimizing material use and energy consumption.

5. Helping authorities verify compliance with sustainability regulations and circular economy policies.

   
   

Why choose DigitalPassport.com’s training program?

At DigitalPassport.com, we are leading the way in DPP development. Our expertise comes from direct involvement in key innovation and standardization projects, including:

• Working on innovative projects, like a Vinnova initiative on digital product passports and lifecycle management with partners such as Ahlsell and GS1.

• Helping set global standards, through active participation in the Swedish Institute for Standards (SIS) DPP working group.

Our hands-on experience gives us deep knowledge of both the practical applications and regulatory requirements of DPPs. To help businesses navigate this transition, we have developed custom training programs designed to prepare companies of all sizes for successful DPP implementation.

Want to learn more? Explore our education programs to gain the knowledge and tools needed for successful Digital Product Passport implementation.

Also read: Risks to avoid when getting ready for digital product passports