Circular Business Models: Systemic Approaches, Concepts and Challenges

The European Green Deal positions the Circular Economy Action Plan as a key strategy for increasing resource efficiency and sustainability. In this regard, circular business models form an operational basis by integrating various value retention options (R-strategies) and thereby narrowing, slowing down and closing resource loops. In early development phases, the application of the Safe-and-Sustainable-by-Design framework can help to embed safety and sustainability aspects in circular business models from the outset. Despite growing political support, however, circular business models have so far only been implemented to a limited extent. This article therefore examines the challenges and barriers to widespread implementation. The research design, applied by Brimatech in several research and innovation projects, combines literature reviews, qualitative interviews, moderated workshops and content analysis. The results show that limited skills, inadequate policy frameworks, poor cooperation in value networks, cost issues, data problems and low market acceptance are hindering implementation. Overcoming these barriers through coherent frameworks, the use of digital technologies and targeted skills development is crucial to driving a systemic transition to a comprehensive circular economy.