New business models for a radical change in resource efficiency

• Principles of the circular economy are outlined and new business models are discussed.
• Ecosystem services must be incorporated in business models.
• The era of declining commodity prices is over.
• Energy (exergy) will be an important factor in future business models.

Beginning with an analysis of the business constraints imposed by increasingly scarce resources, in this paper I make the case for a ‘circular economy’. The principles of this approach are outlined, as is the need for new business models. I also discuss incentives to stimulate enterprises to enter the circular economy.