Circular economy initiatives may be applied to transportation practices by moving from a product to a service model to maximize efficiency and minimize waste.
How to apply the principles of the circular economy in transportation
While applying the principles of the circular economy may seem like a cost-inducing practice at first, experts believe it turns into value once a business moves towards a successful transition. Before jumping in, the first step is to learn the 3 fundamental principles of the circular economy:
1. Preserve and enhance natural capital by controlling finite stocks and balancing renewable resource stocks.
2. Optimize resource yields by utilizing products, components and materials to their highest capacity at all times in both technical and biological cycles.
3. Foster system effectiveness by uncovering and designing out negative externalities.
Once you know your business is ready for a complete change or a pilot project, here are the steps you need to follow to dive in:
~ Embed circular economy thinking and methodologies in your business model and strategy.
~ Carry out a cost/benefit analysis to ensure that your process is profitable.
~ Be open to sharing data and ideas with other players in the circular economy.
~ Build more time into your development cycle – circular economies require it.
~ Develop metrics, methodologies and benchmarks to make circular practices concrete and applicable.
(Source: ‘4 Examples of Circular Economy in Transportation‘ from Movin’On Summit 2017)
This section includes a small number of reports on the circular economy in the transport industry, green freight, the circular Port of Amsterdam and the future of transportation.