Closing the Loop

How you can take a local economy full circle. 

What is a circular economy? 

In a circular economy, products and materials are kept in circulation through processes like repair, reuse, remanufacture, recycling and composting. 

This is very different from the dominant ‘take-make-waste’ economy of today, where raw materials and natural resources are extracted, used once and then discarded as waste. 

Most of us think that a circular economy is about eliminating waste and pollution, and we would be right. But there’s another, equally important element. By shifting from a take-make-waste linear economy to one that is circular, we also support natural processes and regenerate nature. 

For example, food production based on circular economy principles involves moving away from soil extraction and towards soil regeneration. Regenerative food production practices reduce the need for polluting fertilizers, fossil fuels and pesticides to boost crop yields, relying instead on healthy soils to grow more food. 

Circular economies tend to be more local than traditional linear economies because the sharing, repairing and recycling loops work best when they are close to where people live and use products. In contrast, take-make-waste economies often use cheap global shipping to extract raw materials in one country, manufacture products in another and dump waste in a third.  

What are the benefits of a local circular economy? 

Underpinned by the transition to renewable energy and its positive impact on nature, a local circular economy is a resilient system that is good for people, place and the surrounding environment. Benefits include: 

Stronger Local Jobs: Sorting, upcycling and remanufacturing create steady jobs that cannot be easily outsourced overseas or replaced by AI. 

Affordability: Extending product lifespans, easier access to repair, using goods instead of buying them, all act as money savers.  

Less Waste: Reducing waste is an issue people feel very strongly about. Public polling shows how much people in the UK hate waste and how ready they are for greater ambition on using resources more efficiently. 

Community Building: Tool libraries, clothing swaps, and local food composting systems rely entirely on nearby neighbourhoods and people working together. 

Community Wealth: The money spent and benefits circulate locally within the community and with local businesses, rather than leaking out to multinational corporations.    

Supply Security: Reduced reliance on global imports, long supply chains and exposed international shipping routes lowers the supply risks and price volatility. 

Reduced Emissions: Extending product usage cuts carbon emissions from raw manufacturing, and keeping reuse and recycling networks local cuts polluting transport emissions.  

Nature Replenishment: Reducing waste, pollution and emissions all help in restoring local water, soil and air quality as well as the environment more generally for both people and wildlife. 

What does a local circular economy look like? 

A local circular economy is a system made up of interconnected operations and businesses that intentionally keep products, materials and resources in use for as long as possible instead of throwing them away. They can be grouped based on what they do and together they grow into a comprehensive and thriving circular economy:

Maintenance, repair and refurbishment: These organisations focus on extending the useful life of products, keeping items functioning so people don’t have to purchase brand-new replacements. Repair Café Wales, for example, supports a network of 150 individual repair cafes across Wales. Electronics refurbishers such as Fixing Factories repair small household appliances and electronics, helping to tackle e-waste. Community tool libraries like Edinburgh Tool Library act as local hubs where people not only share tools but also have tools repaired. Craft-based businesses – cobblers, tailors and furniture upholsterers – extend the lifespans of favourite footwear, clothing and expensive furniture. 

Sharing and providing ‘products as a service’: Instead of buying a new bike or car or piece of equipment, people share or pay to use these products for the service they provide and for a limited time only. This maximises the use of these products while incentivising the owners to maintain them to increase their lifecycle. Library of Things have hubs across London, enabling locals to borrow a variety of things related to DIY, cleaning, gardening and more. Devizes Swap Shop and other sharing hubs are places to swap items within the local community, from toys to sports equipment. Local transit operations such as TrydaNi Car Clubs allow multiple users to share a single fleet of vehicles, providing people in rural areas with access to a car without the cost of owning one. Zero-waste and refill shops require customers to bring containers with them, sharing their containers with the retailer to eliminate single-use packaging in the outlet. 

Reuse, resale and redistribution: These operations help maintain and grow the second-hand market, transferring ownership of unwanted but perfectly functional goods to new users. Charity shops and vintage retailers on the high street are very popular examples, with Charity Super.Mkt growing into a multi-brand department store for all things charity fashion. Upcycling workshops run by artisans and small manufacturers transform unwanted products into higher-value items (e.g. New 2 You turns old furniture items into interesting new pieces). Renew Hub is an example of a local marketplace that supports resale of used goods, helping people to reuse donated and discarded items on a huge scale across Greater Manchester. More generally, local scrap yards, second-hand building centres and salvage shops recover raw materials and reclaim functional parts, for reselling and redistribution. 

Organic recycling and regeneration: These operations safely return biological materials back to nature, helping to restore local ecosystems. Facilities with commercial composting facilities or anaerobic digesters collect local restaurant and household food scraps, converting them into biogas for energy and nutrient-rich fertiliser for local agriculture. For example, the Humberston Eco Conservation Centre uses a novel micro anaerobic digester to create bio-energy from local garden and food waste. 
 

How do I get started? 

You’ve probably already started if there are a few of these different organisations, businesses or networks in place. You don’t need all of them and each place will have its own recipe that reflects local resources and demands. 

Although each local circular economy is different, there are some common approaches and success factors that can be copied.

On 29 September 2026, we are hosting an online workshop with Circular Malton & Norton. In Closing The Loop, we will explore how these elements come together in practice and effective ways of collaborating, so you can progress from separate circular economy projects to creating an entire system. 

For more information on this Community-to-Community Workshop about expanding your local circular economy, click here.