| Technology News

The Technological Revolution in the Circular Economy: A Vision of Sustainability

A blog post by Jody Fullman, Reconomy’s Chief Information Officer

Welcome to a Future Where Waste Becomes History

Imagine a future where the concept of waste belongs only in history books. A future where every resource is maximised, recycled, and reused, painting a picture of ultimate sustainability. This isn’t a utopian dream; it’s the essence of the circular economy. It represents a seismic shift from the traditional “take-make-waste” approach, steering us towards a future where resource efficiency and sustainability reign supreme.

But the pressing question remains: how do we transform this vision into a tangible reality?

The answer lies with cutting-edge technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), blockchain, and revolutionary recycling methods which are spearheading this transformation and redefining our relationship with resources and waste.

AI: The Genius Behind Sustainable Resource Management

According to a 2023 report by PwC, AI could contribute up to $15.7 trillion to the global economy by 2030, with $6.6 trillion of this coming from increased productivity and $9.1 trillion from consumption-side effects. The report highlights the potential of AI in enhancing resource efficiency, stating, ‘AI offers a toolset to augment our decision-making, improve productivity, and inspire innovative solutions to complex challenges such as climate change and resource scarcity.'”

AI stands as a transformative force in the circular economy, acting as the strategic mastermind optimising resource use and slashing waste. Imagine a world where AI delves into production data, pinpointing inefficiencies and orchestrating enhancements to conserve materials. Beyond its role in optimisation, AI is revolutionizing recycling, empowering systems to sort materials with unprecedented precision. This ensures resources are reclaimed and reused, rather than condemned to landfills.

IoT: The Lifeline of Resource Efficiency

The International Energy Agency (IEA) notes that IoT could help reduce global greenhouse gas emissions by up to 15% by 2030 through enhanced energy efficiency, reduced resource consumption, and improved asset management.

IoT technologies are instrumental in creating smart grids, optimising energy use, and implementing sustainable practices across industries.

The IoT acts as the circulatory system of the circular economy, interlinking countless devices that monitor and manage our precious resources in real-time. From agriculture, where sensors meticulously measure water and nutrients to bolster crop longevity, to daily-use products, where IoT technology tracks usage and health, facilitating timely repairs. This technological marvel not only prolongs product lifespans but also champions models like product-as-a-service, which advocate for durability and reparability.

Blockchain: The Trustworthy Ledger

A recent study by the World Economic Forum predicts that by 2025, 10% of global GDP will be stored on blockchain technology.

The report emphasises blockchain’s role in enhancing transparency and trust in the circular economy and revolutionise how we track and verify sustainability claims, making it a cornerstone for transparent and reliable supply chains.

In the quest for a circular economy, transparency is paramount. Blockchain technology emerges as a beacon of trust, forging tamper-proof records of products and materials’ journeys through the supply chain. This digital ledger enables informed sustainability and recyclability choices, and fosters decentralised platforms for resource exchange, significantly reducing waste.

One innovative application within this framework is the concept of digital product passports. Although still in its infancy, digital product passports could greatly enhance the capabilities of blockchain in supporting sustainable practices.

These passports serve as digital records for products, detailing every aspect of their lifecycle, from production to disposal. By incorporating digital product passports on blockchain platforms, businesses could provide unprecedented levels of transparency and traceability. This could include information on the materials used, the manufacturing processes, and the possibilities for recycling or reusing the components.

For businesses Reconomy can support in exploring the use of digital product passports to not only enhance compliance with sustainability standards but also foster a transparent, trustful relationship with consumers and regulators. As these passports evolve, they could become a critical tool in the arsenal of businesses aiming to prove their commitment to sustainable and ethical practices. Integrating such advanced features into blockchain-based systems can further solidify the role of technology in advancing the circular economy.Bottom of Form

Recycling Technologies: Pioneers of Innovation

The field of recycling is witnessing transformative changes with the advent of innovative technologies aimed at tackling the intricacies of contemporary materials. According to a report by the Ellen MacArthur Foundation on The New Plastics Economy, such advancements could significantly elevate the global recycling rate of plastics from the current 14% to an impressive 50% by 2030. Among these innovations, advanced mechanical recycling and chemical recycling stand out as crucial developments. They are not only instrumental in sorting and processing mixed materials but also vital in breaking down complex polymers, thereby facilitating a truly circular economy.

Advanced mechanical recycling, for example, enhances the capacity to sort and reprocess mixed materials, thus making it possible to recover plastics that were previously considered non-recyclable. On the other hand, chemical recycling breaks down plastics to their molecular level, allowing for the creation of new plastics with virgin-like quality. These technologies are key to reducing waste and enabling the reuse of materials in a manner that was once deemed unattainable.

Adding to the landscape of innovation in recycling, Reconomy is making significant strides with facilities such as Eurokey, which marks a notable advancement in the UK’s recycling infrastructure. Eurokey has launched the country’s first supermarket plastic sorting line, representing a leap forward in tackling the specific challenges of recycling supermarket plastics. This facility underscores the growing momentum towards adopting and enhancing recycling technologies, aligning with the broader goals of reducing waste and promoting sustainability. By integrating such advanced sorting technologies, Eurokey is set to play a pivotal role in transforming the recycling ecosystem and driving the transition towards a more sustainable and circular economy.

The Concert of Technologies in the Circular Economy

According to the Global e-Sustainability Initiative (GeSI), digital technologies could cut global emissions by 20% over the next decade, effectively offsetting the emissions from the tech sector itself.

The fusion of AI, IoT, blockchain, and advanced recycling represents a powerful arsenal against waste and inefficiency, driving us towards a sustainable future.

The amalgamation of AI, IoT, blockchain, and recycling technologies forms a formidable alliance, redefining the norms of production and consumption. This collaborative force propels us towards a future where sustainability is interwoven into every decision and action.

Data: The Keystone of the Circular Economy

Data stands as the linchpin of the circular economy, fuelling superior decision-making and enabling progress tracking towards sustainability. It equips every stakeholder with the vital information needed to optimise reuse and recycling, illuminating the pathway to sustainability.

The Digital Frontier: Precision in Waste and Resource Management

The evolution of waste and resource management is increasingly digital, leading to more precise and efficient practices. Digital tracking systems and integrated software platforms are at the forefront of this transition, fostering collaboration across industries and enhancing the global push towards sustainability and circularity.

In the realm of this digital transformation, Reconomy stands out with its innovative use of data and technology platforms. These tools are designed not only to provide a comprehensive snapshot of the market and an organisation’s sustainability footprint but also to track progress towards sustainability goals effectively.

One notable example is Reconomy’s approach to service efficiency and transparency. By leveraging data, Reconomy enhances the efficiency of services, making operations more transparent to all stakeholders involved. This is particularly evident in their Re-use loop initiative, where specialist supply chain software amalgamates various data streams. This integration forms a ‘control tower view’ of the supply chain, enabling rapid, informed, and impactful decision-making.

This technology supports retailers in reducing their carbon footprint and achieving stringent sustainability targets by making route-planning for transportation significantly more efficient. This not only cuts down on mileage but also aids in managing vehicle capacity effectively, thereby reducing emissions and enhancing the customer experience.

Reconomy’s online consumer portal also exemplifies how digital platforms can revolutionize customer interaction and service delivery. By offering shoppers a multitude of local carrier services through this portal, Reconomy facilitates a seamless and informed shopping experience. With features like full tracking and smart routing, the platform supports the fast-paced demands of online retail. It ensures that customers are well-informed about the delivery processes, including precise timings for refunds and deliveries. This digital innovation not only boosts customer satisfaction but also aligns with the environmental goals of reducing emissions through optimized logistics.

The Global Challenge: A Unified Front

The circular economy’s ambition knows no borders, underscored by the vast volumes of materials traded globally. Technology serves as the adhesive uniting global supply chains, encouraging worldwide business collaboration and scaling circular practices without the constraints of physical assets.

Embracing Challenges: The Path Forward

Despite the promising outlook, the journey towards a circular economy is laden with hurdles, from substantial investments and stringent regulations to cultivating a sustainability culture among businesses and consumers. The horizon, however, is bright, beckoning for continuous innovation, collaboration, and policy support to unlock the full potential of these technologies.

Collaboration Across Borders: The Blueprint for Success

Achieving a circular economy demands unparalleled collaboration across sectors and nations. This collaboration is crucial for sharing innovations and crafting standardised policies that champion circular economy practices globally. A multi-stakeholder approach, embracing public-private partnerships, international frameworks, industry consortia, and knowledge-sharing platforms, is pivotal in overcoming coordination challenges and fostering a competitive market for circular products and services.

Addressing the Skills Gap: Empowering Global Implementation

The United Nations Environment Programme (UNEP) underscores the urgency of addressing the skills gap to achieve global sustainability goals. ‘Investing in education and skills training is paramount to equip the workforce for the green jobs of the future. The transition to a circular economy requires a concerted effort to build capacity and foster innovation at all levels. according to UNEP’s 2023 report.

The global implementation of circular economy technologies necessitates bridging the significant skills gap, particularly in developing countries. Tailoring technology solutions to local needs, investing in education and training programs, promoting technology transfer, and supporting capacity-building efforts are essential steps towards equipping the global workforce with the necessary skills for a sustainable future.

Facing Economic and Regulatory Hurdles: A Collaborative Approach

The transition to a tech-driven circular economy is fraught with economic and regulatory challenges. Governments and international organisations play a crucial role in offering financial incentives, establishing clear regulatory frameworks, and fostering public-private partnerships to facilitate this transition. Additionally, engaging consumers in circular practices through education, incentives, and simplified participation is vital for fostering a culture of sustainability.

A 2023 Nielsen survey found showed that 81% of global consumers feel strongly that retailers should help improve the environment and the same study found that 73% of global consumers would definitely or probably change their consumption habits to reduce their environmental impact.

This growing consumer awareness presents a golden opportunity for businesses to lead in the circular economy by offering sustainable products and services that meet consumer demand for responsible consumption,’ the report suggests.”

RecoTek: A Beacon of Technological Innovation

The launch of RecoTek, Reconomy’s tech hub in Bucharest, Romania, along with our growing capability across our entire IT landscape, symbolizes the critical role of technology in carving a sustainable future. Our new tech hub is poised to become an accelerator for growth in our digital solutions, driving us closer to the circular economy. It stands as a testament to the power of technological innovation in achieving sustainability goals and enhancing resource efficiency.

The Future with RecoTek and Beyond

The inception of RecoTek is one of many investments Reconomy is making across IT in both our leadership team and local talent. It marks a significant milestone in merging technology with the circular economy, showcasing how digital innovation can support sustainability efforts. As we advance, the role of technology in nurturing a sustainable, resource-efficient world will continue to expand, requiring steadfast innovation, cooperation, and commitment.

Circular Economy: The Journey Ahead

The path to a fully circular economy is intricate and challenging, necessitating global collaboration, the development of new business models, and the embrace of technological innovation.

Technology is not merely aiding the circular economy; it forms the foundation for its principles to flourish, heralding a future where sustainability is inherent in every facet of our lives. The circular economy, powered by technology, is a bold stride towards a sustainable, waste-free world—a tribute to human ingenuity and our dedication to the planet.

In this technological renaissance, we’re not just striving to reduce waste; we’re reimagining our economy’s blueprint for a sustainable future. Technology in the circular economy is about crafting a loop where everything holds value, and nothing is wasted, mirroring nature’s own cycles.

Join the Movement to #ThinkCircular: Whether you’re an individual, a business leader, a policymaker, or a technologist, your actions can contribute to a more sustainable and circular future. Engage with platforms, initiatives, and communities dedicated to the circular economy.

Share this article and together, we can turn the vision of a waste-free world into a reality over the coming decades.


Frequently asked questions about technology and the circular economy:

Technology is the backbone of the circular economy, providing the tools and systems necessary for a sustainable transformation. It helps by optimising resource use, enhancing waste management, and enabling the efficient lifecycle management of products. Technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), blockchain, and advanced recycling processes contribute to this by improving the efficiency of resource utilisation, enabling precise tracking and management of materials, and facilitating the development of sustainable products and services. These technologies allow for a systemic shift from a linear to a circular model, where materials are kept in use for as long as possible, waste is minimized, and the value of products is extended through reuse and recycling.


Several key digital technologies are enabling the circular economy, each playing a unique role in its realisation:

  • Artificial Intelligence (AI): AI optimises resource use and waste management by analysing data to predict demand, identify inefficiencies, and automate recycling processes.
  • Internet of Things (IoT): IoT devices monitor and manage resources in real-time, facilitating precise agriculture, product lifecycle management, and supporting product-as-a-service models.
  • Blockchain: Blockchain ensures transparency and traceability in supply chains, enabling the tracking of materials and products from origin to end-of-life and supporting material exchange platforms.
  • Advanced Recycling Technologies: These include mechanical and chemical recycling innovations that improve the recyclability of complex materials, addressing the challenges of conventional recycling methods.

The technological cycle in the circular economy refers to the continuous loop of designing, producing, using, and recycling products and materials facilitated by technology. It encompasses the entire lifecycle of resources, from raw material extraction to product design, manufacturing, usage, and end-of-life management, aiming to always keep materials at their highest utility and value. Technology plays a critical role in each stage of this cycle, from AI-driven design for recyclability and IoT for resource tracking to blockchain for supply chain transparency and advanced technologies for efficient recycling. This cycle ensures that materials are reused and recycled in a closed loop, minimising waste and environmental impact.

The technical circular economy focuses on the application of technologies to maintain the value of products, components, and materials for as long as possible within the economy. It emphasises the recovery and regeneration of products at the end of their use life through strategies such as recycling, refurbishing, and remanufacturing. The technical circular economy relies on technological innovation to create more sustainable production and consumption patterns, reduce waste, and enable the efficient use of resources. By leveraging technologies like AI, IoT, blockchain, and advanced recycling, the technical circular economy aims to create a more sustainable and resilient system that reduces the reliance on new raw materials and mitigates environmental impacts.

Explore other Reconomy feature blogs

Here you will find key industry insight on all things related to sustainability, waste and the circular economy. Keep your finger on the pulse with the Reconomy blog.

Its now for nature campaign

A blog post by Diane Crowe, Reconomy’s Group Sustainability Director

Read here

Building a Sustainable Future: The Zero Waste Index as a Catalyst for Change

A blog post by Nathan Gray, Reconomy’s Head of Sustainability.

Read here