The CC supports the closed-loop system of circular economy as it allows for products to be reintroduced into the supply chain. Following the CE principle of “designing out waste”, “waste” in CC has value since it could be considered as a resource to be move from the place where it is no longer needed to a place where it is useful again. Products which are not used or wanted anymore by one consumer are re-allocated or traded using digital platforms to another one who needs them. It brings then new value creation opportunities by intensifying and maximising their use, contributing to resource efficiency, and it designs out waste as they would remain underused or be discarded while still being functional. Reuse and repurpose of products are encouraged, following two Rs of the CE model.
In a product-and-service system in which the use of the product is sold instead of its ownership, the company remains the owner of the product at all time while consumers only access it. Consequently, there are cost incentives for the company to design and manufacture high quality & long-lasting products, which thereby counter planned obsolescence and reduce waste. This is why CC is often considered as one of the best option for shifting from a linear to a circular economy, as it is one of the most relevant sustainable business model for a loop economy. However, positive environmental impacts through longer and more intensive use of products are guaranteed only if these are efficient and designed to last.