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Understanding the added value of your circular product.

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The term "Circular Economy" is a complex concept. It encompasses a wide range of industry sectors, leading to confusion about its precise definition. It is about energy recovery from waste streams, the elimination of single-use items, recycling, reuse, upcycling, ... 

To make it comprehensable, the Circular Value Institute has developped he Circular Value Index.  This methodology allows you to evaluate the viability of your circular business model, and guide you in the optimisation of your product's design to better fit the circular economy. 


Copyright © 2024 the Circular Value Institute 

The 3 components of the circular value:


What's the value of the item after a use cycle? 

Residual value, often referred to as salvage value, is the estimated worth of an asset at the end of its useful life. It represents the asset's remaining value after accounting for depreciation, wear and tear, and obsolescence. 


How much does it cost to reuse the product or material? 

The cost of reuse refers to the expenses associated with reusing products, materials, or components instead of disposing of them and acquiring new ones. 


What are the risks?

The risks take all uncertainty into account that might affect the residal value or the cost of reuse. 

When a product has a CVI exceeding 1,
it becomes feasible for integration
into a circular business model.
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