Circular Economy

Cross-cutting research topic at Fraunhofer ISI

The circular economy aims to reduce the flow of materials through the economy. It includes the design, production and consumption phases as well as closing the loop after use. In a changing world, which is shaped by geopolitical dynamics, relocation of production and fragile supply chains, the circular economy gains in strategic importance beyond direct ecological and economic impacts.

The circular economy needs an approach which looks at the technological, economic, ecological and social aspects together and evaluates them on an empirical basis. The goal of Fraunhofer ISI is to provide guidance and actionable insights for policy makers, associations and social stakeholders. We examine the development of new circular solutions and how non-circular approaches can be systematically phased out of the system across three levels of analysis.

  • System level: Consideration of sustainability aspects and development of robust future pathways for the circular economy.
  • Network level: Examination of individual value chains and operational networks in the circular economy.
  • Company level: Analysis of technologies and business models for the circular economy.

We use a wide variety of methods in our research on the circular economy, including developing and modeling future scenarios, evaluating policy instruments, analyzing patents and trends, applying industrial ecology methods, and conducting surveys and workshops.

Do you have any questions about the circular economy? Do you need advice and support for your business or organisation? Or would you like to collaborate with us on a research basis? If so, please do get in touch!

Send an email to the Circular Economy Team at Fraunhofer ISI

Key areas in our circular economy research

Impact Assessment

We model the potential impacts of a circular economy using different approaches, such as input-output models, material flow and life cycle analyses, sometimes in combination with energy system models. This variety of models enables us to map the different impacts in terms of both the environment and the economy. Our goal is to develop these approaches continuously to address current issues.

Implementation

To support the establishment of a circular economy, we focus on developing future scenarios and deriving concrete goals and steps for its implementation. We look at technologies, innovations, business models and patterns of consumption. Our research aims at deriving reasonable solutions while taking risks into account.

Framework conditions

We examine the general framework conditions for a circular economy, considering both the overarching political framework and the implications for companies, economic sectors and products. The objective of our research is to derive recommendations for action at both the level of society and a company level.

Current research: Project results

Our current research shows that a circular economy not only conserves resources but also enables structural changes in the economy and society that lead to less environmental pollution and more resilient systems in the long term. Several examples of our current research results:

FiberConnect: Actor radar for the circular economy of fiber-reinforced composites 

 

In the project FiberConnect an AI assisted actor radar for the circular economy of fiber-reinforced composites was developed. The aim was to automatically identify, technically classify and highlight relevant enterprises and organizations along the regional circular economy – especially the region Elbtal/Saxony. To this end, public web data was analyzed using web-crawling, natural language processing and machine learning. The results support better connectivity amongst producers, processors, recyclers and other stakeholders and create a current database for closing material cycles.

Circular Economy Model Germany: Modeling and impact assessment of a circular economy in Germany

 

WWF Germany, the Öko-Institut, Fraunhofer ISI and FU Berlin have developed a holistic model of a circular economy in Germany known as the “Circular Economy Model Germany” (»Modell Deutschland Circular Economy«). The model-based, ecological and economic impact assessment of a circular economy in Germany provides a sound scientific basis for deriving quantifiable targets and setting priorities. It covers the following: nine sectors (vehicles and batteries, building construction and civil engineering, ICT, household appliances, food and diet, textiles, furniture, lighting, and packaging), 63 circular economy measures (considering all the R strategies), seven categories of impact (greenhouse gas emissions, raw material consumption, land use, biodiversity, gross value added, labor needs, and raw material criticality and the security of supply), and a hybrid modeling system [multiregional input-out model (EE-MRIO), life cycle analysis (LCA), the industry simulation model FORECAST and material flow analysis (MFA)]. 

Stan4SWAP: Standardization and solutions for lightweight vehicles

 

The STAN4SWAP project aimed at cooperating with all the relevant stakeholders along the entire value chain of lightweight vehicles (L-category vehicles such as e-scooters, e-bikes, scooters or micromobility applications) to identify those problems, challenges, gaps and obstacles where standardization can contribute to solutions. The aim was to ensure compatibility between different vehicles and between vehicles and battery-swapping stations for users and infrastructure. To foster the industrial use of this innovative technology, STAN4SWAP developed a standardization roadmap for swappable battery systems for L-category vehicles with Fraunhofer ISI’s help and based on its survey of needs. This roadmap will be an integral part of the EU’s standardization program in the coming years and sends a clear signal to all stakeholders in the value chain. Fraunhofer ISI was also in charge of developing training materials to support the standardization measures.

"The standardization of replaceable batteries in L-cat vehicles promotes broad acceptance, reduces production and maintenance costs and promotes market ramp-up. Common standards promote user awareness and support the development of a sustainable infrastructure. A standardization roadmap can provide support for such a process in a goal-oriented manner."  – Prof. Dr. Knut Blind

Innovative technologies & business models: Circular business models using innovative methods and expertise

 

This project’s task was to support a company from the electrical appliance industry in the areas of innovation culture, business modeling, and sustainability. The company is currently undergoing digital and sustainable transformation. In the past few years, it has already developed its vision, mission and strategic goals. It now wants to become a technology and innovation leader in its market to make its product portfolio fit for the future and to grow successfully as an organization. 

"We have shown that it is possible to develop tangible circular business models from complex publication and patent data. Therefore, we help the company not only to recognize its innovation potential in the circular economy but to make the most of it." – David Wurster

Our services

Fraunhofer ISI offers comprehensive services in analyzing the future potential of the circular economy and its framework conditions. Our services and methods include:

Modeling

  • The environmental and economic impacts of technologies, business models, and consumer decisions.
  • Combining modeling approaches to calculate different categories of impact.
  • Model-based recommendations.

Foresight

  • Development of scenarios, visions, transformation pathways and roadmaps.
  • Horizon scanning, early identification of developments and examining the robustness of strategies.
  • Mapping of actors and stakeholders to understand interactions in the circular ecosystem.

Analyses of policies and stakeholders

  • Evaluating funding measures, policy measures and standards.
  • Mapping stakeholders, developing governance models and networking.
  • Perception and communication of products and business models.

What can we do for you?

Our interdisciplinary team offers comprehensive analyses and well-founded results. Write to us or give us a call.

Send an email

Antoine Durand

Contact Press / Media

Antoine Durand

Your contact for eco-design and product regulation

Phone +49 721 6809-302

Leon Rostek

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Dr. Leon Rostek

Your contact for material cycles

Phone +49 721 6809-558

Liliya Pullmann

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Dr. Liliya Pullmann

Your contact for bioeconomy and new technologies

Phone +49 721 6809-475

Cindy Helinski

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Dr. Cindy Helinski

Your contact for business models and consumer behavior

Phone +49 721 6809-479

Lorenz Erdmann

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Lorenz Erdmann

Your contact for foresight in strategy development

Phone +49 721 6809-313

Simone Wurster

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Dr. Simone Wurster

Your contact for standardization and policy framework

Phone +49 721 6809-545

Josephine Tröger

Contact Press / Media

Dr. Josephine Tröger

Your contact for stakeholders and consumer behavior

Phone +49 721 6809-594

Karl Trela

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Dr. Karl Trela

Your contact for artificial intelligence

Phone +49 341 231039-128

Angela Jäger

Contact Press / Media

Angela Jäger

Your contact for product innovation and process transformation

Phone +49 721 6809-322

Selection of ongoing research projects

At Fraunhofer ISI, we work on around 400 research projects every year - many of them with links to the circular economy. A small selection of our current activities in this field.

ESPR studies

Fraunhofer ISI is involved in diverse studies aiming to provide an evidence base to support the development and revision of EU ecodesign policies under the Ecodesign for Sustainable Products Regulation (ESPR). The scientists analyze relevant product groups and support the European Commission in designing policy options. One project focuses specifically on developing ESPR labels. 

SCAR: Pathways in the transition toward resilient European agrifood systems

We develop future scenarios and innovative research opportunities for research and innovations for agri-food systems on behalf of the European Commission’s Standing Committee on Agriculture Research (SCAR). One of the three focus areas of our work is "circularity". We develop contextual scenarios that explore how circularity and systems thinking may evolve under future conditions. In doing so, we examine both the factors that hinder or slow progress towards circularity, but also how disruptions or crises may actually accelerate or support its development. Building on these insights, we identify new research opportunities and highlight emerging challenges for collaboration among diverse stakeholders, as well as the growing need for stronger systematic thinking. Achieving greater circularity requires time, commitment and persistence. Our scenarios extend to the year 2050, but they clearly demonstrate that change must start today through new ways of thinking and acting. Establishing circular systems calls for experimentation, a willingness to collaborate, strong networks of diverse stakeholders and the ability to address complex and varied tasks. 

RISERS – A Roadmap for Industrial Symbiosis Standardization for Efficient Resource Sharing 

RISERS is a Horizon Europe Coordination and Support Action developing a standardization roadmap for Industrial Symbiosis. It builds on extensive stakeholder input across ten working groups with a strong focus on experts, practitioners, researchers, and technical bodies.

KoRPSA – Carbon Management for Climate Neutrality: Regional Potentials and Systems Analysis 

The project clarifies the importance of regional carbon management strategies, including negative emissions, using the Upper Rhine region and Baden-Württemberg as illustrative examples. It creates the necessary knowledge for the design of such strategies from a systemic perspective, identifies options for action and promotes networking among stakeholders, thereby supporting the overall sustainable transformation towards climate neutrality. 

Circle4Value (Platform-based systems knowledge for the expansion of global innovation networks for circular value creation) 

Circle4Value is going to build a digital networking platform for EUREKA consortia and generate system-level knowledge, methods and training to connect international innovation networks and accelerate the adoption of circular value‑chain solutions. It aims to provide scientific insights and systems knowledge on circular value creation, develop practical tools for platform operators and users – especially SMEs – and provide transfer measures (such as brochures, regional hub workshops, etc.). 

Raw Materials for Future Technologies 2026 (RohTech IV)

Which technologies will shape the future? Which raw materials will they depend on? These are some of the crucial questions driving the “Raw Materials for Emerging Technologies 2026” study commissioned by the German Raw Materials Agency (DERA). To obtain a sound and up to date knowledge base on the potential demand trends for raw materials from resource-intensive and resource-sensitive key and future technologies, the study aims to estimate the raw material demand for selected future technologies for the year 2045.

TRANSIENCE

The TRANSIENCE project is making a comprehensive assessment of the circular economy in terms of the decarbonization of basic industries by looking at the twin transition of European industry from the perspectives of global competitiveness, innovation, and sustainability. The final product is the Model for European Industry Circularity and Climate Change mitigation, MIC3, which comprises a large number of “satellite modules” that look at individual aspects in depth. Fraunhofer ISI is focusing on modeling material flows and future industry. MIC3, the associated “satellite modules” and the scenarios derived from this are being jointly developed and validated together with relevant interest groups from industry, politics and civil society. They serve as the basis for assessments and transition strategies at the EU and national levels, at the global level and within four heterogeneous regional industrial clusters in Europe to ensure their applicability and use in real-world applications. 

ESTELLA

The ESTELLA project is conducting research into obtaining highly recyclable biocomposites and making them more attractive to industrial users. The ESTELLA project brings European experts together who cover the entire value chain from extracting biomass precursors, shaping the raw materials to manufacturing and recycling processes. This should ensure the production of materials with excellent characteristics and a maximum recovery rate of their components and should strengthen the ecological and economic dimension of the thermoset value chain.