A circular economy is an economic system aimed at eliminating waste where resources are kept in use for as long as possible, such as by reusing, repairing, refurbishing and recycling existing materials and products. It involves closing resource loops to keep materials and components circulating in the economy. Key elements include using renewable energy sources, designing out waste, and thinking systemically about how different elements interact and influence each other. The goal is to create a sustainable system that provides benefits for both the environment and the economy.