Circular Economy Compass

It is effectively a given that, in the coming years and decades, all industries must shift from linear to circular processes, as dictated by political objectives and regulatory requirements. At the European level, political strategies such as the Green Deal and the EU Action Plan for the Circular Economy, as well as regulatory requirements like the new Ecodesign Regulation or the right to repair, mark a clear shift in direction. Germany, too, has firmly anchored the circular economy in its National Circular Economy Strategy.

From strategy to implementation

Industry thus faces the challenge of rethinking its established value creation models. But this is not solely about environmental and climate protection, as the circular economy also opens up economic opportunities. For instance, companies that use materials more efficiently, avoid waste, and keep products in use longer can reduce costs in the long term and lessen their dependence on volatile raw material markets. At the same time, new business models are emerging that can strengthen economic resilience and customer loyalty – such as those centered on repair, remanufacturing, or service-oriented usage concepts. 

However, getting started is particularly challenging for small and medium-sized enterprises. While many companies are aware of the need to act, they often lack clear guidance on the first steps. High initial investments, a lack of standards, regulatory uncertainties, and limited personnel capacity further complicate implementation. To support SMEs in this process, researchers at the IWF at TU Berlin are developing the Circular Economy Hub Berlin, a digital hub for the industrial circular economy in Berlin.

Berlin thinks in circles

It is no coincidence that Berlin, of all places, was chosen as the location for such a competence hub. The capital combines a diverse industrial base with an exceptionally high density of research and educational institutions, including over 40 universities and more than 70 non-university research institutions. Added to this is a vibrant startup scene with more than 500 new companies founded each year.

As Germany’s largest city, Berlin also possesses enormous urban resource potential – that is, products, components, and materials that can be used, repaired, or reprocessed locally. Short distances, a well-developed recycling and waste management infrastructure, and numerous sustainability initiatives create ideal conditions for testing circular solutions under real-world urban conditions.

Turning confusion into confidence

So how does the Circular Economy Hub Berlin help companies tap into this potential? The researchers’ goal is a digital, free, and always-accessible platform that provides practical support to companies as they enter the circular economy. At its core is an interactive model based on the so-called »10R« strategies of the circular economy. As users explore the various strategies according to their own focus and interests, they encounter numerous application examples and scenarios: A furniture manufacturer might replace short-lived one-off solutions with standardized, flexible, and demountable systems that can be reused for many years. New measurement technology may identify defects in electric car batteries so they can be repaired. Or a recycling company’s modern sorting technology could prepare mixed plastic waste for effective recycling.

In addition, the Hub offers helpful information on methods, regulations, and funding opportunities. For example, a guide summarizes the most important guidelines for companies, explains key changes, and provides an overview of when new laws and regulations take effect. With the help of initial recommendations for action, companies can make informed decisions and take the first steps toward circular value creation. 

As a low-threshold and practice-oriented point of contact, the Hub aims to help position Berlin as a model region when it comes to industrial circular economy for everyone facing the challenge of making their value creation networks more circular. Researchers at IWF of TU Berlin are already working to further expand the Hub and support companies through direct dialogue and joint research projects. Their vision: turning good ideas and intentions into more sustainable business models.