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This chapter provides an introduction to the concept of the Circular Economy and a historical overview of its emergence. It discusses key principles, business and policy mechanisms for the transition from a wasteful linear system of production, manufacturing, use, and disposal, to a sustainable Circular Economy, which is based on maintaining the utility and value of material resources through product and component life extension, reuse, repair and remanufacturing, and material recycling, for greater economic stability, more equitable sharing of resources, and reduction of negative impacts on the environment and natural capital.

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