# The Procurement Agenda for the Transition to a Circular Economy
## 3 Circular Procurement
### Circular Economy
\begin{table}
\begin{tabular}{c c c} \hline \hline
**No.** & **Barriers** & **Description** \\ \hline
1 & & Internal Barriers: \\ \hline
1.1 & Company policies & The absence of clear policies and approaches addressing CE restricts organizations from effectively adopting CE. \\ \hline
1.2 & Financial & Adopting CE entails investments in innovative technology, employee training, and production, which could be financially infeasible. \\ \hline
1.3 & Technological & The inability of organizations to have access to or the capacity for technology necessary to adopt CE. \\ \hline
1.4 & Lack of resources & Lack of time. \\ \hline
1.5 & Collaboration & Organizations are reluctant to share information because of competition, which hinders effective collaboration among organizations. \\ \hline
1.6 & Product design & Introducing CE principles in product design could be challenging. For instance, substituting materials with recycled alternatives could lower quality. \\ \hline
1.7 & Internal stakeholders & Lack of communication among departments when identifying departmental responsibilities towards CE. \\ \hline
2 & & External Barriers \\ \hline
2.1 & Consumer & Durable product design increases prices and encourages consumers to purchase such products. Consumers might not be willing to purchase recycled or refurbished products. \\ \hline
2.2 & Legislative and economic & Frequent changes in government policies and the absence of regulations affect the establishment of remanufacturing companies. \\ \hline
2.3 & Supply chain & Supply chains suffer from a fragmentation problem, which may prevent the chain’s actors from knowing the activities of other actors. \\ \hline
2.4 & Social, cultural, and environmental & Absence of people’s involvement (or social inclusion) in CE implementation. \\ \hline \hline \end{tabular}
\end{table} 
Table 2: Drivers for implementing CE in organizations, Adopted from [PERSON] et al. (2021) [34]. \begin{table}
\begin{tabular}{c c c} \hline \hline
**No** & **Driver** & **Description** \\ \hline
1 & & Internal Drivers \\ \hline
1.1 & Organizational & Leadership is considered to be the most critical element for the successful implementation of CE. \\ \hline
1.2 & Resource availability & Knowledge and technological resources are important to embrace CE. \\ \hline
1.3 & Financial factors & Reducing raw materials and producing remanufactured product revenues could encourage more investment in CE. \\ \hline
1.4 & Product and process development & High-quality durable products and environmentally friendly products are appreciated by consumers. \\ \hline
2 & & External Drivers \\ \hline
2.1 & Policies and regulations & Governments, through their policies and regulations, could encourage consumers and businesses to implement CE via tax breaks, supporting funds, and subsidies. \\ \hline \hline \end{tabular}
\end{table} 
Table 1: Barriers to implementing CE in organizations. Adopted from [PERSON] et al. (2021) [34]. The Organization for Economic Cooperation and Development (OECD) proposed five business models that could promote a circular economy [36]:  
* Circular Supply Models. This model considers that materials of products do not eventually become waste. This model is often referred to as the \"cradle to cradle\" product design;
* Resource Recovery Model. This involves the production of secondary raw materials from the waste stream. It covers three forms: 1. downcycling, where lower-value materials or products compared with the source are generated; 2. upcycling, where a higher-value material or product, compared with its source, is generated; 3. industrial symbiosis, which is the direct circulation of waste streams from one firm into the production process of another;
* Product Life Extension Model. This model involves extending the useful life of products through repair, refurbishment, or remanufacturing. This requires manufacturers to adopt product-design strategies that enable such interventions through the design of the product for increased ease of repair and disassembly;