In a circular economy, raw materials and products are used efficiently and for as long as possible. When material and product loops are closed, raw materials can carry on being reused. This benefits both the environment and the Swiss economy. The federal government works closely with the business community, supports innovative environmental technologies and takes regulatory measures to boost the circular economy.
What is a circular economy?
The circular economy differs from the linear production processes that are still widespread today. In a linear economic system, raw materials are extracted, and products are manufactured and sold, consumed and disposed of (see following diagram). This leads to shortages of raw materials, emissions, large volumes of waste and the associated environmental problems.
In the circular economy, products and materials are kept in circulation (green arrows in the graphic below). This means that fewer primary raw materials are used than in the linear system. Moreover, products retain their value for longer and less waste is generated.
The circular economy is an integrated approach which considers the cycle as a whole, from raw material extraction through design, production, distribution and a maximised use phase, to recycling. A change of mindset is needed among all stakeholders if products and materials are to remain in the loop.
The aim is to use natural resources efficiently and sparingly, firstly by minimising the consumption of raw materials and energy, waste and environmental pollution, and secondly by using renewable energies and sustainable, non-toxic raw materials. The circular economy helps to reduce the consumption of raw materials and thus the dependence on imports, which in turn reduces the environmental impact at home and abroad. A main environmental impact of Swiss consumption occurs along the supply chain and abroad. Circular economy measures are an obvious instrument for reducing this.
In times of increasing uncertainty and supply bottlenecks, circular economy solutions can reduce dependence on imports. For example, by providing recovered materials for the economy through recycling or by extending the service life of products such as laptops and mobile phones.
Resource conservation is a broad term covering the conservation of natural resources: not only raw materials, but also the climate, soil, clean water, clean air and biodiversity. Raw materials include minerals, fossil raw materials and metals as well as products from forestry and agriculture. The use of raw materials goes hand-in-hand with environmental pollution and the consumption of other natural resources. Resource conservation means using natural resources without destabilising them. The term ‘resource efficiency’ should thus be understood more broadly than material or energy efficiency.
Keeping products in the loop
The useful life and life cycle of products is increased by sharing, reusing, repairing and refurbishing them. Viewed across the entire product lifespan, this not only protects the environment, but also saves consumers money in most cases. The long product use phase opens up new business opportunities for the Swiss economy, with its focus on innovation and quality. For instance, companies can offer repair services and products can be leased instead of sold.
Only when a product can no longer be used is it sent for recycling so that the materials can be reused. From an environmental perspective, it is better in nearly all cases to continue using products for as long as possible, since even recycling uses energy, water or chemicals, and therefore has an impact on the environment.
Examples of product loops
- Sharing: Libraries, car-sharing, hiring sports equipment, lending tools or household appliances to the neighbours, farm machinery syndicates.
- Reusing: Returning and reusing glass bottles; passing on clothing or used items or selling them through swap shops, online platforms or charity shops.
- Repairing: Making defective items functional again, e.g. repairing a washing machine or resoling shoes.
- Refurbishing: Overhauling out-of-date or worn-out products or reusing parts of them, e.g. re-upholstering the seat of an office chair, sanding a table, replacing batteries, upgrading a laptop with the latest technology.
Keeping materials in the loop
Materials of biological or organic origin (e.g. food preparation waste) should, where possible, be recycled or fermented after use. For instance, nutrients can be returned to agriculture in the form of compost, where they can promote the growth of new raw materials.
Most other materials in a circular economy should also ideally be separated, collected and recycled. This creates high-quality secondary raw materials such as PET and aluminium, which can be sold and reused to produce new goods. It is important that harmful substances are removed and withdrawn from the cycle during the collecting and recycling processes. Secondary materials obtained from recycling and processing can replace primary raw materials in the production process. This makes secondary raw materials attractive not only from an environmental perspective but also in terms of the Swiss economy.
Ecodesign for circular production
Ecodesign is an approach that systematically incorporates environmental considerations into product planning, development and design right from the start using life cycle assessments. Ecodesign looks for concepts, materials and construction techniques that minimise a product’s consumption of resources and raw materials throughout its life cycle. This also opens up cost-saving possibilities.
To maximise the life of a product and ensure that it will be recyclable afterwards, aspects of the circular economy need to be considered during the design phase. Products must be designed and manufactured in such a way that they use minimum resources, are durable, modular and capable of being repaired and dismantled. The choice of materials is also important: as far as possible, materials should be separable, safe and recyclable. Labelling is another important factor. Instead of just stating ‘recyclable’, a label should mention the proportion of recycling material (secondary raw material) that a product contains. Wherever possible, the entire process will avoid using chemicals that are harmful to the environment or human health. Another central element of the circular economy concept is that it uses renewable energy. This energy should be used as efficiently and sparingly as possible because raw materials and natural resources are required even for the supply of renewable energy.
Carrying out a life cycle assessment is the only way to ensure that new circular economy projects and measures do in fact reduce environmental impacts.
Ecodesign requirements for electrical appliances: focus on promoting repairs
Repairing appliances makes good sense from an environmental perspective, as repair is generally a more resource-efficient solution than buying new ones. The service life of products can be extended if spare parts are available.
Distributors (manufacturers, importers or authorised representatives) of products such as televisions, refrigerators, dishwashers and washing machines, smartphones and tablets are required to provide spare parts and repair instructions as a condition of putting appliances on the market. In accordance with the EU's ecodesign implementing regulations, it must be possible to install replacement parts using ordinary tools and without permanently damaging the appliance. Switzerland adopted similar regulations in the revision of its Energy Efficiency Ordinance (EnEO, SR 730.02).
Which appliances are affected?
What are the new requirements for reparability and resource efficiency?
What are the environmental benefits?
The new requirements affect the following appliance categories:
- Electronic displays (including televisions and monitors)
- Household dishwashers
- Household washing machines and washer–dryers (washing machines with integrated tumble dryers)
- Refrigerating appliances (refrigerators and freezers)
- Refrigerating appliances with a direct sales function
- Welding equipment
The new requirements relate to appliance reparability and the availability of spare parts, as well as the provision of relevant firmware, security updates and repair-related information. For a number of years after appliances have been purchased, distributors are obliged to make repair and maintenance information available, and to provide certain spare parts to repair service providers and private consumers within 15 days.
The EU ecodesign regulations that have been adopted into Swiss law are intended to extend the lifespan of electrical products by making them more durable and easier to repair and recycle. Generally speaking, this should reduce the consumption of natural resources used to manufacture new appliances, as well as reduce the number of discarded appliances. An economic assessment of the measure has shown real potential to save resources and reduce greenhouse gas emissions, but its impact ultimately depends on how often consumers actually have defective products repaired.
The regulation concerns not only those who distribute the appliances on the market (manufacturers,, importers or authorised representatives), but also repairers and end-users, who need specific spare parts and information on repair and maintenance.
The Energy Act forms the legal basis for the EnEO (Energy Efficiency Ordinance, SR 730.02). The Swiss Federal Office of Energy SFOE is therefore responsible for enforcing the EnEO, while the Federal Office for the Environment FOEN assesses fulfilment of the resource efficiency requirements.
Below you will find links to the relevant EU regulations. The resource efficiency requirements are provided in Annex II in each of the regulations. A few requirements have been excluded from the EnEO, for example because they are regulated in another ordinance.
Circular economy in Switzerland
As a country with few raw materials, Switzerland has been pursuing circular economy approaches since the mid-1980s, and has succeeded in closing some loops, at least partially. Every year, 16 to 18 million tonnes of demolition materials such as concrete, gravel, sand, asphalt and masonry are produced, of which almost 12 million tonnes are recycled. More than 5 million tonnes, primarily mixed demolition materials, were not yet in a closed loop. In terms of municipal waste, over half is separated, collected and recycled. However, Switzerland’s high recycling rate stands alongside a huge volume of waste. Hardly any other country generates as much municipal waste in relation to the resident population.
In Switzerland, the closed-loop model has so far become established primarily in the area of waste management. Detailed information on the environmental impact, separate collection and disposal of various types of waste can be found in the waste guide. There is still much to be done to reach a circular economy. For instance, a greater proportion of textile fibres, construction materials, plastics and biogenic waste could be kept in the cycle. Businesses have increasingly been taking circular economy principles into consideration for some years now. Around 10 per cent of Swiss companies are currently active to a substantial degree in the circular economy. This means that they invest a significant proportion of their total investments in creating a circular economy and are active in this field in several ways.
Consumers also have an important role to play in a functioning circular economy. They can contribute to the transition through sustainable consumption and by using products for as long as possible. It is also in their power to ensure that products are increasingly shared, reused, repaired and refurbished. And, ultimately, that products that can no longer be used are collected and disposed of separately. Procurement agencies at federal, cantonal and communal level, as well as private sector procurement agencies, also have an important role to play in the transition towards a more circular economy.
What is the federal government doing?
There are many different ways of promoting the circular economy. Measures are based on the precautionary principle and the polluter-pays principle, as well as on cutting-edge technology, innovations, collaboration with industry and, where necessary, new regulations.
The FOEN encourages the move towards a circular economy by promoting environmental technology and by running a green public procurement service. The knowledge platform for sustainable public procurement (WöB) provides information and tools for procurement organisations and experts at all levels in the Confederation. It is also involved in associations that promote the circular economy, such as Go for Impact.
Additional measures are investigated in a report by the Federal Council on the Vonlanthen postulate on fiscal incentives and other measures to promote the circular economy [Die Chancen der Kreislaufwirtschaft nutzen. Prüfung steuerlicher Anreize und weiterer Massnahmen]. The findings of the report show that effective promotion of the circular economy can best be achieved through a well-coordinated bundle of supply and demand-side measures,
such as measures aimed at increasing the useful life of products. Others focus on the design and production of closed-loop products.
The Federal Council outlines further possible options for action in a report on waste management, waste prevention, waste planning and measurement, drawn up in response to a number of further postulates in Parliament.
The Council of States’ Postulate 18.3509 Noser calls for a systematic identification of hurdles to resource efficiency and a circular economy. The analysis reveals that the exploitation of the potentials outlined by the fields of action is not hindered by individual regulatory hurdles.
Rather, all fields of action involve multi-layered constellations of mutually influencing hurdles as part of complex socio-technical market and system structures.
The Swiss parliament adopted the parliamentary initiative 20.433 on strengthening the Swiss circular economy on 15 March 2024. The revisions to the Environmental Protection Act (EPA), the Energy Act (EnA) and the Federal Act on Public Procurement (PPA) create an overarching legal framework for strengthening the circular economy in Switzerland. The aim is to reduce environmental pollution and resource consumption, at the same time increasing the competitiveness and security of supply of the Swiss economy. Furthermore, future-looking business areas with new opportunities for value creation should open up for Swiss companies.
Bericht des Bundesrates vom 11. März 2022 in Erfüllung des Postulates 18.3509 Noser «Die Hürden gegen Ressourceneffizienz und Kreislaufwirtschaft abbauen» vom 13.06.2018 (PDF, 704 kB, 31.03.2022)Report by the federal government
Die Hürden gegen Ressourceneffizienz und Kreislaufwirtschaft abbauen (PDF, 7 MB, 11.03.2022)Study mandated by the FOEN (with summary in English)
Steuerliche und weitere Massnahmen zur Förderung der Kreislaufwirtschaft (PDF, 751 kB, 16.06.2020)Bericht des Bundesrates vom 19. Juni 2020 in Erfüllung des Postulates 17.3505 «Die Chancen der Kreislaufwirtschaft nutzen. Prüfung steuerlicher Anreize und weiterer Massnahmen» von Ständerat Beat Vonlanthen vom 15. Juni 2017.
The circular economy is part of the green economy and sustainable development
The Sustainable Development Strategy encompasses the three dimensions of sustainability – environment, society and economy – and sets out the Federal Council’s policy priorities. One of its main focuses is sustainable consumption and production. The green economy contributes in particular to environmentally and economically sustainable development. It pursues an economic system with sustainable, resource-efficient production and consumption patterns. It takes account of the limited supply of natural resources and the regeneration capacity of renewable resources. Circular models represent an important part of the green economy.
However, not all circular economy measures make sense from an environmental perspective. For instance, the recycling and treatment processes for certain materials require more resources and energy using today’s technologies than would be consumed if primary raw materials were used instead. A life cycle assessment can determine which measures in the circular economy actually make sense from an environmental perspective by analysing every step of the product and raw material life cycles. Life cycle assessments take account of all the relevant environmental impacts throughout a product’s life cycle.
Working with the cantons and communes
Cantons and communes play a key role in advancing the circular economy. They contribute the realities experienced at local level that needed to fill out the framework set up at national level. For this reason, the FOEN, together with SECO and cantonal representatives, organised the conference ‘Circular economy: the role and leverage of the public sector’, which took place on 12 November 2020. Focusing in particular on cantonal levers and activities, the event offered valuable insights and a wide range of opportunities for cooperation and networking – both among the cantons and with the federal administration. The conference documents are available here:
Circular economy in other countries
In 2015, the European Commission passed a circular economy package and, since then, has been taking steps to strengthen the circular economy. The Ecodesign Directive plays a major role in this; it provides the legal basis for minimum requirements for household appliances, including maximum energy consumption and the requirement that it must be possible to repair appliances.
In 2016, sectors relevant to the circular economy employed over four million people in the EU. The global market for the circular economy and material and resource efficiency has grown by over ten per cent in the past five years. This is faster than the global economy as a whole.
Ecologically Sustainable Construction – Analysis of Training and Further Education
This study analyses training and further education in terms of environmental sustainability in architecture and engineering. The study examined 32 degree programmes and 58 continuing education programmes in Switzerland. The analysis shows that environmental sustainability is rooted in the module descriptions of most study programmes, but none of the descriptions achieved the top score. There is potential to present the competences more prominently. Cooperation and energy demand are the most frequently described topics, while material cycles, environmental pollution, greenhouse gas emissions, natural environment, landscape and sufficiency occur less frequently. The study recommends defining or supplementing goals on these topics, developing faculty know-how and taking further measures. These recommendations are to be implemented primarily through SwissEnergy's 'Training Campaign in Construction'.
Ökologisch nachhaltiges Bauen – Analyse der Aus- und Weiterbildungen (PDF, 3 MB, 04.07.2023)Im Auftrag des BAFU
Further information
Links
Statusbericht der Schweizer Kreislaufwirtschaft (PDF, 3 MB, 31.12.2021)Im Auftrag des BAFU
Documents
Statusbericht der Schweizer Kreislaufwirtschaft 2024 (PDF, 4 MB, 02.09.2025)Im Auftrag des BAFU
Statusbericht der Schweizer Kreislaufwirtschaft (PDF, 3 MB, 31.12.2021)Im Auftrag des BAFU
Ökologisch nachhaltiges Bauen – Analyse der Aus- und Weiterbildungen (PDF, 3 MB, 04.07.2023)Im Auftrag des BAFU
Die Hürden gegen Ressourceneffizienz und Kreislaufwirtschaft abbauen (PDF, 7 MB, 11.03.2022)Study mandated by the FOEN (with summary in English)
Beurteilung von ausgewählten Massnahmen zur Förderung der Kreislaufwirtschaft in der Nutzungsphase (PDF, 1 MB, 01.07.2019)Im Auftrag des BAFU
VOBU: Nachvollzug der 10 EU-Ökodesign-Verordnungen von Mai 2020 (PDF, 1 MB, 28.10.2022)Im Auftrag des BAFU
VOBU: Einführung verpflichtender Deklarationen über die Reparierbarkeit und Lebensdauer ausgewählter elektrischer Geräte (PDF, 1 MB, 29.11.2022)Im Auftrag des BAFU
Rechtsvergleich bestehender rechtlicher Massnahmen in der Europäischen Union und ausgewählten Staaten sowie der Schweiz zur Förderung der Kreislaufwirtschaft im Konsumbereich (PDF, 725 kB, 01.01.2020)Gutachten von Prof. Dr. Sebastian Heselhaus, Universität Luzern, im Auftrag des BAFU, 2019 (aktualisiert 2020)
Analyse zu in der Schweiz verarbeiteten Rohstoffen (PDF, 4 MB, 18.12.2015)Studie im Auftrag des BAFU
Last modification 08.09.2025
