Keywords

1 Introduction

Cities are dynamic and complex entities shaped by a diverse array of actors, organizations, and networks. Considering cities as crucial players in the global shift towards sustainability, city managers, including policymakers, urban planners, and mayors, have the potential to take the lead in addressing urban sustainability challenges and combating climate change [1, 2]. In this regard, local governments possess comprehensive knowledge of their surroundings and have the authority to govern and make decisions regarding urban planning, water management, waste disposal, and public transportation [1].

Urged by the impending exhaustion of natural resources and the growing burden on landfills, innovative eco-cities are proactively adopting waste reduction or zero-waste programs. [1]. As a result, the zero-waste objective was incorporated into European Union policy in 2013, and this initial plan has evolved into a comprehensive strategy for advancing the circular economy (CE) across Europe [3].

Accordingly, the urban circular economy, as opposed to the traditional linear economy of “take, make, dispose”, represents a paradigm shift towards a more resource-efficient model of “reduce, reuse, recycle, and remanufacture”. The circular economy (CE) approach is rooted in the understanding that the Earth operates as a closed, circular system with finite resources, and emphasizes the need for a harmonious coexistence between the economy and the environment [4]. This transformative approach holds immense promise for addressing the pressing sustainability challenges facing cities worldwide. Thus, cities can foster economic growth, enhance environmental protection, and promote social equity by minimizing waste generation and maximizing resource utilization.

Even though circular economy practices in cities have shown promising results, their implementation faces many challenges. Shifting an economic model from the traditional linear process to the circular one necessitates the active participation and dedication of multiple stakeholders, including producers, consumers, and policymakers [4]. Collaborative value creation among these actors plays a crucial role in ensuring the success and sustainability of this economic model, which is expected to bring about positive impacts on the social fabric of communities, the sufficiency of the economy, and the preservation of the natural environment.

This study aims to comprehensively assess the impacts of circular economy practices on economic growth, environmental sustainability, and social benefits at the urban circularity level. By examining these key areas, the study aims to provide a holistic understanding of the impacts and potential benefits associated with the implementation of circular economy practices within urban contexts. Through this analysis, valuable insights can be gained to inform decision-making and policy development towards more sustainable and resilient urban environments. A literature review will be conducted to identify the most widely adopted circular strategies in cities, followed by comprehensive data collection encompassing quantitative and qualitative measures. Finally, a case study is presented to demonstrate the implementation of a circular economy in the urban environment.

2 Literature Review

The methodological approach for this study consists of a critical review of the literature on CE implementation in the urban environment. The aim is to identify the most widely adopted CE practices in cities. The literature review was conducted using the Artificial Intelligence (AI) Tool Research Rabbit (https://researchrabbitapp.com/). Research Rabbit allows the searching in multiple academic databases, including Scopus, Web of Science, and ProQuest.

A first search was conducted by using the keywords: “urban circularity”, “case studies”, “circular economy in the urban environment”, and “circular economy in the built environment”. Then, to complement the first analysis was added the sentence “case studies in circular economy practices in the urban environment”. “In this initial search, the articles were screened to identify those relevant to the research question. By skimming the titles and abstracts to assess their relevance, a total of 20 articles were selected. Figure 1 illustrates the relationship between the articles.

Fig. 1.
figure 1

Source: https://researchrabbitapp.com/.

Connections between articles.

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A second search was conducted to investigate “similar works,” “earlier works,” and “later works.” A total of 1,537 articles were identified as “similar works,” with 117 categorized as “earlier works” and an additional 293 classified as “later works.” Upon thorough examination, 33 were identified for in-depth analysis.

2.1 Overall Analysis: Cities and the Circular Economy

Cities are the cornerstones of human life and their sustainable futures. Thus, in any conceptualization of a circular city, these issues must be considered. With the growing profile of the CE and its potential to engage different stakeholders, alongside the recognition of the importance of cities for addressing sustainability challenges, there is a pressing need to understand what a future circular city might look like [1].

Furthermore, urban systems hold a unique potential for circularity, shaped by their distinct social, economic, and environmental factors. CE strategies must be tailored to the specific realities of each context, ensuring their effectiveness and alignment with local priorities. Numerous reports have been published documenting successful efforts to identify and harness this potential, leading to the development of tailored circular economy implementation strategies for various urban systems [2].

The development of a CE within cities, provinces, or regions entails the integration and redesign of four key systems. These systems include the industrial system, which involves transitioning from small to large companies and phasing out heavily polluting enterprises in favor of light economic activities such as high-tech industries, tourism, or culture. Additionally, the infrastructure system delivering essential services, such as transportation, communication, water recycling, clean energy, and electrical power lines, needs to be reconfigured. The cultural framework and social system also require adaptation to support the principles of a circular economy [5].

Vanhuyse (2023) [6] put forth an urban circularity assessment framework that offers city governments and other stakeholders the ability to formulate a comprehensive CE strategy that encompasses different scales, ranging from local to global concerns. This framework is based on a hierarchical approach, starting with a strategic CE vision and sustainability targets at the highest level. These goals then guide the establishment of institutional arrangements, CE strategies, and the management of urban stocks and flows. Moreover, this framework establishes links to the triple bottom line, ensuring that economic, environmental, and social aspects are considered in the development and implementation of CE strategies.

2.2 Benefits

Pomponi and Moncaster (2017) [7] emphasized the environmental benefits of circularity, noting its potential to reduce greenhouse gas emissions and conserve natural resources. According to Geissdoerfer et al. (2017) [8], the circular economy is a powerful tool for sustainable development, emphasizing its ability to minimize waste and optimize resource flows. Additionally, the CE holds the potential to comprehend and implement transformative new patterns, enabling society to attain heightened sustainability and well-being while minimizing or eliminating material, energy, and environmental costs [5].

Several cities have embraced CE as an aspirational concept. While future-oriented, multidisciplinary, and systemic perspectives hold the potential for CE to simultaneously address economic and social issues, empirical data on circular cities is lacking [1]. Munaro et al. (2020) [9] conducted a comprehensive review of circular economy applications, identifying initiatives for circular cities and the transition to a sustainable built environment.

Hysa et al. (2020) [10] recognized the circular economy as a new governance model for sustainability transitions, requiring strategic reframing and institutional design. Çimen (2021) [11] examined the relationship between circular economy and sustainable development goals, demonstrating its potential to contribute to multiple dimensions of sustainability.

2.3 Challenges and Barriers

Despite the promising evidence, implementing circular economy practices in cities presents significant challenges. Multi-stakeholder engagement, the development of new business models, and collaboration between cities are crucial for successful implementation.

The CE implementation at the city level faces several barriers that include the need for CE adaptation of design and technology, access to material information, and additional investment for CE business models [12].

Pomponi and Moncaster (2017) [7] emphasized the importance of stakeholder engagement in shaping circular economy policies, while Munaro (2020) [3] stressed the need for new business models that align with circular principles. Furthermore, they indicate the lack of awareness and understanding of the CE among stakeholders in the construction value chain as a significant issue [9]. Hysa et al. (2020) [4] highlighted the importance of collaboration between cities to share knowledge and best practices, while Çimen (2021) [11] emphasized the role of government policies in promoting circularity.

According to Williams et al. (2022) [13] the absence of circular urban systems of provision in cities stands as the primary obstacle to the adoption of circular practices. The implementation of such systems faces two major challenges: political and economic factors. The authors also highlighted the current conceptualizations of the CE to incorporate a social dimension [13].

The CE agenda primarily focuses on businesses, fostering their competitiveness by valorizing waste for circular advantage and value creation, reflecting the growth-oriented narrative of the cradle-to-cradle framework. However, this approach may increase business control over resources and diminish citizen autonomy. Additionally, applying CE principles in businesses is a distinct undertaking from adopting CE in cities [1].

To address these barriers and facilitate the transition to a CE at the city level, Lee et al. (2016) proposed several strategies. One such strategy is the sourcing of materials locally, which reduces the need for long-distance transportation and promotes regional circularity [14]. Another important strategy is the adoption of clean transportation methods, which helps to minimize the environmental impact of logistics and contribute to a more sustainable CE. In addition, the implementation of public policies and financial incentives that promote material reuse, efficient waste collection, and the development of a robust recovery market are crucial factors in facilitating the circular economy transformation at the city level [15].

3 Discussion

Recognizing the significance of cities in addressing sustainability challenges, the urban systems possess distinct social, economic, and environmental factors that make them unique in terms of their potential for circularity. Hence, to ensure effectiveness and alignment with local priorities, circular economy strategies must be tailored to the specific realities of each context. This has led to the development of tailored circular economy implementation strategies for various urban systems.

The primary objective of this study is to conduct a comprehensive assessment of the effects of circular economy practices on economic growth, environmental sustainability, and social benefits specifically at the urban circularity level. A comprehensive analysis of the literature revealed the primary strategies and their relationship with economic growth, environmental sustainability, and social benefits, to promote circularity within urban environments. Thus, the analysis provided a better understanding of how circular economy practices can be used to stimulate economic growth, protect the environment, and create social benefits in urban environments. Also, the main challenges and barriers to implementing circular economy practices in urban environments.

The subsequent section delves into the Case Study of Amsterdam, exploring the applicability of CE practices within the city’s unique context.

4 Case Study: Amsterdam

Since the 1980s, the Netherlands has been actively promoting policies related to the CE, with a particular focus on increasing recycling rates and reducing the amount of unsorted (household) waste that ends up in landfills [12].

The discussions surrounding the concept of the CE first emerged in Amsterdam in 2013. Recognizing its potential, the Amsterdam municipality included the CE concept in its sustainability agenda in 2015. In 2016, an action agenda was launched with the ambitious goal of positioning the city as a frontrunner in circularity. The Strategic Advisor for Sustainability in Amsterdam highlighted the significance of a comprehensive action program that prioritizes circularity, making the CE agenda even more impactful [1]. This agenda emphasized the importance of collaboration among various stakeholders, including local businesses, companies, and citizens [1, 12, 16].

Within this action agenda, two material streams, organics, and construction, were prioritized. For the organic stream, specific objectives were identified, including the establishment of a biorefinery hub, the promotion of cascading organic residues (such as biomass production), and the extraction of valuable resources like phosphate from waste residues. To measure progress, a clear target was set: achieving a 65% organic separation rate by the year 2020 [16].

Furthermore, Amsterdam’s spatial plan primarily focused on strategic priorities such as job creation and housing for a growing population. However, it also recognized the importance of waste/bio-clusters in the port area, facilitating local circular actions. To support these initiatives, the Circular Innovation Program provided financial incentives [13]. The spatial plan also emphasized the utilization of residual heat and the preservation of green spaces within the city, both crucial for achieving circular development (CD). These efforts were further bolstered by the Sustainability Strategy and the Circular Vision and Roadmap, which outlined specific CD goals. The implementation of these goals was carried out through the Learning by Doing program [13]. Policymakers acknowledge the intricate nature of the CE and recognize its complexity [1]. Despite Amsterdam’s pioneering position in this field, it is essential the need for “experimentation” due to the relatively new territory of CE and the existence of unknowns. While there are currently limited policy instruments, there is at least some framework in place. In terms of financing, an opportunistic approach is taken, focusing on providing support and incentives to existing projects that show promise and align with the city’s goals. This is achieved through policy instruments such as the sustainability fund. Furthermore, policymakers emphasize the concept of creating a “future-proof” city, placing importance on resilience and adaptability rather than solely focusing on sustainability [1].

Moreover, Amsterdam is actively embracing a circular economy approach, evident in the numerous experiments underway across the city [1]. One notable example is the implementation of legislative “free zones” in the post-industrial area of Buiksloterham, where partners are encouraged to test innovative waste collection and water sanitation methods. In 2016, Amsterdam made a significant step forward by becoming a Fab City, a movement dedicated to exploring the potential of new city dynamics enabled by distributed urban production systems powered by advanced technologies such as 3D printing and smart and efficient mobility and food systems [17]. The city also houses the fully circular community of De Ceuvel, a participatory living lab of a self-sufficient community that aspires to be “at the vanguard of circular living” [18]. Residents of De Ceuvel contribute to the community’s sustainability by constructing self-build homes from recycled materials and managing their own material, energy, and food resources. This initiative aligns with the “Manifesto for a Circular Buiksloterham,” which emphasizes the core themes of circularity, bio-based solutions, and smart innovation [1, 18].

These efforts demonstrate Amsterdam’s commitment to advancing the circular economy and its proactive approach to promoting sustainable and resource-efficient practices [13].

5 Conclusion

Cities are the cornerstones of human life and their sustainable futures. As the circular economy gains traction as a sustainable development paradigm, cities emerge as crucial actors in shaping the future of this transformative concept. The CE’s potential to minimize waste, optimize resource flows, and foster a more sustainable future resonates deeply with the challenges faced by urban environments.

Furthermore, cities bear the responsibility of ensuring a sustainable future for their inhabitants and the planet. The CE presents a promising pathway towards this goal, offering a framework for resource-efficient and environmentally responsible urban development.

However, implementing CE practices in cities presents unique challenges, demanding multi-stakeholder collaboration, innovative business models, and effective partnerships between cities.

Despite the nascent stages of CE implementation at the city level, the growing interest and the increasing number of cities embracing this paradigm offer a glimpse into the future of a circular urban landscape.

The primary objective of this study was to conduct a comprehensive assessment of the effects of circular economy practices on economic growth, environmental sustainability, and social benefits specifically at the urban circularity level. A comprehensive analysis of the literature revealed the primary strategies and their relationship with economic growth, environmental sustainability, and social benefits, to promote circularity within urban environments. The case study of Amsterdam was presented to illustrate the implementation of CE practices in an urban environment. Amsterdam’s unwavering dedication to the circular economy has propelled the city into a frontrunner position. Through a comprehensive strategy that prioritizes collaboration, Amsterdam has successfully implemented numerous initiatives to foster circular practices. These efforts serve as a testament to the city’s visionary approach to sustainability and resource-efficient practices. Amsterdam stands as a beacon of hope, demonstrating the transformative potential of the CE through its unwavering commitment and proactive initiatives.