Circular economy, a pragmatic and efficient solution to environmental sustainability, emphasizes the concepts of reduce, reuse, redesign, and recycle. It involves reusing, refurbishing, and recycling materials in a closed loop to maintain product value for a longer time, thereby minimizing waste. By repairing and reusing materials, circular economy aims to reduce wastage.

Understanding the principles of circular economy is crucial in comprehending its role in sustainable development. One key principle is the elimination of fossil fuels for production, instead focusing on reusing or recycling consumer products at the end of their life cycle. Additionally, circular economy advocates for the utilization of waste that cannot be upcycled or reused as a source of energy.