Examination of Circular Economy in Finland: Barriers and Opportunities of the Circular Business Model

Abstract

Objectives The main objective of this study was to examine the state of Circular Economy in Finland. In order to determine the main benefits and barriers for Circular Economy and Circular Business Models in Finland, this study aimed for gaining a comprehensive understanding of the theory and practical application of Circular Economy, and the way it has been implemented in different industries this far in Finland. In addition, implications for future developments in Finland regarding Circular Economy were analyzed.

Summary A qualitative research method was chosen for this study. Semi-structured interviews were conducted with professionals from different fields with experience on Circular Economy and circular business practices. Based on the interviews, thematic analysis was conducted on the data, and answers for the research questions were drawn from the interviews and the literature review.

Conclusions Based on the analysis of the interview data, main conclusions for the research were the following: Circular Economy is widely recognized across multiple industries in Finland, and many firms have implemented various circular practices into their operations. However, due to the complex, systematic changes required for the transformation towards fully circular economy, many firms still mainly operate under the linear model. While Circular Economy is acknowledged within many stakeholder groups in Finland, there are still major barriers for bigger changes towards circular practices, some main barriers including legislative barriers, lack of demand, and lack of supporting infrastructure and business ecosystems.