What could your company do to mitigate rebound effects?

Best Practice Rebound Effect Testimonial Actions Survey Insights

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Through the CircEUlar project, CMCC conducted research titled "From (Micro-)Circularity To (Macro-)Mitigation" that identified how circular economy initiatives can trigger unintended increases in resource consumption elsewhere in the economy and explored theoretical conditions to counteract such effects at the societal level. The Circular ReBoundary project translates these theoretical conditions into practical actions that companies can implement to mitigate unintended resource increase.

While companies may not be able to control all rebound effects, since many occur as part of broader systemic dynamics, these targeted initiatives propose high-potential starting points for companies aiming to preserve resources beyond their own operations.

Indeed, companies can proactively address rebound effects by targeting the choice of the circular practice and influencing consumption patterns through advertising, investment choices, and resource use throughout product lifecycle analyses. In addition, businesses can show support to policymakers engaged in tackling rebound effects through policies.

References:

  • Joltreau, E., Verdolini, E and Cattaneo, C. (2025) From (Micro-)Circularity To (Macro-)Mitigation, DOI 10.5281/zenodo.16982589
  • Joltreau, E., Cattaneo, C., Verdolini, E. (2025). Online tool containing information on available circular approaches in the provision of goods and services - Circular ReBoundary project (CircEUlar Deliverable 3.2)

Financial aspects and final demand.

To mitigate rebound effects from this first channel, consider the following strategies:

  • Encourage consumption in moderation, especially when circular solutions lower consumer prices. Examples:
    • Rather than promoting circular offerings through discounts or "buy more, save more" campaigns, focus on messaging that promotes sufficiency-oriented lifestyles. Highlight value through durability, shared use, and minimalism.
    • Consider loyalty programs that align economic viability with consumption reduction, rewarding reduced consumption instead of increased purchasing. For instance, a digital program where customers photograph their items in ongoing use over months and years, earning repair and maintenance credits as rewards.
  • Visit the sufficiency database: The Business for Sufficiency database, developed within the project CircularX, provides real-world examples of businesses that promote sufficiency to their customers through awareness-raising actions, such as informing customers about the environmental impact of products or Buy Less campaigns.
  • Monitor and track the allocation of additional profits generated by circular practices. Examples:
    • If circular business models improve profit margins, reinvest a portion into verified ecological or social impact funds.
    • Invest savings from material reduction into Research & Development for further efficiency and circularity improvements.
    • Define clear internal criteria for sustainable reinvestment, such as supporting biodiversity, clean energy, or employee upskilling in green practices.
  • Assess and preempt unintended substitution effects. Examples:
    • Conduct a substitution impact analysis when introducing a circular service to determine if it may displace more sustainable alternatives.
    • Communicate transparently with customers, e.g., include disclaimers or guidance suggesting that car-sharing is not a replacement for walking, biking, or public transit where feasible, and cooperate with public transportation operators when relevant.

Material aspects and substitution

To mitigate rebound effects from this channel, consider the following strategies:

If you are a buyer of materials (materials/components/products) for your business

  • Focus on circular practices that measurably reduce your material demand. Examples:
    • Create products that use fewer materials without compromising functionality.
    • Establish internal material loops to minimise external material purchases.
    • Develop business models where products serve multiple customers through approaches such as sharing systems, product-as-a-service offerings, multi-functional products, and sequential use.
  • While buying circular alternatives, such as recycled materials and reused products, ensure that you replace the use of non-circular materials and products in your process.

If you are a material/product supplier

  • Design products for maximum substitution where your circular input has the potential to replace multiple virgin/new alternatives. Example:
    • Ensure recycled materials closely meet virgin quality; while reused products made of recycled materials can be shared or multi-functional and replace multiple new alternatives.
  • Create guaranteed displacement programs. Examples:
    • When selling recycled materials, create contractual agreements or partnerships with buyers who commit to reducing virgin material use.
    • Develop tracking systems hand in hand with your clients to verify substitution rates.

Cross-cutting industry strategies

  • Monitor material consumption and substitution at the industry level
    • Establish key performance indicators that measure net material reduction as well as recycled use and content.

Resource consumption of circular practices

  • Conduct Life Cycle Assessment (LCA). Examples:
    • Integrate LCA into the design and decision-making phases to assess the full environmental impact of circular products, including production, use, and end-of-life stages.
    • Use LCA to compare circular and non-circular alternatives on a per-unit basis to ensure that circular solutions truly reduce net resource consumption.
  • Collaboration across the value chain and with the public sector to optimise infrastructure needs. Examples:
    • Work with suppliers and downstream partners to align practices and reduce indirect resource impacts, such as shared logistics and joint investments in energy-efficient digital infrastructure.
    • Engage partners in joint LCA studies to gain visibility into their resource use and identify co-optimisation opportunities.

Tools and resources

Find below a list of resources that can be useful to monitor resource use and potential rebound effects of circular strategies

Circular Rebound tool

The Circular Rebound Tool, developed by Maastricht University, allows organisations to detect and mitigate potential rebounds across different R-strategies, such as preventing resource-intensive repair activities through low-tech alternatives, in order to preserve the environmental benefits of circular strategies. https://www.circularx.eu/en/tool/28/the-circular-rebound-tool

European Platform on LCA (EPLCA) The EPLCA supports the methodological development of Life Cycle Assessment (LCA) for the analysis of supply chains and end-of-life waste management. https://eplca.jrc.ec.europa.eu/

OpenLCA is a free and open source software developed by GreenDelta GmbH, offering professional Life Cycle Assessment capabilities with a broad range of features and many available databases. https://www.openlca.org/

BrightwayLCA is a python-based LCA software, open source and open access, allowing users to perform comprehensive lifecycle assessments through programming interfaces and customizable analytical workflows. https://docs.brightway.dev/en/latest/#

Activity Browser builds a user interface on Brightway while remaining open source and open access, enabling users to conduct LCA studies through an intuitive graphical interface without requiring programming knowledge. https://github.com/LCA-ActivityBrowser/activity-browser

KBOB Database provides open access LCA data for construction materials and components, allowing users to access environmental impact data for building materials without requiring an ecoinvent license, though it builds on ecoinvent datasets. https://www.ecobau.ch/fr/instruments/donnees-des-ecobilans

Bonsai footprint analyser (building on exiobase) enables users to calculate environmental footprints and analyze supply chain impacts through a web-based interface that leverages comprehensive economic and environmental datasets. https://lca.aau.dk/FootprintAnalyser