Financial aspects and final demand.

In this channel, enterprises can implement rebound mitigation strategies such as managing potential overconsumption driven by lower prices, directing profits from circular initiatives responsibly, and preventing unintended substitution with more sustainable alternatives. These strategies must be carefully designed to balance long-term customer satisfaction and trust with the company’s financial viability.

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 market dynamics

This channel concerns the direct effects of circular practices on material flows. To limit rebound effects, companies can implement metrics and contractual systems that reliably demonstrate reductions in overall material use and the substitution of virgin materials with recycled materials throughout the value chain.

If you are a buyer of materials, components or 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.

Examples:

  • Implement a system to ensure that every circular purchase corresponds to a reduced purchase of virgin materials.
  • Remove non-circular options from approved supplier lists unless no circular alternative exists.
  • Require suppliers to provide documentation of recycled content or reuse certification.
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.

Example:

  • Establish key performance indicators that measure net material reduction as well as recycled use and content.

Resource consumption of circular practices

In this channel, it is essential that the production processes and material requirements associated with implementing and maintaining circular practices use as few resources as possible. A pre-requisite is to verify the resource demands and environmental impacts of these circular processes.

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.

References

The Circular ReBoundary project translates theoretical anti-rebound principles into practical, preliminary actions that companies can use to reduce the risk of unintended increases in resource use. These actions should be viewed as a starting point rather than definitive solutions. We encourage companies to assess how these recommendations align with their own constraints, operational realities, and business models, and to test and refine them—such as through pilot phases—to ensure they are both feasible and meaningful in their specific context.

  • Joltreau, E., Verdolini, E., & Cattaneo, C. (2025). From (Micro-) Circularity To (Macro-) Mitigation: A Framework Bridging Firm-Level Circularity, Rebound Effects and Policies. Zenodo. https://doi.org/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)

Other resources

Policy briefs

  • European Commission, Joint Research Centre and Denmark Technical University (DTU): Guzzo D, Andrew E, Van der Loo, I, Sanyé Mengual E, Listorti G, Pigosso D (2025). Towards the prevention of rebound effects in Europe and beyond: insights for policymaking. JRC138704. Link
  • Forthcoming CircEUlar policy brief

The 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

LCA platforms and resources

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