The Circular Potential Methodology: Identifying Opportunities for Circular Gains in Your Industry or Region

The Circular Potential Methodology (CPM) provides industry associations and regions with concrete starting points for increasing their strategic autonomy through circularity. Specifically, it provides insight at the product group level into the theoretical maximum potential of various circular strategies. This potential, expressed in kilograms or percentages, shows at a glance where the greatest opportunities lie for reduced raw material use, lower costs, lower CO2 emissions, and greater supply security. The CPM is also used in the context of the Roadmap to formulate long-term goals for circularity.

How the CPM Supports Greater Strategic Autonomy

 

In general, the results of the CPM support regions and industry associations in increasing their strategic autonomy by initiating or strengthening the following processes:

  • Turning raw material waste into raw material reuse
  • Turning loss of value into value preservation
  • Supply chain vulnerabilities turn into certainties
  • Turning dependence into independence

Industry associations and product teams

Industry associations, intermediaries, and product teams at Routekaarten use the CPM to:

  • Gaining insight into and an overview of circular potential
  • Support strategic decisions
  • Identify promising activities and products within a joint innovation agenda.

This is how you initiate structural change and work toward future-proof business practices within your product group or sector.

Regions with circular economy goals

Regions are using the CPM in a targeted manner to assess the circular potential of key economic activities in the region.

Thus, the CPM does not provide a comprehensive picture of a region’s circular potential, but rather of a clearly defined sector within the region.

CPM workshop facilitators

On this page, facilitators will find information on how to use the CPM in workshops and during process facilitation. The CPM follows a clear step-by-step structure divided into four phases: preparation, product workshop, behavioral workshop, and modeling the circular potential of product groups (clusters). The CPM Handbook for Workshops provides context and guidance for each step.

How exactly does the method work?

Using standardized steps, this methodology helps you identify the circular potential of your product group or region. During workshops with experts, you systematically collect data and insights and test their feasibility using “what-if” scenarios. You then translate this realistic data into concrete measures to reduce raw material use and CO2 emissions. These might include guidelines for circular product design or policy.

 

What results can you expect?

The model’s concrete output is an overview of the potential of six circularity strategies. These are:

  • Intensification
  • Extending the service life
  • Efficiency
  • Behavioral reduction
  • Substitution
  • High-quality recycling (expressed as a percentage)

Note: This methodology is not an exact science. It is a pragmatic approach that provides an indication of the approximate scale of the circular potential of your product group or region.

Replacement or refurbishment? A smarter process or a smarter design? Make informed decisions.

 

The insights into circular potential provide guidance for further developing promising circular strategies for your product group or region. These strategies can be developed, for example, through CIRCO Supply Chain Tracks, where supply chain partners work together to identify challenges and formulate solutions. These solutions can be further refined using Circonnect business tools. You can find these tools here.

Get started with CPM today

The Circular Potential Methodology for product groups and regions can be applied in workshops under the guidance of experts. Participation in the workshop requires only half a day; in a single afternoon or morning, you’ll lay the groundwork for concrete next steps. After all, with an understanding of circular potential, you can set priorities and identify specific projects. Would you like to organize a CPM workshop for your industry or region? We’d be happy to assist you at info@circonnect.org.

How was the CPM developed?

 

The Circular Potential Methodology was originally developed by TNO to quantify the circular potential of (sectors within) the Dutch economy. As part of the National Circular Economy Program (NPCE 2023–2030), the methodology was further refined and implemented by KplusV, enabling it to provide a more realistic picture of environmental impact and value creation. Product characteristics have also been updated based on recent market data, ensuring that the results better align with current practice.

The CPM can be used on its own or as part of the Roadmap approach

 

The Circular Potential Methodology is an important tool for identifying opportunities for a sector or region and can be used on its own. In addition, the CPM fits within the Roadmap Approach. The Roadmap Approach helps product groups formulate long-term circular goals and work backward from there to identify concrete measures. Determining the circular potential of a product group is one of the first steps in this process. Within the Roadmap Approach, the CPM can contribute to greater circular benefits and raw material security. After all, the CPM takes the current situation as its starting point and identifies promising strategies based on current product characteristics.

Frequently asked questions

  • What knowledge and input are expected of me?

    We distinguish between product experts and sector/industry experts. We have asked you
    to participate as a product expert. Product experts are asked to propose one specific product group (at the SBI6 level) from the cluster to which you have been assigned. We ask that you choose the product group in which you have the most expertise. You can find these product groups in the attached Excel sheet. During the workshop, we will ask you about developments and opportunities related to your product group.

  • I/my company works with several product groups within the cluster assigned to me. Which one should I choose?

    You may find that several product groups in which you have expertise appear on the list. However, we ask that you select only one product group and prepare accordingly. We leave the choice largely up to you, based on what you feel most comfortable with and where you have the best insight into opportunities and developments. If you still need some guidance, we recommend choosing the product group that you estimate to be the largest in the Dutch economy.

  • I'm missing key product experts in the cluster. Why is that?

    The method and model we use were developed by TNO to enable us to assess the circular potential of an entire cluster based on a few representative products within that cluster. Not every product or product group can be represented in the workshop, but the model takes this into account. The methodology is also not aimed at bringing only “frontrunners” or innovators to the table, but rather the broader economy. The calculation model underlying the methodology ensures that the product groups examined are scaled up to represent the entire cluster.

  • Can I participate online, or join the workshop earlier or later?

    Unfortunately, that is not possible. In-person attendance is essential for participating in this interactive workshop. During the workshop, facilitators guide the product experts step by step through the process of analyzing a product of their choice. If you do not attend the entire workshop, it will not be possible to achieve a result.

  • Is TNO’s methodology (CPM) overly simplistic in certain areas?

    This is correct. The methodology was developed to enable conclusions to be drawn about the same number of product groups and clusters with limited resources (15 workshops and 5–8 experts per workshop). The methodology includes calculation methods developed in collaboration with a broad group of experts who perform extrapolations.

  • What happens to the results of the workshop?

    As stated in the handout, the results will serve as a “basis” for the
    discussion among relevant officials within the national government to refine the objectives. This is an interpretation of the results by the consulting firm and the relevant policy staff. In short, if a percentage is estimated too high or too low in the workshop, this will not have direct consequences for the final results at the end of the project.

  • How will we ensure that this workshop and the entire process align with other ongoing initiatives?

    In preparation for the workshop, we are conducting an analysis of developments within the product group cluster, consisting of a desk study and interviews. We are speaking with policy staff from various ministries to identify existing initiatives, such as product group roadmaps and transition agendas. The goal of these workshops is not to launch new initiatives, but to quantify the circular potential of existing and future initiatives and events. However, your knowledge of current initiatives does add value to the workshop.

  • How much time will this require on my part?

    We are asking for your participation in one workshop. The workshop itself will take up half a day at
    . We estimate that 1–2 hours of preparation time will be required prior to the workshop. Afterward, a similar amount of time will be requested, primarily to validate the workshop’s outcomes.