Michael Rada
4 min readFeb 11, 2020

Finally, I discovered the difference between CIRCULAR ECONOMY and INDUSTRY 5.0. It took me almost five years to realize that a common item, would be the “buried dog” as we say in the Czech language.

The difference is made by the understanding of the basic principles. The first principle.

The understanding of WASTE

In both systems, the principle of waste prevention is mentioned, but in the circular economy at the same time waste is equal to the value, which is clearly visible on many presentations so as in the CIRCULAR ECONOMY standards introduced by BSI back in 2017

The standards cost 274 British Pounds, in pdf, so I have downloaded just the free Executive Briefing containing 6 pages including the cover and closing page.


Despite the fact, CIRCULAR ECONOMY talks about waste prevention, at the same time it does promote recycling and indicates the WASTE IS VALUE approach.

INDUSTRY 5.0 does not work with waste, in contrary, it prevents waste happens in the true meaning of the word and already in my NEW YEAR GREETING message published on December 27th, 2014 I have presented how to do so.

The approach to waste seems to me to be the main topic.

There is additionally one more difference in understanding. CIRCULAR ECONOMY understands waste only as of the physical state, like TRASH.

“ All ‘waste’ should become ‘food’ for another process: either a by-product or recovered resource for another industrial process” WIKIPEDIA

INDUSTRY 5.0 which is based on INDUSTRIAL UPCYCLING does understand four types of waste


All these wastes INDUSTRY 5.0 prevents to happen, one connected to the other delivering complex picture.

In contrary to CIRCULAR ECONOMY, the INDUSTRY 5.0 implementation does not require the capital upfront investment or significant changes in the design of production and related processes. Thanks to the prevention of process waste, the other waste types are being eliminated even before they occur.

The about mentioned minor difference in approach to the WASTE results in a major difference in funding. CIRCULAR ECONOMY is strongly funded not only by the waste industry but polluters including the biggest plastic bottles distributor (consumer) in the world, who was named again in 2019 biggest plastic polluter, the company COCA-COLA.

WASTE can be proceeded only by members (legalized) of the waste industry. You have to be part of the industry and have approval to “manage and process” waste. It is the same in all the countries and economies around the globe and I have not met a single one which does not have this stated in the legislation.

This made the pool of companies rather small and this is the reason the conditions are so similar.

If you do not process waste, but the product or material the pool of companies and individuals who can process and develop a new product is almost unlimited, so is the variety of solutions.

There is no funding of INDUSTRY 5.0, in fact waste industry does everything possible to prevent the knowledge of systematic waste prevention being spread. There is no chance to stop it

INDUSTRY 5.0 is the first industrial evolution and same as evolution it does not grow by money invested but results delivered which is the reason you see me more time in the boiler suite than the dress coat.

I hope the explanation of the difference is understandable, if you have any questions, contact me, or ask in the comments bellow.



Michael Rada

I am HUMAN. This is the only title you can find after 30 years in business on my business card. Since 2013 I build wasteless world. I am founder of INDUSTRY 5.0