The functional economy focuses on the use of a product rather than its ownership. Specifically, with the functional economy model, a company sells the right to use a product of which it maintains ownership. The famous example is Michelin, which no longer sells tires for fleets of company cars, but supplies "mobility services" consisting of repairing, retreading and in some cases exchanging tires. The economic outcome is that the company has an interest in making its products last as long as possible because the price is based on usage (in this case, the number of kilometres driven) and thus in reducing waste.
The European Economic and Social Committee (EESC) is currently preparing an own initiative opinion on "The impact of the conclusions of COP21 on European transport policy". A hearing was organized in order to gather relevant views on this issue and shape concrete proposals to inform the EESC's forthcoming opinion.
The European Commission released in December 2015 the new version of the circular economy package. Its aim is to help the European economy move from linear to circular, more resource-efficient patterns, by ensuring that less resources are extracted from our natural environment and less waste is produced at the end of the product lifecycle. The package focuses on better design of products, improved waste management and recycling performance of EU Member States and the growth and job creation potential of the circular economy. It includes an Action Plan with a specific timeline up until 2017 on production aspects as well as a series of modifications to the waste legislation.