Circular Economy's concept is becoming more and more widespread in the world. It's fundamental philosophy is that the waste of one system can become the input of another, thereby increasing resource efficiency, and decreasing environmental load. However, the circular economy model does not always mean environmental gains. Therefore, before using it, taking a more in-depth look at the environmental, social, and economic effects of the planned technological solution from the perspective of life cycle, and only introducing it, if their combined effects are more advantageous than the open-chain technological lining. The study takes a look at the basics of circular economy and life cycle, and sheds light on the advantages of realising the economic model via a LCA.