—By Charu Latha
The world has been witnessing unsustainable patterns of production and consumption caused by our ‘take-make-dispose’ approach. In 2019, over 92 billion tonnes of materials were extracted and processed, contributing to about half of global carbon dioxide (CO2) emission, according to Global Circularity Gap Report, 2019, an annual report of the World Economic Forum (WEF) measuring the state of circularity. There has been calls for adopting circular approach to production and consumption in an economy, as against the existing linear approach. The circular economy, which promotes the elimination of waste and the continual safe use of natural resources, offers an alternative that can yield significant economic benefits. According to WEF, a circular economy is an industrial system that is restorative or regenerative by intention and design. It replaces the end-of-life concept with restoration, shifts towards the use of renewable energy, eliminates the use of toxic chemicals, and aims for the elimination of waste. A linear economy is one where natural resources are used and converted into products for consumption and then disposed of.
The circular economy, as a sustainable model of production and consumption, focuses on reducing waste to the minimum possible. It involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible.
Need for a Circular Economy
The linear economic model based on ‘take-make-consume-throw away’ approach, relies on large quantities of cheap, easily accessible materials and energy. The world’s population is growing and so with it is the demand for raw materials, which are, however, limited in supply. In addition, extracting and using raw materials has a major impact on the environment. A circular economy ensures smarter use of raw materials and achieves majorly on the efficient use of resources.
Benefits of a Circular Economy
A circular economy entails a number of benefits. They are the following:
- Minimises environmental harm: Circular economy promotes the usage of sustainable methods of production which include biodegradable inputs of production, reusing existing products, and diverting waste generated which not only reduces the environmental harm, but also reduces the cost of production by reusing/recycling waste.
- Reduces waste: Circular economy completes the circle by recycling, improving the lifespan of a product, and reusing materials to reduce waste. Using biogas to produce fuel is also one of the ways of reducing waste in a circular economy.
- Shifting to renewable energy: One of the pillars of circular economy is shifting to renewable sources of energy. There are about 6 main sources of renewable energy—solar energy, hydroelectric energy, wind energy, tidal energy, geothermal energy, and biomass energy. Renewable energy not only reduces carbon emissions, but also boosts the local economy and also improves the food supply. According to the UN Sustainable Development Goals (SDGs), renewable energy has the potential to “provide over 90 per cent of the reduction in energy-related CO2 emissions by 2050”.
- Boosts business satisfaction: Circular economy business models focus on keeping materials in use for as long as possible to get the maximum value from them. Corporate social responsibility (CSR) with a focus on a circular economy can further attract and retain employees eager to create a change within the world.
- Promotes economic opportunity: There is a huge potential for the circular economy to create opportunities, jobs, and growth in the economy. The recycling industry has huge prospects to grow and provide opportunities to businesses and people. Logistics companies for collection and distribution of products disposed of, parts or components refurbishment will also witness increased demand. There will be a demand for lot more services in a circular economy.
The concept of circular economy is more relevant and necessary now than ever before. The concept of circular economy is in accordance with SDGs and would be beneficial for a better future. Despite the benefits and the need for a circular economy, there are few barriers to its implementation. However the circular economy business models remain to be fully developed, most companies are still working on linear economic models. The demand for these products and the professionals is very small as of now. The rules and regulations for new business models should be framed. Most companies are still focussed on short-term goals and the national income calculations at present doesn’t factor in negative externalities and the costs involved in covering these externalities. All such issues which discourage the creation of a circular economy need to be addressed. Gradually, the world needs to adjust and move towards a circular economy.
© Spectrum Books Pvt Ltd.