The circular economy is a model of production and consumption that includes sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible so that the life cycle of products is extended, whilst economic value is retained in the circularity ecosystem.
One estimate from the International Resource Panel, an independent scientific body associated with the UN Environment Programme, suggested that wiser use of resources could add $2trn, or roughly the GDP of Italy, to the global economy by 2050. Limiting food waste alone could contribute $252bn a year by 2030.
The goal of the circular economy is to decouple environmental pressures from economic growth by substituting traditional waste management with circular economy practices, as well as solar, wind, biomass, and waste‐derived energy use throughout the product value chain and cradle‐to‐cradle life cycle. Circular economy has the potential to advance environmental sustainability if well executed.
This differs from the traditional, linear economic model, which is based on a take-make-consume-throw away pattern. Linear models rely on large quantities of cheap, easily accessible materials and energy and products may have been designed to have a limited lifespan, so that consumers will dispose of them and buy similar again.
Why do we need to switch to a circular economy?
The world's population is growing and with it the demand for raw materials. However, the supply of some key raw materials is limited. In addition, extraction of new raw materials has a major impact on the environment whilst increasing energy consumption and CO2 emissions. Therefore, smarter use of existing raw materials has the potential to reduce both energy consumption and CO2 emissions.
What are the benefits?
The circular economy will
create new business opportunities and local quality jobs
provide durable and innovative products that will last and could save money in the long term.
enable a healthier planet and reduce pollution
reduce pressure on natural resources such as water and land use
More to follow..
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