In recent times, the economic theory of Circularity has gained popularity, motivating environmentalists, politicians, and corporations alike. Circularity, formerly a fringe concept, is now widely recognised as the most viable answer to the earth’s natural mounting sustainability concerns. Furthermore, there are several conceptions and interpretations of the Circular Economy.
This economy is a manufacturing and sales paradigm that emphasises the sharing, leasing, repurposing, repairing, renovating, and reprocessing of existing resources and goods for as long as feasible. The life span of items is prolonged in this way. In reality, this means reducing waste to the definitive minimum. Whenever a material arrives at the end of its useful life, its components are reused as much as feasible. These may be utilised productively time after time, resulting in increased value.
This is in disparity with the linear economic paradigm, which pursues a take-make-consume-throw-out process. This approach is based on substantial cost-cutting while using readily available materials and energy.
Why does one need to change the economic system?
The planet’s population is increasing, and demand for basic materials is following suit. However, key raw resources are in short supply. Because of limited availability, certain EU members must rely on other nations for their raw commodities. Furthermore, obtaining and utilising raw resources has a significant environmental impact. It also raises CO2 emissions in the atmosphere. However, by better using raw resources, CO2 emissions can be reduced.
How to transform your system
What does it take to transform your disposable economy to eliminate waste, circulate resources, and regenerate nature?
The Circular Economy provides you with the tools to work together on climate change and biodiversity loss while meeting key social needs. It empowers you to increase wealth and resilience while reducing greenhouse gas emissions, waste and pollution.
How does this type of Economy work?
Design waste and pollution
The Circular Economy envisions economic activities that adversely affect human health and the natural system. These include greenhouse gas emissions, pollution of all kinds, and traffic jams.
Continue to use products and materials.
Circularity prefers to make products last longer, reuse, remanufacture, recycle, and keep materials as long as possible. It is an economy that encourages the use of many different materials rather than simply consuming them.
Rejuvenates living organisms
The usage of carbon fuels and non-renewable resources is avoided in this type of economy. It delivers important nutrients back into the soil to stimulate regrowth and actively enhance the environment by maintaining and increasing renewable energy sources.
Why is this type of economy so important?
The Circular Economy aims to throw away nothing, reducing the need to use more raw materials. It provides a complete alternative to the linear “throw-away” economy. This is an economy based on the assumption that there are always new materials to replace products, and there is always a place to dump waste. As the world’s population continues to grow, it is becoming increasingly clear that the assumptions of linear economics are not true or at least unsustainable.
Models that have dominated manufacturing since the first Industrial Revolution are under pressure. There were less than one billion people worldwide in that era. The planet’s population has risen to Eight billion people, with a rapidly growing middle-class society. Humans are not only utilising the same commodities, but they are also wasting everything at an alarming pace. As shown in a United Nations assessment, total world resource extraction has almost quadrupled since 1965. Approximately 89% of raw resources are thrown away. To reduce this wastage, organisations have to adopt Circularity.
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