What is circular economy with examples
Nature has provided abundance of resources to help the living beings live a satisfactory life. However, human has been never satisfied with whatever they already have got from the nature. That’s why they keep destroying the nature only to fulfill their ambitions. For centuries, they have exploited the natural resources far more than they needed. The never-ending demands of the global economy result in planet resources being used up at an alarming rate. This is creating extremely high wastage and pollution.
That gives way and more power to the idea of circular economy – an economic system focussing on waste removal and the continual use of resources. Many of us are still alien to this form of economic system. However, global platforms like United Nations are extensively promoting this concept among the governments and other stakeholders. Basically the circular economy system aims at reusing, sharing, repairing, refurbishment and recycling. This creates a closed-loop system to minimize the use of resource inputs.
Least waste/pollution, more recycle/reuse
The circular economy also targets least creation of waste, pollution and carbon emissions as well. The system focuses on the longer use of products, equipment and infrastructure, while enhancing the productivity of all the resources. But how close and far are we currently to be able to adopt the circular system as our economy? The UN has recently published 5 important pointers to give us a clear idea on current situation and ongoing actions towards this goal. Take a look of those points in the following lines.
What is circular economy with examples: 5 points
According to experts, current business will continue to take us towards the disaster if the world misses or ignores to make significant adjustments in dealing with the planet.
- Disastrous traditional business
The way we utilize or waste and process natural resources causes an estimated 90 percent of global biodiversity loss and water stress. Current rate of extraction of raw materials from earth is a way too high, doubled up in the past three decades. The world is on the way to double up it again by 2060. Further, we are on the way to see a life-threatening three to six degree temperature in this century.
- Expect a fundamental change
A circular economy model focuses to reuse, re-manufacture, recycle or recover products and materials, so that they can remain in the economy for a long time. By opting this model, we can expect declining needs of resources, dropping wastage levels, and lowering emissions of greenhouse gases. This will finally produce a proper solution for climate crisis, by reducing global temperature.
- Trash to turn into cash
Now, consumers as well as businesses in both developed and developing economies are realizing that the idea of circular economy is profitable and sustainable. “Making our economies circular offers a lifeline to decarbonise our economies”, says the UN Economic Commission for Europe (UNECE) chief Olga Algayerova. We can expect a creation of 1.8 million net jobs by 2040, she asserted.
But there are twists!
- Governments stepping up but…
Though governments have shown interest, they need to be involved in the process to see a real change. Nonetheless, many nations and regions have made major commitments in terms to using and reusing of recourses and reducing wastage. The United States of America, European Union as well as Africa, Rwanda, Nigeria and South Africa have brought out initial plans for the widespread adoption of the circular economy in their regions.
- Rounding or squaring?
Making the world “rounder” is not an easy business. At least, the data says the same. As per 2021 Circularity Gap Report, the global circularity rate stands at only 8.6 percent, down from 9.1 percent in 2018. However, automotive sector has shown significant progress in reusing and recycling of resources in last few years. Taking this example, Algayerova suggests the adoption of this approach at massive scale across all sectors.
