What is Circular Economy
Circular economy is the contrary to Linear Economy
GUIDES AND TIPS
7/17/20232 min read
The Circular Economy: Rethinking Progress in a World of Finite Resources
The word circular means something that will return in a continous loop. In this blog, we'll explain what circular economy is, and why it's the contrary to linear economy
Table of contents:
Linear economy
Circular economy concepets
Summary
Linear Economy:
The prevailing linear economic model of “take, make, waste” has long relied on assumed abundance of resources. However, with rising global populations and increasing consumption, the limits of this approach are becoming more apparent. Ecological degradation, waste, pollution and climate change are calling for a new economic paradigm. Enter the circular economy.
Circular Economy:
The circular economy aims to decouple economic growth from natural resource consumption. As explained by the Ellen MacArthur Foundation, it is based on “designing out waste and pollution, keeping products and materials in use, and regenerating natural systems.” It involves circulating materials and resources at their highest value for as long as possible.
This regenerative model contrasts with the traditional linear economy in several key ways. While the linear economy has a ‘take, make, waste’ model of production, the circular economy employs a ‘reduce, reuse, recycle’ model. The linear economy is powered by fossil fuels, while the circular economy utilizes renewable energy. The linear treats resources as cheap and disposable, while the circular values retention of resources.
There are numerous strategies and innovations that enable the transition to a circular system. These include remanufacturing, product-as-service business models, reverse logistics, industrial symbiosis, and designing for durability, reuse, and recyclability.
Enabling policies and designs across industries, infrastructure, and even cities can aid this transition.
The circular economy brings major benefits such as reduction of waste, rebuilding of capital and natural resources, increased collaboration, novel business opportunities, and the creation of jobs. Environmentally, it reduces impacts across climate change, biodiversity loss, pollution, and water scarcity. The Ellen MacArthur Foundation estimates implementing circular economy globally could reduce carbon emissions by 45% by 2050.
Summary:
While challenging due to engrained linear systems, pioneering companies, cities, and governments are leading the way. A circular economy reimagines our systems, designs out waste, keeps resources circulating, and works in harmony with natural systems. It may hold the key to a truly sustainable future.
At Greenly World, we believe this model is the future globally and with time it will become more normalized.
Sources:
CIRAIG - Circular Economy: A Critical Literature Review - https://ciraig.org/index.php/project/circular-economy-a-critical-literature-review-of-concepts/
European Parliament - Circular Economy Package - https://www.europarl.europa.eu/portal/en
World Economic Forum - Circular Economy - https://www.weforum.org/topics/circular-economy
Ellen MacArthur Foundation - Circular Economy Benefits - https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview
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