What is the Circular Economy
Source: Sander Weeteling via Unsplash
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Circular economy noun
an economic system based on the reuse and regeneration of materials or products, especially as a means of continuing production in a sustainable or environmentally friendly way.
"the notion of a circular economy has gained traction, with many companies looking to operate in a way which minimises waste"
regeneration noun
the action or process of regenerating or being regenerated.
"the regeneration of inner cities"
the formation of new animal or plant tissue.
ELECTRONICS positive feedback.
CHEMISTRY the action or process of regenerating polymer fibres.
environmentally adverb
in a way that relates to the natural world and the impact of human activity on its condition.
“alternatives to environmentally damaging pesticides”
in a way that relates to a person's surroundings.
"environmentally speaking, it's a good job change for me"
WHAT IS THIS
Source: Decent Packaging NZ
Our global economy can currently be described as predominantly a linear economy. We take materials from nature, we make them into products, then we discard them as waste. This disrupts the planet’s life support systems and is driving global challenges like climate change, biodiversity loss, waste and pollution.
A circular economy offers an alternative. It is a systems solution framework which aims at minimising waste, cutting greenhouse gas emissions and pollution and making the most out of resources, by promoting a sustainable use of natural resources through smarter product design, longer use, recycling and more, as well as regenerating nature, and securing prosperity, employment and resilience. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature.
The concept of the circular economy integrates principles from various schools of thought, including industrial ecology, biomimicry, cradle-to-cradle (C2C) design, product as a service (PaaS), and Waste-to-Energy Conversion. These principles focus on sustainable resource use, waste reduction, and emulating nature's efficiency. Through these concepts, businesses can design products and systems that align with circular economy principles.
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Industrial Ecology studies how industries can work together like natural ecosystems. It focuses on using resources efficiently and collaborating so one industry's waste becomes another's input. This reduces overall waste and aligns with the circular economy's goal of recycling and reusing resources, lessening environmental impact.
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Biomimicry involves copying nature's designs for solving human problems. In the circular economy, it means imitating nature's efficient systems where nothing goes to waste. Applying these principles to human-made systems helps minimize waste and maximize resource use, supporting circular economy goals.
The terms "biomimetics" and "biomimicry" are derived from Ancient Greek: βίος (bios), life, and μίμησις (mīmēsis), imitation.
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C2C design ensures products and materials are either reused, recycled, or biodegrade naturally. It mirrors nature's processes where everything is reused. In the circular economy, C2C design eliminates the idea of waste by making products with materials that can be safely returned to the environment or used in new products, supporting natural system regeneration.
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PaaS means paying for a product's service instead of owning it. This encourages companies to create durable, reusable products. In the circular economy, PaaS extends product lifespans and reduces waste, aligning with the goal of sustainable consumption and production.
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Waste-to-Energy Conversion uses non-recyclable waste to produce energy. This reduces landfill use and reliance on conventional energy sources. In the circular economy, it promotes responsible waste management, minimizing environmental harm and contributing to sustainable resource use.
“The circular economy is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting. The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources.”
why this is important
In a world where resources are finite and environmental challenges are escalating, the circular economy has emerged as a beacon of hope. This innovative economic model offers a practical and sustainable solution to our current linear, take-make-dispose system.
HOW WE DO IT : THE METHODOLOGIES AND MODELS
The circular economy's key principles and goals play pivotal roles in guiding sustainable practices. Aligned in their focus on promoting sustainable resource use, reducing waste, and minimising environmental impact, these principles and goals form a holistic framework for the circular economy. Here's how they work together:
KEY PRINCIPLES
Source: Ellen MacArthur Foundation via Ministry for the Environment, NZ
Eliminate waste and pollution (Design Out Waste and Pollution): Products and systems should be designed with the end in mind, ensuring minimal waste and pollution throughout their life cycle.
Circulate products and materials at their highest value (Keep Products and Materials in Use): Encourage the reuse, refurbishment, and recycling of products and materials to extend their lifespan and reduce the demand for new resources.
Regenerate nature (Regenerate Natural Systems): Embrace practices that restore and regenerate natural ecosystems, promoting biodiversity and mitigating the adverse effects of climate change by mitigating environmental impact.
By incorporating these principles, businesses can transition from a linear 'take-make-dispose' model to sustainable, circular 'access' models. These models emphasise sharing, leasing, and subscription services, encouraging a circular flow of products and materials and fostering collaboration among industries.
To visualise the circular models, the Ellen MacArthur Foundation created a butterfly diagram, which “illustrates the continuous flow of materials in a circular economy. There are two main cycles – the technical cycle and the biological cycle. In the technical cycle, products and materials are kept in circulation through processes such as reuse, repair, remanufacture and recycling. In the biological cycle, the nutrients from biodegradable materials are returned to the Earth to regenerate nature.”
Source: Ellen MacArthur Foundation
INNOVATIVE BUSINESS MODELS IN THE CIRCULAR ECONOMY
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Companies are moving away from selling products and instead offering them as services. For example, instead of selling light bulbs, a company provides lighting services, ensuring the bulbs are energy-efficient and durable. This incentivises manufacturers to create products with longer lifespans and easy recyclability.
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Platforms like Airbnb, Uber, and bike-sharing services promote shared usage of resources, reducing the need for excessive production. This model encourages the optimal use of existing products, minimizing the demand for new ones.
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Businesses are redesigning their supply chains to prioritise the use of recycled materials and components. This involves close collaboration with suppliers to ensure materials are sourced sustainably and products are designed for disassembly and recycling
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Companies are investing in remanufacturing and refurbishment services. Instead of discarding old products, they are restored to like-new condition, extending their life cycle. This approach reduces waste and conserves resources
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Efficient systems for collecting used products, parts, or materials after their initial use have been implemented. These products are then either refurbished, remanufactured, or recycled, ensuring they re-enter the market instead of ending up in landfills.
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Digital technologies like IoT (Internet of Things) are used to track products and materials throughout their life cycle. This tracking enables better management, maintenance, and recycling, ensuring resources are used efficiently.
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Instead of owning products outright, customers pay for the actual usage. This model is applied to various products, including office furniture and industrial machinery. Manufacturers remain responsible for maintenance and end-of-life recycling, encouraging durability and recyclability.
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3D printing and other advanced manufacturing technologies allow for localised production and customisation. This reduces transportation emissions and waste by producing items on-demand, minimising overproduction and excess inventory.
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Companies are exploring ways to convert waste into valuable resources, such as energy or raw materials for other industries. This reduces the environmental impact of waste and promotes the concept of a circular economy.
GOALS OF THE CIRCULAR ECONOMY
Minimise Waste: reduce waste by designing products and systems that produce little to no waste and encouraging recycling and reuse.
Maximise Resource Efficiency: use resources efficiently by promoting recycling, remanufacturing, and sustainable material sourcing.
Promote Sustainable Consumption: encourage responsible consumption patterns, including product-as-a-service models and eco-friendly choices.
Foster Innovation: drive innovation in design, materials, and manufacturing processes to create more sustainable products and systems.
Reduce Environmental Impact: minimise overall environmental impact, including pollution and greenhouse gas emissions, by adopting circular practices.
Create Economic Value: generate economic value through the growth of circular economy-related industries and cost savings for businesses.
Enhance Social Well-being: contribute to social well-being by creating jobs, supporting fair labour practices, and fostering community development.
In summary, these principles and goals provide the foundational concepts and specific targets within the circular economy framework. Together, they guide the transition to a more sustainable, circular economic system, minimising waste, conserving resources, and enhancing both environmental and social well-being. Businesses, governments, and communities, by adopting these practices, can contribute significantly to a greener, more sustainable future.
“ ‘Re-Thinking Progress' explores how through a change in perspective we can re-design the way our economy works - designing products that can be 'made to be made again' and powering the system with renewable energy. It questions whether with creativity and innovation we can build a restorative economy.” Source: Explaining the Circular Economy and How Society Can Re-think Progress | Animated Video Essay by the Ellen MacArthur Foundation
Researched and written by Rebecca Agent with editorial support from Grammarly (English AUS) and ChatGPT