Circular economy: a word we hear often but may not be so familiar with. Do we really know what it means? Why is it important, and what benefits does it have for our society?
Circular economy: what does it mean?
The circular economy is a production and consumption model opposite to the traditional linear system of take, produce, consume and throw away. A more sustainable approach that views materials as resources to be reused in a continuous cycle, rather than exploited and discarded.
The circular economy aims to extend the life cycle of products and thus reduce waste generation. Methods such as recycling and reuse limit the exploitation of new resources and reduce the release of waste into the environment.
The pillars of the circular model
The circular economy is based on 5 pillars:
- Sustainable resources: use renewable energy sources, biodegradable or recyclable materials to limit the consumption of natural resources.
- Product as a service: products, instead of being sold, remain the property of the company. In this way people are offered rental and utilization services to maximize the use of the products.
- Sharing platforms: networks and systems for sharing products and services among people.
- Life cycle extension: ethical production to achieve a more durable product that is easy to remanufacture or repair.
- Recovery and recycling: in addition to recycling raw materials, the circular economy promotes repair and reuse processes to give new life to used goods and products.
The benefits to the environment
A circular economic model is beneficial first and foremost to the environment. Recycling materials from products and reintroducing them into a new production cycle avoids the waste of natural resources, thus limiting habitat destruction and subsequent loss of biodiversity.
Not only that, using biodegradable or recycled raw materials also positively impacts CO2 emissions. If the need to extract and transport new raw materials is reduced, the energy demand associated with production processes and consequently the carbon footprint of industrial activities is lowered.
Finally, promoting more sustainable approaches such as reuse and recovery of old items avoids the introduction of new waste into the environment.
The economic benefits
The circular economy also has a positive impact on the economy. Focusing on recycling raw materials rather than sourcing them limits the risks associated with resource dependence, such as rising prices or scarcity of raw materials.
Why invest in the circular economy?
The circular economy is the sustainable answer to the linear economy model. In a world where natural resources are scarce and environmental damage is evident, the old extract, produce, use and consume system is no longer sustainable. An outdated approach that contributes to increasing CO2 emissions, the amount of waste in the environment, and is increasingly expensive due to the reduction of raw materials.
