Circular Economy: A Responsible Economic Model
Currently, many people abide by a “take, create, dispose” model, also known as Linear Economy. This requires large amounts of cheap and easily attainable energy and materials. Obviously, this type of economic model is not sustainable long term. As a solution, the Circular Economy is a more responsible approach which provides a viable future.
What is Circular Economy?
Circular Economy is both regenerative and restorative. It aims to give every product, material and component the highest value possible. Circular Economy refers to an industrial economy in which waste is reduced, pollution is avoided (or minimized) and there is a differentiation between biological and technical cycles.
Circular Economy History
The concept of Circular Economy was first heard of back in the 70s. John T. Lyle and Walter Stahel, two environmental academics, introduced the idea to the world. It wasn’t until 2010, though, that the idea truly became widespread. Dame Ellen MacArthur, a former sailor, created the Ellen MacArthur Foundation to promote the idea of Circular Economy. Thanks to the foundation, everyone from the general public to celebrities and world leaders can know about it.
Biological vs. Technical Nutrients
In a Circular Economy, biological nutrients are created so that they can safely re-enter the biosphere. On the other hand, technical nutrients are able to continually circulate while retaining their quality. Since they’re regularly reused in production, they never have to enter the biosphere. In order to do this, technical nutrients have to be designed to be both regenerative and restorative.
Circular Economy vs. Recycling
To some, Circular Economy may sound close to the concept of recycling. However, the process of recycling, while better than flat-out wasting products, uses up a lot of energy. Plus, as products become recycled the materials tend to lose their value. Recycling doesn’t eliminate the need for high-quality, valuable, virgin products and materials. Instead of simply recycling, a Circular Economy aims to create “inner repair” so that items can be used again and again without requiring a ton of energy, like recycling does.
The End of Waste
According to the Circular Economy, there is no such thing as waste. Both technical and biological components of any product can be re-purposed. Any biological nutrients used in a product will be non-toxic, making them easy to be composted. Any technical nutrients used in a product, like alloys and polymers, will be used again and will only require a small amount of energy to be re-purposed. Additionally, any energy used in the process will come from renewable sources, like solar power.
How Responsible Businesses Can Drive the Concept Forward
Large corporations are the ones responsible for making Circular Economy a widespread practice. Innovation has to start on the ground level and the world’s biggest companies are creating Circular Economy business models. These business models take into account everything from product performance to the lifestyles of the materials used. The reason it’s so important for large companies to get on board is because they are the ones who will reach large supply chains and be able to crate huge collaborations with other big-name companies.
Do We Need a Circular Economy?
Many people feel that a Circular Economy is the solution to the planet’s ever-dwindling resources. Earth metals and minerals are constantly on the decline and it’s costing more and more to explore and extract materials. Linear Economy causes a lot of waste. In manufacturing, raw materials are turned into waste before they even leave the factory. Plus, a majority of products that are created are thrown out within just 6 months. The prices of commodities are volatile. Supporters of Circular Economy feel that it would provide a way to stabilize the economy and limit the consumption of resources.
Transitioning from Linear to Circular Economy will take time, effort and patience. It won’t be a fast process. Additionally, there is bound to be a lot of disruption as new, better processes are found and replace the older processes. Many people believe that the time needed is well worth it and that Circular Economy will be a better, more sustainable way of life.
The following video created by the Ellen MacArthur Foundation provides a fantastic overview in less than 4 minutes: