What is a Circular Economy?
Before diving into the transition from a linear to a circular economy, let's establish a clear understanding of what makes a circular economy so revolutionary.
Imagine our current economic system as a highway running in one direction: resources are extracted, transformed into products, used, and then discarded as waste. This "take-make-waste" model generates enormous environmental and economic costs.
In contrast, a circular economy resembles a park with interconnected pathways. Instead of a dead end, waste loops back into the system as valuable resources. This closed-loop approach aims to:
Eliminate waste and pollution: By designing products for repairability, reuse, and recycling, we minimize waste generation and prevent contamination.
Extend the lifespan of materials: Through strategies like upcycling, refurbishment, and remanufacturing, we keep materials circulating in the system for as long as possible, maximizing their value.
Regenerate natural resources: Circular practices like regenerative agriculture and biomimicry focus on working with nature, not against it, to restore ecosystems and enhance biodiversity.
The circular economy isn't just about minimizing harm; it's about creating a system that actively benefits the environment and fosters sustainable prosperity. It's about closing the loop – not just on packaging, but on the entire life cycle of products and materials.
Goals of a Circular Economy
Now, with this clear picture of the circular economy in mind, let's explore the exciting journey of transitioning from our linear past to a more sustainable future.
The goal of the circular economy has always been about maintaining value (rather than creating additional value), optimising stock management (without flows), and increasing the efficient use of goods (rather than the production of goods). In other words, a circular approach introduces the notion of care and the factor of time to the economy and society.
On the basis of these goals, the circular economy has evolved into what the Ellen McArthur Foundation describes as a framework for systemic solutions that tackle global challenges such as climate change, biodiversity loss, waste, and pollution.
The approach is built on three fundamental principles:
Eliminate waste and pollution: Our current economic model is based on a linear system: we take resources to make goods that, once used, are discarded as organic or inorganic waste. The solution lies in starting at the very beginning – by focusing on and changing how things are designed, we can stop waste from being generated in the first place.
Let’s take a look at an example from the wine world. Ecovative found a solution to this waste problem by creating completely compostable packaging materials from fungal roots under the brand name MycoComposite™. The organic packaging produced by Ecovative has the same protective properties as polystyrene without adding to the 8 million tons of plastic that end up in our oceans every year.
Circulate products and materials (at their highest value): The second principle of a circular economy is to circulate products and materials at their highest value. This means extending the useful life of materials, whether organic or inorganic, as products or raw materials.
Several companies are pursuing circular approaches in interesting ways, including Signify, formerly Philips Lighting. In addition to selling lighting systems, Signify also offers “light as a service” (LaaS) to other companies. LaaS contracts are specifically designed with maintenance and repairs in mind. Components can be easily replaced while the installation is in operation or harvested, reused, or recycled at the end of their useful life.
Regenerate Nature: The final principle of a circular economy strives to restore our natural capital by working with, instead of against, nature.
Changing from a linear to a circular economy, we shift the focus from extraction to regeneration. This makes it possible to establish regenerative economic systems that allow nature to thrive.
Regenerative viticulture is a perfect example of this. When cropland is designed to resemble natural ecosystems like indigenous forests or meadows, it becomes a habitat for a wide range of organisms, thereby increasing biodiversity. Reducing the need for synthetic inputs and pesticides encourages pollinating insects and soil microbes to flourish – both of which are essential to maintaining a healthy ecosystem.
When it comes to our environment, we need to move beyond a “do less harm” approach and actively benefit and improve it. The time has come to rethink our economic models andways of doing things, and the circular economy provides us with an opportunity to do so.
Marta Juega, PhD.
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