ASANSOL ENGINEERING
COLLEGE
Review on Circular economy is
the key to sustainable
development.
Name: - SNEHA
University Roll No: - 10800320057
Department: -ELECTRONICS AND COMMUNICATION ENGINEERING
Subject Name: - ECONOMICS FOR ENGINEERS HS-HU601
INTRODUCTION
By 2050, there will be 10 billion people on the planet. With the diminishing
natural resources like oil, fresh water, etc. The question arises: will businesses
last that long? Or, to go even further, will Humans survive it?
Fortunately, a solution has been found. Circular Economy is an economic model
which maximizes the use of the materials extracted from nature. Each non -
biodegradable material is used, reused, recycled and remade in order to reduce
the negative impact on the environment.
According to the United States Environmental Protection Agency (US EPA), a
circular economy is defined as a system focused approach involving industrial
and economic activities that are regenerative and restorative by desi gn and
function so that the resources being utilized can maintain their highest value for
as long as possible with the goal to eliminate waste.
Our current system resembles a linear model where a product is designed,
manufactured, and distributed, and once the lifetime of the product is finished, it
turns into waste that is disposed of.
The resources we have with us are very limited. Every day, we consume in fossil
fuels the equivalent of 2,600 years of accumulation of oil. Also, the linear
economic model produces several tonnes of plastic. A study found that the
amount of plastic produced since 1950 was equal to USD 100 million (the annual
turnover of google). Waste production and resource depletion are too high to be
sustainable in the current Linear Model.
The circular economy will effectively counter these problems. It ensures that
each non-biodegradable product is reused, recycled and recast to the maximum
extent possible. Studies show that a circular economy path to development co uld
bring India annual benefits of ₹40 lakh crore (US$ 624 billion) in 2050 compared
with the current development path – a benefit equivalent to 30% of India’s
current GDP.
The circular economy strives to have the opposite effect to this current system
by ensuring that products are produced in the “cleanest” and most affordable
way possible while guaranteeing that when the products will no longer serve their
primary purpose, the materials/ parts of the products can be reused, recycled, or
made into another product to serve another purpose. This would contribute
towards eliminating waste and the probability of the products ending up in
landfills.
Elements Of Circular Economy
➢ Closed loops of ecosystem
In a circular economy, the waste is next to zero because e very residual from the
use of a product is converted or used to make a new product. The value of the
residual is created. Toxic substances are eliminated and the waste discarded is
divided and value is created either through biological and technical cycles . In this
system, ensuring the high quality of materials from recycling waste is as
important as recycling it properly. Meeting quality standards is also an integral
part of Circular economy.
➢ Renewable energy
Just like products, renewable energy sustains in a circular economy. The energy
used in the circular economy is renewable energy sources.
➢ Systems thinking
Along with closed material cycles and renewable energy, a circular economy also
requires systems thinking. Systematic thinking, in the context of circular
economy, is a network in which the action of one component of the ecosystem
influences the outcome of another component. To make this point relevant to
circular economy, the short and long term consequence must be taken into
account for every value chain created.
Three Principles of The Circular Economy
(Adapted from the Ellen MacArthur Foundation)
1. Eliminate Waste and Pollution
The first principle ensures that waste and pollution are reduced/ eliminated when
manufacturing products. The manufacturing process of numerous products
relies on the Earth’s natural resources as raw materials and is often
accompanied by the generation of large quantities of waste. Given that the
Earth’s natural resources are finite, the Circular Economy emphasizes the need
to design and manufacture products that last for a long time, using processes
that minimize waste and pollution.
As an example, Dye Coo, a Textile Company in the Netherlands, incorporated a
textile machine that can process up to 800 tons of polyester per year and results
in saving 32 million liters of water and eliminating 160 tons of chemicals making
it possible to dispose the wastewater from the manufacturing process into the
natural environment. By doing this, the circular econom y is being effectively
applied to stop waste from infiltrating the wastewater systems in the country.
2. Circulate Products and Materials (at their highest value)
The second principle focuses on circulating products or materials in their most
pristine condition. The aim of this principle is the need to create durable
products and to keep these products in use for as long as possible, or to reuse
their components in order to eliminate waste.
The company Resortecs, a textile company, based in Belgium, created a
dissolvable stitching thread to make discarding clothing items easier. The
process of discarding garments is costly and complex. The stitching on each
garment has to be removed before being thrown away. This thread not only
eliminates waste but allows for parts of the clothing item “the material” to be
reused for other clothing items/ purposes. Thus, this ensures that if the garment
cannot be reused, it can be appropriately recycled.
3.Reparation refers to fixing damaged parts of the product and giving it a
second life.
4.Valorization means harnessing or generating energy from the resources that
can’t be recycled.
5. Functionality economy aims at replacing the sale of goods with rental
usage of goods to increase the value and usage of the products. After
completing the main function, the product is separated, reused, and recycled
accordingly.
6.Energy from renewable energy and the elimination of fossil fuels to
produce, reuse, or recycle the products.
7. Eco-design is a practice of design thinking with environmental impacts as
an important factor while creating the product.
8. Regenerate Nature
The final principle is on regenerating nature; this allows for the regeneration of
natural raw materials. This model aligns with how nature regenerates itself
today. For example, when a leaf falls from a tree, it will feed into the soil, and
thus no waste is produced. An example of a company applying this principle in
their products is Ecoactive, a company based in the United Kingdom, makes
compostable packaging from agricultural by-products. This design ensures that
when their products are delivered to the consumer, they can drop them in the
forest or on their lawn to disintegrate into the soil, strengthening the
environment. This prevents the generation of non-organic waste which takes
long periods of time to disintegrate when disposed of in the environment, and
which have more severe environmental impacts.
How is the Circular Economy Key for
Sustainable Development?
Now that we know what the Circular Economy is, let’s take a look at the key role
it plays in achieving sustainable development.
“Sustainable development is development that meets the needs of the present
without compromising the ability of future generations to meet their own needs.”
(International Institute for Sustainable Development).
The circular economy is the key to sustainable development because it
eliminates waste, supports the economy, and focuses on products that are
designed with a positive impact on the environment. This will guarantee that for
future generations, there are enough natural resources for them to be supported.
This approach will support the environment and local communities so that they
can thrive through increased job opportunities. Job increases will be seen in
sectors such as recycling services, and repair of manufacturing machines (Mc
Ginty, 2020). The job opportunities reduce the amount of money that needs to be
invested in new machinery and result in better health for society by reducing the
number of aerosols emitted from machines that are not regularly maintained or
emit an amount of greenhouse gases that cannot be regulated.
Finally, switching to a circular economy approach creates a long -term value for
the environment because of its ability to reduce pollution and waste infiltrating
communities and waters. Implementing this approach will effectively make all
products and practices sustainable, thereby securing a clean and green
environment for future generations.
Environmental benefits of creating circular economy:
• Fewer greenhouse gas emissions
• Healthy and fertile soils
• Fewer negative externalities
Economic benefits of creating circular economy:
• Increased potential for economic growth
• More resources saved
• Economic growth
Other benefits of creating circular economy
• New profit opportunities
• Reduction in volatility in the price of raw materials
• Demand for new services
Take Action (Adapted from the World
Resources Institute)
1. Buy responsibly. Choose environmentally friendly products, and
packaging.
2. Buy locally-sourced food! This is a great way to limit the amount of
transportation and pollution when transporting food overseas.
3. Try to limit how much garbage is being thrown away by f inding ways
to reuse different products, for example, returning milk bottles to the
local grocery store or large water jugs to be refilled at your grocery
store, etc.
“We do know that through pushing for the circular economy, we are able to
change lives. We can never underestimate the power of the social impact that
you’re achieving through the circular economy.” Stacey Davidson, Executive
Director, REDISA.
