Circular economy - benefits and challenges

Frequently we hear of circular economy whenever there is a talk or discussion on sustainability.  

What exactly is circular economy?

A circular economy (often referred to simply as "circularity") is an economic system aimed at eliminating waste and the continual use of resources. Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing and recycling to create a closed-loop system, minimising the use of resource inputs and the creation of waste, pollution and carbon emissions - 

Geissdoerfer, Martin; Savaget, Paulo; Bocken, Nancy M. P.; Hultink, Erik Jan (2017-02-01). "The Circular Economy – A new sustainability paradigm?". Journal of Cleaner Production. 143: 757–768.

The most striking aspects of a circular economy are the following points

• less resource consuming and less taxing on the environment
  
• eliminating waste, resulting in lower costs, more environment friendly
  
• continual use of resources to the best extent possible

Circular economy helps achieve this by 

• reducing
• reusing
• recycling 
• sharing
• repairing
• refurbishment
• remanufacturing

There is another way of aiding the circular economy, be refusing usage of products or processes, called REFUSE. 

In other words,

the 6 Rs of environmental sustainability are 

• Refuse
• Reduce
• Reform
  
• Reuse 
• Re-engineer and 
• Recycle. 

What is the role played by improved design (reform) in the circular economy ? Improved design of process, materials, machines etc ensures there is optimal use of resources, less energy spent on conversion and less waste as output.  Development of new materials and technology can aid in lesser use of critical, precious and perishable natural resources.

 

While researching on how businesses are accepting and progreessing in meeting  the circular economy challenges, I chanced upon this paper .Click here for a 2016 HBR document.

 

The three ways by which businesses can benefit from the circular economy is by 

• practicing more closed loop recycling
• renting products and services instead of selling (called servitization)
  
• exploring ways to lengthen and widen use of products 

Major organisations around the world are taking the lead deploying these steps and are also in turn encouraging and preferring other organisations that support these circular economy measures. Renault is a great organisation that is standing for circular economy measures. Toyota by practicing lean, is aiding circular economy by reducing waste, of materials, of effort, of time and so on. 

Click here for a good youtube video on the circular economy ..

George..