A circular economy is an alternative to a traditional linear economy.
In a circular economy, we keep resources in use for as long as possible. That is, designing products and services that can will be easily repaired, reused, or recycled.
The main idea is to eliminate waste and pollution by design. Keeping materials in use longer can reduce our reliance on renewable resources and minimize environmental impacts.
In this article, we will discuss what a circular Economy is and how it works.
What is a Circular Economy?
A circular economy is an alternative to a traditional linear economy (make-use-dispose).
The concept of a circular economy has been around for centuries, but it's only recently that the term has gained traction.
In a traditional linear economy, we extract resources from the earth, turn them into products we use for a short time, and dispose of them when they are no longer useful. This make-use-dispose model is not sustainable because it relies on a never-ending supply of resources. In contrast, a circular economy keeps resources in use for as long as possible and then recycles them back into the system.
How Does it Work?
To put it simply, it's about making sure that we don't waste anything. When something is no longer helpful to us, we recycle it or find another way to keep it in use. For example, instead of throwing away an old phone, we might give it to someone who can't afford a new one. Or we might recycle the parts to make a new product.
The circular economy is sharing, leasing, reusing, repairing, and recycling.
Examples of Circular Economy
Industrial Symbiosis
Industrial Symbiosis is when a residual product of one enterprise is used as a resource by another enterprise.
Through local collaboration, public and private enterprises buy and sell residual products from one another, getting mutual economic and environmental benefits.
Circular Subscription
One of the most common examples. Consists of sharing and circulating high-quality products.
For a subscription fee, the customers get the products for a certain amount of time. Subsequently, the product is delivered to another customer. Reducing consumption and offering lower prices.
Car Sharing
A model of car rental where people rent cars for short periods. Normally, the vehicles are electric.
Empty car seats account for the largest excess capacity in the transport industry. Which is not only inefficient but also harms the environment. Car sharing reduces greenhouse gas emissions and carbon monoxide pollution by up to 18%.
What Are The Benefits of a Circular Economy?
There are a lot of benefits that come with implementing a circular economy, and it's no wonder this model has been gaining traction in recent years. For one, a circular economy helps to close the loop on resource use, which means less waste and pollution overall. Additionally, it encourages companies to be more efficient with their resources, leading to cost savings in the long run.