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Circular economy
The linear system of our current economy consisting of the extraction, manufacture, use and disposal of products that are reaching their limits and the depletion of natural resources in the face of fossil fuels that damage the environment.
In contrast to this "linear economy" of goods, the circular economy (In english is Circular Economy, CE) an economic concept included in the framework of sustainable development.
It affects how we treat raw materials versus natural resources. In short, the Product life cycle from a perspective of «industrial ecology»To bring benefits to society.
In reality, a new economic paradigm is presented that wants to go further than the famous Three Rs … reduce, reuse and recycle. Basing on what is called ecodesign of products, taking into account manufacturing processes and use of its materials, with the aim that they consume little energy and do not generate waste.
The objective; obtain manufacturing processes that consume little energy and do not generate waste or garbage that impacts society and the environment
The products generated must be able to extend their useful life by being easy to repair and, finally, close the circle by being reusable and easy to disassemble.
What is the circular economy
The concept of circular economy aims to implement an economy based on the principle of “close the life cycle”Of products, producing goods and services while reducing consumption, waste and waste of raw materials, water and energy.
Therefore, it supposes an intersection of environmental and economic aspects where the products must be able to extend their useful life with facilities to repair them and, finally, close the circle by being reusable and easy to disassemble.
To better understand what it is and what is the circular economy for a small infographic that will clarify the model:
You have to understand that it is part of the new sustainable economic models emerging countries that offer coherent alternatives to the current system and that fight against climate change at its core, where some put more focus on caring for people, others on ethical finance, caring for the planet or the environment:
Remember that we have an interesting article on the blue economy where we explain its keys and compare it with the so-called green. We already have clear the circular economy model but… How does a circular economic system work?
How the circular economy works
The fundamental principle of circular economy is the use of waste to obtain raw material for other goods, drastically reducing both the generation of waste (garbage) and the extraction of new materials and raw materials. Acts that contribute benefits to society.
East circular economic process and how it works we can distinguish it in the following value chain and approach from the following graph:
In addition, within this concept other principles are included, such as considering the environmental impacts throughout the whole life cycle of goods, raw materials and services, prioritize the use over the possession and provision of a service over the sale of a good, the repair of damaged products and finally, reuse and recycling, zero waste!
Putting these principles into practice involves a large number of benefits both for the environment and for society, since the circular economy also considers social inclusion a key point. Between these benefits of circular economy stand out:
- Decrease in the use of natural resources, reduction of waste production and limitation of energy consumption.
- The circular economy contributes to the creation of wealth and employment in society.
- It allows obtaining a competitive advantage in the context of globalization since it reduces dependence on external and uncertain supplies.
- It opens the prospect to sustainable, long-lasting and environmentally friendly growth.
In the following graph we can test the advantages, benefits and objectives of the circular economy that focus on achieving sustainability without losing competitiveness:
As we can see, we are not facing such an easy transformation. As information, we published an article about a totally free circular economy course coordinated by several universities.
What are the reasons to act?
Sometimes we just don't understand because it is necessary to apply the circular economy on raw materials and products. To answer this question, the best way - in our opinion - is to provide graphics that objectively support this need that must be implemented in all sectors, both in society and in the business environment:
- We have limits in the current economic model. The current economic model has an ecological footprint that is not sustainablee, that is, the annual demand for natural resources and goods of the world population is greater than what the Earth can actually produce throughout the year.
- We have to reduce competition for the exploitation of resources. According to OECD indications, the volume of resources exploited has increased by 65% in the last 25 years.
- Economic dependency needs to be reduced. For example, on average, the European Union imports a quantity of materials 6 times higher than it normally exports.
- Reduce the price of raw materials. The price of raw materials is increasing exponentially over time (They have increased by 150% between 2002 and 2010)
- The need to improve the environment and climate change. Global warming of the Earth is literally through the roof, so simple how to see the following graph:
The importance of reusing products andsubjects
A good development of the Circular economic model implies the respect of certain principles where the products must be thought, designed and manufactured taking into account the entire useful life; from transport, distribution, use and end of life with "zero" waste.
This implies applying the Multi R concept, which is based on joint work and homogeneity of; rethink, redesign, remanufacture, repair, redistribute, reduce, reuse, recycle and recover that energy. (Also see article of interest with examples of creative recycling)
Fulfilling this objective will provide us with a series of benefits to society and the environment, they can also be quantified as for example:
Companies in the circular economy
But if the circular economy brings so many benefits, why is it not stably implemented around the world? If we are really talking about a sustainable economy. Part of the answer to this question is that companies alone may lack the information, confidence and capacity to implement this type of economy and the linear financial system It does not usually offer investments for innovative management models, as they are considered risky and complex. In this way, the economy remains "locked" in the linear system.
The indicators in the circular economy We can test them in the following graph:
The graphic above belongs to a quality report on the circular economy PDF in Spain that can be consulted from HERE.
On the other hand, society's traditional consumption habits also hinder the development of new, more sustainable products and services. Especially in a situation where prices do not reflect the actual costs of manufacturing and where the policy does not show a clear economic transition, although from time to time they practice the social or solidarity economy.
Despite this, and fortunately, society and politicians are waking up, giving rise to the ever-increasing existence of laws and business models aimed at development of an eco-friendly economy.
Circular economy examples
To dig a little into some circular economy examples We have investigated some infographics that provide clear information on different company actions.
For example, we know that currently around 93% of the materials used in a desktop - laptop are recyclable through current treatment techniques used in authorized plants, and another percentage is recyclable from mobile phones.
Knowing that we can reuse a part of those materials that are discarded, the company Tragamóvil appeared, which is responsible for giving a new one.
Another example that we can find is if we look at the large companies implementing circular economy about the materials of your products, in this case it would be Nike in the raw materials that are used to make their shoes.
That the products that we throw away ourselves have an endless useful life, seems an almost impossible feat, but in reality all we have to do is put a little will. A good example is the one we already explained in the article on how to build a machine to recycle plastic in a simple way. A fantastic idea from an engineer who surprised us …
Being more earthly, and at the neighborhood level, we can see some actions to develop a circular economy project, of proximity and responsibility where neighborhood participation is a key point for everything to flow coherently.
The throwaway society is an unfair system at all levels, which is depleting and polluting our planet, while destroying the social fabric of many communities.
We can learn more information from the European Union in the circular economy action plan and where we will also find reference directives and regulations.
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