The Circular Economy Approach
Did you know that, according to the Global Footprint Network, humanity currently annually consumes one and a half times the amount of natural resources that the earth generates in a year. This is estimated to grow to 2 to 3 times natural replenishment by 2050 if no action is taken. About three billion more people will be moving into the middle class by 2050, placing new demands on resources such as metals, fossil fuels and biomass for new products. One strategy to maximize the use of resources is to adopt a circular economy approach.
The current linear ‘extract-make-dispose’ model requires extracting natural resources for future products. This can lead to diminished resources, environmental degradation and supply chain disruptions due to political instability. All of which, in turn, results in resource price increases or volatility. Disposal of waste into landfills causes the release of harmful chemicals such as methane and ground water pollutants.
A circular economy is defined as one in which products and materials are kept in use after each cycle of usage (i.e. through recycling, refurbishment or repair) with no resulting landfill waste and where biological materials are sent back into natural environments after maximum usage without harming the environment. This approach decouples economic growth from resource extraction.
A circular economy is more than just recycling and affects each stage of the product life cycle from design to end of life. Products and packaging are designed to be easily reused, disassembled or recycled. Producers use recycled materials as inputs. Retailers offer pay-per-use agreements with Extended Producer Responsibility (EPR) meaning that the producer is responsible for the remaining product and packaging upon agreement expiry or after consumption. Consumers share with others in a sharing economy (e.g. car sharing) to maximize product utilization. Once a product has reached agreement expiry it must be returned to the producer, instead of going to landfill, due to Extended Producer Responsibility, who then decides on the most profitable use of the resource (for example to refurbish or recycle). This approach creates an incentive for the producer to ensure the product lasts longer with more reusable components and recyclable materials. Materials should be safely returned (i.e. without the release of toxic substances) to the biosphere after multiple cycles of use if no further use is possible.
A full circular economy will require further government action. Jurisdictions should push for Extended Producer Responsibility, encourage more product sharing initiatives, buy from circular economy businesses and encourage them to set up operations locally. We must work together in order to push for a circular economy community to ensure a sustainable future.
