What is a circular economy?
A circular economy is an economic system of closed loops in which raw materials, components and products lose their value as little as possible, renewable energy sources are used and systems thinking is at the core.
Looking beyond the current take-make-waste extractive industrial model or linear economy, a circular economy aims to redefine growth, and focus on positive society-wide benefits. Circular economy entails gradually decoupling economic activity from the consumption of finite resources, and designing waste out of the system. The circular model builds economic, natural, and social capital.
In general, circular economy is based on 3 principles:
- Design out waste and pollution
- Keep products and materials in use
- Regenerate natural systems
The linear economy has to change!
In a circular economy, economic activity builds and rebuilds the entire system and process. Circular economy recognize the importance of the economy needing to work effectively at all scales.
As opposed to the popular views, transition to circular economy does not aimed at reducing the negative impacts of the linear economy. Rather, circular economy represent a systemic shift.
How circular economy can save the world?
According to National Geographic, in the same half century, environmentalists have been warning of limits to growth.
However, the new “circular economy” movement is different. It’s a collection of strategies—some old, such as reducing, reusing, and recycling, and some new, such as renting rather than owning things—that together are meant to reshape the global economy to eliminate waste. The circular economy doesn’t aim to end growth; it aims to bend how we do things back into harmony with nature, so that growth can continue.