What is circular economy?
Circular economy aims to reuse products and material flows in a circular motion. The modern world today is formed around a linear economy. The intention of a circular economy is to generate as little waste as possible and to utilize the resources we already have.
Our world is only 9 per cent circular.
This indicates that 91 per cent of the materials and resources we extract from nature are not being reprocessed. Simultaneous, the annual extraction of materials has more than tripled over the past 40 years. This year we received the messaged that the earth’s resources “budget” was spent by July.
The world needs to see some changes and an adjustment from linear to circular economy is a step in the right direction.
What is the benefit of circular economy?
There are several benefits for a transition to circular economy. Increased growth, competitive advantages, reduced costs, lower environmental impact and a more efficient value chain are some examples.
According to a study done by the Ellen MacArthur Foundation, the EU alone could save $ 600 billion annually after 2025, provided that industrial companies turn their business into a circular economy. Additionally, this transformation could create more than two million jobs by 2030, according to the European Commission.
How to achieve a circular economy?
In order to achieve a circular economy, innovation is essential. In the society today, products are designed to become waste after they are used. Therefore, its important with new innovation when designing products. In this way it can be easier to disassemble, repair and replace parts of the products and use them again. This is what Circular economy is about; creating new business models that can facilitate raw materials being reused.
7 key principles
There are 7 key principles in the circular economy. These principles make it easier for the business and industry community to understand how they can implement innovative business models to become more circular.
UN sustainability goals
Circular economy is closely related to the UN’s sustainability goals. Out of the 17 sustainability goals, circular economy covers 8.