‘Circular economy’refers to a system-focused economy that includes industrial processes and economic activities that are restorative or regenerative, allowing resources used in certain programs and operations to retain their highest value, and aiming to reduce waste through the superior design of materials, products, and systems. Economic activity in a circular economy builds and rebuilds overall system health. The notion acknowledges the necessity for the economy to function efficiently at all sizes — for large and small firms, organizations, and individuals, worldwide and locally.
It minimizes the use of non-renewable resources while preserving or enhancing renewable ones, such as by returning essential nutrients to the soil to aid regeneration or by relying on renewable energy, redesigning things to be less resource-intensive, and repurposing‘waste’ to create new materials and products.
Three Main Principles of Circular Economy
It is based on three basic principles:
- Waste and pollution should be avoided at all costs
- Maintain the utilization of items and materials
- Restore natural ecosystems
It is an easy and reliable method of economic development that benefits businesses, society, and the environment as a whole. In contrast to the linear model of “take-make-waste,” a circular economy is designed to detach growth gradually from the use of finite resources. It is mainly characterized by marketplaces that encouragepeople to reuse things rather than discarding them and extracting new resources. All types of garbage, such as clothing, scrap metal, and obsolete technology, are returned to the economy or utilized more efficiently in such a system. This can help not only to conserve the environment, but also to better manage natural resources, establish new industries, create jobs, and develop new capabilities.
The Benefits of a Circular Economy — Fulfilling Climate Goals
Moving to a more circular economy could have several advantages including lessening environmental impact, enhancing raw material supply security, improvingcompetitiveness, spurring innovation, creating more jobs, and increasing economic growth by almost0.5%.
When a material reaches the end of its useful life, its components are reused as much as possible. This means that the material continues to add value to the system, continuing to save the planet. On the other hand, the negative effects of economic activities that harm human health and natural systems are designed out in a circular economy. This includes the emission of greenhouse gases and dangerous substances, air, land, and water pollution, as well as structural waste like traffic congestion.
To raise more awareness regarding the importance of the circular economy, Dauro Lohnhoff Dorea founded the American Institute of Circular Economy. He is working to achieve the widespread acceptance of this model, presenting it as the most viable solution to the planet’s resource scarcity. He aims to demonstrate not only how necessary it is but also how beneficial it would be for all types of firms, organizations, and individuals.