The decade of Action: Importance of a circular economy

• It is a multifaceted concept that came during the diverse schools of thought in the late 20^thcentury and was widely adopted in the 21^st
• Europe and China are leading some of the leading nations towards the adoption of a circular economy with many other international actors.
• The concept of circular economy has gained more traction after the launch of national circular roadmaps along with the emphasis by the EU Commission President by announcing it as one of the most important topics.

What isthe circular economy?

• A circular economy is an economic system, which is aimed at eliminating waste and the continual use of resources.
• The Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing, and recycling to create a closed-loop system.
• This economy involves using waste materials and energy as input for other processes.
• It emphasizes minimizing the use of resource inputs and along with the lesser creation of waste, pollution, and carbon emissions.
  
  
• The circular economy aims to keep products, equipment, and infrastructurefor a longer duration and thus improving the productivity of these resources.
• This is a regenerative approach and is in contrast to the traditional linear economy.
• Liner economy has a "take, make dispose of" model of production.

There are five key paradigms to understand and implement the circular economy to achieve a more fundamental impact:

• Circular Economy as a part of climate agenda: Despitethe announcement of net-zero emission targets by the US and China, the climate pledges, the Paris climate deal; the world is expected to see the rise above 2 degrees Celsius. The UN Intergovernmental Panel on Climate Change has warned that going beyond 1.5°C to 2°C would increase extreme weather events that would see devastating social, environmental, and economic consequences.
  • The Circularity Gap Report 2021 has identified a set of circular strategies that can help in keeping the planet on a well below 2°C trajectories by cutting emissions. This could be achieved by reducing the volume of materials thatareused to create products and services, by using resources for a longer duration, and by replacing finite resources like fossil fuels with renewable energy resources.
• Circular economy as a “new, inclusive and green economy”:There is a need to find alternative solutions to resolve the contest between the environment and economy, while keep contributing to society. The linear economy is no longer fit for the purpose and an alternative is urgently needed.This makes room to show the viability of the circular economy on the ground.
• The circulareconomy is a global endeavor: The circular economy provides a new opportunity for providing a level playing field to build sustainable future economies. This will require better integration of social and human development considerations.The circular economy provides wellbeing for all within planetary boundaries.
• Circular economy towards Sustainable Development Goals: The circular economy is not a set of aspirational targets but it has process-oriented principles that create a positive impact. Practitioners of the circular economy should explicitly contribute to existing development frameworks including the Sustainable Development Goals.

Economic Benefits

• The concept of “circular economy” as a strategy for waste elimination has been broadly adopted in the business world. Companies have sought to achieve “zero waste” by finding uses for discarded materials and closing the loop in their supply network.
  
  
• Circularity offers economic benefits as well as reduces a company’s ecological footprint.
• It also improves business and community resilience by reducing dependence upon scarce resources and long-distance supply chains.
• The circular economy strategy would involve industrial and consumer waste replacement by virgin materials. It would remove inefficient and harmful waste disposal.
• The coal combustion residues from power plants, such as fly ash, bottom ash, boiler slag, and flue gas desulfurization residues, can be beneficially used in concrete and cement production, structural fills, building products, gypsum wallboard, and surface stabilization.
• The World Economic Forum estimated thatthe circular economy approach could save more than $1 trillion/year globally by the lower costs, lower carbon emissions, and supply chain risk reduction.

Environmental Benefits

• It enables the harmonization of industrial processes with natural processes that provide industries with important ecosystem services such as flood control, pollutant absorption, and carbon (C) sequestration in terrestrial ecosystems such as soil, vegetation, and wetlands.
• These services can mitigate climate change and air pollution, restore soil health, enhance the quality and renewability of water resources, and generally improve the environment.
• Best agriculture management practices such as conservation agriculture, integrated nutrient management, and sustainable intensificationcan increase soil resilience and restore the carbon pool, providing multiple benefits—greenhouse gas sequestration, improved water quality, and conservation decreased nutrient loss, reduced soil erosion, greater crop yields, and food and nutritional security.

Social Benefits

• The circular economy design also strives to be inclusive by considering the impact of management decisions on various stakeholder groups, including the poor and other underrepresented segments of society that are especially vulnerable to the health impacts of waste proliferation.
• The balance of natural capital and social capital (i.e., community solidarity) will help companies to achieve profitable waste reduction.
• Judicious management of all waste sources (industrial, agricultural and municipal) can advance progress toward many of the UN SDGs.

The circular economy has huge potential in achieving sustainable goals and for reducing the impact of the economy on climate. In the present context of non-achievement of climate targets, this phenomenon can show the right path.