CIRCULAR ECONOMY at a glance.....

We often think that sustainability and economic growth can’t go hand in hand, however that just might not be the case. For the longest time, we have been living in an industrialized world, where the demand for goods blinded us to the adverse consequence of mass production. But today people are more aware than ever about climate change, its consequences and are more than willing to change for a sustainable future. Change in lifestyle, habits, and practices at an individual level matters and creates a big difference, therefore, I can’t stop to wonder how much of an impact going sustainable at the industry level and perhaps the economy level, can make.

Everything on earth has a cyclical life-cycle let it be water, carbon, food chains or other natural processes. All are circular in nature meaning they return to where everything started forming closed loops. However, we created and started existing on linear systems of the economy (the take-make-dispose model) which contributed immensely to climate change. I truly believe that if we want to reap sustainable economic benefits, we all need to redesign our economy in a circular way.

A circular economy is a concept where there is minimum use of virgin resources, maximum use of recycled resources is done for as long as possible using clean energy while minimizing waste production of non-recyclable/biodegradable elements. It is based on the following principles:

• Design
  Creating comprehensive systems that are carbon neutral/eco-friendly from the beginning until the very end. Products/services should be designed where waste and used goods are viewed as raw materials and good quality products are produced using biodegradable/ reused materials.

• 4R’s
  Reduce: Coming back from the concept of mass production to producing what is required.

  Reuse/ Remanufacture/ Repair: Emphasis should be given to repairing/refurbishing/ remanufacturing products for a second life.

  Recycle: In the end waste materials should be recycled back to manufacture more products.

  Renewable Energy: The system should run on green energy (wind, solar, biogas, etc.)

• Closed loops
  The system should be designed to close the loop from raw material to waste. Companies should be designed such that they take ownership of their products at the end of their life cycle and are able to use it as raw material again. Consequently, all waste generated should be biodegradable and things that are not biodegradable should be recycled.

• Service > Goods
  Systems should shift from goods driven economy to a service dominated one i.e. thinking of products not as good but as services.

Source: Ellen MacArthur Foundation circular economy team drawing from Braungart & McDonough and Cradle to Cradle (C2C)

As much as we love to go sustainable and adopt circular economic systems, we need to be prepared for the challenges especially during the inception of this concept. The biggest challenge is our mindset, thinking, and perspective as a consumer as well as a business. For the economy to be functional the demand for products produced in a circular fashion needs to be the same as from traditional economies. For demand to be the same or better we need better quality and cost-effective products. Essentially the challenge is in the transition from a linear economy to a whole circular economy that is self-sufficient. Some of the other challenges include auditing, legal policies, procurement of recycled material and supply chain problems. But we all know if there is a will, there is a way, and as challenging as it seems, the silver lining is that companies all over the world have started to adopt this model and are supporting others to follow the same path. To name a few:

• Philips has started to provide lighting not as a product but as a service in which they own the lighting, are responsible for replacing and renewing the lighting as required and dealing with it at the end of its life. This creates a closed-loop for the products, and they can be recycled and reused properly.

• Sulapac, a Finland company creates biodegradable and recyclable cutlery and straws using wood and natural binders.

• Rajagopalan Vasudevan invented a method to reuse plastic waste to construct roads and now India has 33,700 km of plastic roadways.

• Timberland: It has partnered with Omni United, a tire manufacturer and is producing footwear out of recycled tires.

• A lot of companies including Apple, Microsoft, Google, etc. have set targets to be powered 100% through renewable energy.

In the end, I would like to say that, inspiration is all around us and all we need is a bit of innovation, collaboration, and determination to get on the road of circularity!

WRITTEN BY HIMANI GAMBHIR