The linear economy, sometimes referred to as the take-make-waste economy, is a system where resources are extracted to make products that eventually end up as waste and are thrown away.
Products and materials are generally not used to their full potential in a linear economy and, as the name suggests, always move in one direction – from raw material to waste.
It is a polluting system that degrades natural systems and is the driver of global challenges, including climate change and biodiversity loss.
About Circular Economy
A circular economy is an alternative to a traditional linear economy (make, use, dispose) in which we keep resources in use for as long as possible, extract the maximum value from them whilst in use, then recover and regenerate products and materials at the end of each service life.
A circular economy entails markets that give incentives to reusing products, rather than scrapping them and then extracting new resources.
In such an economy, all forms of waste, such as clothes, scrap metal and obsolete electronics, are returned to the economy or used more efficiently.
This can provide a way to not only protect the environment, but use natural resources more wisely, develop new sectors, create jobs and develop new capabilities.
What are the benefits of circular economy?
To protect the environment- Reusing and recycling products would slow down the use of natural resources, reduce landscape and habitat disruption and help to limit biodiversity loss. Another benefit from the circular economy is a reduction in total annual greenhouse gas emissions.
Reduce raw material dependence- The world’s population is growing and with it the demand for raw materials. However, the supply of crucial raw materials is limited. Recycling raw materials mitigates the risks associated with supply, such as price volatility, availability and import dependency.
Create jobs and save consumers money- Moving towards a more circular economy could increase competitiveness, stimulate innovation, boost economic growth and create jobs. Redesigning materials and products for circular use would also boost innovation across different sectors of the economy. Consumers will be provided with more durable and innovative products that will increase the quality of life and save them money in the long term.
Resource Efficiency and Circular Economy Industry Coalition (RECEIC)
The G20 countries are set to launch the Resource Efficiency and Circular Economy Industry Coalition (RECEIC).
The RECEIC, conceived during India’s G20 Presidency, is an industry-led initiative with a global focus on promoting resource efficiency and circular economy practices.
Designed as an autonomous body, the coalition is projected to continue operations beyond India’s G20 tenure, thereby facilitating a sustainable environmental impact.
The coalition includes “39 founding members from 11 different nations.” The RECEIC is designed to be a platform for knowledge and best practice exchange, fostering sustainable practices among its participating industries. Its core principles revolve around partnership for impact, technology cooperation, and finance for scalability.