Circular Economy Alphabet is a place in this blog, where we’re discussing interesting and at the same time confusing words and abbreviations from the sustainability world.

Paper from fallen leaves, coffee cups made from coffee grounds, construction bricks from old dresses and jeans, steel made from tires – call it magic. But it’s all, actually, inspiring examples of the circular economy.  The letter of the day is “C” and the term that we’re discussing is Circular Economy.

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By the way, if you prefer the video version – find the link to my YouTube channel and also link to my Podcast Platform.

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Nerds always start with Dictionary

According to the Oxford Dictionary, the term “circular economy” is defined as “an economic system aimed at minimizing waste and making the most of resources”.

Some people can consider the Circular economy as just one more popular trend, that has nothing in common with real life and pragmatic business decisions and countries’ economy. For those skeptics, I suggest reading articles from World Economic Forum, Mc Kinsey, and PWC, where leading Economists provide very and very solid reasons with justifications why a circular economy has great potential and can drive economic growth.

Many companies create separate Circular Economy Teams in their Sustainability Departments, who take care of the products’ circular design and analyze circular market trends. 

It’s definitely more than just a trend.

When Circular Economy was invented?

Of course, this term was not invented artificially in the laboratory. The earliest known use of the term “circular economy” is in the 1930s as a combination of 2 already existing words. 

100 years for world history is like a blink, so the term itself can be considered as a new one.  But does it mean that circular economy is a new concept? 

For sure, it is not! 
The idea of circularity is as old as life itself. Since life began on Earth, things have been created and recreated over and over again. In nature, nothing is thrown away because everything is reused in a closed-loop cycle.

So, it’s correct to say that the concept of the circular economy is not new, but for sure, we can not deny that it gained fame and importance in recent years as a response to growing environmental concerns about the linear economy. 

What’s wrong with the Linear Economy?

Circular economy very often is mentioned as the opposite of a linear economy, But what it’s actually wrong with linear economy – uh?

Compared to the old history of circular economy, linear economy is a relatively new concept: it is only in the last 200 years since the industrial revolution that human production has started to operate according to a linear model.

In short, a linear economy is a take-waste economy, where we take resources from nature, mix them in the manufacturing process, create new products and then throw these items away. 

And throwing items away means what? Right, landfills – the place that is absent from any sort of magic, like an Azkaban for your beloved goods. Our items just lying in a huuuuge mountain of garbage. Landfills, of course, is not the only one places where your waste can appear: oceans, rivers, air, animals’ stomachs. 

And waste is only one visual representation of the linear economic consequences. 

Soil degradation, land pollution, air pollution, waste generation, health impacts, loss of biodiversity, social inequity, water scarcity, climate change, loss of cultural heritage, unsustainable consumption, environmental injustice, loss of cultural diversity, toxic chemicals, inefficient resource use.

As you see, a linear economy is a troublemaker.

So.. that’s how we started the movement to the circular economy.
The circular economy is considered as a possibility to change not only the visible part of this iceberg – waste management and pollution, but also other issues that I highlighted before. 

Circular Economy is an ideal solution, isn’t it?

For sure, the circular economy concept has not only a positive impact but also particular disadvantages. Let’s try to list them down. Transitioning to a circular economy may disrupt traditional industries and supply chains, which consequently can lead to job losses in certain sectors. 

But here I would like to remind you that a circular economy also will create new jobs – so it’s a balance. 

Implementing circular economy practices may require significant investment in new technologies and infrastructure, Yes, and it can be challenging for developing countries and some traditional industries and businesses that are not ready for a change. 

The raised popularity of Greenwashing can also be considered a disadvantage. As interest in sustainability grows, some companies try to pretend to be “green” while in fact they are not. 

Some communities and individuals may resist changes associated with the circular economy. I can understand it: it really can be challenging to change your own consumer behavior and adopt new practices. But life especially during the last 5-7 years showed me that changes – are an unavoidable integral part of our lives. Let’s just accept it.

Circular Economy Influencers

Throughout 100 years history, numerous individuals and organizations have championed the principles of the circular economy. But today I will give you only one name that, for sure, is well-known among all circular economy circles. 

It’s Ellen MacArthur. She is a retired British sailor who founded the Ellen MacArthur Foundation in 2010. Now it’s the biggest and the most influential organisation in the field of circular economy. Inspired by her experiences sailing around the world, MacArthur became passionate about the need for a more sustainable approach to resource management. In her influential report, “Towards the Circular Economy,” released in 2012, MacArthur outlined the principles of the circular economy and called for a shift away from the traditional linear “take-make-dispose” model.

If someone from Ellen MacArthur Foundation watches this video or listen my podcast – know I am very very proud of the work you’re doing and have a dream one day to work with you, guys!

Components of Circular Economy

Despite many people associating circular economy with recycling, it’s only partially true. Circular economy as a term is much much wider: such important directions as a circular product design, materials reuse, composting, and better utilization of products like cars via car sharing, bookcrossing, or even libraries: all these thighs are also integral parts of the circular economy term.

Future Perspectives of circular Economy

A study by the Ellen MacArthur Foundation estimated that transitioning to a circular economy could unlock economic benefits worth $1 trillion annually by 2025. Additionally, research by the World Economic Forum suggests that adopting circular economy practices could lead to a 39% reduction in greenhouse gas emissions by 2030. These statistics underscore the significant potential of the circular economy to drive economic growth while reducing environmental impact.

Despite growing interest in sustainability, many consumers may still be unaware of the principles and benefits, and inspiring outcomes of the circular economy, so if you share this video with your friend and ask to subscribe – you can contribute in raising awareness. By the way, the very first episode of Circular Economy Alphabet was exactly about awareness – if you have not listen to it yet – strongly recommend it! 

Looking ahead, the future of the circular economy holds immense promise. As more organizations and individuals embrace circular economy principles, we can anticipate the creation of new jobs, business opportunities, and innovations. By harnessing the power of circularity, we can build a more sustainable and resilient world for future generations.

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