The Circular Economy

A circular economy is regenerative by design and aims to gradually decouple growth from the consumption of finite resources.

Each year, our economies transform 100 billion tons of raw materials into products. 23.7% of these raw materials are used to created long lasting things such as buildings, highways, and cars. 9.3% cycles back into the economy (only 1.5% of this is recycling). The majority of the raw materials we extract are disposed of in our environment as unrecoverable waste.

If we are to meet human needs while staying within the limitations of the planet’s finite resources, we are going to have to convert from a linear to a circular economy. In such an economy, the vast majority of the materials we use are cycled back and reused.

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CIRCULAR ECONOMY ESSENTIALS:

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In contrast to the ‘take-make-waste’ linear model, a circular economy is regenerative by design and aims to gradually decouple growth from the consumption of finite resources. A circular economy also reveals and designs out the negative impacts of economic activity that cause damage to human health and natural systems.

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Three principles:

• Design out waste and pollution
• Keep products and material in use
• Regenerate natural systems

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The circular economy system diagram, also known as the butterfly diagram, models the minimization of leakage and negative externalities

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Biological vs. technical materials

• Biological: biodegradable materials that can safely re-enter the natural world
• Technical: cannot safely re-enter the natural world. Metals, plastics, synthetic chemicals, must continuously cycle thru system so value can be captured and recaptured

Stock management of technical materials

• Share
• Maintain / prolong
• Reuse / redistribute
• Refurbish / remanufacture
• Recycle

Flow management of renewable biological materials

• Cascades: putting used materials and components into different uses; material order declines along the cascade until a material ultimately returned to the natural environment as nutrients
• Extraction of biochemical feedstock
• Anaerobic digestion
• Biogas
• Regeneration
• Farming / collection

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Economic arguments:

• Profit opportunities / lower costs (especially via sharing economy models)
• Insulation from raw material price volatility and more security because fewer risks associated with natural disasters and geopolitics
• New service lines
• Improved customer interactions (leasing) / customer loyalty
• More disposable income for individuals