What is Circular Economy

(Maximpact.com News)

Citizens of the world have realized that people do not have infinite resources. Demand on raw materials has escalated, with no management of waste and the limited supply we have of those materials. Environmental repercussions of climate change and sustainability are now at the top of the global agenda and are mission-critical.

This article focuses on the circular economy and its benefits to help combat our global problems. European countries, particularly the Nordic ones, have embraced the circular theory years ago and are reaping the benefits of zero waste economies while setting good examples for their neighbors.

What Is Circular Economy?

The concept of circular economy calls for the reuse of materials for as long as this is feasible. These materials should be used to their greatest extent and, when a person is done using said materials, should be able to renew or restore the power of these materials for further use down the line. Besides materials, circular economy may also apply to components and products.

Circular economy is in direct opposition to what is known as a linear economy. With this concept, much less thought is put into the long-term ramifications of use of a material, component, or product. Instead, this material is made, a person uses it, and then they throw away what’s left. This creates a productivity dead-end. Over the years we have become a throwaway society.

What Is the History of Circular Economy?

If any one person created the concept of circular economy, they didn’t promote themselves, because research doesn’t attribute this to anybody specifically. Instead, the move towards a circular economy is estimated to have started in the 1970s and gained momentum as the years went by.

There are numerous models that have led to the development of circular economy as it’s understood today. These are as follows:

  • Regenerative design — Credited to John T. Lyle, the concept of regenerative design is similar to what we know as circular economy.
  • Blue economy — Gunter Pauli of Belgium, who worked as the CEO at Ecover, developed the blue economy, which tells us what is left over from a product could become the basis for a new product and revenue stream.
  • Industrial ecology — Focusing specifically on the industrial field, industrial ecology deals with energy flow and material usage in this area.
  • Biomimicry — Popularized by Janine Benyus, biomimicry involves borrowing successful concepts that have already been used and redesigning them for your own purposes.
  • Performance economy — An early pillar in circular economy, industrial analyst and architect Walter Stahel developed this concept back in 1976. He believed that a circular economy could prevent waste, produce more resources, create competition, and make more jobs.
  • Cradle to cradle — Bill McDonough (an architect from the US) and Michael Braungart (a chemist from Germany) developed the cradle to cradle concept. Simply put, this model seeks to cut back on product waste and embrace more production.

How Can Businesses Use This Concept?

As you’ve seen, while circular economy can indeed apply to the universe itself and preserving finite resources, it can also be used as a business model. Business owners big and small can benefit from the school of thought associated with circular economy. Research has found that tens of thousands of jobs can be made to positively stimulate the economy just by following the circular economy model.

Are You Looking for a Circular Expert / Consultant?

At Maximpact, we can help you find the right circular expert consultant. Maximpact consulting network is a select global network of certified consultants in over 200 sectors and sub-sectors, experience in over 680 projects. All consultants are verified through a certification screening process, so that Maximpact can assist clients in making the best decision in finding the exact skill set they need.

Maximpact offers access to a network of circular, impact and sustainability consultants and experts. No matter the scope of your project or the size of your company, you can receive assistance through all stages of the project development process. Maximpact Ecosystems offers advisory, marketing, consulting, and financial services for sectors like environment, water, clean technology, renewable energy, agriculture, and more. With offices in Hong Kong, California, Abu Dhabi, and Monaco, Maximpact can help you move towards a circular economy.

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