In a world that consumes resources faster than they can be regenerated, circularity stands as a remedy. Anjali Taneja and Piotr Barczak delve into the core principles of a circular economy and its global relevance in the context of reducing the overconsumption of finite resources.
This article was previously published by Medium.
According to the Circularity Gap Report 2024, the world is only 7.2% circular. At the same time, the latest Global Resources Outlook reports that high-income economies consume six times more resources or materials and generate ten times more climate impacts than low-income economies. Moreover, resource consumption in upper and middle-income economies has more than doubled over the past 50 years. Considering that the world is expected to face significant resource scarcity in the near future, there is an urgent need to reduce material consumption.
Interestingly, the adverse impact of this mindless resource consumption is now scientifically recognised, much like that of climate change. For instance, as the European Commission’s Joint Research Centre concluded in 2023, resource extraction and processing are responsible for 90% of global biodiversity loss and water stress, 50% of global greenhouse gas (GHG) emissions, and over 30% of air-pollution-related health impacts.
In other words, our core ecological problem is not just climate change, but also the overconsumption of global resources. However, unlike the field of climate change, where multiple targets to counter the adverse impacts – such as those for reducing GHGs – have been established, there are no such targets in the area of resource overconsumption. This is where a circular economy comes into play as the most robust solution for ensuring mindful consumption of global resources.
Unlocking the core principles of a circular economy
In contrast with the linear approach of extracting, making, using and disposing, a circular economy focuses on optimising resource use to maintain the maximum value of products and materials. In other words, circularity aims to minimise and eventually eliminate waste while ensuring the continual use of resources. It emphasises products and materials moving through loops of production, use, reuse, disposal and reintegration. Thus, the key to a circular economy lies in the design of durable products and systems that extend lifespans, minimise resource use, and reduce material flows.
The key characteristics of a circular economy include:
- Reducing dependency and gaining competitiveness
- Following the 6 Rs: reduce, reuse, recycle, redesign, remanufacture and refurbish
- Embracing a holistic view of products and processes
- Fostering self-sufficiency
Promoting circularity for greater gains
Incentivising circularity into our economies could lead to significant environmental, social and economic benefits. For instance, the 2021 Circularity Gap Report estimates that a circular economy could reduce global GHG emissions by 39% by 2032. Moreover, almost 6 million jobs could be generated globally by transitioning towards more circular practices. Circular economy loops could also benefit local communities, keep waste within local hierarchies, and promote the use of non-toxic materials.
However, these loops must be supported by sustainable and renewable resources, in terms of both materials and energy. Reducing the reliance on virgin critical raw materials, addressing the excessive use of finite resources, explore the potential of bio-based options or nature-based solutions, mainstreaming options for efficient resource recovery, and ensuring mindful consumption are all important pieces of the puzzle.
Last but not least, sufficiency policies are critical for building a sustainable and secure future.
Anjali Taneja is a Senior Policy Specialist and leads the Sustainability Group at CSTEP.
Piotr Barczak is the Circular Economy Program Manager at ACEN Foundation, a member of the Council of the European Environmental Bureau, and an advisor at the International Council for Circular Economy.
