What is Circular Economy
The Circular Economy (CE) is an economic system that relies on 3 key principles: Reduce, Reuse, and Regenerate.
The term Circular Economy is used to contrast with the concept of a linear economy, our current economic system based on the linear sequence of Take-Make-Waste. This triad stands for TAKE natural resources, MAKE more and more products and WASTE them into landfills.
Contrary to the linear economy that brings products from cradle to grave (aka: landfills), the CE endeavors to bring them back into the economic system in one way or another. The goal is to keep products in use as long as possible or retransform them in a way that serves as a nutrient for the next economic process. This is what people call from “cradle to cradle”.
The objective is to build a resilient economy that also protects natural capital. The idea is to mimic nature, where waste is revalorized by becoming a nutrient for another cycle.
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How does CE protect natural capital?
It reduces the pressure to extract more natural resources.
It curbs waste and pollution.
It mitigates climate change by reducing greenhouse gases emissions (GHG).
It supports natural processes.
The Ellen Mac Arthur Foundation offers a wealth of resources about the Circular Economy. Check out their article “What is the circular economy”. Be advised that there are plenty of variations in the definitions of Circular Economy, each one more or less complex or complete. It is important to remember the essence of the 3 principles. The way I describe it here, is the way that helps me remember best.
People often confuse CE with recycling. So, one important thing to remember is that Circular Economy is much more than recycling. In fact, recycling is one of the last wheels of the cart. You first have to try reducing your use of natural resources, then you have to try reusing products and materials as much as possible in service, before trying to recycle them. On top of that, you also have to see what you can change in your processes to restore and regenerate natural ecosystems.
People usually consider recycling as an element of the REUSE concept. Here, I did something that may seem odd to purists: I bundled it within the REGENERATE principle, which people rarely do. Why? Because I see recycling as breaking down products into pieces of material to create new products. To me, this is a basic form of regeneration that requires a deep level of transformation.
Typically, when others talk about regeneration, they refer to a broader concept: the regeneration of natural systems, using compost, planting trees, restoring wetlands, etc. I want people to keep in mind this important concept of regeneration as core to CE.
Finally, keep in mind that the concept of CE is not really new. People just did not call it that way. Before the era of cheap plastics, people applied some elements of this concept routinely. My generation may remember periods when all beverage bottles had to be returned and consigned to stores. Maybe you can remember your grandparents repairing things rather than just buying new ones. Maybe you can remember people passing along clothes or other artefacts from one generation to another, keeping things in use for as long as possible and giving them an emotional dimension. Our consumers behaviors have changed over time. They have adapted to new options that felt more convenient (think cheap single-use plastics). We stopped trying to repair things because it is often too expensive to do so, especially when there is a cheap alternative for a new product. The only problem is that these new consumer habits, and manufacturing practices forget one thing: we only have one planet, and we need to live within this planet boundaries to thrive. This is why we need to make a conscious effort to embrace the Circular Economy again even if it is not obvious and even if it is challenging.
