The circular economy principle: The circular economy refers to an industrial economy that is restorative by intention; aims to rely on renewable energy; minimises, tracks, and hopefully eliminates the use of toxic chemicals; and eradicates waste through careful design. The term goes beyond the mechanics of production and consumption of goods and services, in the areas that it seeks to redefine (examples include rebuilding capital including social and natural, and the shift from consumer to user). The concept of the circular economy is grounded in the study of non-linear, particularly living systems. [THE way forward perhaps].
http://www.ellenmacarthurfoundation.org/circular-economy/circular-economy/the-circular-model-an-overview
http://www.huffingtonpost.co.uk/preetam-kaushik/circular-economy_b_5047105.html
Circular Economy: Integrating ‘Life’ into Businesses Responsible for ‘Tomorrow.’
By Preetam Kaushik, posted: 28/03/2014.
ABSTRACT. In a capitalistic economy, claiming to be ‘exclusive’ may be a privilege. But, in a world which is fast losing out on its metals, minerals, water and clean air, it smacks of colossal snobbishness. Predicaments of an unsustainable future are staring at the businesses in the face. Use and throw has slowly turned into simply throw with shelf lives of products declining with innovation in technology. All this ‘cutting-edge’ and ‘custom made’ has come to a point of no return.
Unless there is a drastic change in ideology that follows integrated approach, future can take us on a time travel. Only, this time we will enter dark ages; never to return. The current economy with linear production where only products are built to be discarded at the end seems to be a game where everyone is out to lose.
A pair of word ‘circular economy’ seems to be the next biggest mantra. And, chant it, you must; for your own good and survival. For, this talks of an exclusive economy, which is capable of designing ‘out’ the waste. In a broader sense, circular economy is much beyond a simplistic one-line definition.
Though at the outset it looks like a clear contradiction and fitting reply to economy of accumulation; the new model of businesses is much more than that. The kind of world that capitalism has created is for all to see. Excesses of a consumption-based economic system –from burgeoning landfills, to rising levels of obesity; cronies of capitalism refuse to see what lies ahead of them. Because, in simple words, there is not much of a tomorrow left there.
In the world that’s headed towards wider gulf between the rich and poor, democratic and autocratic nations — circular economy seems to be the new leveler, if adopted by nations. It is not a new revolution that will take the world by storm. In fact, given that the capitalistic forces are leading the chains of excesses, it can never be, without participation from empowered people of every nation. This almost Zen-like ‘here and now’ formulation of hard economic realities seems very distant to the prevailing sensibilities which promote excesses.
Will the governments, corporations, and individuals embrace a new set of beliefs so divergent from business as usual? Though it is tough to say whether the solidarity will form at that level, there sure is some strength for circular economy from within the circles of propagators. Fortunately for it, this ‘new religion’ has strong voices with those within government set ups too to talk about its need and feasibility.
Circular economy does not ask you to drop everything you did before. Neither does it accept just a bit of trimming here and there, to make it seem like an ‘honest attempt’. It is bringing forth a situation where we need to think of economy as a large circle. As opposed to a linear system that we have now where we only create stuff to turn it into waste, eventually; the circular economy is promisingly different. Here, ‘net waste’ does not figure that can harm the biosphere. Sounds fascinating, isn’t it?
Now, get this. In circular economy, goods don’t get produced for exclusivity. They get produced for a longer shelf life, and are readily reusable and recyclable when they reach the “end” of their operating life. Instead of unidirectional value chains, industry has to imagine being part of a circular value chain where they are responsible and not just profit-oriented. So, whatever goes around DOES come around!
Ideologically, this ain’t a new thought. Actually in a world where limited resources had to be shared, fair and just were the key words that operated in the minds of native economists of those days. Barter system where fair and just market existed simply based on needs and not on the ‘money’ part, ecology was taken care of.
The new mantra of circular economy seems to have caught up well. Mckinsey and Company put out the findings of a study of which the company was a partner. This study revealed that the material waste in Europe can come down significantly by applying the principles of this new model of economy.
Circular economy factors in flexibility in production processes. In fact, flexibility is the prime aspect that creates the base for manufacturing units to change and adapt to changes in the business environments in a more economic manner than what they already do.