What is the Circular Economy?
The circular economy is a model that aims to keep materials in constant use so that they don’t become waste. Items and products are introduced and kept in circulation through recycling, reusing, repairing, refurbishing, and other methods. It’s about reintroducing materials into the production cycle rather than disposing of them.
In practice, a circular economy extends the lifecycle of products by keeping the materials in the economy. This minimises waste and adds value as the materials can be used productively again. The circular economy model is therefore important for waste management and the actual economy of towns, cities, regions, and countries.
Learn more about what the circular economy is, how it works, and why it’s important for helping to reduce waste.
What is a circular economy?
A circular economy is a system based on keeping materials and products in use for as long as possible. This reduces waste, recirculates products and materials, and retains or adds value to the economy. It’s the opposite of a linear economy – where finite resources and materials are used to make products that are disposed of as waste at the end of their life.
In a circular economy, raw materials are extracted and used to create products, which are then repaired or recycled at the end of their life. It means the materials remain within the economy rather than being thrown away. A circular economy aims to close the gap between the production and the natural ecosystems’ cycles.
A circular economy should:
- Reduce waste – by recycling and reusing materials rather than throwing them away
- Improve resource productivity – reusing materials at the end of their life
- Add value and create a competitive economy – the value of materials remains within the economy rather than disappearing as waste
- Address resource scarcity concerns – keeping materials within the economy means less reliance on new resources and raw materials
- Minimise the environmental impact of production and consumption – recycling and reusing reduces waste and the pollution it can cause
What is the circular economy
in waste management?
The circular economy and waste management go together. One of the main aims of a circular economy is to minimise waste by keeping products and materials in circulation for as long as possible. It’s all about putting a sustainable solution into practice and avoiding creating waste when products reach the end of their life.
Circularity essentially recaptures waste by finding ways to reuse and recycle it rather than disposing of it via landfill or incineration. Any business that wants to be sustainable should look towards a circular economy. This circularity ensures as little waste as possible is generated, which has a positive environmental and financial impact.
Linear waste management involves taking materials (such as general waste or hazardous waste) and getting rid of them. Any value from the materials is removed. There are solutions such as capturing energy from waste which, while not part of the circular economy, derive some value from the waste.
Does the UK have a
circular economy?
Current and previous UK governments have worked towards a circular economy. However, as the country produces more than 200 million tonnes of waste annually, there’s still a long way to go. The aim to be net zero by 2050 suggests changes to form a circular economy in the UK and meet such targets may happen.
Defra’s new simpler recycling plans aim to move a step closer to building a circular economy in the UK. They should improve recycling rates for businesses, which means more materials are recycled and remain in the economy rather than being disposed of at landfill or incineration sites. It also aims to separate food waste, so it’s sent for anaerobic digestion or composting.
The EU also introduced a circular economy action plan in 2020. This is to protect Europe’s natural resources and boost sustainable growth, as the EU has a circular material use rate of just 11.8%. It aims to cut the continent’s carbon footprint and double the circular material use rate by 2030.
Why is the circular economy important?
The circular economy is important as it provides a model to reduce waste, add value, and encourage reuse and recycling. There are many finite resources we extract and use, such as precious metals and minerals. Even some resources that regenerate are being used up faster than they’re replenished.
It’s estimated that the global demand for resources will reach 130 billion tonnes by 2050. A circular economy could significantly reduce this demand and our reliance on finite resources. It extracts greater value out of them through reuse and recycling, which provides a financial boost to the economy.
Slowing down the use of natural resources is important to protect the environment too. It can reduce landscape and habitat loss, improve biodiversity, and cut back on pollution and carbon emissions from such resource extraction. The circular economy is important to improve the environment, economy, and waste management.
What are the benefits of
a circular economy?
A circular economy helps protect the environment, reduce waste, and boost financial growth. The benefits outweigh those of a linear economy, which is why many governments are moving towards a circular model. Businesses should implement a circular system where possible to benefit from the opportunities it offers.
The benefits of a circular economy are:
- Protect the environment – the main benefit of a circular economy is that it improves recycling, reusing, and repairing of products and materials. This has a significant impact on the environment as it reduces the energy and resources needed to produce products and materials. It means less carbon emissions are produced and habitats destroyed to protect the environment.
- Boost economic growth – a circular economy should stimulate innovation and create jobs in more markets. It also retains the value of materials and products by recycling and reusing them, rather than losing all value if they’re disposed of at the end of their life.
- Improve material security – there’s less reliance on raw materials in a circular economy, which provides greater security. It can mean fewer risks around supply and price volatilities due to demand changes too.
- Reduce waste levels – one of the main goals of a circular economy is to reduce waste by reusing materials. This has a positive environmental impact, saves businesses money on their waste collection costs, and minimises the amount of rubbish going to landfill.
- Comply with government regulations – many governments are working towards a circular economy and introducing new legislation and regulations to meet green targets. Operating circularity in your business means you should be well prepared for any changes.
Find more information about helping the environment in our waste management help guides.
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