Circular economy; what it is and how it works

Circular economy

The linear system of our current economy consisting of the extraction, manufacture, use and disposal of products that are reaching their limits and depletion of natural resources in the face of fossil fuels that damage the environment.

In contrast to this “linear economy” of goods , the circular economy (in English it is Circular Economy , CE) an economic concept included in the framework of sustainable development.

It focuses on how we treat raw materials before natural resources . In short, the product life cycle from a perspective of « industrial ecology » to contribute benefits to society.

Actually, a new economic paradigm is presented that wants to go further from the famous Tres R… reduce, reuse and recycle . Based on what is called product ecodesign , taking into account manufacturing processes and use of their materials, with the aim of consuming little energy and not waste is generated.

The products generated must be able to extend their useful life to the be easy to repair and, finally, close the circle being reusable and easy to disassemble.

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What is economics circular

The concept of circular economy aims to implement an economy based on the principle of “ closing the life cycle ” of products, producing goods and services while reducing the consumption, waste and waste of raw materials, water and energy.

It supposes, therefore, an intersection of the aspects environmental and economic where products must be able to extend their useful life with facilities to repair them and, finally, closing the circle by being reusable and easy to dismount.

To better understand what it is and what it is for, circular economy a small infographic that will clarify the model:

You have to understand that it is part of the new emerging sustainable economic models that offer coherent alternatives to the current system and that fight against climate change in its essence, where some put more focus on caring for people, others on ethical finance, take care of the planet or the environment:

Remember that we have an interesting article on economics blue where we explain its keys and compare it with the called green. We already have a clear model of circular economy but… How does a circular economic system?

How the economy works circular

The fundamental principle of economics circular is the use of waste to obtain raw material for other goods , drastically reducing both the generation of waste (garbage) as the extraction of new materials and materials cousins. Acts that bring benefits to the society .

This circular economic process and how works we can distinguish it in the following value chain and focus of the graph below:

In addition, this concept encompasses other principles how to consider environmental impacts over time throughout the entire life cycle of the goods, the raw materials and services , prioritizing use over possession and provision of a service versus the sale of a well, the repair of damaged products and finally, reuse and recycling zero waste!

Putting these principles into practice entails great number of benefits for both the environment and for society , since the circular economy also considers social inclusion a key point. Among these benefits of the economy circular stand out:

In the following graph we can test the advantages, benefits and objectives of the economy circular that focus on achieving a sustainability without losing competitiveness:

As we can see, this is not such an easy transformation. As data, we published an article about an economics course circular totally free and coordinated by several universities.

What are the reasons for act?

Sometimes, we don't quite understand why it's necessary apply the circular economy to raw materials and products . To answer this question, the best form - in our opinion - is to provide graphs that support in an objective way this need that must be implemented in all sectors, both in society and in the field business:

global temperature by dates

The importance of reusing products and subjects

A good development of the circular economic model implies the respect of certain principles where the products are must think, design and manufacture taking into account all the useful life ; from transportation, distribution, use and end of life with “zero” waste.

This implies applying the concept of Multi R, which is based on the work together and in homogeneity of; rethink, redesign, remanufacture, repair, redistribute, reduce, reuse, recycle and recover that energy. (Also see article of interest with examples of creative recycling)

Achieving this objective will provide us with a series of benefits to society and the environment , They can also be quantified as for example:

Firms in the economy circular

But if the circular economy entails so many benefits, why isn't it firmly established in everyone? If we are really talking about a sustainable economy . Part of the The answer to this question is that companies alone They may lack information, confidence, and the ability to implement this type of economy and the financial system Linear does not typically offer inversions for linear models. innovative management, since they are considered risky and complexes. In this way, the economy remains “blocked” in the linear system.

The indicators in the circular economy are we can test in the following graph:

The graph above is from a quality report on the circular economy PDF in Spain that is you can consult from HERE.

On the other hand, the traditional consumption habits of the society also hinder the development of new products and more sustainable services. Especially in a situation where where prices do not reflect the actual costs of the manufacturing and where the policy does not show a clear economic transition, even if from time to time they practice social or solidarity economy .

Despite this, and fortunately, society and politicians are awakening giving rise to existence, every increasingly, of legislation and business models aimed at development of an economy that respects the environment atmosphere .

Examples economics circular

To dig a little into some examples of economics circular we have investigated in some infographics what provide clear information on different actions of companies.

For example, we know that currently about 93% of the materials of a desktop computer – laptops are recyclable by current treatment techniques employed in authorized plants, and another percentage of mobiles.

Knowing that we can reuse a part of those materials that are discarded, the Tragamóvil company appeared, in charge of giving a new one.

Another example that we can find is if we look at the large companies that implement economy circular about the materials of its products, in this case would be Nike in the raw materials that are they use to make their shoes.

That the products we throw away ourselves have an endless lifespan, seems like an almost impossible feat, but really all we have to do is put a little will. A good example is the one we already explained in the article on how to build a recycling machine plastic easily. A fantastic idea from an engineer that left us surprised…

circular economy of recycling

Being more earthly, and at the neighborhood level, we can see some actions to develop a project of circular economy , proximity and responsibility where neighborhood participation is a key point so that everything flow coherently.

The throwaway society is an unfair system to everyone levels, which is depleting and contaminating our planet, while destroying the social fabric of many communities.

We can get more information from the European Union in the circular economy action plan and where in addition we will find reference directives and regulations.

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