Our current linear economic model is reaching a breaking point, and the take-make-dispose model is no longer sustainable for our planet. The economic model also has adverse effects on the planet’s ecosystem. According to the Ellen MacArthur Foundation, the weight of the plastic waste disposed of by people will outweigh the fish in the ocean by 2050. This is a serious concern, not only for the economy but also for the ecosystem. This requires a paradigm shift, which is only possible through circularity.
Circularity is an economic framework designed to eliminate the waste and pollution caused by throwing away old things. Rather than throwing away old things, circularity ecompasses the re-use of those materials to make something new. This is not as simple as recycling stuff, it involves designing a product in a way that it can be re-used.
There are some significant benefits of circularity, as pointed out in a study by Accenture Strategies, which stated that transitioning to a circular economy can grow the global economy by $4.8 trillion. Moreover, the economic benefits of circularity are pointed out by the World Economic Forum, which states that the use of circularity can significantly reduce greenhouse gas emissions, conserve natural resources and create millions of jobs in the process.
According to various reports from the World Business Council for Sustainable Development, World Steel Association, London Metal Exchange, International Aluminium Institute and many others, each year we throw material worth more than $200 billion, which can be recycled and used again. The same sources mentioned that around 2580 megatons of waste is left unrecycled every year and is dumped in seas and oceans across the world. Out of this 2580 megatons of waste worth more than $200 billion, around 80 Megaton is Steel, which is worth around $30 billion. However, copper is the most valuable here. Out of all the copper, only 40% is recycled, and around 10 megatons is disposed of. The value of this 60% is more than $70 billion, followed closely by plastic. The total value of unrecycled plastic is around $50 billion.
This transition will not happen overnight, and it will require a lot of new infrastructure. To achieve this circularity, the global economy will need to invest around $2 trillion between 2021 and 2040. 57% of that capital will go towards technological advancement in recycling techniques and infrastructure. However, experts are optimistic that with shared effort, the world will achieve this goal sooner than later.
