For the past several decades, the global economic growth has been linear, meaning “take, make, dispose”. In this system, natural resources are extracted, transformed into products through energy and material intensive processes, and discarded as waste after use. This economic system, although responsible for the fast growth of industries and the utilisation of resources, has led to the depletion of resources, the generation of waste, and pollution of the environment. The utilisation of materials in the world, for example, has grown from 30 billion tons in 1970 to over 100 billion tons currently, a three-fold increase in five decades. This situation has led to policymakers, industries, and individuals looking for alternative ways of using resources, and this has led to the development of the circular economy.
The Circular Approach
A circular economy is a pattern of production and consumption that seeks to extend the useful life of resources. It involves sharing, leasing, reusing, repairing, refurbishing, and recycling. This method of resource use is intended to maximize the life of products and therefore minimize waste and the use of non-renewable resources. The circular economy is also intended to maximize the life of products by making them reusable, recyclable, and the regeneration of natural systems. Despite the growing knowledge of the benefits of a circular economy, only 7.2% of the materials used are recycled or reused.
The Need for Circular Economy
The world economy is still mostly linear and material intensive. It is estimated that 100 billion metric tons of materials are used annually, with most of these materials being non-renewable. The use of materials has been increasing exponentially since the year 2000. The amount of municipal solid waste has surpassed 2 billion tons per year and is expected to increase in the coming decades if the current trend continues. More than half of the total greenhouse gas emissions are attributed to the extraction and processing of materials, thus connecting material use to climate change. The application of circular economic principles is imperative in cutting material demand and emissions.
Mapping Circularity in India
Of the approximately 60 million tonnes of municipal solid trash produced in India each year, only a small portion is recycled through official channels. To address this, India has been implementing laws under Extended Producer Responsibility (EPR), an approach where producers are responsible for the collection, recycling, and safe disposal of their products. The laws that have been enforced in this regard are the Plastic Waste Management Rules, E-Waste Management Rules, and the Construction and Demolition Waste Management Rules. India is also applying the principles of circular thinking in wastewater management, agricultural waste, and industrial byproduct management. It is estimated that by applying the principles of circular economy, the economy can unlock more than two trillion United States dollars and create nearly ten million jobs by 2050. Although there are numerous benefits of implementing the principles of circular economy, the absence of infrastructure, policies, and awareness are some factors that are slowing down the implementation of circular economy principles on a large scale. Start-ups and civil society organizations are slowly filling this gap and proving the potential of circular economy principles in achieving both environmental and social goals.
Ecoboard by EcoYou
Ecoboard, an EcoYou venture based out of Pune, Maharashtra, is one such company that is practicing the principles of the circular economy in the construction materials industry. EcoYou produces environmentally friendly particle boards from agricultural waste like sugarcane bagasse, rice husk, cotton stalks, and wheat straw. This helps to reduce the dependence on wood-based products and thus the pressure on deforestation. By using agro-waste to produce hard boards that can be used for furniture and interior decoration, EcoYou helps to prevent the open burning of agricultural waste and thus prevents pollution.
Circular Textiles: Goonj
Goonj, an NGO in Delhi, is a good example of the circular economy in action, as it processes textile waste from cities to be used in rural areas. The organization takes used clothing and textiles and converts them into useable items such as household goods, school bags, and sanitary napkins. This practice helps keep a huge amount of waste from being disposed of in landfills. The organization also helps underprivileged groups by providing them with affordable basics
Although initiatives such as Ecoboard and Goonj demonstrate the potential that circular economy principles hold for India, similar strategies are being adopted across the globe. This is because circular economy is increasingly being recognized as an important tool for addressing climate change, sustainable resource management, etc.
Global Perspective
Governments are including circular economic initiatives within their Nationally Determined Contributions (NDCs) to The Paris Agreement and Climate Policies. The strategies for circular economy are implemented in the management of waste, production, and food systems. These approaches would reduce global greenhouse gas emissions by as much as 40 % by 2050, and as much as 49 % when food system interventions are considered. Actions such as recycling, repair, and remanufacturing also contribute to the conservation of resources and could provide as many as six million jobs globally by 2030 (Source). The global transition showed how circular economic solutions can address different challenges at the same time.
The Road Ahead for Circular Economy
To bring about the transition to a circular economy, there is a need for collaboration in the areas of legislation, technology, business models, and consumer behavior. The reduction of greenhouse gas emissions, improvement of resource security, and promotion of sustainable economic growth are all possible through the integration of the principles of a circular economy into national climate action plans. To bring about sustainable development and economic resilience, there is a need to scale up the practices of a circular economy, even though the current level of circularity is low. To bring about sustainable development and economic resilience, there is a need to scale up the practices of a circular economy, even though the current level of circular
Author – Aman Vashisth (Consultant)
