Opinions
The Circular Economy – Global Lessons For The Region
By Saarah Khan
In 1972, the Club of Rome published a report called “The Limits to Growth”. This was the first study done which questioned the “viability of continued growth in the human ecological foot- print”. The report suggested that the linear economic model currently in use, was not sustainable given the increasing consumption rates, demand for raw materials, as well as the global produc- tion of waste, and suggested, given no change in the trends, the limits to growth on Earth would be realized by the year 2072. This was also concluded by the Swiss architect Walter Stahel, in the late 1970s, who proposed that this estimation was based on a linear economic model and hence formulated the concept of an “economy of loops”, which would later be referred to as the circular economy. He proposed that reforming of the economy by closing the material cycles to make better use of resources and considering three pillars of sustainability: economic, environmental and social factors, the estimation projected by The Limits to Growth Report could be corrected.
A circular economy promotes a regenerative strategy to ensure the greatest value retention of technical and natural resources by “designing out waste and pollution, keeping products and materials in use, and regenerating natural systems”1. These strategies can provide benefits across the pillars of sustainability, as they offer increased economic growth, and job creation, significant resource savings, enhanced security with regard to the supply of raw materials, as well as significantly reducing the related impacts of climate change, given 67% of “global greenhouse gas emissions are related to material management”2.
As alarming as “The Limits to Growth” report was then, almost 50 years later, the world’s current economy is only 9.1% circular and the trends suggest, according to the Circle Economy’s ‘Circularity Gap Report’ that the projected trend is negative3. This poses the question: how can we move away from a linear economy that is stuck in the “take-make-dispose” process of resource use, and strive towards a more circular economy?
Building a successful circular economy requires a change in mindset as at the core of the concept is systems thinking, looking at the broader perspective across multiple sectors and stakeholders. It also requires the optimization of entire processes, policies and systems, as it best functions on the concept that the “processes of production should be linked together to create a system without waste”.4
- Several industry experts agree that there are four major building blocks of a circular economy. Circular Economy Design – involves designing production processes to facilitate the “reuse, recycling and cascading”, not only making the process more efficient but also providing major economic savings in the long run, as evidenced by Circular London, the programme “established by London Waste and Recycling Board, who are leading Circular Economy Week – estimate that by 2036, a circular economy could deliver up to £7bn to London each year.”5
- New Business Models – this idea was mirrored by EIT Climate-KIC CEO Kirsten Dunlop at the World Circular Economy Forum in June 2019, where she argued that in order to create the kind of change needed, business models would need to orchestrate “innovation in such a way that it intervenes deliberately, systematically, across boundaries”6
- Reverse Cycles – focuses on the cycle of production from the user to the manufacturer and the strengthening of the post-usage value stream, as “value is embedded in the reuse, maintenance, refurbishment, and remanufacturing of components and products, so it is equally important to strengthen these reverse setups and capabilities”7
- Enablers and Favourable System – As with any system, for it to be effective there needs to be cross-sectoral collabora- tion and support to develop a society that will enable growth of the system. From policy makers providing incentives for industry and consumers through legislation, public awareness initiatives supported by educational institutions, and initiation of circular economy design processes within corporations, as echoed by Walewska Miguel, Coca Cola’s senior manager for public affairs, communications and sustainability for the Caribbean and Venezuela: “We need everyone’s help. We need governments to help give incentives to develop the recycling industry. We need NGOs to develop aware- ness and education programmes and help us with the collection process.”8
One brilliant example of a city moving towards a circular economy is Amsterdam, which, as a city, in 2015 began their initiative to become fully circular by 2050. On September 25th 2018, together with Circle Economy, the city of Amsterdam launched the “Circular Journey of Amsterdam” which catalogues the over 70 circular projects that they have implemented since 2015, “evaluated across 7 policy instruments and 5 sectors”, with buy in and action taken across the city’s key stakeholders, such as the local government, the corporate sector and SMEs, as well as NGOs and research institutions.
Throughout their journey towards circularity the city has clearly outlined four necessary steps that were crucial in setting the process in motion.
- Setting ambitious goals and targets
- Identifying starting points
- Encouraging experimentation and implementation
- Measuring progress and impact9
In the past year there has been a significant increase in the interest and use of recycled and recyclable products in the local market. The banning of Styrofoam and single use plastics in several Caribbean countries, corporations promoting sustainability initiatives, for example Massy Stores reusable bags and ‘recycle bottles for points initiative’, and the progress made to pass legislation throughout the region that align with the Sustainable Development Goals, such as the Beverage Containers Bill in Trinidad and Tobago are all welcomed initiatives. While this is encouraging, there are still many roadblocks to make this scal- able throughout the region as “current climate change policies largely overlook the mitigation potential of circular economy strategies.”10 In order to make progress as a region we need to adopt a more holistic approach, such as the 4 building block framework or Amsterdam’s 4 step method outlined previously, together with securing the buy-in and cooperation from our governments and policy makers, corporate sector, NGOs and the general public.
