The circular economy exists in contrast to the linear economy. The linear economy boomed with the Industrial Revolution and certainly has progressed our culture, but it has done so at the cost of extracting natural resources from the planet. While a transition to a circular economy will not be quick or easy, it will benefit our Earth and mitigate the effects of climate change.
Seven elements have been defined as key aspects in the circular economy and were created to define a common language:
1. Prioritize regenerative resources
2. Preserve and extend what’s already made
3. Use waste as a resource
4. Rethink the business model
5. Design for the future
6. Incorporate digital technology
7. Collaborate to create joint value
Because our world economy is only 9% circular, we are left with a massive ‘Circularity Gap’. Closing this gap will reduce income inequality and improve access to everyday needs. Additionally, a more circular economy will reduce waste, drive resource productivity and help reduce the environmental impacts of our consumption.
A recent
report by Circle Economy identifies four steps to bridge the circularity gap:
1. Build a global coalition for action
2. Develop a global target and action agenda
3. Translate global targets to local action roadmaps
4. Improve our understanding of circular systems
To bridge the gap, we must limit the extraction and boost the cycling of resources. The forecasted amount of extracted resources is shocking. By 2050, we may be extracting 177 billion tons of resources a year, in comparison to 84.4 billion tons in 2015, according to the Circle Economy report.