To fight Climate Change, we must lead the global fight by adopting a Circular Economy.
In a world that is driven by consumerism and rapid resource depletion, the concept of a circular economy emerges as a ray of hope and to ensure the continuation of sustainable practices.
The goods of today are the resources of tomorrow at yesterday's resource prices. - Kenneth Boulding
A circular economy is a paradigm shift that challenges the linear model of production and consumption by building a model of production and consumption in which resources are used interchangeably through recycling, re-consumption and reprocessing. This powerful remark expresses the heart of what a circular economy is all about. Currently, only about 7.2 percent of the materials that have been used are now being recycled thus providing a necessity of transitioning towards a circular economy.
As of 2019, WHO estimated the global electronic waste to be approximately 53.6 million metric tons annually. FMCG and agro-product wastage rates vary, but India faces significant challenges, with an estimated 40 percent of food is wasted. In the following article, we will delve into the significance of a circular economy, examining its necessity, benefits, and the possibility for our world to undergo a transformation as a result of its implementation.
Background & Context
Our world has paid a heavy price for the unparalleled economic expansion that has been driven by the linear economic model, which is defined by the 'take, manufacture, dispose' approach. Estimates indicate that humans are exceeding Earth's ability to sustainably produce natural resources, which has obvious ramifications. Our present consumption habits assuming that our population growth percentage remains the same would imply that we would be needing resources of three planets by the year 2050. The world's material consumption hit an all-time high of 100 billion metric tonnes in 2020, a 65 percent increase from 20 years ago.
Beyond the obvious volume, there are further, more subtle consequences. In India, for the year 2022, a 13 percent post-harvest loss of food (fruits and vegetables) meant for human consumption and 17 percent loss in households, restaurants, and stores. Inadequate handling of the growing problem of electronic trash has led to environmental and public health risks. As of 2019, the amount of electronic waste (e-waste) per capita reached 7.3 kilograms.
Delving Deeper
In order to fully grasp the pressing nature of the need to shift towards a circular economy, it is crucial to analyze the ecological, financial, institutional, behavioural and societal repercussions of our existing linear methodology of economic system.
1. Environmental Implications:
The linear model significantly contributes to pollution crises, climate change, and biodiversity loss. The preponderance of materials that are not recycled is disposed of in landfills or incinerators, where they contribute to the emission of detrimental contaminants and greenhouse gases. This phenomenon not only amplifies the effects of climate change but also imperils biodiversity and ecosystems. Furthermore, wasteful extraction of natural resources contributes to the degradation of soil, habitats, and forests. In contrast, a circular economy endeavours to reduce the extraction of resources, alleviate environmental degradation, and advocate for sustainable practices.
2. Economic Consequences:
As a result of the economic inefficiency of the current linear system, resources are depleted and production costs rise. Long-term risks are posed to industries since they are heavily reliant on raw materials due to the persistent demand for them, which frequently impacts the environment negatively. The adoption of a circular economy offers potential economic benefits. Material recycling and reuse decrease production expenses by eliminating the need for constant extraction. As of 2019, India’s resource extraction of 1580 tonnes/acre is much higher than the world average of 450 tonnes/acre with low material productivity. The Indian Government released a National Resource Efficiency Policy 2019 to tackle this issue. In addition, the circular economy has the potential to stimulate innovation by establishing fresh markets for products that have been recycled or refurbished. Currently, no official data is available on the recycled and refurbished goods industry in India. According to Marico Innovation Foundation, India recycles only 30 percent of 3.4 Million Tonnes of plastic waste generated annually. The data related to recycling on other products such as electronics, clothes, crockery, organic and inorganic materials is not available since the scope of them is very limited.
3. Social Consequences
Environmental degradation frequently and disproportionately affects the marginalised communities, thereby putting a pressure on the society and governments to continuously identify and cater to the needs of such communities. So far the linear model has done little towards the actual empowerment of these communities.. The increasing costs of manufacturing, labour and living almost always tend to the deprivation of resources in regions that are already vulnerable while also expanding the scope of population displacement, the cessation of means of subsistence, and the worsening of social disparities.
On the contrary, a circular economy fosters inclusiveness through its emphasis on sustainable practices, fair allocation of resources, and employment generation within the recycling and refurbishment sectors. By adhering to the tenets of social responsibility, this strategy guarantees that every sector of society can derive advantages from economic progress. The key for such an economic model lies in identifying all the concerned stakeholders and engaging with them to understand the critical points of supply and value chains across the current system.
Solutions
The transition to a circular economy necessitates the participation of governments, enterprises, and individuals in a multifaceted effort,
1. Advocate for the Circular Design
Design is intimately connected to a circular economy. It is crucial to promote product design that places emphasis on qualities such as durability, repairability,recyclability and reusability. It is recommended that governments and industry executives provide incentives in the form of tax subsidies, cross-subsidies and interest subvention on industrial credit and recognition to companies that embrace circular design principles, thereby promoting sustainable practices and innovation. In addition, both governments and private industries should build individual-centric designs since, in most of the cases, an individual will be the consumer of goods and services.
2. Establishing Recycling Infrastructure Investments
In order to support the shift towards a circular economy, it is critical to prioritise investments in recycling infrastructure. Effective mechanisms for the collection, shifting, and processing of recyclable materials ensure the circulation of resources into the economy, thereby preventing their eventual disposal causing landfills. Governments ought to assume a crucial function in the establishment and maintenance of such infrastructure.
3. Consumer Education and Engagement
Changing consumer behaviour necessitates awareness and education. It is imperative that governments, businesses, and non-profit organisations work in tandem to promote the advantages of a circular economy and increase public awareness regarding the environmental consequences of consumer decisions. Consumers who are well-informed and empowered have the ability to stimulate demand for sustainable products and exert an impact on market dynamics.
4. Advocacy for Policy
Governments exert significant influence over the economic environment. It is imperative that policymakers implement and enforce regulations that promote circular practices while penalising methods that are detrimental to the environment. This may entail the adoption of Extended Producer Responsibility (EPR) frameworks, the imposition of pigouvian taxes on single-use plastics, and the provision of monetary incentives to promote circular initiatives.
Call for Action
In order to effectively confront the impending environmental challenges, it is imperative that we all support and adhere to the tenets of a circular economy. One way in which individuals can make a positive impact is by incorporating sustainable practices into their everyday routines, endorsing companies that prioritise circularity, and engaging in community initiatives that concentrate on recycling and waste reduction.
Significance of Circular Economy (India):
The transition to a circular economy could result in an additional US$ 4.5 trillion in global economic output by 2030.
India’s circular economy development route might generate an annual value of US$ 218 billion (Rs 14 lakh crores) by 2030 and US$ 624 billion (Rs 40 lakh crores) by 2050.
By 2030, India is expected to be the world’s third-largest economy, accounting for approximately 8.5% of the global GDP.
The recycled Polyethylene Terephthalate (PET) plastic industry in India is estimated to be worth around US$ 400-550 million.
In India, PET is recycled at a rate of 90%, which is higher than in Japan (72%), Europe (48%), and the United States (31%).
Thus, there are enormous opportunities for a circular economy in India. The shift towards a circular economy is not merely a matter of preference; it is an essential requirement for the continued existence and welfare of our planet. At prices from yesterday, the products of today must no longer be squandered as tomorrow's resources. Therefore, it is imperative that governments, corporations, and individuals collaborate in the endeavour to establish a circular economy. Also, it stands in India’s global interests that we develop our own Circular Economy agenda and implement it for the world to learn and follow the suit in the human race’s concerted efforts against Climate Change.
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