Circular Renaissance: Transforming Waste into Prosperity

By Sofia Koval, GRC 2023 Global Essay Competition Top 30

Products never truly "expire" but instead find new life. Waste becomes opportunity. Industries thrive, generate jobs, stimulate innovation, and ensure societal and environmental well-being. Economic growth, guided by principles valuing longevity over disposability, becomes an engine of prosperity. Wealth is no longer hoarded but circulates equitably, fostering shared prosperity and leaving no one behind.

What if I tell you, that this is not a dream? Embracing the principles of the circular economy might be the solution we seek — an approach that can bring this vision to life, turning waste into opportunity, nurturing prosperity, and fostering equitable wealth circulation for the well-being of both society and the planet.

RESOURCE EFFICIENCY AND WASTE REDUCTION

The circular economy is a transformative approach to production and consumption, involving reusing, repairing, and recycling to extend the life of products. This not only minimizes waste but also significantly reduces energy and resource consumption.

Mitigating the risks associated with raw material supply is a compelling reason to emphasize recycling. The scarcity of crucial resources and the problem of waste stand as pressing challenges, underlining our dependency on raw materials and disposable items. An average person alone produces 1.5 tons of waste annually. However, forward-thinking companies are actively addressing this concern. Take, for instance, the groundbreaking European BlackCycle project, which not only creates new tires from end-of-life ones, but also recycles them to generate high-tech second-hand raw materials, eliminating waste in the process.
By implementing the circular economy, we can not only reduce waste but also address the pressing challenges of raw material dependency, fostering a more resilient and resource-efficient future for all.

ECONOMIC GROWTH SUSTAINABILITY

Circular economy presents a robust pathway to economic growth through various channels. European parliament argues that circular practices could generate 700,000 jobs in the European Union alone by 2030. On a global scale, it has been estimated by the International Labour Organization that a total of seven to eight million new jobs could be created in the circular economy.

The circular economy's impact extends beyond job creation, playing a crucial role in sustainable industrialization through concepts like industrial symbiosis. In this model, waste from one industry becomes raw materials for another, creating interconnected networks that mimic ecological systems. The World Business Council for
Sustainable Development highlights the benefits of industrial symbiosis for producers - ensured resource access, hedges against price volatility and reduced raw material and waste disposal costs.

Circular economy practices enable the decoupling of growth from raw material consumption, reducing negative externalities and producing environmental benefits. This strategic shift not only ensures resource sustainability but also enhances economic resilience by fostering the relocation of production, creating employment opportunities, and improving trade balances. Circular practices contribute to a more efficient and sustainable economy, where the longevity and reuse of materials drive cost-effectiveness, innovation, and overall economic prosperity.

In essence, embracing the circular economy not only boosts economic growth by creating jobs and improving local economies but also aligns with sustainability goals, promoting industrial practices that are regenerative and environmentally responsible.

WEALTH EQUALITY

Although global economic growth has increased real GDP per capita and labor productivity, 731 million people still live below the USD 1.90 poverty line. Merely having a job doesn't ensure a decent living; 8% of employed workers worldwide experienced extreme poverty in 2018. However, the concept of a circular economy holds the potential to contribute significantly to wealth equality. A UK Waste & Resources Action Plan study, among other resources mentioned before, suggests that transitioning to a circular economy by 2030 could generate 3 million decent jobs in the EU, fostering economic growth and wealth equality.

Circular initiatives can address SDG 1 (no poverty) and SDG 2 (zero hunger) by creating jobs, improving livelihoods, and reducing inequality. Initiatives like Jakarta-based XSProject empower waste picker communities, providing better work opportunities and preventing waste from reaching landfills. Similarly, programs like Rosario's Urban Agriculture contribute to SDG 2 by enhancing food security, reducing dependence on imports, and fostering sustainable agriculture practices.

If implemented comprehensively, circular economy can contribute to a more equitable world, providing equal access to resources and creating safe, well-paid jobs. Its potential goes beyond achieving certain SDGs; it allows for a re-imagination of the global economy, potentially creating more stable and regenerative societies.

CONCLUSION

The transition to a circular economy necessitates a profound systemic change, a challenging process given the need to overhaul our current operational framework. However, numerous organizations are already embracing this shift, actively incorporating circular principles into their practices.
Yet, for the circular economy to function systemically, it requires the engagement of all entities. Embracing the circular economy demands a collective change in how we perceive and interact with resources. It underscores the importance of everyone actively participating and taking leisurely, but joint steps towards harmonious equilibrium among economic growth, resource consumption, and wealth distribution.Products never truly "expire" but instead find new life. Waste becomes opportunity. Industries thrive, generate jobs, stimulate innovation, and ensure societal and environmental well-being. Economic growth, guided by principles valuing longevity over disposability, becomes an engine of prosperity. Wealth is no longer hoarded but circulates equitably, fostering shared prosperity and leaving no one behind.

What if I tell you, that this is not a dream? Embracing the principles of the circular economy might be the solution we seek — an approach that can bring this vision to life, turning waste into opportunity, nurturing prosperity, and fostering equitable wealth circulation for the well-being of both society and the planet.

RESOURCE EFFICIENCY AND WASTE REDUCTION

The circular economy is a transformative approach to production and consumption, involving reusing, repairing, and recycling to extend the life of products. This not only minimizes waste but also significantly reduces energy and resource consumption.

Mitigating the risks associated with raw material supply is a compelling reason to emphasize recycling. The scarcity of crucial resources and the problem of waste stand as pressing challenges, underlining our dependency on raw materials and disposable items. An average person alone produces 1.5 tons of waste annually. However, forward-thinking companies are actively addressing this concern. Take, for instance, the groundbreaking European BlackCycle project, which not only creates new tires from end-of-life ones, but also recycles them to generate high-tech second-hand raw materials, eliminating waste in the process.
By implementing the circular economy, we can not only reduce waste but also address the pressing challenges of raw material dependency, fostering a more resilient and resource-efficient future for all.

ECONOMIC GROWTH SUSTAINABILITY

Circular economy presents a robust pathway to economic growth through various channels. European parliament argues that circular practices could generate 700,000 jobs in the European Union alone by 2030. On a global scale, it has been estimated by the International Labour Organization that a total of seven to eight million new jobs could be created in the circular economy.

The circular economy's impact extends beyond job creation, playing a crucial role in sustainable industrialization through concepts like industrial symbiosis. In this model, waste from one industry becomes raw materials for another, creating interconnected networks that mimic ecological systems. The World Business Council for
Sustainable Development highlights the benefits of industrial symbiosis for producers - ensured resource access, hedges against price volatility and reduced raw material and waste disposal costs.

Circular economy practices enable the decoupling of growth from raw material consumption, reducing negative externalities and producing environmental benefits. This strategic shift not only ensures resource sustainability but also enhances economic resilience by fostering the relocation of production, creating employment opportunities, and improving trade balances. Circular practices contribute to a more efficient and sustainable economy, where the longevity and reuse of materials drive cost-effectiveness, innovation, and overall economic prosperity.

In essence, embracing the circular economy not only boosts economic growth by creating jobs and improving local economies but also aligns with sustainability goals, promoting industrial practices that are regenerative and environmentally responsible.

WEALTH EQUALITY

Although global economic growth has increased real GDP per capita and labor productivity, 731 million people still live below the USD 1.90 poverty line. Merely having a job doesn't ensure a decent living; 8% of employed workers worldwide experienced extreme poverty in 2018. However, the concept of a circular economy holds the potential to contribute significantly to wealth equality. A UK Waste & Resources Action Plan study, among other resources mentioned before, suggests that transitioning to a circular economy by 2030 could generate 3 million decent jobs in the EU, fostering economic growth and wealth equality.

Circular initiatives can address SDG 1 (no poverty) and SDG 2 (zero hunger) by creating jobs, improving livelihoods, and reducing inequality. Initiatives like Jakarta-based XSProject empower waste picker communities, providing better work opportunities and preventing waste from reaching landfills. Similarly, programs like Rosario's Urban Agriculture contribute to SDG 2 by enhancing food security, reducing dependence on imports, and fostering sustainable agriculture practices.

If implemented comprehensively, circular economy can contribute to a more equitable world, providing equal access to resources and creating safe, well-paid jobs. Its potential goes beyond achieving certain SDGs; it allows for a re-imagination of the global economy, potentially creating more stable and regenerative societies.

CONCLUSION

The transition to a circular economy necessitates a profound systemic change, a challenging process given the need to overhaul our current operational framework. However, numerous organizations are already embracing this shift, actively incorporating circular principles into their practices.
Yet, for the circular economy to function systemically, it requires the engagement of all entities. Embracing the circular economy demands a collective change in how we perceive and interact with resources. It underscores the importance of everyone actively participating and taking leisurely, but joint steps towards harmonious equilibrium among economic growth, resource consumption, and wealth distribution.

---

References

M. Fraser, “Pioneers of the future: the countries leading the way with circular economy policy”, CircleEconomy Foundation, May 10, 2022
https://www.circle-economy.com/blogs/the-circular-economy-who-is-leading-the-way#:~:text=Japan,ambitious%20waste-management%20policies%20early.

“Circular economy: definition, importance and benefits”, News European Parliament, May 24, 2023
https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits

A. Vycyslik-Kupicha, “Циркулярна економіка – час трансформації” (Circular economy – the time of transformation), Quality Austria Polska, October 11, 2022
https://www.qualityaustria.com.pl/ua/aktualnosci/циркулярна-економіка-час-для-трансфо/
B. Hope, “How countries are striving to build their circular economy”, Sustainability., March 25, 2022
https://sustainabilitymag.com/sustainability/how-countries-are-leading-build-a-circular-economy-eu-sustainability-regenerative

Ghosh, S. K., & Ghosh, S. K. (Eds.). (2021). Circular Economy: Recent Trends in Global Perspective (2022edition). Springer.

Circle Economy, International Labour Organisation (ILO), & Solutions for Youth Employment (S4YE)Programme at the World Bank, "Can a Circular Economy Create Good Jobs? New Study Reveals GlobalNorth Bias." Circle Economy Foundation, May 9, 2023
https://www.circle-economy.com/news/can-a-circular-economy-create-good-jobs-new-study-reveals-global-north-bias

PUJOLASOS wood & pack, “Circular Economy: Reinventing Wealth in the 21st Century”, LinkedIn,September 1, 2023
https://www.linkedin.com/pulse/circular-economy-reinventing-wealth-21st-century/

“CIRCULAR ECONOMY ACTION PLAN (CEAP)”, United Nations Development Program, March 2020,
https://www.undp.org/sites/g/files/zskgke326/files/2022-
08/2%20FINAL_Tree_Circular_economy_action_plan_297x210mm_4%2B4_web_180822.pdf

S.v. Kruchten, F.v. Eijk “Circular Economy & SDGs: How circular economy practices help to achieve theSustainable Development Goals”, Holland Circular Hotspot, 2020,
https://circulareconomy.europa.eu/platform/sites/default/files/3228_brochure_sdg_-hch_cmyk_a4_portrait-_0520-012.pdf

European Health and Digital Executive Agency, “A Circular Economy approach in the raw materials sector”, European Commission, May 25, 2022
https://hadea.ec.europa.eu/news/circular-economy-approach-raw-materials-sector-2022-05-25_en

A. B. Sutherland, I. Kouloumpi, “More than Just SDG 12: How Circular Economy can Bring Holistic Wellbeing”, SDG Knowledge Hub, International Institute for Sustainable Development, April 7, 2022,
https://sdg.iisd.org/commentary/guest-articles/more-than-just-sdg-12-how-circular-economy-can-bring-holistic-wellbeing/

Chen, Z., Chen, S., Liu, C., Nguyen, L.T., Hasan, A., "The effects of circular economy on economic growth:
A quasi-natural experiment in China." Journal of Cleaner Production, October 20, 2022, 271, 122558.
https://www.sciencedirect.com/science/article/abs/pii/S0959652620326056

A. B. Sutherland, “WITH A CIRCULAR ECONOMY, WE CAN BIN OVERCONSUMPTION AND BOOST
EQUALITY”, Circle Economy Foundation, April 15, 2022
https://www.circle-economy.com/blogs/with-a-circular-economy-we-can-bin-overconsumption-and-
boost-equality

P. Schröder, “Can the circular economy design out inequality as well as waste?”, Institute of Development Studies, March 19, 2018,
https://www.ids.ac.uk/opinions/can-the-circular-economy-design-out-inequality-as-well-as-waste/

J.D. Senard, “The Circular Economy: Reconciling Economic Growth with the Environment”, Institut Montaigne, November 2016
https://www.institutmontaigne.org/en/publications/circular-economy-reconciling-economic-growth-environment

A. Lassi, “Economic growth and circular economy?”, European Regional Development Fund, November
14, 2020, https://projects2014-2020.interregeurope.eu/reduces/news/news-article/10730/economic-growth-and-circular-economy/

R. Old, I. Rumpenhorst, I. Schmidt, R. Slaughter, “DISCUSSING THE SOCIAL IMPACTS OF CIRCULARITY”, Consumer Insight Action Panel, April 2022,
https://circulareconomy.europa.eu/platform/sites/default/files/ciap_social-impact_report.pdf

“The EU Green Deal – a roadmap to sustainable economies”, switch2green
https://www.switchtogreen.eu/the-eu-green-deal-promoting-a-green-notable-circular-economy/