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122-405: The idea and concepts of a circular economy have been studied extensively in academia, business, and government over the past ten years. It has been gaining popularity because it can help to minimize carbon emissions and the consumption of raw materials, open up new market prospects, and, principally, increase the sustainability of consumption . At a government level, a circular economy is viewed as

244-513: A "closed economy," in which resources and sinks are tied and remain as long as possible part of the economy. Boulding's essay "The Economics of the Coming Spaceship Earth" is often cited as the first expression of the "circular economy", although Boulding does not use that phrase. The circular economy is grounded in the study of feedback -rich ( non-linear ) systems, particularly living systems . The contemporary understanding of

366-462: A circular economic system is a prerequisite for the maintenance of the sustainability of human life on Earth. Boulding describes the so-called "cowboy economy" as an open system in which the natural environment is typically perceived as limitless: no limit exists on the capacity of the outside to supply or receive energy and material flows. Walter R. Stahel and Geneviève Reday-Mulvey, in their book "The Potential for Substituting Manpower for Energy," lay

488-525: A circular economy by 2030 might result in an additional 7-8 million jobs being created globally. However, other research has also found that the adoption of circular economy principles may lead to job losses in emerging economies. On the other hand, implementing a circular economy in the United States has been presented by Ranta et al. who analyzed the institutional drivers and barriers for the circular economy in different regions worldwide, by following

610-904: A circular economy that will reduce GHG emissions by 25 percent, according to the published statement. Product designs that optimize durability, ease of maintenance and repair, upgradability, re-manufacturability, separability, disassembly, and reassembly are considered key elements for the transition toward circularity of products. Standardization can facilitate related "innovative, sustainable and competitive advantages for European businesses and consumers". Design for standardization and compatibility would make "product parts and interfaces suitable for other products and aims at multi-functionality and modularity". A "Product Family Approach" has been proposed to establish "commonality, compatibility, standardization, or modularization among different products or product lines". It has been argued that emerging technologies should be designed with circular economy principles from

732-423: A circular economy, business models play a crucial role in enabling the shift from linear to circular processes. Various business models have been identified that support circularity, including product-as-a-service, sharing platforms, and product life extension models, among others. These models aim to optimize resource utilization, reduce waste, and create value for businesses and customers alike, while contributing to

854-417: A circular economy, namely in skills in circular design and production, new business models, skills in building cascades and reverse cycles, and cross-cycle/cross-sector collaboration. This is supported by a case study from the automotive industry , highlighting the importance of integrating a circular model holistically within the entire value chain of a company, taking into account the interdependencies between

976-511: A cornerstone to enabling a circular economy and enhancing the sustainability of energy infrastructure. One example of a circular economy model is the implementation of renting models in traditional ownership areas (e.g., electronics, clothes, furniture, transportation). By renting the same product to several clients, manufacturers can increase revenues per unit, thus decreasing the need to produce more to increase revenues. Recycling initiatives are often described as circular economy and are likely to be

1098-901: A country's wealth; however, a sudden inflow of money caused by a resource boom can create social problems including inflation harming other industries (" Dutch disease ") and corruption, leading to inequality and underdevelopment, this is known as the " resource curse ". Extractive industries represent a large growing activity in many less-developed countries but the wealth generated does not always lead to sustainable and inclusive growth . People often accuse extractive industry businesses as acting only to maximize short-term value, implying that less-developed countries are vulnerable to powerful corporations. Alternatively, host governments are often assumed to be only maximizing immediate revenue . Researchers argue there are areas of common interest where development goals and business cross. These present opportunities for international governmental agencies to engage with

1220-570: A decade or so, and nitrous oxides last about 100 years. The graph gives some indication of which regions have contributed most to human-induced climate change. When these numbers are calculated per capita cumulative emissions based on then-current population the situation is shown even more clearly. The ratio in per capita emissions between industrialized countries and developing countries was estimated at more than 10 to 1. Non- OECD countries accounted for 42% of cumulative energy-related CO 2 emissions between 1890 and 2007. Over this time period,

1342-501: A finite lifespan, which end up in landfills or in incinerators . The circular approach, by contrast, takes insights from living systems. It considers that our systems should work like organisms, processing nutrients that can be fed back into the cycle—whether biological or technical—hence the "closed loop" or "regenerative" terms usually associated with it. The generic circular economy label can be applied to or claimed by several different schools of thought, but all of them gravitate around

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1464-516: A fish, or it may be transformed by extractivist industries into an economically useful form that must be processed to obtain the resource such as metal ores , rare-earth elements , petroleum , timber and most forms of energy . Some resources are renewable , which means that they can be used at a certain rate and natural processes will restore them. In contrast, many extractive industries rely heavily on non-renewable resources that can only be extracted once. Natural resource allocations can be at

1586-576: A future where waste no longer exists, where material loops are closed, and products are recycled indefinitely is, in any practical sense, impossible. They point out that a lack of inclusion of indigenous discourses from the Global South means that the conversation is less eco-centric than it depicts itself. There is a lack of clarity as to whether the circular economy is more sustainable than the linear economy and what its social benefits might be, in particular, due to diffuse contours. Other issues include

1708-546: A key leverage for 'circular' technology adaption. Rheaply , a platform that aims to scale reuse within and between organizations, is an example of a technology that focuses on asset management & disposition to support organizations transitioning to circular business models. Greenhouse gas emissions Greenhouse gas ( GHG ) emissions from human activities intensify the greenhouse effect . This contributes to climate change . Carbon dioxide (CO 2 ), from burning fossil fuels such as coal , oil , and natural gas ,

1830-517: A lack of comparability, which is problematic when monitoring progress towards targets. There are arguments for the adoption of a common measurement tool, or at least the development of communication between different tools. Emissions may be tracked over long time periods, known as historical or cumulative emissions measurements. Cumulative emissions provide some indicators of what is responsible for greenhouse gas atmospheric concentration build-up. The national accounts balance tracks emissions based on

1952-465: A major source of social unrest and conflicts in developing nations. At present, there is a particular concern for rainforest regions that hold most of the Earth's biodiversity. According to Nelson, deforestation and degradation affect 8.5% of the world's forests with 30% of the Earth's surface already cropped. If we consider that 80% of people rely on medicines obtained from plants and 3 ⁄ 4 of

2074-500: A method of combating global warming , as well as a facilitator of long-term growth. CE may geographically connect actors and resources to stop material loops at the regional level. In its core principle, the European Parliament defines CE as "a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products as long as possible. In this way,

2196-862: A particular base year. Choosing between base years of 1750, 1900, 1950, and 1990 has a significant effect for most countries. Within the G8 group of countries, it is most significant for the UK, France and Germany. These countries have a long history of CO 2 emissions (see the section on Cumulative and historical emissions ). The Global Carbon Project continuously releases data about CO 2 emissions, budget and concentration. and industry (excluding cement carbonation) Gt C change Gt C Gt C Gt CO 2 (projection) Distribution of global greenhouse gas emissions based on type of greenhouse gas, without land-use change, using 100 year global warming potential (data from 2020). Total: 49.8 GtCO 2 e Carbon dioxide (CO 2 )

2318-578: A report was released entitled Towards the Circular Economy: Economic and Business Rationale for an Accelerated Transition . The report, commissioned by the Ellen MacArthur Foundation and developed by McKinsey & Company , was the first volume of its kind to consider the economic and business opportunity for the transition to a restorative, circular model. Using product case studies and economy-wide analysis,

2440-486: A set of steps, or levels of circularity, typically using English verbs or nouns starting with the letter "r". The first such model, known as the "Three R principle", was "Reduce, Reuse, Recycle", which can be traced back as early as the 1970s. According to Breteler (2022), the 'most comprehensive and extensive' of four compared models was the "10R principle", developed by sustainable entrepreneurship professor and former Dutch Environment Minister Jacqueline Cramer . In 2013,

2562-406: A shift from fossil fuels to the use of renewable energy , and emphasize the role of diversity as a characteristic of resilient and sustainable systems. The circular economy includes a discussion of the role of money and finance as part of the wider debate, and some of its pioneers have called for a revamp of economic performance measurement tools. One study points out how modularization could become

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2684-483: A significant contributor to warming. Although CFCs are greenhouse gases, they are regulated by the Montreal Protocol which was motivated by CFCs' contribution to ozone depletion rather than by their contribution to global warming. Ozone depletion has only a minor role in greenhouse warming, though the two processes are sometimes confused in the media. In 2016, negotiators from over 170 nations meeting at

2806-461: A significant margin, Asia's and the world's largest emitter: it emits nearly 10 billion tonnes each year, more than one-quarter of global emissions. Other countries with fast growing emissions are South Korea , Iran, and Australia (which apart from the oil rich Persian Gulf states, now has the highest per capita emission rate in the world). On the other hand, annual per capita emissions of the EU-15 and

2928-478: Is a coherent model that has value as part of a response to the end of the era of cheap oil and materials and, moreover, contributes to the transition to a low-carbon economy . In line with this, a circular economy can contribute to meeting the COP 21 Paris Agreement . The emissions reduction commitments made by 195 countries at the COP 21 Paris Agreement are not sufficient to limit global warming to 1.5 °C. To reach

3050-450: Is a framework of methods to measure and track how much greenhouse gas an organization emits. Cumulative anthropogenic (i.e., human-emitted) emissions of CO 2 from fossil fuel use are a major cause of global warming , and give some indication of which countries have contributed most to human-induced climate change. In particular, CO 2 stays in the atmosphere for at least 150 years and up to 1000 years, whilst methane disappears within

3172-435: Is a framework of three principles, driven by design: eliminating waste and pollution, keeping products and materials in use, and regenerating natural systems. It is based increasingly on renewable energy and materials, and it is accelerated by digital innovation. It is a resilient, distributed, diverse, and inclusive economic model. The circular economy is an economic concept often linked to sustainable development , provision of

3294-419: Is a strategy where waste from one industry becomes an input for another, creating a network of resource exchange and reducing waste, pollution, and resource consumption. Similarly, circular cities aim to integrate circular principles into urban planning and development, foster local resource loops, and promote sustainable lifestyles among their citizens. Less than 10% of economic activity worldwide in 2022 and 2023

3416-515: Is a type of land management that seeks to conserve , protect and restore habitat areas for wild plants and animals , especially conservation reliant species , and prevent their extinction, fragmentation or reduction in range . Natural resource management is a discipline in the management of natural resources such as land, water , soil , plants , and animals —with a particular focus on how management affects quality of life for present and future generations. Hence, sustainable development

3538-427: Is an economic system that targets zero waste and pollution throughout materials lifecycles, from environment extraction to industrial transformation, and final consumers, applying to all involved ecosystems. Upon its lifetime end, materials return to either an industrial process or, in the case of a treated organic residual, safely back to the environment as in a natural regenerating cycle. It operates by creating value at

3660-438: Is another factor causing depletion of natural resources. For example, the depletion of nutrients in the soil due to excessive use of nitrogen and desertification . The depletion of natural resources is a continuing concern for society. This is seen in the cited quote given by Theodore Roosevelt , a well-known conservationist and former United States president, who was opposed to unregulated natural resource extraction. In 1982,

3782-529: Is circular. Every year, the global population uses approximately 100 billion tonnes of materials, with more than 90% of them being wasted. The circular economy seeks to address this by eliminating waste entirely. The concept of a circular economy cannot be traced back to one single date or author, rather to different schools of thought. The concept of a circular economy can be linked to various schools of thought, including industrial ecology , biomimicry , and cradle-to-cradle design principles. Industrial ecology

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3904-510: Is considered a sustainable development issue. The term sustainable development has many interpretations, most notably the Brundtland Commission's 'to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs'; however, in broad terms it is balancing the needs of the planet's people and species now and in the future. In regards to natural resources, depletion

4026-421: Is exported. In comparison, methane has not increased appreciably, and N 2 O by 0.25% y . Using different base years for measuring emissions has an effect on estimates of national contributions to global warming. This can be calculated by dividing a country's highest contribution to global warming starting from a particular base year, by that country's minimum contribution to global warming starting from

4148-417: Is followed according to the judicious use of resources to supply present and future generations. The disciplines of fisheries, forestry, and wildlife are examples of large subdisciplines of natural resource management. Management of natural resources involves identifying who has the right to use the resources and who does not to define the management boundaries of the resource. The resources may be managed by

4270-596: Is of concern for sustainable development as it has the ability to degrade current environments and the potential to impact the needs of future generations. "The conservation of natural resources is the fundamental problem. Unless we solve that problem, it will avail us little to solve all others." Theodore Roosevelt Depletion of natural resources is associated with social inequity . Considering most biodiversity are located in developing countries, depletion of this resource could result in losses of ecosystem services for these countries. Some view this depletion as

4392-514: Is often summarized as "take, make, waste." By contrast, a circular economy aims to transition from a 'take-make-waste' approach to a more restorative and regenerative system. It employs reuse , sharing , repair, refurbishment, remanufacturing and recycling to create a closed-loop system, reducing the use of resource inputs and the creation of waste , pollution, and carbon emissions. The circular economy aims to keep products, materials, equipment, and infrastructure in use for longer, thus improving

4514-495: Is one of the most important factors in causing climate change. The largest emitters are China followed by the United States. The United States has higher emissions per capita . The main producers fueling the emissions globally are large oil and gas companies . Emissions from human activities have increased atmospheric carbon dioxide by about 50% over pre-industrial levels. The growing levels of emissions have varied, but have been consistent among all greenhouse gases . Emissions in

4636-633: Is responsible for around 73% of emissions. Deforestation and other changes in land use also emit carbon dioxide and methane . The largest source of anthropogenic methane emissions is agriculture , closely followed by gas venting and fugitive emissions from the fossil-fuel industry . The largest agricultural methane source is livestock . Agricultural soils emit nitrous oxide partly due to fertilizers . Similarly, fluorinated gases from refrigerants play an outsized role in total human emissions. The current CO 2 -equivalent emission rates averaging 6.6 tonnes per person per year, are well over twice

4758-454: Is the dominant emitted greenhouse gas, while methane ( CH 4 ) emissions almost have the same short-term impact. Nitrous oxide (N 2 O) and fluorinated gases (F-gases) play a lesser role in comparison. Greenhouse gas emissions are measured in CO 2 equivalents determined by their global warming potential (GWP), which depends on their lifetime in the atmosphere. Estimations largely depend on

4880-563: Is the first major source of greenhouse gas emissions from transportation, followed by aircraft and maritime. Waterborne transportation is still the least carbon-intensive mode of transportation on average, and it is an essential link in sustainable multimodal freight supply chains . Buildings, like industry, are directly responsible for around one-fifth of greenhouse gas emissions, primarily from space heating and hot water consumption. When combined with power consumption within buildings, this figure climbs to more than one-third. Within

5002-410: Is the irrevocable loss of raw materials due to their increase in entropy in the linear business model. Starting with the production of waste in manufacturing, the entropy increases further by mixing and diluting materials in their manufacturing assembly, followed by corrosion and wear and tear during the usage period. At the end of the life cycle, there is an exponential increase in disorder arising from

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5124-449: Is the main greenhouse gas resulting from human activities. It accounts for more than half of warming. Methane (CH 4 ) emissions have almost the same short-term impact. Nitrous oxide (N 2 O) and fluorinated gases (F-gases) play a lesser role in comparison. Emissions of carbon dioxide, methane and nitrous oxide in 2023 were all higher than ever before. Electricity generation , heat and transport are major emitters; overall energy

5246-666: Is the scientific study of the nature and status of Earth's biodiversity with the aim of protecting species , their habitats , and ecosystems from excessive rates of extinction . It is an interdisciplinary subject drawing on science, economics and the practice of natural resource management . The term conservation biology was introduced as the title of a conference held at the University of California, San Diego , in La Jolla, California, in 1978, organized by biologists Bruce A. Wilcox and Michael E. Soulé . Habitat conservation

5368-498: Is the study of material and energy flows through industrial systems, which forms the basis of the circular economy. Biomimicry involves emulating nature's time-tested patterns and strategies in designing human systems. Cradle-to-cradle design is a holistic approach to designing products and systems that considers their entire life cycle, from raw material extraction to end-of-life disposal, and seeks to minimize waste and maximize resource efficiency. These interrelated concepts contribute to

5490-665: Is very complex, and is affected by how carbon sinks are allocated between regions and the dynamics of the climate system . The graphic shows the logarithm of 1850–2019 fossil fuel CO 2 emissions; natural log on left, actual value of Gigatons per year on right. Although emissions increased during the 170-year period by about 3% per year overall, intervals of distinctly different growth rates (broken at 1913, 1945, and 1973) can be detected. The regression lines suggest that emissions can rapidly shift from one growth regime to another and then persist for long periods of time. The most recent drop in emissions growth – by almost 3 percentage points –

5612-499: The European Commission , "The Potential for Substituting Manpower for Energy," Walter Stahel and Genevieve Reday sketched the vision of an economy in loops (or a circular economy) and its impact on job creation , economic competitiveness , resource savings and waste prevention . The report was published in 1982 as the book Jobs for Tomorrow: The Potential for Substituting Manpower for Energy . In 1982, Walter Stahel

5734-512: The Sustainable Development Goals (Global Development Goals), and an extension of a green economy. Other definitions and precise thresholds that separate linear from circular activity have also been developed in the economic literature. In a linear economy , natural resources are turned into products that are ultimately destined to become waste because of the way they have been designed and manufactured. This process

5856-583: The United Nations developed the World Charter for Nature , which recognized the need to protect nature from further depletion due to human activity. It states that measures must be taken at all societal levels, from international to individual, to protect nature. It outlines the need for sustainable use of natural resources and suggests that the protection of resources should be incorporated into national and international systems of law. To look at

5978-552: The private sector and host governments through revenue management and expenditure accountability, infrastructure development, employment creation , skills and enterprise development , and impacts on children, especially girls and women. A strong civil society can play an important role in ensuring the effective management of natural resources. Norway can serve as a role model in this regard as it has good institutions and open and dynamic public debate with strong civil society actors that provide an effective checks and balances system for

6100-425: The 1.5 °C ambition, it is estimated that additional emissions reductions of 15 billion tonnes of CO 2 per year need to be achieved by 2030. Circle Economy and Ecofys estimated that circular economy strategies may deliver emissions reductions that could bridge the gap by half. Linear "take, make, dispose" industrial processes , and the lifestyles dependent on them, use up finite reserves to create products with

6222-473: The 2010s averaged 56 billion tons a year, higher than any decade before. Total cumulative emissions from 1870 to 2022 were 703 GtC (2575 GtCO 2 ), of which 484±20 GtC (1773±73 GtCO 2 ) from fossil fuels and industry, and 219±60 GtC (802±220 GtCO 2 ) from land use change . Land-use change , such as deforestation , caused about 31% of cumulative emissions over 1870–2022, coal 32%, oil 24%, and gas 10%. Carbon dioxide (CO 2 )

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6344-520: The 2030 Paris Agreement increase of 1.5 °C (2.7 °F) over pre-industrial levels. While cities are sometimes considered to be disproportionate contributors to emissions, per-capita emissions tend to be lower for cities than the averages in their countries. A 2017 survey of corporations responsible for global emissions found that 100 companies were responsible for 71% of global direct and indirect emissions , and that state-owned companies were responsible for 59% of their emissions. China is, by

6466-502: The CE currently faces, strategic management for details of the circular economy and different outcomes such as potential re-use applications and waste management. The circular economy includes products, infrastructure, equipment, services and buildings and applies to every industry sector. It includes 'technical' resources (metals, minerals, fossil resources) and 'biological' resources (food, fibres, timber, etc.). Most schools of thought advocate

6588-498: The EU, the agricultural sector presently accounts for roughly 10% of total greenhouse gas emissions, with methane from livestock accounting for slightly more than half of 10%. Estimates of total CO 2 emissions do include biotic carbon emissions, mainly from deforestation. Including biotic emissions brings about the same controversy mentioned earlier regarding carbon sinks and land-use change. The actual calculation of net emissions

6710-474: The Earth can cool off. The major anthropogenic (human origin) sources of greenhouse gases are carbon dioxide (CO 2 ), nitrous oxide ( N 2 O ), methane and three groups of fluorinated gases ( sulfur hexafluoride ( SF 6 ), hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs, sulphur hexafluoride (SF 6 ), and nitrogen trifluoride (NF 3 )). Though the greenhouse effect is heavily driven by water vapor , human emissions of water vapor are not

6832-586: The Environment , Pearce and Turner explain the shift from the traditional linear or open-ended economic system to the circular economic system (Pearce and Turner, 1990). They describe an economic system where waste at extraction, production, and consumption stages is turned into inputs. In the early 2000s, China integrated the notion into its industrial and environmental policies to make them resource-oriented, production-oriented, waste-oriented, use-oriented, and life cycle-oriented. The Ellen MacArthur Foundation

6954-613: The Product-Life Institute in Geneva . In the UK, Steve D. Parker researched waste as a resource in the UK agricultural sector in 1982, developing novel closed-loop production systems. These systems mimicked and worked with the biological ecosystems they exploited. Circular economy often refers to quantities of recycled materials or reduced waste, however Cradle to Cradle Design focuses on quality of products including safety for humans and environmental health. Popularized by

7076-718: The US accounted for 28% of emissions; the EU, 23%; Japan, 4%; other OECD countries 5%; Russia, 11%; China, 9%; India, 3%; and the rest of the world, 18%. The European Commission adopted a set of legislative proposals targeting a reduction of the CO 2 emissions by 55% by 2030. Overall, developed countries accounted for 83.8% of industrial CO 2 emissions over this time period, and 67.8% of total CO 2 emissions. Developing countries accounted for industrial CO 2 emissions of 16.2% over this time period, and 32.2% of total CO 2 emissions. However, what becomes clear when we look at emissions across

7198-552: The US are gradually decreasing over time. Emissions in Russia and Ukraine have decreased fastest since 1990 due to economic restructuring in these countries. 2015 was the first year to see both total global economic growth and a reduction of carbon emissions. Annual per capita emissions in the industrialized countries are typically as much as ten times the average in developing countries. Due to China's fast economic development, its annual per capita emissions are quickly approaching

7320-419: The ability of oceans and land sinks to absorb these gases. Short-lived climate pollutants (SLCPs) including methane, hydrofluorocarbons (HFCs) , tropospheric ozone and black carbon persist in the atmosphere for a period ranging from days to 15 years; whereas carbon dioxide can remain in the atmosphere for millennia. Reducing SLCP emissions can cut the ongoing rate of global warming by almost half and reduce

7442-526: The book Cradle to Cradle: Remaking The Way We Make Things , Cradle to Cradle Design has been widely implemented by architect William McDonough , who was introduced as the "father of the circular economy" while receiving the 2017 Fortune Award for Circular Economy Leadership in Davos during the World Economic Forum . In the 2010s, several models of a circular economy were developed that employed

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7564-516: The case of Jupiter , or from its host star as in the case of the Earth . In the case of Earth, the Sun emits shortwave radiation ( sunlight ) that passes through greenhouse gases to heat the Earth's surface. In response, the Earth's surface emits longwave radiation that is mostly absorbed by greenhouse gases. The absorption of longwave radiation prevents it from reaching space, reducing the rate at which

7686-771: The centre of many economic and political confrontations both within and between countries. This is particularly true during periods of increasing scarcity and shortages ( depletion and overconsumption of resources). Resource extraction is also a major source of human rights violations and environmental damage. The Sustainable Development Goals and other international development agendas frequently focus on creating more sustainable resource extraction, with some scholars and researchers focused on creating economic models, such as circular economy , that rely less on resource extraction, and more on reuse , recycling and renewable resources that can be sustainably managed. There are various criteria for classifying natural resources. These include

7808-519: The circular economy and its practical applications to economic systems has evolved, incorporating different features and contributions from a variety of concepts sharing the idea of closed loops. Some of the relevant theoretical influences are cradle to cradle , laws of ecology (e.g., Barry Commoner § The Closing Circle ), looped and performance economy ( Walter R. Stahel ), regenerative design , industrial ecology , biomimicry and blue economy (see section "Related concepts"). The circular economy

7930-439: The circular economy are that it could enable economic growth that does not add to the burden on natural resource extraction but decouples resource uses from the development of economic welfare for a growing population, reduces foreign dependence on critical materials, lowers CO 2 emissions, reduces waste production, and introduces new modes of production and consumption able to create further value. Corporate arguments in favour of

8052-416: The circular economy are that it could secure the supply of raw materials, reduce the price volatility of inputs and control costs, reduce spills and waste, extend the life cycle of products, serve new segments of customers, and generate long-term shareholder value. A key idea behind the circular business models is to create loops throughout to recapture value that would otherwise be lost. Of particular concern

8174-475: The circular economy may overstate the potential benefits of the circular economy. These critiques put forward the idea that the circular economy has too many definitions to be delimited, making it an umbrella concept that, although exciting and appealing, is hard to understand and assess. Critiques mean that the literature ignores much-established knowledge. In particular, it neglects the thermodynamic principle that one can neither create nor destroy matter. Therefore,

8296-576: The circular economy. For example, in China , CE is promoted as a top-down national political objective, meanwhile in other areas, such as the European Union, Japan, and the USA, it is a tool to design bottom-up environmental and waste management policies. The ultimate goal of promoting CE is the decoupling of environmental pressure from economic growth. A comprehensive definition could be: "Circular economy

8418-412: The circular economy. In addition, it is important to underline the innovation aspect at the heart of sustained development based on circular economy components. The circular economy can have a broad scope. Researchers have focused on different areas such as industrial applications with both product-oriented and natural resources and services, practices and policies to better understand the limitations that

8540-667: The concentration of carbon dioxide and other greenhouse gases. Emissions have grown rapidly since about 1950 with ongoing expansions in global population and economic activity following World War II. As of 2021, measured atmospheric concentrations of carbon dioxide were almost 50% higher than pre-industrial levels. The main sources of greenhouse gases due to human activity (also called carbon sources ) are: Global greenhouse gas emissions are about 50 Gt per year and for 2019 have been estimated at 57 Gt CO 2 eq including 5 Gt due to land use change. In 2019, approximately 34% [20 GtCO 2 -eq] of total net anthropogenic GHG emissions came from

8662-406: The development and implementation of the circular economy. General systems theory, founded by the biologist Ludwig von Bertalanffy , considers growth and energy for open and closed state systems. This theory was then applied to other areas, such as, in the case of the circular economy, economics. Economist Kenneth E. Boulding , in his paper "The Economics of the Coming Spaceship Earth," argued that

8784-413: The difference between a country's exports and imports. For many richer nations, the balance is negative because more goods are imported than they are exported. This result is mostly due to the fact that it is cheaper to produce goods outside of developed countries, leading developed countries to become increasingly dependent on services and not goods. A positive account balance would mean that more production

8906-440: The energy supply sector, 24% [14 GtCO 2 -eq] from industry, 22% [13 GtCO 2 -eq]from agriculture, forestry and other land use (AFOLU), 15% [8.7 GtCO 2 -eq] from transport and 6% [3.3 GtCO 2 -eq] from buildings. Global carbon dioxide emissions by country in 2023: The current CO 2 -equivalent emission rates averaging 6.6 tonnes per person per year, are well over twice the estimated rate 2.3 tons required to stay within

9028-489: The entire life cycle from the production of a good or service along the supply chain to its final consumption. Carbon accounting (or greenhouse gas accounting) is a framework of methods to measure and track how much greenhouse gas an organization emits. The greenhouse effect occurs when greenhouse gases in a planet's atmosphere insulate the planet from losing heat to space, raising its surface temperature. Surface heating can happen from an internal heat source as in

9150-414: The estimated rate 2.3 tons required to stay within the 2030 Paris Agreement increase of 1.5 °C (2.7 °F) over pre-industrial levels. Annual per capita emissions in the industrialized countries are typically as much as ten times the average in developing countries. The carbon footprint (or greenhouse gas footprint ) serves as an indicator to compare the amount of greenhouse gases emitted over

9272-407: The field such as Walter R Stahel , Bill Rees and Robert Constanza . At the time still called 'preventive environmental management', his follow-on book Material Concerns: Pollution, Profit and Quality of Life synthesized these findings into a manifesto for change, moving industrial production away from an extractive linear system towards a more circular economy. In their 1976 research report to

9394-453: The foundation for the principles of the circular economy by describing how increasing labour may reduce energy intensive activities. Simple economic models have ignored the economy-environment interrelationships. Allan Kneese in " The Economics of Natural Resources " indicates how resources are not endlessly renewable, and mentions the term circular economy for the first time explicitly in 1988. In their book Economics of Natural Resources and

9516-462: The framework developed by Scott R. In the article, different worldwide environment-friendly institutions were selected, and two types of manufacturing processes were chosen for the analysis (1) a product-oriented, and (2) a waste management. Specifically, in the U.S., the product-oriented company case in the study was Dell , a US manufacturing company for computer technology, which was the first company to offer free recycling to customers and to launch to

9638-567: The government as in Norway's case, natural resources can actually be a factor in whether a civil war starts and how long the war lasts. In recent years, the depletion of natural resources has become a major focus of governments and organizations such as the United Nations (UN). This is evident in the UN's Agenda 21 Section Two, which outlines the necessary steps for countries to take to sustain their natural resources. The depletion of natural resources

9760-510: The government's management of extractive industries, such as the Extractive Industries Transparency Initiative (EITI), a global standard for the good governance of oil, gas and mineral resources. It seeks to address the key governance issues in the extractive sectors. However, in countries that do not have a very strong and unified society, meaning that there are dissidents who are not as happy with

9882-661: The importance of protecting natural resources further, the World Ethic of Sustainability, developed by the IUCN , WWF and the UNEP in 1990, set out eight values for sustainability, including the need to protect natural resources from depletion. Since the development of these documents, many measures have been taken to protect natural resources including establishment of the scientific field and practice of conservation biology and habitat conservation, respectively. Conservation biology

10004-824: The importing country, rather than the exporting, country. A substantial proportion of CO 2 emissions is traded internationally. The net effect of trade was to export emissions from China and other emerging markets to consumers in the US, Japan, and Western Europe. Emission intensity is a ratio between greenhouse gas emissions and another metric, e.g., gross domestic product (GDP) or energy use. The terms "carbon intensity" and " emissions intensity " are also sometimes used. Emission intensities may be calculated using market exchange rates (MER) or purchasing power parity (PPP). Calculations based on MER show large differences in intensities between developed and developing countries, whereas calculations based on PPP show smaller differences. Carbon accounting (or greenhouse gas accounting)

10126-432: The increasing risks of cascading failures which are a feature of highly interdependent systems , and have potential harm to the general public. When implemented in bad faith , touted "Circular Economy" activities can often be little more than reputation and impression management for public relations purposes by large corporations and other vested interests; constituting a new form of greenwashing . It may thus not be

10248-471: The indicator was in favor of the circular economy model or a barrier when it was not. On 2 March 2022 in Nairobi, representatives of 175 countries pledged to create a legally binding agreement to end plastic pollution by the end of the year 2024. The agreement should address the full lifecycle of plastic and propose alternatives including reusability . The agreement is expected to facilitate the transition to

10370-443: The initial focus of the academic, industry, and policy activities was mainly focused on the development of re-X (recycling, remanufacturing, reuse, etc.) technology, it soon became clear that the technological capabilities increasingly exceed their implementation. To leverage this technology for the transition toward a circular economy, various stakeholders have to work together. This shifted attention towards business-model innovation as

10492-457: The issue of environmental resources. The circular economy aims to transform our economy into one that is regenerative. An economy that innovates to reduce waste and the ecological and environmental impact of industries prior to happening, rather than waiting to address the consequences of these issues. This is done by designing new processes and solutions for the optimization of resources, decoupling reliance on finite resources. The circular economy

10614-474: The lapse of formerly declining trends in carbon intensity of both developing and developed nations. China was responsible for most of global growth in emissions during this period. Localised plummeting emissions associated with the collapse of the Soviet Union have been followed by slow emissions growth in this region due to more efficient energy use , made necessary by the increasing proportion of it that

10736-721: The levels of those in the Annex I group of the Kyoto Protocol (i.e., the developed countries excluding the US). Africa and South America are both fairly small emitters, accounting for 3-4% of global emissions each. Both have emissions almost equal to international aviation and shipping. There are several ways of measuring greenhouse gas emissions. Some variables that have been reported include: These measures are sometimes used by countries to assert various policy/ethical positions on climate change. The use of different measures leads to

10858-415: The life cycle of products is extended." Global implementation of circular economy can reduce global emissions by 22.8 billion tons, 39% of global emissions in the year 2019. By implementing circular economy strategies in five sectors alone: cement , aluminum , steel , plastics , and food 9.3 billion metric tons of CO 2 equivalent (equal to all current emissions from transportation), can be reduced. In

10980-493: The macro, meso, and micro levels and exploiting to the fullest the sustainability nested concept. Used energy sources are clean and renewable. Resource use and consumption are efficient. Government agencies and responsible consumers play an active role in ensuring the correct system long-term operation." More generally, circular development is a model of economic, social, and environmental production and consumption that aims to build an autonomous and sustainable society in tune with

11102-500: The main international treaty on climate change (the UNFCCC ), countries report on emissions produced within their borders, e.g., the emissions produced from burning fossil fuels. Under a production-based accounting of emissions, embedded emissions on imported goods are attributed to the exporting, rather than the importing, country. Under a consumption-based accounting of emissions, embedded emissions on imported goods are attributed to

11224-459: The major source of greenhouse gas emissions in the EU . Greenhouse gas emissions from the transportation sector continue to rise, in contrast to power generation and nearly all other sectors. Since 1990, transportation emissions have increased by 30%. The transportation sector accounts for around 70% of these emissions. The majority of these emissions are caused by passenger vehicles and vans. Road travel

11346-448: The market a computer made from recycling materials from a verified third-party source. Moreover, the waste management case that includes many stages such as collection, disposal, recycling in the study was Republic Services , the second-largest waste management company in the US. The approach to defining the drivers and barriers was to first identify indicators for their cases in study and then to categorize these indicators into drivers when

11468-459: The mixing of materials in landfills. As a result of this directionality of the entropy law, the world's resources are effectively "lost forever". Circular development is directly linked to the circular economy and aims to build a sustainable society based on recyclable and renewable resources, to protect society from waste, and to be able to form a model that no longer considering resources as infinite. This new model of economic development focuses on

11590-727: The most widespread models. According to a report of the organization "Circle economy" global implementation of circular economy can reduce global emissions by 22.8 billion tons, 39% of global emissions in the year 2019. By 2050, 9.3 billion metric tons ofCO 2 equivalent, or almost half of the global greenhouse gas emissions from the production of goods, might be reduced by implementing circular economy strategies in only five significant industries: cement, aluminum, steel, plastics, and food. That would equal to eliminating all current emissions caused by transportation. As early as 1966, Kenneth Boulding raised awareness of an "open economy" with unlimited input resources and output sinks, in contrast with

11712-404: The nature of the shared resources, the individuals who are affected by the rules can participate in setting or changing them. The users have rights to devise their own management institutions and plans under the recognition by the government. The right to resources includes land, water, fisheries, and pastoral rights. The users or parties accountable to the users have to actively monitor and ensure

11834-487: The notion benefited from three major events: the explosion of raw material prices between 2000 and 2010, the Chinese control of rare earth materials, and the 2008 economic crisis. Today, the climate emergency and environmental challenges induce companies and individuals in rethink their production and consumption patterns. The circular economy is framed as one of the answers to these challenges. Key macro-arguments in favour of

11956-465: The overall goals of the circular economy. Businesses can also make the transition to the circular economy, where holistic adaptations in firms' business models are needed. The implementation of circular economy principles often requires new visions and strategies and a fundamental redesign of product concepts, service offerings, and channels towards long-life solutions, resulting in the so-called 'circular business models'. There are many definitions of

12078-402: The overall product/service provision system assessed based on the life-cycle assessment approach". One study suggests that "a mandatory certification scheme for recyclers of electronic waste, in or out of Europe, would help to incentivize high-quality treatment processes and efficient material recovery". Digitalization may enable more efficient corporate processes and minimize waste. While

12200-445: The panacea many had hoped for. Intuitively, the circular economy would appear to be more sustainable than the current linear economic system. Reducing the resources used and the waste and leakage created conserves resources and helps to reduce environmental pollution. However, it is argued by some that these assumptions are simplistic and that they disregard the complexity of existing systems and their potential trade-offs. For example,

12322-605: The product, process, and system level. Another report by WRAP and the Green Alliance (called "Employment and the circular economy: job creation in a more resource efficient Britain"), done in 2015 has examined different public policy scenarios to 2030. It estimates that, with no policy change, 200,000 new jobs will be created, reducing unemployment by 54,000. A more aggressive policy scenario could create 500,000 new jobs and permanently reduce unemployment by 102,000. The International Labour Organization predicts that implementing

12444-431: The production of goods and services, taking into account environmental and social costs. Circular development, therefore, supports the circular economy to create new societies in line with new waste management and sustainability objectives that meet the needs of citizens. It is about enabling economies and societies, in general, to become more sustainable. However, critiques of the circular economy suggest that proponents of

12566-560: The productivity of these resources. Waste materials and energy should become input for other processes through waste valorization : either as a component for another industrial process or as regenerative resources for nature (e.g., compost). The Ellen MacArthur Foundation (EMF) defines the circular economy as an industrial economy that is restorative or regenerative by value and design. Circular economy strategies can be applied at various scales, from individual products and services to entire industries and cities. For example, industrial symbiosis

12688-575: The projected Arctic warming by two-thirds. Natural resource Natural resources are resources that are drawn from nature and used with few modifications. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest, and cultural value. On Earth , it includes sunlight , atmosphere , water , land , all minerals along with all vegetation , and wildlife . Natural resources are part of humanity's natural heritage or protected in nature reserves . Particular areas (such as

12810-510: The rainforest in Fatu-Hiva ) often feature biodiversity and geodiversity in their ecosystems. Natural resources may be classified in different ways. Natural resources are materials and components (something that can be used) found within the environment. Every man-made product is composed of natural resources (at its fundamental level). A natural resource may exist as a separate entity such as freshwater, air , or any living organism such as

12932-483: The report details the potential for significant benefits across the EU. It argues that a subset of the EU manufacturing sector could realize net materials cost savings worth up to $ 630 billion annually towards 2025—stimulating economic activity in the areas of product development, remanufacturing and refurbishment. Towards the Circular Economy also identified the key building blocks in making the transition to

13054-427: The same basic principles. One prominent thinker on the topic is Walter R. Stahel , an architect, economist, and founding father of industrial sustainability. Credited with having coined the expression "Cradle to Cradle" (in contrast with "Cradle to Grave," illustrating our "Resource to Waste" way of functioning), in the late 1970s, Stahel worked on developing a "closed loop" approach to production processes, co-founding

13176-414: The social dimension of sustainability seems to be only marginally addressed in many publications on the circular economy. Some cases that might require different or additional strategies, like purchasing new, more energy-efficient equipment. By reviewing the literature, a team of researchers from Cambridge and TU Delft showed that there are at least eight different relationship types between sustainability and

13298-591: The source of origin, stages of development, renewability and ownership . Resource extraction involves any activity that withdraws resources from nature. This can range in scale from the traditional use of preindustrial societies to global industry. Extractive industries are, along with agriculture, the basis of the primary sector of the economy. Extraction produces raw material , which is then processed to add value . Examples of extractive industries are hunting , trapping , mining , oil and gas drilling , and forestry . Natural resources can add substantial amounts to

13420-399: The start, including solar panels . For sustainability and health, the circularity process designs may be of crucial importance. Large amounts of electronic waste are already recycled but far from where they were consumed, with often low efficiency, and with substantial negative effects on human health and the foreign environment . Recycling should therefore "reduce environmental impacts of

13542-629: The summit of the United Nations Environment Programme reached a legally binding accord to phase out hydrofluorocarbons (HFCs) in the Kigali Amendment to the Montreal Protocol . The use of CFC-12 (except some essential uses) has been phased out due to its ozone depleting properties. The phasing-out of less active HCFC-compounds will be completed in 2030. Starting about 1750, industrial activity powered by fossil fuels began to significantly increase

13664-443: The users according to the rules governing when and how the resource is used depending on local condition or the resources may be managed by a governmental organization or other central authority. A "...successful management of natural resources depends on freedom of speech, a dynamic and wide-ranging public debate through multiple independent media channels and an active civil society engaged in natural resource issues..." because of

13786-417: The working life of products, to make goods last longer, to reuse existing goods, and ultimately to prevent waste. This model emphasizes the importance of selling services rather than products, an idea referred to as the "functional service economy" and sometimes put under the wider notion of "performance economy." This model also advocates "more localization of economic activity". Promoting a circular economy

13908-457: The world today is that the countries with the highest emissions over history are not always the biggest emitters today. For example, in 2017, the UK accounted for just 1% of global emissions. In comparison, humans have emitted more greenhouse gases than the Chicxulub meteorite impact event which caused the extinction of the dinosaurs . Transport, together with electricity generation , is

14030-487: The world's prescription medicines have ingredients taken from plants, loss of the world's rainforests could result in a loss of finding more potential life-saving medicines. The depletion of natural resources is caused by 'direct drivers of change' such as mining , petroleum extraction , fishing , and forestry as well as 'indirect drivers of change' such as demography (e.g. population growth), economy, society, politics, and technology. The current practice of agriculture

14152-582: The year 1995). A country's emissions may also be reported as a proportion of global emissions for a particular year. Another measurement is of per capita emissions. This divides a country's total annual emissions by its mid-year population. Per capita emissions may be based on historical or annual emissions. One way of attributing greenhouse gas emissions is to measure the embedded emissions (also referred to as "embodied emissions") of goods that are being consumed. Emissions are usually measured according to production, rather than consumption. For example, in

14274-406: Was at about the time of the 1970s energy crisis . Percent changes per year were estimated by piecewise linear regression on the log data and are shown on the plot; the data are from The Integrated Carbon Observation system. The sharp acceleration in CO 2 emissions since 2000 to more than a 3% increase per year (more than 2 ppm per year) from 1.1% per year during the 1990s is attributable to

14396-467: Was awarded third prize in the Mitchell Prize competition on sustainable business models with his paper, The Product-Life Factor. The first prize went to the then US Secretary of Agriculture, the second prize to Amory and Hunter Lovins, and fourth prize to Peter Senge. Considered one of the first pragmatic and credible sustainability think tanks , the main goals of Stahel's institute are to extend

14518-559: Was further modelled by British environmental economists David W. Pearce and R. Kerry Turner in 1989. In Economics of Natural Resources and the Environment , they pointed out that a traditional open-ended economy was developed with no built-in tendency to recycle, which was reflected by treating the environment as a waste reservoir. In the early 1990s, Tim Jackson began to create the scientific basis for this new approach to industrial production in his edited collection Clean Production Strategies , including chapters from preeminent writers in

14640-424: Was identified as a national policy in China's 11th five-year plan starting in 2006. The Ellen MacArthur Foundation has more recently outlined the economic opportunity of a circular economy, bringing together complementary schools of thought in an attempt to create a coherent framework, thus giving the concept a wide exposure and appeal. Most frequently described as a framework for thinking, its supporters claim it

14762-558: Was instrumental in the diffusion of the concept in Europe and the Americas. In 2010, the concept of circular economy started to become popular internationally after the publication of several reports. The European Union introduced its vision of the circular economy in 2014, with a New Circular Economy Action Plan launched in 2020 that "shows the way to a climate-neutral, competitive economy of empowered consumers". The original diffusion of

14884-590: Was occurring within a country, so more operational factories would increase carbon emission levels. Emissions may also be measured across shorter time periods. Emissions changes may, for example, be measured against the base year of 1990. 1990 was used in the United Nations Framework Convention on Climate Change (UNFCCC) as the base year for emissions, and is also used in the Kyoto Protocol (some gases are also measured from

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