As the world grapples with the ongoing climate crisis and ecological depletion, scientists, environmentalists, and social impact practitioners are devising innovative ways to protect and regenerate resources. One promising mechanism is the circular economy—a system that prioritizes reusing and recycling products, components, and natural resources. To be more precise, it’s an economy and a process which places utmost importance towards reusing and recycling the product, component and natural resources.
What is Circular Economy?
Many organizations describe circular economy as either a market, economic system or an approach, leaving a plethora of space for people to ponder upon its definition. But according to United Nations Trade and Development (UNCTAD), circular economy refers to “markets that give incentives to reusing products, rather than scrapping them and then extracting new resources. In such an economy, all forms of waste are returned to the economy or used more efficiently.” While Ellen MacArthur Foundation describes circular economy as “a system where materials never become waste and nature is regenerated. The products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting.”
But the question is, why should we care about circular economy?
If we look at the production cycle holistically, circularity plays a pivotal role in developing a sustainable future by completely reimagining the way we use resources and cultivate our environment. Through circular systems that aim at cutting down on waste and applying the resources efficiently, circular approaches make it possible to avoid exhausting natural resources and taking the planet’s ecosystems to the brink. This approach enables us to not only make production processes more efficient, but also to lessen our dependence on raw materials; thus, concurrently it aims to solve pressing environmental issues such as garbage overflow and the emission of excess carbon.
The circular economy represents a significant shift from the traditional “take-make-dispose” linear model to a system inspired by nature’s cyclical processes. In this model, waste becomes a valuable input for creating new resources, ensuring both renewable and non-renewable resources are used sustainably.
Building Resilient Cycles
As the world transition towards circular economy and sustainable means of production, it is critical to have robust mechanisms to monitor and evaluate the functioning and efficacy of this system. The United Nations Economic Commission for Europe (UNECE) global strategy on circular economy enables this measurement in European region by evaluating the gaps of inconsistencies within the circular economy model. It is suggested that this entire model requires a certain scale of standardization in order to develop holistic frameworks around it. A holistic framework will incorporate a specific definition, guidelines, essential tools and requirements to effectively implement the activities related to circularity.
World Bank and the International Finance Corporation (IFC) also evaluated its best practices around waste management, a project under their umbrella initiative around circular economy. A report titled ‘Transitioning to a Circular Economy An Evaluation of the World Bank Group’s Support for Municipal Solid Waste Management (2010 – 2020)’ was released to evaluate the adequacy of the organizations’ approach, engagement and support offered to their implementing partners on solid waste management initiatives. The research was undertaken with the help of mixed-methods approach based on consultative theory and case-based principles, while consulting the relevant working groups and departments within both the organizations. They also undertook case study through virtual discussions with World Bank staff and stakeholders from various communities impacted by the project. Therefore, funding organizations can utilize evaluations on circular economic initiatives to ensure the sustenance and longevity of the model.
In a paper ‘Circular economy assessment using project-level and organization-level indicators for construction organizations: a systematic review’ by Shashini Jayakodi, Sepani Senaratne, Srinath Perera, and Keivan Bamdad, the authors discuss several tools and assessment frameworks to evaluate circular economy models and initiatives. The analysis further points out that Material Circularity Indicator (MCI) is an important element of measurement as it measures the circularity of a product, its design, performance and sustainability. Circular Economy Toolkit, which is freely available online, is another significant tool which can calculate the lifecycle of a product, from designing and manufacturing to maintenance, end life, and reusability. Circular Economy Indicator Prototype (CEIP) is also a very beneficial framework which was created to assess a product’s environmental performance, as well as covering a product’s life cycle with 15 questions.
Thus, there are many qualitative and quantitative tools which can help us to comprehend the impact of circular economy model and how it plays out in society where environmental damage is a constant reminder of our debilitating climate crisis.
Key Takeaways
The circular economy offers a transformative pathway toward sustainability, but its success hinges on robust evaluation and integration with social realities. By employing tools, frameworks, and participatory evaluation practices, we can ensure that circular models not only address environmental challenges but also promote equity and inclusivity. In doing so, the circular economy becomes more than a solution for ecological regeneration; it becomes a catalyst for sustainable development that benefits both people and the planet.
