The circular economy is an economic model that prioritises the sustainable use of resources and aims to decouple economic growth from the use of non-renewable raw materials.
Overview
To ensure sustainable economic development, we need a model that would guide natural resources to be used more efficiently through circulation of materials. A suitable solution is the transition to a more resource-efficient circular economy, which essentially requires systemic changes in political decision-making as well as in the attitudes and behaviour of entrepreneurs, consumers and society. The purpose of the circular economy is to decouple economic growth from the use of primary raw materials by creating a circular production and consumption system with as little waste as possible. It is necessary to manage resources effectively throughout their life cycle, from production and consumption to waste management and recycling, creating more value from existing resources and creating less waste. In addition to reducing the environmental impact, companies can reduce costs, increase growth potential and improve their image by effectively applying the circular economy principles. That is why, for competitiveness and sustainable economic growth, it is important to transition to a resource-efficient circular economy, which focuses on the existing materials and products:
- reuse;
- repair;
- recycling.
The transition to a circular economy requires changes in the entire product value chain, from product design to new business models and consumption habits. For new and existing products, the main attention is on the design of the whole life cycle, focusing on sustainable material selection, quality (long product life, repairability), supply chain optimisation and reuse and recycling (universality, possibility to separate components). Besides smart design solutions, eco-innovation and technological development supporting the redirection of economic development play an important role as well. For the circular economy to reach its full potential, systemic thinking and changes across the entire socio-economic system are necessary to bring about real changes in consumption, production, planning, politics, lifestyles, culture and values.
The circular economy is a cross-sectoral concept, thus cooperation between companies and international agreements are important, creating significant opportunities to develop new markets and partnerships. Successful business cooperation is well characterised by industrial symbiosis with the aim of achieving a closed production cycle, where the waste, waste heat or other by-products of one company are used by another company.
Big changes are also needed in a way products and services are consumed. The daily choices of millions of consumers have a significant impact on the environment. Raising awareness and creating demand for sustainable products contributes to the development of an environment-friendly economy.
The circular economy is a good way to turn environmental problems into economic opportunities that benefit the environment, the consumers, the companies and the state.
Maintaining good environmental quality is essential for the well-being and development of us all. We draw all the materials we need for various products and services from the environment, and ultimately, everything leftover from our activities ends up back in the environment. Each of us participates in this cycle, and through our daily choices, we determine how much and in what ways we impact the environment.