{"id":1282,"date":"2020-09-25T13:28:29","date_gmt":"2020-09-25T05:28:29","guid":{"rendered":"http:\/\/www.avantfaireim.com\/?p=1282"},"modified":"2020-09-25T16:07:46","modified_gmt":"2020-09-25T08:07:46","slug":"the-circular-economy","status":"publish","type":"post","link":"https:\/\/www.avantfaireim.com\/zh\/the-circular-economy\/","title":{"rendered":"The Circular Economy"},"content":{"rendered":"

(Picture:\u00a0unsplash.com<\/a>)<\/p>\n\n\n\n

A little history<\/strong><\/p>\n\n\n\n

The linear model of production and consumption<\/strong> has been the status quo for the last 150 years, since the early days of industrialization. Raw materials are used to produce goods that are sold to consumers, who then use them and discard them. The waste is eventually eliminated in various ways (e.g. incinerated). It is obvious that this linear model of production and consumption is reaching its limits. The past few decades have witnessed the birth and growth of alternative production and consumption models challenging the status quo and advocating for improvements in how economies use resources, products, energy, and labor inputs.<\/p>\n\n\n\n

\u201cThe circular economy provides a framework to both challenge and guide us as we rethink and redesign our future.\u201d<\/em><\/p>\n\n\n\n

(Ellen MacArthur<\/a>)<\/p>\n\n\n\n

The circular economy<\/strong> is an industrial system that is restorative or regenerative. It is based on superior design of materials, products, systems, and business models which aim to eliminate waste and replace the end-of-life concept. (Source: Ellen MacArthur Foundation<\/a>)<\/p>\n\n\n\n

Is there a need for a circular economy model?<\/strong><\/p>\n\n\n\n

There are remarkable economic benefits that come with transitioning to a circular economy business model, which are estimated at more than USD 1 trillion in material savings<\/strong>. By 2030, an additional three billion middle-class consumers will enter the global market, dramatically increasing the demand for goods and services. This calls for a complete rethink of how we use materials, as many of these materials are vital for industry and could be depleted within 5 to fifty years. Furthermore, if we maintain the current linear economy model price volatility will continue to surge because of the ever-increasing demand, along with the likely inflation of commodities (Source: WEF Report \u201cTowards the circular economy\u201d<\/a>)<\/p>\n\n\n\n

Why circular is better<\/strong><\/p>\n\n\n\n

The economic impact of the circular economy would be evident for business and consumers in both industrialized markets and fast-growing economies.<\/p>\n\n\n\n

Global division of labor, specialization, and economies of scale are a central component of the 21st<\/sup> century globalized economy. Therefore, for a circular economic model to be a driver of innovation and value creation, it must be applicable at a global scale. (Source: WEF Report \u201cTowards the circular economy\u201d<\/a>) This is indeed the case, and hereafter are some of the factors in support of this thesis:<\/p>\n\n\n\n