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The Circular Economy (Sahel 2016) (System Thinking (Three kinds of…
The Circular Economy (Sahel 2016)
A new relationship with our goods and materials that would save resources and energy and create local jobs
We continue to make, use, dispose, one-third of plastic waste globally is not collected or managed
Alternative- a 'circular economy' that would turn goods at the end of there lives into resources for others, minimising waste, replacing production with sufficiency
In Europe could reduce greenhouse gas emissions by 70% and grow its workforce by 4%
Two groups of circular economy business models- ones that foster reuse and extend service life and those that turn old goods into as-new resources by recycling
However, there is familiarity and fear of the unknown
GDP is the complete opposite of the preserving physical stocks
Concerns over ethics, safety and GHG emissions shifting approaches to materials as assets to be preserved rather than continually consumed
Circular economy concepts successfully applies on small scales since the 1990s in eco-industrial parks such as Kalundborg Symbiosis in Denmark
To little research to disseminate material blends, and is concentrated among the big industries and dispersed across SMEs
System Thinking
Three kinds of industrial economy: linear, circular and performance
Linear economy- adds value to products from base materials , driven by a bigger, better, faster, safer syndrome, use lots of resources in over-saturated markets, selling high volumes of cheap and sexy goods
Circular economy- reprocesses goods and materials generating jobs and saves energy while reducing resource consumption and waste
Performance economy- selling goods as services through rent, lease etc. manufacturer retains ownership and carries the responsibility of risks and waste, focuses on solutions instead of products and makes profit from sufficiency, such as waste prevention. E.g. Michelin 'by the mile' tyre use
Exchanging used parts, selling worn parts for remanufacturing
Fleet managers benefit from resource security — the goods
of today become the resources of tomorrow at yesterday’s prices.
Societal Trend
Circular economy part of a trend towards intelligent decentralisation- 3d printing, mass customisation of manufacturing, car pooling services via Autolib
Tipping Points
Research needed at all levels- social, technological and commercial to realise a circular economy
Designing products for re-use needs to become the norm, making use of modular systems and standardised components
Public policy needed to promote activities desired by society and punish those that are not, such as taxes raised on the consumption of non-renewable resources
Marrying the three types of economy is a formidable challenge. A shift in policy focus from protecting the environment to promoting business models that are based on full ownership and liability, and that are unlimited in time,
rather than imposing a two-year warranty for manufacturing quality, could transform a nation’s competitiveness