If you ever asked to yourself what circular economy is, on this post you will understand what it really is, its benefits and the barriers for its implementation.
What is circular economy?
Circular economy is a model of production and consumption that include reuse, sharing, repair, refurbishment, remanufacturing and recycling in order to keep materials and products as long as possible, extending the life cycle of them. This economic system aims to minimize the creation of pollution, waste and carbon emissions.
So, what does this mean in practice?
Adopting a circular economy system, implies leaving materials and products in a constant loop of usage. Everything must be productively used and reused as much as possible. Even if the product as a whole cannot be used, parts of it that are still operational, should be reused.
Why do we need to adopt circular economy?
The European Union produces more than 2.5 billion tons of waste every year and with the world population growing more and more every year, the demand of natural resources is also increasing however, they are limited.
By adopting circular economy, you are:
1- Decreasing the necessity of extracting natural resources and consequently lowering energy consumption and CO2 emissions;
2 – Saving money;
3 – Reducing the total annual greenhouse gas emissions;
4 – Stimulating innovation and boost economic growth, enhancing the competitiveness of companies;
5 – Creating jobs;
Barriers to circular economy
Although all the benefits that we can take from circular economy, there are lots of barriers that bring difficulties in the implementation of this economic system. Some of them are the fact that secondary resources are way more expensive than natural resources, laws and regulations aren’t prepared for the new innovations that may come from circular economy and since the majority of investors are still working having linear economy on its basis, adopting a new system may be expensive in terms of time and money.