The Circular Economy

Circular Economy

The subject of which I am going to speak today is about the Circular Economy. The first part was about the Circular Economy, in the second part the reason for using the circular economy and the benefits and impacts of this, in the last part I will talk about the principles of Circular Economy and how it was used in Portugal.

Circular Economy is a strategic concept based on the reduction, reuse, recovery and recycling of materials and energy. By replacing the end-of-life concept of linear economy with new circular flows of reuse, restoration, and renewal, in an integrated process, circular economy is seen as a key element in promoting the decoupling of economic growth from increased consumption of resources, a relationship hitherto seen as inexorable.

Inspired by the mechanisms of natural ecosystems, which manage long-term resources in a continuous process of re-absorption and recycling, the Circular Economy promotes a reorganized economic model through the coordination of production and consumption systems in closed circuits. It is characterized as a dynamic process that requires technical and economic compatibility, but also requires a social and institutional framework

The Circular Economy goes beyond the scope and strict focus of waste management and recycling actions, aiming at a broader action, from the redesign of processes, products and new business models to the optimization of the use of resources. It thus aims to develop new, economically viable and environmentally efficient products and services based on optimally perpetual cycles of downstream and downstream reconversion. It materializes in the minimization of resource extraction, maximization of reuse, increase efficiency and development of new business models.

Why a circular economy?

Current trends in population growth, demand growth and the resulting pressure on natural resources have underscored the need for modern societies to move towards a more sustainable paradigm, a greener economy that ensures economic development, improved living conditions and employment, as well as the regeneration of “natural capital”.

The current paradigm, based on a linear model, is today confronted with questions regarding the availability of resources. In 2010 alone, some 65 billion tonnes of raw materials entered the economic system, with a forecast of 82 billion tonnes by 2020. This is a system that exposes companies and countries to risks related to price volatility of resources and supply disruptions.

A new economic model operating in closed circuits, catalyzed by innovation along the entire value chain, is advocated as an alternative solution to minimize material consumption and energy losses.

A "more circular" economy has been presented as an operational concept on the road to paradigm shift, with a view to addressing the environmental and social problems arising from the globalization of markets and the current economic model based on a linear economy of "extraction, production and disposal ".

Now we have a short video that summarizes what the circular economy is.

Benefits and impacts of a circular economy

Circular economics distinguishes itself as a model focused on maintaining the value of products and materials for as long as possible in the business cycle.

This model is understood as providing short-term benefits and long-term strategic opportunities in the face of challenges such as:

-Volatility in the price of raw materials and limitation of supply risks

-New customer relations, take-back programs, new business models

- Improving the competitiveness of the economy - "first mover advantages"

-To contribute to the conservation of natural capital, reduction of emissions and waste and combating climate change

Waste prevention measures, eco-design, reuse and other "circular" actions are estimated to generate net savings of around € 600 billion to EU companies (around 8% of their total annual turnover ), creating 170,000 direct jobs in the waste management sector and, at the same time, enabling a reduction of 2 to 4% in total annual greenhouse gas emissions.