What’s up with the linear economy?

It’s just not sustainable.  According to The World Economic Forum: "We exploit, create value, and then waste. Linear economic models do not work on a finite planet.” Within our consumer society, the cause and effect of “supply and demand” has driven what Walter Stahel calls “the 'bigger-better-faster-safer' syndrome or rather fashion/trends, emotion and progress.”

Yet it is not just unconscious consumers liable for these broken systems; manufacturers have been ignoring the entire “life cycle” of their products, claiming no responsibility with what happens once their customers are finished with them, they break or become obsolete.  We continue to simply buy, then throw away.  And we now know, that away, is never truly away. 

Unfortunately, the linear economy has been the dominant economic system, so embedded in society, business, technology, culture and behaviour that changing to a “closed loop”  will require some big shifts - not just in thinking and understanding; but making it a reality.

Why is shifting to a circular economy such a good idea?

The media is constantly telling us we need new products to look, feel and perform better, but this just marketing.  From a social perspective, a regenerative approach can help remedy and heal the emotional vulnerability that is targeted by consumer advertising.  A circular economy encourages simple values such as having enough, repairing, sharing and cherishing our belongings; which can bring about change in how we see ourselves, others and the world, for the better.

Of course, there are economic benefits to shifting to a circular economy as valuing and using products again will save money.  The World Economy Forum states “the elimination of waste and the continual safe use of natural resources, offers an alternative that can yield up to $4.5 trillion in economic benefits to 2030.”  This includes boosting economic growth (an additional 0.5% of gross domestic product) and creating jobs (700,000 jobs in the EU alone by 2030) according the European Commission.

Most of all, the environmental benefits of a circular economy are key to us living sustainably on Planet Earth.  In 2019, over 92 billion tonnes of materials were extracted and processed in the manufacturing industry, contributing to about half of global CO2 emissions. The Ellen MacArthur Foundation’s “Completing the Picture” report in 2019 explains how the circular economy can reduce global CO2 emissions from cement, steel, plastic and aluminium by 40% in 2050, thereby achieving almost half of the zero emissions target.

Circular economies on a Macro level

The United Nations have integrated circularity systems into the Sustainable Development Goals through SDG12: responsible production and consumption.  They say that “Changing the way we produce and consume goods and resources includes efficient management of our shared natural resources.”  They are encouraging industries, businesses and consumers to recycle and reduce waste; dispose of toxic waste and pollutants responsibly as well as supporting developing countries to move towards more sustainable patterns of consumption by 2030.

European Countries

The Circular Economy shows up in The European Commission’s new Action Plan - one of the main blocks of the European Green Deal, Europe’s new agenda for sustainable growth. The new Action Plan announces initiatives along the entire life cycle of products, targeting for example their design, promoting circular economy processes, fostering sustainable consumption, and aiming to ensure that the resources used are kept in the EU economy for as long as possible.

Politco’s circular economy index helps to calculate European countries' ranking based on waste, recycling, reuse and investment circular economy.  In general, countries with the highest scores — Germany, the U.K. and France — have robust recycling systems and high levels of innovation in circular economy sectors.  Although the Netherlands, Denmark and Sweden rank fairly well in innovation and recycling, their scores are dragged down by high levels of waste and food waste.

How to incorporate Circular Economy into everyday life?

Learn about it

Transitions take time, especially if we have been programmed to live a certain way for so long.  The first step is to learn more, and then keep learning!

The Circular Economy and Sustainability Strategies Programme at Cambridge Judge Business School Executive Education is designed to help understand the growing business case for sustainable solutions and learn how to manage and lead a sustainable business by incorporating circular economy principles into growth strategies.

Ed Ex’s “Circular economy Introduction” course has been co-created by TU Delft, the Ellen MacArthur Foundation and the Leiden-Delft-Erasmus Centre for Sustainability.  This online course teaches how to contribute to a sustainable economic system by implementing novel business and design approaches.

The Ellen MacArthur website also has a wealth of free, online learning resources, designed to suit learners at every stage.

For some digestible ideas on circular economy, innovation check out the TED talk playlist “Reduce, Reuse, Recycle”