But what exactly does the circular economy mean? And what would be the benefits?
What is the circular economy?
The circular economy is a
model of production and consumption
, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the
life cycle of products is extended.
In practice, it implies
reducing waste
to a minimum. When a product reaches the end of its life, its materials are kept within the economy wherever possible thanks to recycling. These can be productively used again and again, thereby
creating further value
.
This is a departure from the traditional,
linear
economic model, which is based on a take-make-consume-throw away pattern. This model relies on large quantities of cheap, easily accessible materials and energy.
Also part of this model is
planned obsolescence
, when a product has been designed to have a limited lifespan to encourage consumers to buy it again. The European Parliament has called for measures to tackle this practice.
Protecting the environment
Reusing and recycling products would slow down the use of natural resources, reduce landscape and habitat disruption and help to limit
biodiversity loss
.
Creating more efficient and sustainable products from the start would help to reduce energy and resource consumption, as it is estimated that more than 80% of a product's environmental impact is determined during the design phase.
The world's population is growing and with it the demand for raw materials. However, the supply of crucial raw materials is limited.
Finite supplies also means some EU countries are dependent on other countries for their raw materials. According to
Eurostat
, each European consumed 14.9 tonnes of raw materials in 2022.
Recycling raw materials mitigates the risks associated with supply, such as price volatility, availability and import dependency.
This especially applies to
critical raw materials
, needed for the production of technologies that are crucial for achieving climate goals, such as
batteries
and electric engines.
Creating jobs and saving consumers money
Moving towards a more circular economy could increase competitiveness, stimulate innovation, boost economic growth and create jobs (
700,000 jobs in the EU alone by 2030
).
Redesigning materials and products for circular use would also boost innovation across different sectors of the economy.
Consumers will be provided with more durable and innovative products that will increase the quality of life and save them money in the long term.
What is the EU doing to become a circular economy?
The European Union wants to build a circular and climate-neutral economy by 2050.To achieve that the EU has introduced in recent years many new measures to reduce waste and make products more sustainable.
New or updated legislation covers ecodesign, packaging, greenwashing, the right to repair, waste management and other key areas.
