In 2022 were produced in Italy 493 kg of waste per inhabitant, a slightly better figure than the European average of 513 kg per inhabitant. Yet, looking at the overall context of the European Union, the figure is significant: more than 2.2 billion tons of waste generated every year.
Faced with these numbers, it becomes clear how important it is to promote an economy capable of Transforming waste from a problem to a resource.
In this article, we will explore the meaning of the concept of circular economy, analyzing its principles, advantages for companies and the ways in which the European Union is promoting this new way of waste management.
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What is the circular economy
The circular economy it is not only a theoretical concept, but a real one paradigm shift in the way we produce and consume.
The birth of this concept dates back to 1966, when economist Kenneth E. Boulding published the article “The Economics of the Coming Spaceship Earth”, introducing the idea of aregenerative economy. Ten years later, in 1976, a report to the European Commission by Walter Stahel and Genevieve Reday consolidated its principles, highlighting its potential for employment, cost reduction and waste minimization.
But what does it mean, in concrete terms, circular economy?
In a nutshell, it is a model that aims to transform the concept of rejection into a resource. The goal is to maintain the value of products, materials and resources for as long as possible, minimizing waste.
This is done through a series of practices such as sharing, lending, reuse, repair, refurbishment and recycling.
Let's imagine a product that, at the end of its life cycle, does not become waste, but a New opportunity. Thanks to recycling processes, materials are reintroduced into the production cycle, creating additional value.
This model is not only a virtuous choice, but a needs. Implementing circular economy solutions means more reduce environmental impact, but also to rethink the economy in a more responsible, using resources with greater intelligence and sustainability.
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Linear economy vs circular economy
When we talk about circular economy, it is inevitable to be confronted with the opposite model: thelinear economy. To better understand the advantages of the former, it is essential to understand the limitations of the latter.
The linear economy is the traditional model on which production and consumption have been based for more than 150 years.
This is a industrial and market approach which involves the extraction of raw materials, the production of goods, their use and, finally, their disposal as waste. This process is also known as Cradle-to-Grave, i.e. “from the cradle to the grave”.
Among the main characteristics of the linear economy are mass consumption, large scale production, the design of products with a short life cycle and waste management through disposal or incineration.
This model is based on a critical assumption: the infinite availability of natural resources, often at low cost and easily available. However, in recent decades, his thresholds have become more and more obvious.
The intensive resource extraction has led to the degradation of ecosystems, the destruction of habitats and the loss of biodiversity. In addition, the accumulation of waste and pollution related to industrial production have had a devastating impact on the environment, contaminating seas and soils and contributing significantly to greenhouse gas emissions, with negative consequences for the climate.
Unlike the linear model, the circular economy aims to maintain the value of materials for as long as possible through reuse, repair, recycling and regeneration strategies. The basic objective is therefore to Transforming waste into resources.
The transition from a linear to a circular model is not only a matter of productive change, but a real one afterthought of the way in which we consider resources and their life cycle.
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The 5 principles of the circular economy
The circular economy is based on 5 fundamental principles that guide the entire production cycle towards a more sustainable and responsible model. Let's see what they are.
- Resource sustainability
Production activities must prefer the use of renewable sources and recycled materials, reducing the environmental impact. This principle aims to limit the extraction of new natural resources, keeping materials in circulation for as long as possible and promoting reuse and recycling. - Product as a service
Instead of selling the product as property, you offer to use it as a service. This model allows you to maintain control over the life cycle of the asset, planning its maintenance, repair and regeneration. The result is a lower environmental impact and greater efficiency in the use of resources. - Sharing
The sharing of products and services makes it possible to optimize costs and reduce the amount of resources used to produce them. By using shared platforms, single use is avoided and the time spent using the goods is maximized, also reducing waste related to non-use. - Extending the product lifecycle
Products must be designed to last longer and to be easily repairable, upgradable and regenerable. This principle aims to avoid the continuous production of new goods, instead prioritizing the extension of the use of those that already exist. - Recovery and recycling
Once the life cycle of a product has ended, raw materials and components must be recovered and regenerated to be reintroduced to the market. This approach makes it possible to transform waste into resources, promoting sustainable waste management and reducing the consumption of new raw materials.
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The 3 R's of the circular economy
The circular economy is based on a simple approach but extremely effective: reduce, reuse and recycle. These three actions, known as the '3 Rs', represent the fundamental pillars to guarantee a more sustainable use of resources and efficient waste management.
- Reduce
It means minimizing the consumption of natural raw materials in the production of goods and services. The goal is to optimize production processes to use less resources, thus reducing the environmental impact throughout the product life cycle. Reducing not only concerns materials, but also energy consumption and emissions associated with production. This principle applies from the design phase to disposal, aimed at reducing the use of non-renewable resources and limiting the generation of waste. - Reuse
This principle promotes the idea of giving a second life to goods, preventing them from becoming waste. In practice, it means using products multiple times, through activities such as repair, direct reuse or regeneration. The best-known examples include the rental or subscription model for goods and services and the second-hand market, such as second-hand clothing. Encouraging reuse reduces demand for new products and helps to reduce resource extraction. - Recycle
The last step in the circular process is recycling, which allows waste to be transformed into new materials or products. The idea is to break down the materials already used and transform them into resources ready to be used again in the production cycle. This principle reduces the amount of waste destined for landfill and allows precious raw materials to be recovered, thus avoiding the extraction of new natural resources.
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The 6 advantages for companies in starting a circular economy path
Adopting a circular economy model is not just a ethical and sustainable choice, but also aconcrete opportunity for companies to generate economic growth and competitiveness.
In particular, the circular economy allows companies to Position yourself positively in the social context, generating new business value and demonstrating a concrete commitment towards sustainability.
Here are the main benefits for businesses.
- Reduction of operating costs
The more rational use of resources, the extension of the useful life of the products and their reconditioning at the end of the cycle lead to a decrease in production costs and energy consumption. - Innovation in business models
The circular economy pushes companies to rethink product design, promoting durability, modularity and the use of sustainable materials. This leads to the creation of more efficient, upgradable and repairable products, reducing the amount of waste and improving overall sustainability. - Reduction of CO₂ emissions
Implementing recycling and reuse practices helps to significantly reduce climate impact, reducing the consumption of natural resources and preserving biodiversity. - Increased competitiveness
Investing in research and development of sustainable solutions allows companies to respond to new market needs, differentiating themselves from competitors and acquiring a competitive advantage. - Boosting employment
According to the European Parliament, the transition to a circular economy could create about 700,000 new jobs by 2030, promoting employment in sectors related to the environment, public health andsustainable nutrition. - New business opportunities
The transition from the logic of possession to the logic of use, as occurs in the “product as a service” model, opens the way to new business strategies shared along the supply chain, creating opportunities for all the actors involved.
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What is the EU doing to promote the circular economy?
The European Union is carrying out a series of concrete initiatives to promote the circular economy, focusing on a more sustainable and long-term production model.
In March 2020, the European Commission presented a action plan for a new circular economy, with the aim of making products more sustainable, reducing waste and giving greater power to citizens.
Among the most interesting news is the so-called 'right to repair', designed to facilitate the reuse and maintenance of products. Resource-intensive sectors, such as electronics, information technology, plastics, textiles and construction, are at the center of these initiatives.
A year later, in February 2021, the European Parliament approved a resolution which reinforces this action plan, calling for additional measures to achieve a Economy with net zero emissions, environmentally sustainable, free from toxic substances and completely circular by 2050. Among the main objectives, there are stricter rules on recycling and binding targets for 2030, which aim to reduce the ecological footprint of the materials used.
In March 2022, the Commission published the first package of measures to accelerate the circular transition. Among the proposals, the strengthening of sustainable products, the empowerment of consumers in the green transition, the revision of the regulation on construction products and a strategy dedicated to sustainable textiles stand out.
Finally, in November 2022, the European Commission made new proposals for improve packaging management, focusing on a more efficient design, clear labeling and the incentive to reuse and recycling. The goal is to promote the transition to biodegradable, compostable and bio-based plastics, reducing the environmental impact of packaging.
