Our current economic system is based on a linear model where resources are extracted from the environment, turned into products and disposed after use.
New products are launched every day increasing market competition and the pressure on natural resources. Digital technology create new platforms for consumers to learn more about products and change their consumption habits. In addition to this, the raising costs of raw materials and volatility bring economic risks to businesses which make them re-evalute this existing economic model. Process efficiencies are not enough to guarantee business survival and will not change the finite nature of natural resources.
Circular economy is about closing resource loops, mimicking natural ecosystems and generating value by rebuilding natural and social capital. It is a new economic system that decouple business growth from the use of resources. It is about a system change that re-define product design, evaluate materials flow and see waste as a resource.
The final result is an economy where:
- materials streams are efficiently managed and recycled
- it runs entirely on the basis of renewable energy
- there is no negative impact on human life or ecosystem