Circular Economy - giving waste a new life

Since the industrial revolution, waste has constantly grown. This is because our economies have used a ‘take-make-consume and dispose’ pattern of growth - a model which assumes that resources are abundant, available and cheap to dispose of.

The 'Circular Economy' Package proposes to change this traditional pattern of production and consumption. Instead, the focus in a circular economy is to re-use, repair, refurbish and recycle existing materials and products.

The focus in a circular economy is to re-use, repair, refurbish and recycle existing materials and products

What used to be regarded as ‘waste’ can be turned into a resource. All resources need to be managed more efficiently throughout their life cycle.

Decoupling economic growth from resource consumption

A circular economy would mean that we extract the maximum value from our resources whilst in use, then recover and regenerate products and materials at the end of each service life. This way of thinking would not only ease the use of the Earth’s scarce resources, but it would and should also provide business opportunities for businesses. In fact, even though some regulation is needed, the circular economy will only fly if we take a market-based approach.

Productivity could rise by 30 percent by 2030 and GDP could get a boost of nearly 1 percent, while 2 million additional jobs could be created

Currently, 90 percent of the raw materials used in manufacturing become waste before the product leaves the factory, while 80 percent of products made get thrown away within the first six months of their life. A circular economy could help stabilise some of this by decoupling economic growth from resource consumption.

It is estimated that the circular economy could help us produce 220 metric tons less waste and generate 350 metric tons more recycling

Using resources more efficiently will also bring new growth and job opportunities. Productivity could rise by 30 percent by 2030 and GDP could get a boost of nearly 1 percent, while 2 million additional jobs could be created. On the resource side, it is estimated that the circular economy could help us produce 220 metric tons less waste and generate 350 metric tons more recycling.

European Commission action plan on Circular Economy

Moving towards a circular economy is at the heart of the resource efficiency agenda established under the Europe 2020 Strategy for smart, sustainable and inclusive growth. The main ideas on how to do more with less are being taken further in the EU's Environment Action Programme to 2020.

The European Commission will release an action plan on the Circular Economy on 2 December 2015. It is expected to introduce higher recycling targets and a landfill ban on recyclable materials across all 28 EU Member States as well as put the accent on business opportunities.

By Lars Ole Løcke and Taina Mertalo