Circular Economy
Context:
India is slated to host the World Circular Economy Forum in 2026
Finland has announced plans to hold roadshows across major Indian cities to highlight the opportunities generated by a circular economy
About Circular Economy:
It is an economic system where production is organized around reuse, repair, refurbishing, remanufacturing, and recycling, minimizing waste and reducing environmental impact
It contrasts with the current linear economic model (take-make-dispose)
The concept draws from schools of thought like Cradle to Cradle which views all materials as nutrients (biological or technical) that should circulate in healthy, safe metabolisms.
According to Circularity Gap Report 2023, only 7.2% of world economy is circular (down from 9.1% in 2018).
Key Principles & Components
The vision rests on three components:
Reduce (shifting from efficiency to sufficiency)
Regenerate (shifting from extraction to regeneration)
Redistribute (addressing resource inequality)
Key principles involved:
No concept of waste – materials are biological or technical nutrients (Cradle-to-Cradle design)
Use clean & renewable energy.
Celebrate diversity – resilient systems.
Nutrient Flow:
Biological nutrients (consumables) should return to the soil, while technical nutrients (service products) should be reused at high quality.
Linear Economy Vs. Circular Economy:
Significance for India:
India's circular economy is expected to reach a market value of $2 trillion and create 10 million jobs by 2050
Resource Efficiency:
India’s material consumption increased 6-fold (1970–2015), from 1.18 to 7 billion tonnes
Currently, India's recycling rate is only 20%, unlike 70% in Europe.
This presents a massive opportunity to improve from the linear model where resource extraction is excessively high
Climate Goals:
Transitioning to this model is critical for reducing greenhouse gas emissions (as 70% of global emissions are tied to material handling).