We are all part of the planet, and we are all part of the economy - both are indivisible and interacting ecosystems but often in conflict.
To understand this interaction, we must first know - what is economy and why it is so difficult to change it?
Economy is born of human activity, and trade is its driving force.
Trade, in its simplest and most primitive form, began in prehistory with exchange. One party exchanged with other products that he had left or was able to make: fish for baskets, skins for tools, etc.
Later, this model evolved with the introduction of objects (seashells, salt bags, etc.) which were given a certain value and with which other things could be acquired.
These types of primitive coins were convenient and practical because their value was fixed (no haggling needed), they could be easily transported, and they could be exchanged for any product.
This model of incipient capitalism remained almost unchanged for thousands of years.
Over the centuries, with the development of new technologies and the expansion of population, production and international trade during the Industrial Revolution of the late 18th century, this model evolved, laying the foundations of modern capitalism.
Despite the rapid technological advances of the time, the exponential growth in population and demand, as well as the explosion in the exploitation of natural resources, this model remained based on a linear economy of extraction, production, use and disposal, trusting that nature would take care of the rest, as it had done for millennia.
This model became even more aggressive after the Second World War with the emergence of single-use plastics, the widespread use of electricity, the convenience of 'disposable' products, and the appearance of over consumption, a feature of affluent societies.
The proliferation of cars, planes, trains, and factories led to an indiscriminate increase in the use of fossil fuels. Globalization has urged nations to compete in global markets, awakening the economic greed of countries, aiming at limitless production and growth.
Despite a sustained population explosion and the incipient alarms of some scientists, even at the end of the twentieth century there was still the confidence that nature would 'deal with' the waste and pollution generated by our voracious human action.
Now we know that this model of linear economy is no longer sustainable and that we have already exceeded the limit of what our planet can withstand.
This is when the term Circular Economy begins to be applied.
What is the Circular Economy?
The term circular economy refers to a model of production and consumption in which the lifespan of products is extended, and waste is minimized, through responsible behaviors such as sharing, renting, reusing, repairing, fixing and recycling existing products and materials.
All these actions create, ideally, a closed circular model that minimizes the amount of resources used, as well as the waste, pollution and carbon dioxide and methane emissions, which are the main causes of global warming.
In the linear economy, raw material is extracted from nature and transformed into products, which are sold, used, and then discarded when their lifespan ends.
Since natural resources are not infinite, this model causes a major imbalance in Earth’s ecology.
The circular economy avoids extracting raw materials from nature, reusing existing materials in products that are discarded or discarded. This not only helps to reduce over-exploitation of natural resources but also the processing of manufactured products and their eventual waste.
Circular Economy Strategies
Some of the strategies proposed by the circular economy theory include:
-Design products and processes that reduce waste and pollution. For example: use renewable energy in production processes, reduce the amount of product packaging, and use recyclable materials for them.
-Extend the life of products. Design them to make them more durable and repairable.
-Ensure that companies commit to repairing natural areas and ecosystems damaged by economic activity, mineral extraction and or production of goods, through sustainable land use practices, reforestation, and conservation efforts.
-The use of clean energies (those not obtained from the combustion of fossil fuels), both for the production of goods and for the transport of materials and products.
-Creation, promotion and use of shared economy platforms - for example, sharing the car to go to the office, or renting the holiday home when not in use. Two practical examples of this are Uber and Air BnB.
-Recycle textiles. Since the textile industry is one of the most polluting in the world, and one of the most waste-creating -apart from its infamous use of sweatshops- this is one of the most important points of this theory. Using circular business models, such as using fewer new materials in garment production, creating clothing exchange events and recycling worn or broken garments, seeks to minimize discarded textiles.
-Reduce food waste. Research shows that more than one billion tons of food is wasted every year. To prevent this, laws have been created to reuse food waste as fertilizer or animal feed. Other companies use them in the creation of other products, such as biofuels and industrial dyes, among others. Some supermarkets and food stores offer discount on foods with an upcoming expiration date. Programs have also been created with Artificial Intelligence to prevent food waste in schools, and even apps (such as Cheaf, GoodMeal, and others) have been created for restaurants, supermarkets and other grocery stores donate those defective foods (ugly, dented, etc.) to be resold at a lower price or used by third parties, thus avoiding waste.
-Use of digital technology. According to the drivers of the circular economy, technology can help manage resources more effectively and optimize their use. For example, the Internet of Things can deliver real-time data on product condition and usage, and artificial intelligence can increase efficiency in manufacturing chains. Digital technology, they say, is essential for decarbonizing the planet and reducing greenhouse gas emissions by facilitating the exchange of goods and services, promoting reuse, and reducing waste.
But how realistic are these proposals?
The Circular Economy promotes the use of 'clean energy' such as wind power and solar panels, and its theories are based on their use. However, in practice, less than 40% of the energy we consume on a daily basis globally comes from sustainable sources.
Although solar and tidal energy fulfill the promise of producing sustainable electricity, other energies considered "clean" -wind, nuclear, geothermal- cause side effects to their surroundings and to the environment in general, making them unecological.
Most of the world’s electricity comes from fossil fuel combustion or nuclear power plants, and our energy voracity, which grows every year, even makes the transition to clean energy a slower and more complex process.
Up until the second decade of the twentieth century, there were almost no household electrical appliances.
Save for stoves and oil lamps, everything worked mechanically, with human energy, even radios, clocks, and record players.
However, today we could not conceive a home without electric light, refrigerator, microwave, kettle, coffee maker, hair dryer, television, washing and drying machines, vacuum cleaner, air conditioning, fan, heater, sound system, computer, laptop, telephone, internet...
Living rooms: 1920s and 2020s
This proliferation of electrical appliances -which only multiply as we leave our homes- has increased the world’s energy consumption exponentially and is a major contributor to global warming.
In addition, this growing dependence on electricity makes us extremely vulnerable in the event of blackouts, which are now more common precisely because of global warming.
The circular economy promotes digitalization as a step towards sustainability, but we should remember that technological devices not only consume electrical energy -they also require heavy metals and rare earths for their production, the extraction of which is highly polluting.
And although micromining is being experimented with recently to extract such materials from disused devices, this is not yet a common practice and is quite expensive.
All digital devices are made from non-recyclable materials, and by not disposing them properly (which is often the case since recycling or safe disposal centres are not available everywhere) they pollute soil and water.
Finally, data centers require millions of gallons of water (preferably potable) in order to function, none of which is sustainable or environmentally friendly.
Recycling seems to be a positive way of extending the lifespan of products, but in the case of plastics this comes with additional drawbacks.
Only a small portion of the plastic produced worldwide is actually recycled, and at each point in the recycling chain this material sheds micro-plastics which continue to pollute the air and water.
Thus, recycling and reusing plastics is not a 100% green solution.
The only solution to the problem of plastic pollution is a drastic reduction in its production and use.
Some companies embracing sustainable practices.
Fortunately, today there are bioplastics, made of various organic materials and 100% reabsorbable in nature. However, as long as they are not widely used, the best option is to avoid plastics.
Similarly, although some clothing stores have launched campaigns to encourage their consumers to recycle clothes, these campaigns do not always deliver their promise because most of the textiles used in ultra-fast fashion are not recyclable, the textile recycling process is expensive, and eventually garments can end up being shipped to third world countries, where they end up as textile waste.
Designing products that are more durable and repairable is an accessible ideal -as demonstrated by brands such as Patagonia, Decathlon, Victorinox, and JanSport- but is not too convenient for most companies, especially those targeting the mass market.
For these, redesigning a product so that it’s greener and repairable means an added cost that will be reflected in the product’s final price - and evidence demonstrate that most consumers of mass goods prefer cheap rather than ethical products, so that such a change is not convenient for these companies' business model.
But companies are not the only ones to blame, since these only create and sell what the consumer buys - without demand, there’s no production or offer.
Thus, it’s quite probable that the repairable or refurbished clothing market keeps on being a niche market for, as long as our shopping habits remain ‘get it cheap’ instead of ‘get what’s best’, circular economy is doomed to fail.
However, not everything proposed by the circular economy is impracticable.
For instance, among other green actions, the organic dairy products Stonyfield Farms uses clean energy for their production, careful at using biodegradable materials for their packing, which can also be recycled.
The cosmetics company Avalon Organics uses only plants from trusted sources and 100% organic, its products are vegan and not tested on animals, its packaging are made of recycled materials and from sustainable sources, and even their formulas are evaluated and certified to be biodegradable and eco-friendly.
More famous still is the example of Patagonia, a company whose intrinsic value is directly linked to the circular economy, sustainability and the protection of the planet.
Examples that being responsible with the environment and having a productive and profitable company are not necessarily conflicting concepts.
Complementary Theories
In addition to the circular economy theory, there are at least two theories that seek to drive our consumption and production habits towards sustainability and a more environmentally friendly economy: the Doughnut Economics Theory by Oxford economist Kate Raworth, and the Degrowth Theory.
Both theories have gained considerable attention in recent years, although they do not offer a viable solution on their own for the short or medium term. However, they are complementary to the Circular Economy theory.
The Doughnut Economy Theory
Raworth begins by re-drawing the concept of economy used to date (which includes only raw materials and their use in the production of goods for profit), into a new circular concept that includes the market, the state, households, and users, all in constant interaction, renaming it Embedded Economy.
This concept is more dynamic and realistic, since the practical economy is a circuit in which several actors come together, not only producers of goods and services.
However, Raworth goes further, and in her Doughnut Theory rejects growth for growth’s sake and includes other concepts such as Regenerative Design and the need for generous businesses to share their profits with the rest of the community.
Raworth herself concedes that her theory is complementary to the circular economy theory, extending the vision of production and consumption in a model that is more regenerative and with better distribution.
The term degrowth was coined by the Austro-French philosopher Andrés Gorz more than 50 years ago, but it was not until the first decade of the present century when it began to grow as a movement.
The degrowth theory proposes to reduce instead of increasing the existing economies, so as to use less energy and fewer natural resources, stressing wellness before financial gain.
The idea behind this theory is that, by following the policies proposed by degrowth, the economies can help themselves by being more sustainable.
Some practical actions associated to degrowth include buying less, grow our own food, and reuse empty buildings instead of building new ones.
However, although in theory these models may seem fantastic, their implementation in practical terms is much more complex than it seems due to our rooted consumption habits (sometimes based on cultural habits), practical considerations, and our own human nature.
It is clear that the current model of linear economy of unlimited growth with limited resources is not sustainable at the long or even medium run, but it’s also unrealistic to force an abrupt change towards the circular economy overnight.
What to do, then?
The truth is, more than proposing something new, the circular economy encapsulates already pre-existing ideas.
In fact, many of the propositions of the circular economy model were already the norm and custom in Western societies well into the 20th century.
For instance, until the 1980s, drinks such as Coca Cola and Fanta were sold in glass bottles that the consumer returned to the seller once empty, and this one returned them to the factory to be refilled, a practice that became obsolete with the apparition of plastic bottles.
This same circular principle ruled the home milk delivery.
When going grocery shopping, housewives did not forget to bring their own basket or shopping bag (now renamed “reusable bags”), and at the grocers you could find containers of small products (flour, sugar, legumes, nuts, sweets, etc.) sold by weight and packaged in brown paper bags.
Fresh produce -fruit, vegetables, meat, cheese, fish, etc.- were wrapped in newsprint or wax paper. Examples of these practices can still be seen today in traditional markets and special shops selling unpackaged goods.
Since buying clothes and shoes was expensive, mending clothes and adjusting dresses was a common practice, and children in the same family inherited clothes and footwear that no longer fitted their older siblings.
Sewing, knitting and embroidery were common skills among girls, young women and their mothers. Even up to the 1980s there was a widespread tendency to sew clothes at home: fabric and patterns were bought, and clothes were made for the whole family.
Having a washing machine and dryer at home was considered a luxury, so most families would go to the nearest laundromats to use coin laundry machines (a model of behavior now renamed “Pay as Service”).
Most of the products -from toys, clothing and shoes to machinery- were made from organic materials (wood, leather, metal, vegetable or animal fibres, etc.) that made them durable, repairable and environmentally friendly.
Finally, there was almost no waste because there was no money left over and the mothers (housewives) insisted on saving every last penny, using and reusing everything to the last drop.
And although today this can be considered as a "stingy" attitude, this basic idea is the same that drives the circular economy theory: reuse, reuse, avoid overconsumption and reduce waste to the maximum.
Citizens expect governments to act in order to move towards more sustainable economies.
But while it is the responsibility of governments to implement laws towards sustainability and the protection of natural resources -particularly in terms of responsible land use, promoting the use of clean energy, waste management and responsible natural resource exploitation practices, among others- ultimately the consumer has the last word.
How to Help the Circular Economy?
We don’t need to wait for governments to make big changes in order to act. Some individual consumption habits that help the circular economy and that we can all apply right now are:
-Extend the lifespan of the products you already have and buy only what you need, when you need it - this way you’ll reduce your waste and save money.
-Buy in secondhand stores. Help the planet and a good cause, all in one.
-Buy products from B Corp companies and those committed to the environment.
-Avoid plastics, even those that promise to be recyclable. Choose natural materials instead.
-Avoid over-packed products or those packaged with materials that are not environmentally friendly.
-Reduce your electricity dependence. Favor analog, manual, and mechanically operated artifacts over battery-operated and electrical gadgets. This will reduce your energy consumption and the waste and pollution generated by digital technology.
-Prefer to shop local, in traditional brick-and-mortar stores instead of using online shopping and home delivery. This will significantly reduce your carbon footprint and give a boost to your local economy.
-In technology, favor products without scheduled obsolescence, and change your devices only when they are no longer repairable or usable. Look for places where they can be recycled or reused, or disposed of responsibly.
-If you have items that you no longer use -clothes, shoes, toys, etc.- give them away, exchange them, donate them to charity stores, or organize a garage sale. As the saying goes, “one’s garbage is another’s treasure”.
-Be aware of the origin of materials used in products you buy. For example, is that reusable bag made of an organic and compostable material or is it plastic? Favor ethical and environmentally responsible products.
-Avoid shopping in stores that sell cheap but not environmentally friendly products, particularly buying unnecessary products you will use only once or a couple of times.
While circular economy is a theory that is unlikely to be implemented in full in the near future, it has shed light on the flaws of the linear economy model, forcing us to come up with alternatives to achieve a balance between our material needs, our natural capacity for ingenuity and productivity, and the urgent need to preserve the world we live in.
To Learn More...
*Want to know more about the pros and cons of the circular economy? Read this complete paper, Limitations of the Circular Economy Under Capitalism and Raising Expectations for a Sustainable Future, by economist Pauline Deutz:
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