Transition to a Circular Economy (Essay Sample)

TRANSITION TO A CIRCULAR ECONOMY
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Transition to a Circular Economy
For the longest time, businesses have only strived to increase the production of materials at the lowest costs to meet the increased demand fueled by population growth and globalization. The demand for food, clothes, housing, and consumer goods has been on a steady rise and the same situation is still expected to continue in the years to come. While there have been efforts to minimize the waste from linear economy through recycling, the impact of the un-recycled waste products on the environment has created the need for a wider approach that not only minimizes waste through re-use of materials but also ensures that waste is reused as valuable capital (Ellen MacArthur Foundation 2011). Since matter and energy are never-ending, circular economy provides endless opportunities to tap into finite resources through innovation and creativity (Gardetti 2019, p.1). The circular economy is a step towards sustainable energy systems that support the universe's natural ability, which is currently being employed in several industry and sectors such as plastics.
Linear economy focuses on mass production and mass consumption without regard for the environment. In a linear economy, companies’ main goal is mass production of goods at the lowest possible costs to meet the high demand through the; take make and waste linear cycle (Ellen MacArthur Foundation 2019). Unlike in circular economy, linear economy leads to deterioration of the environment without consideration for human wellbeing (Murray et al 2015, p. 1). In the linear economy, businesses deplete the available resources while altering the ecosystem through increased electronic and non-biodegradable waste. The use of fossil fuels, disposal of food and chemical waste, electronic waste, and other non-biodegradable materials has contributed to global warming and adverse climatic changes such as raised sea levels, drought, famine, and flooding (Lee et al 2017, p. 102). Therefore, circular economy is an opportunity for innovation as stakeholders attempt to find a balance between economic gain and preservation of the environment.
Discussion
Concepts of Circular Economy
Since the industrial revolution, businesses have mostly focused on mass production and marketing of goods to meet the increased demand. However, excessive production has contributed to the abuse of natural resources and excessive disposal of waste through uncontrolled channels. Past decisions through the linear economy have resulted in the depletion of natural resources, destruction of the soil, water, and air coupled with the loss of biodiversity (Gardetti 2019, p.1). The only solution to these problems is the circular economy, which focuses on integrating into the natural systems of the universe to preserve the environment while ensuring sustainability and consistent economic gain. Therefore, firms should begin shifting away from linear economy to adapt to the circular economy.
The circular economy considers the living, economic gains, and the effects of processes on future generations and the ecosystem. This type of economy is based on four principles of nature that include waste as nutrients, resilience, renewable energy, and systemic relationships (Gardetti, 2019, p. 3). Waste as nutrients aims to replicate the universe’s cycle of life. For example, in the wild, an antelope feeds on grass, eventually it is eaten by a carnivore that will die and decompose adding nutrients to the soil promoting the growth of more grass. Without disturbance, such a cycle is intended to go on for generations. In the same way, a circular economy aims to produce waste that adds nutrients to the environment. In the case of metals, plastics, and other forms of electronic waste, the goal is to use recyclable materials that can be re-used in the future, hence extending their durability indefinitely. Thus, circular economy challenges manufacturers to produce products that do not degrade the environment after disposal.
Resilience is reached through the utilization of varied resources. It involves building the capacity to use a wide range of resources as opposed to exploiting just a few. For example, coal and fossil fuels have been the major sources of energy for the longest time despite their carbon emissions. However, their use has resulted in adverse environmental and climatic effects that create a need for more sustainable sources of domestic energy such as wind technology (U.S. Department of Energy 2015, p.3). Therefore, resilience in a circular economy empowers industries to create a variety of resources that can be utilized in different circumstances ensuring sustainable continuity.
Renewable energy is the third principle of circular energy. The circular economy is centered on the transition from the use of fossil fuels, coal, and carbon-containing resources that are generally combusted to produce energy, to the adoption of more sustainable solutions that have a lower carbon footprint (Lee et al 2017, p. 102). Past decisions to utilize carbon resources have contributed to the current climatic situation characterized by adverse and unpredictable weather conditions, rise in sea levels, and global warming. The linear utility of carbon resources contributes to the depletion of resources while destroying the environment. Therefore, to avoid such effects, circular economy is the way to go by developing sustainable and regenerative systems through technological innovations and developments. For instance, the development of electric and hybrid vehicles, such as Tesla, that are rechargeable instead of relying on petrol and diesel is a step towards sustainable energy (Naor et al 2021, p. 2). The UK government is also set to ban the sale of non-electric cars from 2030 showing the value and role that governments can play in the adoption of renewable energy. Hence, the adoption of innovative developments that will reduce the carbon footprint while promoting sustainability will facilitate the transition to a circular economy.
Lastly, the circular economic model is based on the systemic connection of opportunities and interventions. Systemic interventions are facilitated by the relationships formed through the product’s lifecycle. For instance, the recycling of metals and plastics for re-use will depend on the manufacturing of recyclable metals and plastics. Circular economy needs to be implemented at all points of the cycle; take, make and re-use (Upadhayay and Alqassimi 2018, p. 68). Thus, adopting a circular economy across all sectors will require in-depth research on the ways to support industry players at all stages of production, distribution, consumption, and disposal.
Barriers in the Transition to a Circular Economy
Despite the associated benefits of circular economy compared to linear economy being undisputed, both large, small, and medium-sized businesses face barriers in their shift from linear to circular economy. The latter is based on sustainable production that preserves natural resources, renewable energy, and risk reduction through proper disposal of waste products. However, the systemic implementation of the circular economy may be difficult for small businesses that have inadequate resources to fund research and technological advancements that facilitate the transition and alignment of business operations leading to the failure of such initiatives (Gardetti 2019, p.2). Hence, the transition to circular energy requires the commitment of adequate resources to support the initiatives at all points of adoption (Van Loon and Van Wassenhove 2020, p. 1). The resources will facilitate implementation ensuring research and knowledge sharing in the industry and with the consumers, infrastructure, and production of goods that meet consumer demand and characteristics. Therefore, lack of resources acts as one of the major barriers towards a transition to circular economy.
Transition to a circular economy may be top-down or bottom-up. The former is based on government policy that requires all stakeholders within a given industry to transition from linear to circular economy while the latter is based on a personal initiative by the businesses (Gardetti 2019, p. 2). An example of top-down implementation is the ban on the production, distribution, and use of plastic papers in Kenya (National Environment Management Authority 2017, p. 5). Such measures force businesses reliant on plastic for packaging to find re-usable and environmentally friendly solutions to avoid closures. Another example is the UK's intention to ban the sale of all non-electric vehicles from 2030 (Wappelhorst 2020, p 4). Such a policy will force all car manufacturers to transition to the production of electric cars if they want to remain in the automobile industry. Manufacturers that lack the resources such as; the technological knowledge and capacity, and capital to fund new plants or the sourcing of recyclable materials and quality batteries will risk closure. Nonetheless, in most bottom-up transitions, businesses take the personal initiative to adopt environment-friendly measures in their production cycle to stand out from the competition creating a competitive advantage. For instance; Amazon, a leading e-commerce platform globally has adopted the climate pledge to minimize its wastefulness, contribution to pollution, and promote sustainability throughout its processes. Customer demand for sustainable items and systems, coupled with shifts in the e-commerce industry has pushed companies to shift towards sustainable e-commerce through social, economic, and environmental frameworks that guide their actions towa...