Circular Economy
Definition
Circular Economy is an economic system whereby the value of products, materials and other resources in the economy is maintained for as long as possible, enhancing their efficient use in production and consumption, thereby reducing the environmental impact of their use, minimising waste and the release of hazardous substances at all stages of their life cycle, including through the application of the waste hierarchy.
Circular economy refers to models of production and consumption that minimize waste and reduce pollution, promote sustainable uses of natural resources, and help regenerate nature. [1]
Circular economy approaches can be employed in a number of different sectors from textiles to buildings and construction, and at various stages of a product’s lifecycle, including design, manufacturing, distribution, and disposal.
Besides helping tackle the problem of pollution, circular economy approaches can play a critical role in solving other complex challenges such as climate change and biodiversity loss. They can help countries accelerate their transition to more resilient and lower-carbon economies while also creating new green jobs.
Currently (2022), only 7.2 percent of used materials are cycled back into our economies after use. This has a significant burden on the environment and contributes to the climate, biodiversity, and pollution crises. As a result, we currently need about 1.7 Earths to deliver on all the world's resource demands.
