Opportunities for Establishing a Circular Economy

Preamble

More than one-half of the world’s population lives in cities, a figure that is forecasted to rise to 70% by 2050. The quality and resource rationality of cities will become an increasingly critical issue. This blog expounds on the role of cities in the transition towards a circular economy and the underlying opportunities and benefits associated with the process.

Research Questions

1. Why establish a circular economy?

2. What are the opportunities connected with a circular economy?

Introduction

Making cities sustainable involves rethinking every element of urban living. Moving away from practices that degenerate resources are imperative for solutions that minimise the loss of resources during the production and consumption process. Applying circular principles to up-cycling waste from existing buildings, infrastructure and construction, harvest of rainwater for reuse, generation of clean and resource-efficient energy, treatment of medical waste, as well as procurement of goods and services can go a long way in making future cities more sustainable and efficient in terms of resource use and waste disposal systems. The transition to a circular economy can only be achieved when all stakeholders – individuals, the private sector, government and civil society – collaborate. Urban populations are growing at unprecedented rates around the world. Material consumption is expected to grow by 40 billion tonnes in 2010 to about 90 billion tonnes in 2050 (UN, 2018). This presents opportunities in several areas for different cities to adopt parts of a circular economy or even formulate a policy toward completely adopting the model for a sustainable future. But barriers such as high transition costs and lack of awareness related to the urgency of the matter impede the process of circularisation of economies.

Why Transition Towards a Circular Economy

Over-exploitation of materials and natural resources has increased pollution levels and is fueling demand for responsible products. The sustainable development goals (SDGs) encourage nations to consider circularity and leading cities to experiment with innovative circular ideas and methods. As urban areas expand, growing infrastructure and services strain the environment as limited resources face stretched use to accommodate greater activity and population. Businesses and governments are also increasingly becoming aware of intensified demands for accountability, while digital platforms are enabling circular economy principles to be applied on a larger scale by improving access to information, introducing greater transparency and accountability, and facilitating the deployment of innovative circular solutions. Currently, most of a city’s waste ends up in landfills, an excess of which has already burdened ecosystems, resulted in a loss of biodiversity and degradation of land alongside greater pollution. Therefore, a transition to a circular economy requires rethinking market strategies and models that encourage competitiveness in different sectors. This would entail changing consumer behaviour, regulating production processes, generating new avenues for employment and reducing demand for new raw materials.

Opportunities Connected with a Circular Economy

There are many areas where a circular economic model can improve efficiency and curb the environmental impact of rapid urbanisation and growth policies based on the linear usage model, which aims to make, use, and dispose of commodities without placing thought on the regenerative use of waste. Cities are taking opportunities to improve efficiency and environmental impact by embedding circular economy principles in urban infrastructure and services, from mobility to energy to healthcare. The first opportunity is to channel used building materials for new building sites. Building materials account for 40 – 50 per cent of a building’s carbon footprint (EESI, 2021). Buildings should be designed to reuse and repurpose materials up to their maximum lifespan. Listing the quality and quantity of all materials used in a building can stimulate recovery, recycling, or reuse when the building is ultimately demolished. Another opportunity lies in water harvesting and reuse strategies. According to the United Nations, nearly half of the world’s population could suffer from water stress by 2030 (United Nations, 2021). Water should, therefore, be harvested, treated, and reintroduced in the system as much as possible. Rainwater harvesting is a traditional form of storing water for reuse, deployed in cities across the world. Cities can also ensure circular practices in water efficiency by reducing water leakages from supply systems.

Furthermore, circularity through reduced energy use can significantly affect the ability of a city to become sustainable in the long-run. Energy systems are vital to urban infrastructure, and demand for energy is expected to increase with time. Buildings use more energy than any other sector, accounting for roughly 40% of primary energy consumption and 36% of CO2 emissions (IEA, 2021). Circularity in energy systems encompasses the entire supply chain system of energy, from generation to storage to supply. Smart energy grids that enable efficient energy distribution through real-time communication between generators and new models that aim to decentralise energy exchange between buyers and sellers are required. Lastly, among many other opportunities which make circular economy a viable policy option, controlling plastic waste and regulating its disposal strategy is of utmost importance. More than 40 years after the launch of first recycling symbol, only 14 percent of plastic packaging is collected for recycling (Ellen Macarthur Foundation, 2016). Coupled with inefficient disposal methods, they are also leading to far-reaching environmental, health and social impacts as plastics leak into natural systems. By establishing an after-use plastics economy, recycled plastics are being used to build roads. Therefore, the opportunities in a circular economy must be explored.

Conclusion

The linear methods of production and consumption are unsustainable for the planet. As urbanisation continues, the need for resources will grow if the current consumption trajectory or urban cities continues. For cities, this means increased waste. The linear model of “produce, use, dispose” is wasteful by design, while the circular economy is conceptualised as a continuous cycle of value preservation and resource optimisation, presenting sustainable alternatives for eliminating waste.

Key Takeaways

1. The transition to a circular economy can only be achieved when all stakeholders – individuals, the private sector, government and civil society – collaborate.

2. Material consumption is expected to grow by 40 billion tonnes in 2010 to about 90 billion tonnes in 2050.

3. The sustainable development goals (SDGs) encourage nations to consider circularity and leading cities to experiment with innovative circular ideas and methods.

4. Businesses and governments are also increasingly becoming aware of intensified demands for accountability.

5. Over-exploitation of materials and natural resources has increased pollution levels and is fueling the demand for responsible products.

6. Digital platforms are enabling circular economy principles to be applied on a larger scale by improving access to information, introducing greater transparency and accountability, and facilitating the deployment of innovative circular solutions.

Bibliography

EESI. (2021). Buildings & Built Infrastructure. Retrieved from Environmental and Energy Study Institutes: https://www.eesi.org/topics/built-infrastructure/description

Ellen Macarthur Foundation. (2016). THE NEW PLASTICS ECONOMY: RETHINKING THE FUTURE OF PLASTICS & CATALYSING ACTION.

IEA. (2021). Buildings A source of enormous untapped efficiency potential. Retrieved from IEA: https://www.iea.org/topics/buildings

(2018). The Weight of Cities Resource Requirements of Future Urbanization. Retrieved from UN Environment Programme: https://www.resourcepanel.org/file/971/download?token=ehOygAQ7

United Nations. (2021). Water Scarcity. Retrieved from United Nations: https://www.unwater.org/water-facts/scarcity/