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Why we need a Circular Economy?


Although products are being manufactured for centuries, the Industrial Revolution that started in the late 18th Century led to an epochal transformation in the production processes. The invention of steam power by Thomas Savery transformed the way goods were produced. Mass production became a reality, with a seemingly infinite supply of raw materials and energy, and labor was readily available. Since then, production technology has continued to evolve at a rapid pace. Supply chains of a single product now may span multiple countries with different stages being accomplished in different geographies. This has significantly increased the accessibility & affordability of products, globally.

When buying a product, the labels allow the consumers to identify the origin and composition of the product. But, labels do not provide any information on the virtual resources consumed in the manufacturing process. For instance, it can take up to 2,700 liters of water to produce the cotton needed to make a single t-shirt. But this information is not made available to the users through labels or any other means. Hence, this is the unseen or “virtual water”, consumed by the user. (WWF, 2013).

Every product also consists of some embodied carbon. It is the sum of all Greenhouse Gases(GHG) emitted in the production of a good. Industries are the biggest contributor to GHG emissions, accounting for 24.2 % of the total GHG emissions. Energy-related emissions from the manufacturing industry constitute mining and quarrying, construction, textiles, wood products, and transport equipment (such as car manufacturing) constitute around 10.6% whereas manufacturing of iron and steel constitutes 7.2% (Ritchie & Roser, 2020). Therefore, it is essential to understand this embodied GHG in the production of a good. It will be helpful in framing the strategies to reduce the associated emissions.

Global Greenhouse gas emission by sector




Manufacturers & consumers are also less concerned about the post-lifecycle whereabouts of the products & their associated impact. Many manufacturers even engage in deliberate product obsolescence, which ensures consistent demand for their products but leads to a throw-away culture within consumers & invariably contributes to an ever-growing waste stream.

To sum up, every product life cycle consists of steps like manufacturing, consumption, and disposal.

This “take, make, waste” chain is a Linear Economy approach that has been deteriorating not only the surroundings but is also a major cause of global warming.

In contrast to the ‘take-make-waste’ linear model, a Circular Economy is a systemic approach to economic development designed to benefit businesses, society, and the environment. The circular economy aims to enhance the longevity of products, materials, equipment, and infrastructure, thereby also improving the productivity of these resources. CE employs reuse, sharing, repair, refurbishment, remanufacturing, and recycling to create a closed-loop system, minimizing the use of resource inputs and limiting waste generation, pollution, and carbon emissions. Waste materials and energy should become input for other processes through waste valorization: either as a component or recovered resource for another industrial process or as regenerative resources for nature (e.g., compost).



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