A circular economy entails gradual decoupling of the consumption of finite resources, reducing & designing waste out of the system, recovering resources at the end of a product’s life, and channelling them back into production.
Circular economy - an overview
at present
For a long time, we have been operating in a ‘linear economy’. This economic model traditionally follows the “take-make-dispose” step-by-step plan. Raw materials are collected, then made into products that are used until they are finally discarded as waste. Value is created in this economic system by producing and selling as many products as possible.
But once a product has reached the end of its so-called product life, they are disposed of and incinerated into the local landfill, generating massive amounts of waste.
In Asia, we are so often used to this economic model that we don’t usually consider its impacts on our environment and our society. Single-use plastic bags, straws and disposable cutlery are still used every day; many electronic products are designed only to last a few years; and many of us do not sort and recycle our waste properly.
Yet, our current way of life is causing a significant impact on our environment – in Asia and around the world.
what is happening?
Though the current economic model has resulted in economic progress throughout the world, fueled by consumers’ drive for more and more products, it is taking a heavy toll on environments around the world:
Natural resources are depleting at a rapid and unsustainable rate to meet consumers’ demands.
Huge mountains of trash are generated and disposed of every day, sometimes resulting in air and water pollution in nearby regions.
Materials are constantly discarded even during the production process, as it is more inexpensive to dispose of them rather than treat them for reuse.
A CHANGE OF PERSPECTIVE
The linear economy is causing a severe environmental impact to people around the world. But is it possible to achieve economic prosperity if we do not follow the traditional linear economy model?
Yes, it is. All we need to kickstart this process is a change in perspective.
Instead of viewing resources as infinite, we need to consider that our resources will eventually run out. We need to put in place processes that will use the existing materials – rather than new ones – to manufacture products.
Instead of viewing products as items that are meant to be discarded after use, we need to consider methods to recover the products, so that the raw materials inside each item can be reused again to produce the next product.
Instead of viewing ownership as a requirement in all business transactions, we need to consider other methods of sales, so that manufacturers will have easy access to recover and repair products for new use.
With this change in perspective, we will be able to move away from our traditional linear economy into one that is more sustainable and circular. This is called the circular economy.
TRANSITIONING TO
A Circular economy
But the transition to a circular economy will not be an easy one. Many companies are only first hearing of this new type of economic model and are skeptical of how it could affect their revenue. Consumers may not understand the value of this new economy, choosing to stay rooted to their existing methods of consumption.
For an effective transition, companies, consumers and governments will need to fully understand the circular economy, the benefits it provides, and the changes they can make to their work and lifestyle to make the transition.
That is where Circular Asia comes in. As the catalyst for a circular economy in Singapore and Asia, Circular Asia conducts a large variety of programmes that will allow participants to learn and experience the many aspects of the circular economy. We also connect our various circular partners to help create the meaningful networks required for a circular economy to take shape.
Find out more about the exciting work that we do to bring the circular economy to Singapore and Asia here.
