Environment and the Linear Economic Model

The environmental impacts of today’s “take, make, waste” or “linear” economy are dramatic and extensive. Resource extraction has tripled since 1970 and it is projected to grow by another 70% by 2050, with the impacts of climate change, biodiversity loss and pollution being felt all around the world.

Figure.6. Type of conversation

The statistics showing the adoption of the circular model show that only 8.6% of operations is circular. A rapid shift to a more circular economy, could dramatically cut resource use, and coupled with decarbonization, can deliver a low carbon and lower environmental impact future.

It is becoming increasingly evident that “business as usual” is unsustainable for both people and the environment. The sixth Global Environment Outlook (GEO-6) demonstrated how a healthy environment is vital to human health and well-being.

Aside from serious environmental problems and the danger of variable resource prices, businesses are confronted with substantial technology advancements as well as the following external change factors, which are promoting the move to more circular business models:

• policy environment changes
• investor demands
• the need for greater business and supply chain
• resilience
• changing consumer preferences
• the impact of COVID-19.

Overall, the cornerstone of circular business strategies revolves around these areas:

• designing products and services with minimal
• resource use from the start to allow for circularity
• and longevity
• designing out waste and keeping chemicals of
• concern away from recycled material streams at
• all stages of the value chain
• designing in renewable and recyclable resources
• to help develop the market for sustainable and
• second-life materials and to reduce a company’s
• reliance on virgin materials
• designing in regenerative raw materials to help reduce material use

The circular economy’s original purpose is to have a beneficial influence on natural systems without depleting or overloading them. This is evident in the circular economy’s environmental advantages. A circular economy, for example, emits less greenhouse gases, preserves land, air, and water, and protects natural reserves.

So, what are the environmental benefits of circular economy?

Less greenhouse gases

By following the principles of the circular economy, greenhouse gas emissions are automatically reduced on a global scale. Climate change and the use of materials are closely linked. According to Circle Economy calculations, 62% of global greenhouse gas emissions (excluding those from land use and forestry) come from the extraction, processing and production of goods to meet society’s needs; only 38% are emitted in the supply and use of products and services (Circle Economy, 2019).

Vital soil, air and water bodies

The economic use of circularity provides important ecosystems such as soil, air, and water bodies. These ecosystems provide cleansing services, goods such as productive farmland, pollination, and safe drinking water. In a linear economy, these services are eventually exhausted by continual product extraction or overwhelmed by toxic dumping. When these goods are employed in a cycle, the soil, air, and water bodies stay resilient and productive. (SYKE, 2018)

Conservation of nature reserves

Raw material extraction and waste disposal have a detrimental influence on natural reserves. These natural spaces are critical for the preservation of ecosystem services (as previously described), as well as natural and cultural heritage. Currently, many governments and organizations are primarily concerned with safeguarding nature from the exploitation and disposal of raw resources and garbage. To systematically protect wildlife, exploitation and dumping must be stopped in general. This is accomplished through the circular economy (SYKE, 2018).