Circular economy approach : economy, livelihoods, and environment

Abstract

It is time to ask some simple and some not so simple questions about the various forms of circular economy (CE) and their existing business models. According to the European Commission, CE is a production and consumption model that aims to preserve the value of products, materials and resources for as long as possible by returning them to the product cycle at the end of their use, while minimising waste generation. CE is closely linked to environmental problems such as air and water pollution, waste generation, etc., as well as to climate change and the goal of limiting the temperature rise to 2 degrees Celsius. Therefore, it is necessary to understand the need for new business and governance models that go beyond sectoral policies for effective implementation of CE. This policy brief highlights the concept and approaches of CE and outlines the role of governments, businesses, and international institutions in improving the transition from a linear to a CE. Using India, a developing country, as an example, the authors highlight the opportunities and challenges in moving towards a CE approach. The authors conclude by identifying ways to improve the adoption of CE through increased investment flows, competitiveness, the emergence of innovative business models, and job creation.