The production model through a linear system, in which industries use the materials in a TAKE - MAKE - DISPOSE logic, almost didn’t evolve since the Industrial Revolution. The adoption of this model on a large scale has led to an increasing scarcity of resources and consequent volatility of raw material prices.
Linear Economy can lead to high risks for companies and has irreversible consequences for public health, the environment, and living beings.
The Linear Economy, the model that currently prevails in our societies, almost didn’t evolve since the Industrial Revolution. In this model, the organizations and industries extract the materials and resources from nature and produce their products to be discarded, normally after a very brief period.
This TAKE-MAKE-DISPODE logic is completely blind to the planet's capacity to regenerate what is extracted and to the impacts that occurred during this process, such as the degradation of several ecosystems, greenhouse gases emissions, deterioration of public health, biodiversity loss, and species extinction.
A big part of the waste that is produced, ends up in landfills or incinerated (1). In Europe, it's estimated that only 40% of waste is recycled, with major discrepancies between member countries (2). In this system, countless resources with high economic potential for the economy are lost and irreparable damage is caused to the soil, air, oceans, and living beings (3).
"The Economy must evolve in the sense of having as its main resources, those that are growing and abundant, like people and their knowledge (4)."
In the Linear Economy, the end-life of a product represents the end of its economic potential, but also the end of all investment, effort, work and negative consequences generated with it.
In 2010, about 65 billion tons of raw material entered the economy, and it is expected that by 2020 this number will grow to 82 billion. In addition, the growing demand for raw materials has proved to be a major risk factor for organizations.
This situation generates high price volatility, and nowadays it's not uncommon to find situations in which the lack of resources, is generating complex production problems, in the capacity to satisfy the current demand (3).
A recent case that shows precisely the seriousness of this situation, is the current scarcity of electronic components, which is generating serious problems in the production capacity of several industries that depend on them (ex: car industry, consoles, computer equipment, etc.).
The transition to a circular model, through the implementation of its principles, on the organizations and cities DNA, it's urgent and our best chance to be able to face the current challenges that we're facing.
Considering that the majority of resources are finite and often used well above the land's regenerative capacity, humanity must find new models that will allow us to thrive with Nature, instead of exploring it in a destructive way. The Economy must evolve towards having as its main resources those that are growing and abundant, as is the case with people and knowledge (4).
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Author: Mariana Pinto e Costa (Co-founder BeeCircular)
Contact us: beecircular.geral@gmail.com
Sources:
(1) Ellen MacArthur Foundation, Towards The Circular Economy: Accelerating the scale-ip across global supply chains, EMF, London, 2014
(2) European Commission, Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: Closing the loop – An EU action plan for the Circular Economy, CE, Bruxelles, 2015
(3) Ellen MacArthur Foundation, Towards The Circular Economy: Economic and business rationale for accelerated transition, EMF, London, 2013
(4) Making the Circular Economy Work for Human Development - Available on: https://www.youtube.com/watch?v=ewPyop5EG48