What is a Circular Economy and How Does Our Industry Participate in It?

The phrase seems to be used everywhere: “circular economy.” But what does it really mean? Is it just an industry buzzword that means nothing? Is it a fad? A trend? Or is it something more?

In this blog post, we’ll explain what a circular economy is, its benefits, and how the environmental processing and recycling industry fits into it. 

First things first. What is a circular economy?

We like this explanation from the U.S. Environmental Protection Agency: “A circular economy keeps materials and products in circulation for as long possible.” That’s in stark contrast to our current economic system, which is considered a “linear economy;” one that extracts natural resources and raw materials from nature, turns them into consumer goods, and discards them as waste at the end of their life. The process is very linear: there is a beginning, a middle, and an end.

But the linear economy increases the burden placed on the environment, contributes to pollution, and exacerbates climate change and biodiversity loss.

According to the Circle Economy Foundation, materials that are cycled back into the global economy after their useful life account for only 7.2% of all material inputs into the economy. And it’s getting worse. Increasing raw material extraction has seen global recycling drop from 9.1% in 2018, to 8.6% 2020, to its current level of 7.2%.

In contrast, a circular economy is based on the reuse of materials, redesign of products to use fewer resources, and recapture of waste to make new materials and products. It also includes using things longer and helping nature regenerate itself.

In short, a circular economy minimizes waste. When a product reaches its end of life, its materials are recycled to keep them in the economy where they can be used again and again, creating value from so-called “waste.”

To put it into visual terms, consider this graphic, published by European Parliament.

What are the benefits of a circular economy?

Transitioning to a circular economy requires a seismic shift in thinking and a huge amount of work so there must be substantial benefits to make it worth the effort required. Here are three benefits of a circular economy.

A circular economy reduces dependence on raw materials.

The world population is growing with no signs of slowing, and so is the demand for natural resources. But as scientists have been warning for decades, the supply of raw materials is limited and will eventually be exhausted.

A circular economy emphasizes recycling and reusing resources to decrease our dependence on nonrenewable raw materials. It’s a smarter way to use the resources that we have and helps mitigate the risks associated with raw material supply, such as availability, price volatility, import tariffs, and global political instability.

A circular economy creates jobs and saves consumers money.

A report by The International Labor Organization estimates that a net-new 7 – 8 million jobs could be created in a circular economy, where all types of waste (scrap metal, clothes, electronics) are reused, recycled, or refurbished.

A shift towards a circular economy would also stimulate innovation. Products would require new ideas and technologies to design them for circular use and to repurpose the materials used to make them at their end of life. Plus, consumers would benefit from more durable products that last longer and save them money over time.

A circular economy protects the environment.

A report by Circle Economy estimates that circular economy strategies can cut global greenhouse gas emissions by 39%. As previously noted, reusing and recycling products also decreases the need for extraction of natural resources, helps limit biodiversity loss, and reduces landscape and wildlife habitat disruption.

How does the environmental processing and recycling industry and Ecoverse participate in a circular economy?

Our entire industry is based on transforming process byproducts and waste products into new, valuable and in-demand end products: Green waste is transformed into mulch; Food waste is transformed into compost; Clean wood pallets are transformed into biochar.

There are a multitude of ways the environmental processing and recycling industry participates in a circular economy, but here are a few of the most notable.

Renewable resource waste.

Green waste (organic waste that can be composted like leaves, grass clippings, twigs and branches, and kitchen waste) is transformed into nutrient-rich compost which reduces trash in landfills, builds healthy soil, and helps address climate change.

Food waste.

Land use for agriculture occupies half of the land on the planet and is responsible for a third of global greenhouse gas emissions and 70% of freshwater usage. As the world population grows, we need to waste less food. Food waste recycling systems convert unused, expired, or spoiled food into animal feed, compost, or biofuel.

Sustainable agriculture.

We support healthy soil by converting green waste, food waste, and wood waste into compost, mulch, and biochar; all of which keeps farmable land healthier and arable for far longer than existing farming techniques.

Built environment waste.

The built environment (man-made structures for living, working, or recreation) is responsible for 42% of global CO2 emissions and has traditionally missed many recycling opportunities. Our industry reduces and separates construction and demolition waste into new, usable products by reclaiming aggregate, waste wood, and scrap metals, reducing the need to extract virgin raw materials from the earth.

Reuse and repair to extend product life.

We offer complete repair and maintenance services as well as replacement parts to keep the machines we sell running efficiently and with longer lifespans, decreasing the costs of remanufacturing and upgrading machines.

As you can see, the environmental processing and recycling industry has participated in the circular economy since before the phrase gained popularity. Recycling and repurposing isn’t just a good idea, it’s good business.

Ecoverse provides the best environmental and aggregate processing machinery to the North American market and helps you do something amazing: create something from nothing by converting waste products into sellable goods. Plus, do it more efficiently or faster. Simply put, Ecoverse helps you do more things, and do them better so your operation can achieve unprecedented levels of production and profitability.

Want to learn how we can help your organization do more, better? Contact us!