In this article, we will discuss the concept of a Circular economy and why it is important for us to begin the shift towards this for of economy
While attending the Circular Economy Symposium 2019, Niti Aayog CEO Amitabh Kant said that there is a need for legislation to promote the circular economy in the country. He also mentioned that sustainable development and resource circularity is required to establish a circular economy.
Several nations have acknowledged the circular economy as a model for sustainable development. This is one of the unrealized fields in our economy.
“Circular economy has the ability to generate 1.4 crore jobs in the next 5-7 years across the country and create lakhs of new entrepreneurs. Resource circularity is the need of the hour to implement the circular economy.”, he said at the symposium organised by the industry body FICCI.
In this article, we are going to take a look at the meaning of the concept of a circular economy and how it can change the dynamics of an economy.
What Is Circular Economy?
Circular Economy or circularity is an economic system focused on minimising waste and making most of the resources, it is achieved by design, reuse, repair, recycle and refurbishing. Plus, it is an alternative to the traditional linear economy (make, use, dispose of).
Amitabh Kant also said that by 2050 the world population would reach 9.7 billion and out of that 3 billion would be middle-class consumers. We would require 71% additional resources per capita to meet the demand. Therefore, it will increase mineral and material demand from 50 billion tonnes in 2014 to 130 billion in 2050.
Furthermore, Niti Aayog also gave strong emphasis on the need to promote NGO to spread awareness and develop the circular economy at the national level.
Labour intensive economy
Labour-intensive recycling value chain can result in 6 to 8 times more jobs than by incineration or wastes landfilling. For example, The United States scrap industry generated around 150,000 direct jobs and 323,000 indirect jobs in 2015. Similarly, in China, the recycling industry generated 1.5 million direct jobs and about 10 million indirect jobs.
Presently, the metal recycling sector in India employs nearly 1.75 million people, contributing 2 per cent of GDP. Also, research shows that, in all likelihood, content recycling will generate six times more jobs in 2030. Hence, this calls for recycling to be named as a ‘strategic sector’ under the Make in India programme, given the enormous environmental footprint of the industry, its immense job creation potential and its prospects of adopting high-end processes and technologies.
Tech-enabled
Similarly, a focus on ’emerging technologies’ would be absolutely critical for radically transforming the recycling industry in the future.
The technologies combined with artificial intelligence could fundamentally change the way in which materials and natural resources are
- accounted for,
- valued and traded,
Also incentivising individuals, companies and governments to unlock financial value from the so-called waste materials is crucial.
Energy consumption
The global community has lately begun realising the long-term effect that a circular economy may have on mitigating climate change. Sadly, India doesn’t emphasise a ‘circular economy’ as an important pillar of NDC (Nationally Determined Contributions). Also, it is used for achieving low carbon growth with social equity and inclusiveness. The reduce-reuse-recycle of wastes strategy eventually reduces the energy consumption in the commodity value chain.
For example, 34 trees, 5 oil barrels, 8200 kWh of electricity, 8 cubic metres of landfill and 63,560 litres of water can be conserved by recycling 2 tonnes of paper alone.
Similarly, recycling an aluminium can or a glass container production can reduce 95% and 70% of the energy required for producing one from virgin material.
Conclusion
The question of economic progress with environmental accountability is not something of a conjecture that is open to debate. It is a common sense fact that our approach to consumption of resources is imbalanced in the context of renewability cycle resources. We are consuming faster than the rate at which resources are being renewed. This will not merely lead toa shortage in resources but will have an overall impact on the climate and the environment that can potentially make the planet inhospitable for life itself. So it is extremely important for us to take these ideas seriously in terms or priority rather than indulging in it as some form of conscientious action. If you have any other queries with regards to any other financial, legal or regulatory matter, get in touch with us and our team of experts at Vakilsearch will ensure that you receive the best professional guidance with regard to your requirements.
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