Circular Economy the new Cradle-to-Cradle
The world is already consuming more than it's producing. Linear consumption is coming to its end as resources are becoming more scare every single day. It’s time we shift to a more circular consumption model. For over 300 years we have been endlessly throwing away goods that have reached its product-life cycle, and continuously obtained newer ones. We have failed to become more sustainable and the truth is that we won’t unless someone else does it for us.
The human society must realize what’s going on and act. We consumers have great influence on the global economy. Together we can draw change and force entrepreneurs to change their business models by simply changing our preferences. The sooner we do this, the better for our future.
The solution lays in the new circular business model (formally called “cradle-to-cradle” - term coined by Walter R. Stahel) and manufacturing process which would have to become more loop-like. It won’t be easy for sure, but governments can help making this shift. This will of course require changes in the law, and financial incentives to get such projects off the ground. Results would been seen in 15-20 years.
A good example of the circular economy concept would be China. It defines circular economy as "the summary of all reduction, recycle and reuse activities during the production, circulation and consumption processes" - in short create maximum output from minimum input. As of today China, is the quickest developing country in the world, increasing it’s GDP by 10%. It’s natural resources are very limited in comparison to other countries (world average) per capita:
- Fresh water: 25%,
- Arable land: 40%,
- Forest: 20% ,
- Mineral resources: 45 kinds less.
In 2001, the state started it’s Circular Economy initiative (inspired by Japanese and German Recycling Economy Laws) by building national eco industrial demonstration gardens (zones) - also known as industrial parks. As of today, they have managed to approve 33 of such projects. This has allowed them to gain experience and succeed in the application of the circular model.
China has also raised environmental standards concerning pollution. The state designed and implemented over 50 standards for various industries which will ensure better air quality. Yet, it’s planning to build hundreds of environmental sites in cities, towns, and townships.
Unfortunately, the implementation of changes and hard efforts didn’t bring desired results. The problem lies in R&D meaning that there are knowledge gaps in terms of design and implementation of a such business model. The engineers and construction workers don’t know how to apply such innovations into practice.
China as rapidly developing country is undertaking a major challenge in setting a new economic standard for the entire global economy. At the present development stage the society still stands a change to its lifestyle and adapt to the new economical culture rather than the old fashioned global one. Doing so and proving it in practice may motivate other policy makers follow along and do the same; creating a better natural and economical environment. Despite of the undertaken political actions, our knowledge on the new highly innovative economic framework is still at an early stage, and therefore more time is needed to fill in the knowledge gap in implementing a successful circular business models.








