Thematic Intelligence: The Circular Economy

Thematic Intelligence: The Circular Economy

Summary

In the traditional linear economy, businesses typically follow a take, make, use, and dispose path, with minimal regard for the resources used and the environmental consequences. However, public pressure to mitigate climate change, combat biodiversity loss, and preserve scarce resources is rising. The circular economy seeks to eliminate waste and pollution, keep products and materials in use, and regenerate natural systems.

Key Highlights

• Natural resource use has tripled over the last 50 years and continues to grow at an average of about 2.3% every year. Should the pace of consumption and production continue, resource use will reach 160 billion tonnes by 2060, up 60% from 2020, according to the UN Environment Programme. This will have a severe impact on the environment. Governments worldwide are adopting policies to advance the circular economy, which could help reduce the impact. The EU is leading with its Circular Economy Action Plan, which includes targets for recycling, reducing waste, and promoting ecodesign. Many other countries, such as China, Japan, and the US, have adopted policies based on their specific socio-economic landscape, political priorities, and environmental challenges.
• New business models will be required to transition companies toward the circular economy. For example, companies must develop sustainable business models that consider the entire lifecycle of a product. In addition to reuse and recycling, many are focusing on ecodesign.
• Proactively adopting circular practices can help businesses stay ahead of the evolving regulatory environment and avoid penalties. Sustainable businesses will likely disrupt linear counterparts by offering greater efficiency, long-term sustainability, and regulatory compliance.

Scope

• The circular economy is a fundamentally different approach to how products are designed, produced, and used, in which economic progress is decoupled from the consumption of Earth's finite resources.
• The global economy must shift from a linear model to a circular one to tackle resource scarcity and climate change. This report provides an overview of the circular economy, tracks its rise to prominence, and evaluates the potential for further progress. It also includes GlobalData's circular economy framework, which demonstrates how a product’s lifecycle is circular through the production cycle and the service cycle.
• Finally, it identifies the technologies enabling the circular economy, including 3D printing, advanced materials, artificial intelligence, batteries and energy storage, blockchain, digital twins, electric vehicles, the Internet of Things, robotics, smart cities, and synthetic biology.

Reasons to Buy

• As humankind grapples with the challenges of living sustainably and limiting climate change, the importance of the circular economy is clear. This report will help you understand what the circular economy is, why it is important, and how it could impact your business.