Circular Economies: A Global Imperative
A #circulareconomy is an economic model that aims to eliminate waste and pollution by keeping resources in use for as long as possible, through reusing, repairing, renovating, remanufacturing, regenerating, and of course, recycling. The ultimate goal is to create a closed-loop system where products and materials are continually reused or fed back into the economy, reducing the need for extracting new raw materials and minimizing #environmentalimpact.
The state of circular economies around the world is a mixed picture. According to the World Economic Forum, only 9% of the global economy is circular, indicating that the vast majority of resources are still used in the outdated, unsustainable, and non-circular model of make-use-dispose. To go beyond this linear view, we must not only take action but also rethink consumption. This change in mindset lies at the foundation of a circular economy.
With the growing recognition of the benefits of circular economies, several governments and businesses around the world are increasingly promoting this model through various initiatives and advocacy. One of the countries leading the way in the promotion of circular economies is #SaudiArabia. According to the International Trade Administration, Saudi Arabia generates around 53 million tons of waste annually. However, with the introduction of its #Vision2030, the Kingdom has begun working towards a circular economy, which aims to diversify its goods and services to reduce its dependence on oil.
As Estedama’s GM, Mr. Faleh AlDossary explains, “Saudi Arabia’s progress around sustainable practices has been exponential. The country’s circular economy initiatives focus on reducing waste and promoting sustainability through investment in recycling infrastructure, the use of renewable energy, and the promotion of circular business models.”
The government is also promoting this concept through the development of economic cities. For example, King Abdullah Economic City has been designed as a smart, digitally focused residential area that incorporates sustainable practices at every step. With recycling bins spread across its 185-square kilometers territory, energy-efficient traffic lights, and solar power farms, #KAEC is a prime example of the nation’s impressive progress towards a circular economy.
NEOM is another major smart city in Saudi Arabia with a large focus on circularity. In the word of its CIO, Dr. Manar Al Moneef, “Decoupling economic growth and the use of natural resources provides the opportunity for expansion, sustainably and financially.” This principle is one that can be applied across both private and public sectors, paving a path for citizens and residents to follow.
Similar to Saudi Arabia, the UAE has also taken several initiatives to promote this concept. One such initiative is the establishment of the Abu Dhabi Circular Economy Policy, with a goal to transition the emirate of Abu Dhabi to a circular economy by 2030. It includes targets such as diverting 75% of waste from landfills, reducing greenhouse gas emissions by 25%, and increasing the use of renewable energy to 30%. Following closely in Abu Dhabi’s footsteps is the Emirate of Dubai with its Dubai 2040 Urban Master Plan. This plan aims to create a #sustainable and resilient city by incorporating corresponding principles. The plan includes initiatives such as increasing green spaces, reducing waste, and promoting sustainable transportation.
In Europe, circular economies have become a policy priority, with the European Union (EU) adopting the Circular Economy Action Plan in 2020. The plan aims to make Europe a climate-neutral continent by 2050 and focuses on three main principles: designing waste out of the system, keeping products and materials in use, and fostering sustainable production and consumption. The EU has set ambitious targets for 2030, such as increasing the #recycling rate to 65%, reducing municipal waste deposited in landfills to 10%, and halving food waste.
To achieve these targets, the EU has proposed a range of measures, including new packaging regulations and revising the regulatory framework for #wastemanagement. The EU has also created funding programs to support the transition to a circular economy, such as the Circular Economy and Quality of Life program, which aims to support innovative relevant projects across Europe.
In the United States, the circular economy is also gaining momentum, with several states and cities adopting similar initiatives. One such initiative is the California Circular Economy and Plastic Pollution Reduction Act, which aims to #reduceplasticwaste and promote recycling initiatives in the state. The act includes measures such as increasing the use of recycled content in plastic products, promoting composting, and reducing the consumption of single-use or harmful plastics.
Complementing California’s efforts, New York City's Zero Waste pledge aims to encourage residents to follow sustainable practices through recycling programs, promoting composting, and reducing waste from businesses and households. The city has also created international partnerships and funding programs to support the transition to a circular economy, such as the NYC Circular Innovation Challenge. Taken by various large cities across the globe, the challenge was a collaborative effort compiling 137 innovative project proposals that governments are now looking into implementing.
The World Economic Forum estimates that nature-focused corporate changes could bring $10.1 trillion in the global economy and around 395 million jobs. With so much at stake and an increasing array of opportunities worldwide, circular economies need to become the new norm.