The European Union has set itself an ambitious and necessary goal of obtaining no net emissions of greenhouse gases by 2050. In order to achieve this goal, the European Union has outlined the
Circular Economy Strategy Plan, which challenges the traditional methods for the manufacturing, use and disposal of goods. It is also a plan underpinned by the transition to renewable energy resources. For its part, the Spanish government has highlighted the objective to transition to a circular economy which is conducive to the change in behaviour of consumers. This will enable Spain, among other European countries, to transition towards a sustainable energy model.
With my busines interest in emerging technologies, I am intrigued as to how manufacturers can put sustainability at the heart of their businesses and whether consumer mentality can be changed to promote the repurposing and recycling of products.
New technology and products are created every day; yet for most, their life cycle is linear. Natural resources are extracted, the product is made, it is used by the consumer and then it is thrown away. The Circular Economy Action Plan challenges this model. It proposes a closed loop which would restrict the single use of products. This model replicates the processes of nature, as once an organism decomposes, its nutrients return to the soil which supports the growth and development of new organisms. Transitioning to a circular economy will aid the European Union to support a regenerative growth model that gives back to the planet more than it takes.
This model isn’t only crucial to achieve the protection of our planet, it helps protect consumers, makes business sense for manufacturers and promotes competitiveness within the European Single Market.
The model protects customers as it advocates for high-quality, functional and safe products, which are efficient and affordable, last longer and are designed for reuse, repair and high-quality recycling. Consumers would be empowered to repair their own products, rather than buying a new product simply because one component in the original product no longer functions. It could also reduce costs as rather than owning a specific product, consumers could licence the use of the product for a fixed term before it is returned to the manufacturer to be repurposed.
The transition to a circular economy also makes business sense. The closed loop model for the production of goods could increase the profitability of manufacturers whilst sheltering them from resource price fluctuations. Currently manufacturing firms in the European Union spend about 40% on materials. Production costs could be reduced as consumers could provide them with the products to be repurposed and replaced. A circular economy decouples manufacturers from the availability of the finite raw materials and enables them to become more self-sufficient. In support of the initiative, the International Energy Agency has advocated for policies, which would increase recycling of aluminium, steel, paper and plastics, and material efficiency strategies.
Transitioning to a circular economy will also encourage innovation and design whilst promoting competitiveness. A premium will be placed on companies which can implement technology for the effective repurposing of recycled raw materials.
Practical hurdles remain to implement such an ambitious project across the whole of the European Union, yet I look forward to seeing how companies respond to the proposals and how they can apply ingenious solutions to increase the use of renewable energy and materials.
