Lecture Four - Circular Economy Flashcards
Positive Impacts of Socio-Economic Development
Economic growth driven by industrialization and technological advancements.
Improvement in quality of life and access to goods and services.
Negative Impacts of Socio-Economic Development
Resource depletion due to increasing demand.
Environmental degradation resulting from unsustainable practices.
Increased waste production contributing to ecological harm.
Impact of Living Systems - Today’s Economy
Characterized by a linear “make-dispose” model.
Impact on Living System - Key points
New Products: Depend on new raw materials, leading to resource depletion.
End-of-Life Recycling: Occurs at the end of the product lifecycle, often insufficient to mitigate waste.
High Waste Levels: Historical highs in waste production, exacerbating environmental challenges.
Impact on Living System - Future Outlook
With 3 billion new middle-class consumers expected by 2030, demand and waste will further increase unless circular models are adopted.
A Model with Embedded Structural Losses - Mobility Sector
Car Usage: Cars are parked 92% of the time and often only carry 1.5 people when in use.
Safety Concerns: 30,000 lives lost annually in accidents, with 25% resulting in irreversible injuries.
A Model with Embedded Structural Losses - Built Environment
Construction Waste: 30% of European landfill waste is from construction (50% in Brazil).
Office Occupancy: Offices are occupied only 40-50% of the time on a working day.
Housing: 11 million empty homes in Europe, highlighting inefficiencies in housing utilization.
A Model with Embedded Structural Losses - Food Sector
Food Waste: Over 100 million tonnes of food lost annually in Europe, with 50% occurring along the production chain.
Landfill Contribution: 97% of global food residue is sent to landfill, wasting $300 billion.
Soil Degradation: 30-80% in Europe, compromising agricultural productivity.
Factors Challenging the Linear Model
Price Volatility: Fluctuating costs of raw materials due to finite availability.
Economic and Structural Losses: Inefficiencies in resource use leading to economic drawbacks.
Demographic Trends: Population growth driving increased consumption.
Urbanization: Expanding cities necessitating more efficient use of resources.
Acceptance of New Business Models: Growing openness to circular practices and shared economy solutions.
Technological Advances: Innovations enabling more efficient resource management and reduced environmental impact.
Circular Economy - Regenerative by Design
Focuses on maintaining the utility and value of products and materials throughout their lifecycle.
Circular Economy - Elimination of Water
Encourages the use of renewable resources and recycling to minimize waste.
Circular Economy - Economic Benefits
Potential to unlock €1.8 trillion in benefits for Europe by 2030 in key sectors such as mobility, food, and the built environment.
Circular Economy - Key Processes
Farming/Collection: Efficient extraction and management of resources.
Reuse/Redistribute: Extending product life through maintenance and redistribution.
Refurbish/Remanufacture: Upgrading and repurposing products to extend their usability.
Recycle: Converting end-of-life products into raw materials for new production cycles.
The Compelling Business Rationale - Economic Benefits by 2030
Circular Path vs. Current Path: Circular approaches can offer significant economic advantages.
Overall Benefits: EUR 1.8 trillion compared to EUR 0.9 trillion under current practices.
Disposable Income Growth: Expected to increase by 7% with circular practices versus 4% with current practices.
GDP Growth: 11% with circular models, compared to 4% with linear models.
Resource Efficiency: Circular models can reduce emissions by 48% and primary material consumption by 32%.
Technological Advancements Driving Circular Economy:
Big Data: Harnessing data insights for resource optimization and lifecycle management.
Internet of Things (IoT): Connecting devices for real-time monitoring and data collection.
Blockchain: Ensuring transparency and traceability in resource flows and transactions.
Artificial Intelligence: Enabling predictive analytics and decision-making for efficient resource use.
Cloud Computing: Providing scalable and flexible data storage and processing capabilities.
Additive Manufacturing (3D Printing): Facilitating local production and reducing waste.
Robotics: Automating processes to increase efficiency and precision.
Virtual Reality: Enhancing design and testing of circular solutions.
Autonomous Vehicles: Improving logistics and transportation efficiency.
