Lecture5 Flashcards
What is the circular economy?
- Circular economy: A system where materials, products, or their components are kept in cycles.
- Aims to eliminate waste and use renewable energy.
Key societal challenges addressed by a circular economy?
-> 2 problems of economic growth
- Global warming: Energy for material extraction emits greenhouse gases.
- Resource depletion: Continuation of a linear economy will exhaust non-renewable resources.
Linear vs Circular Economy?
- Linear economy: Extract → Use → Dispose.
- Circular economy: Reduce, reuse, recycle.
- Goal: Decouple economic growth from resource use.
Is a circular economy always sustainable?
- Not necessarily: Circular products/services may not reduce environmental impact.
- Requires assessments to ensure true sustainability.
What is the Ellen MacArthur Foundation’s role?
- Popularized the circular economy concept.
- Introduced the Butterfly diagram.
1) Preserve and enhance natural capital
2) Circulate products, components, and materials in use at the highest utility.
3) Design out negative externalities like landfill.
Perfect Circular Economy characteristics?
- Materials/products kept in cycles.
- Waste elimination.
- Processes powered by renewable energy.
Why redesign business models for a circular economy?
- Products must be designed circularly.
- Businesses must rethink their models to align with circular economy principles.
Key promise of a circular economy?
- Save resources and reduce environmental impact.
- Economic growth may still be possible.
Why economic growth might be bad..
Economic growth is directly linked to an increased use of resources.
Anoother cube..
Material Circularity
Economic Sustainability
Environmental Sustainability
Cube must bi on the top right -> (+) for all three dimensions! to be a sustainable and circular solution
Example recycling and maintainance
Fairphone
Example inner circle (service with monthly fee)
Kitchen dings
We need..
Policies fostering circular economy
New business models
Consumer acceptance of circular products
