What is Circular Economy Concept?

What is Circular Economy Concept?

Before going deep into the circular economy concept we need to know why the circular economy was born. Currently, many economic systems still take natural resources, turn them into products, and distribute them to consumers. After the product is used, the rest of the product is then disposed of and piled in the trash. That’s how the linear economy system works. The linear economy has a take-make-dispose principle, so it assumes that the resources available in nature are not limited and can be exploited as freely as possible for human needs.

Impact of Linear Economy on Humans and the Earth

Unfortunately, the linear economy has had a tremendous impact on our environmental conditions, especially after the industrialization period. Emissions and waste have caused climate change which is marked by an increase in the earth’s temperature that has an impact on food security, health problems, environmental damage, social decline, and economic fluctuations.

Circular Economy Concept as Solution

Therefore, the circular economy concept is offered as an alternative solution. The circular economy is a system solution framework that designs a closed-loop system on the material flow so that it does not produce waste and emissions. The circular economy can make the production flow longer, thereby increasing employment, extending product life, reducing waste, reducing the use of virgin materials, and increasing company profitability.

Basic Principles of Circular Economy

The application of the circular economy has principles that must be carried out. These principles include eliminating waste and pollution, circulating products and materials, and regenerating nature. The circular economy concept and its principles can be implemented in various sectors. For example, agriculture, textiles, mining, energy, and automotive sectors. It is also possible that the circular economy will be implemented from the smallest scale such as a company to a large scale such as a country. Therefore, expertise is needed that is able to design and execute strategies in implementing the circular economy principles into reality.

We Need Accelerating the Circular Economy

Currently, the linear economy still dominates the economic system in the world. The Circular Gap Report in 2021 states that only 8.6% of world production implements a circular economy. So more than 90% of the current economic system still produces waste and emissions. This shows great potential and challenges for us to realize a circular economy worldwide, especially in Indonesia.

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