Circular Economy Acceleration For Net-Zero Emissions by 2050
Circular economy is a concept that emphasizes the creation of a circular value chain so that the rest of production is a resource. This can accelerate the goal of net-zero emissions by 2050 which the world has planned. Even though the challenge of realizing this target is still very large, because the world’s energy needs, especially developing countries, will continue to increase until 2050. This is due to population growth, economic growth, infrastructure development, and urbanization which demand energy needs. Therefore, the circular economy can be an alternative solution that can accelerate the realization of net-zero emissions by 2050.
Circular Economy Acceleration From a Technology Perspective
Various technological findings have had an influence on the implementation of the circular economy in various fields. For example, in agriculture there is technology to recycle waste water, produce bioenergy from biorefinery processes, and use environmentally friendly bioplastics. In addition, the use of technology for the remanufacturing of electronic equipment or batteries also has a major impact on energy and material efficiency. In addition, the use of digitalization as part of industry 4.0 has helped accelerate the circular economy, such as efforts to decarbonize materials.
Circular Economy Acceleration From a Financial Perspective
Financial is an important factor for the sustainability of a company. Circular economy has great potential to improve the financial aspect of the company. This is because products that utilize raw materials from waste have the potential to have much lower production costs. Thus, utilizing the circular economy can open up investment opportunities so that companies will grow much faster. Investments or various other funding can help the development of the company. Finally, circular economy activities that can reduce the production of carbon emissions can run optimally.
Some time ago at the G20, Joe Biden announced his commitment to help Indonesia. The assistance is in the form of funding for renewable energy of 20 billion dollars. The fund is a collaboration between America, Japan, world financial institutions and private parties. He conveyed this in the hope that Indonesia would close early on coal-fired power plants. The cooperation also asks Indonesia to reduce carbon emissions from the energy sector by up to 290 mega tons.
Circular Economy Acceleration From a Consumer Behavior Perspective
Consumer behavior plays a major role in the transition to a circular economy. The greater the public interest in their concern for the environment, the faster the circular economy will be implemented. Such behavior can be influenced by many factors such as norms, social pressures, government policies, and income levels. Therefore, for business actors and practitioners, it is very important to continue communicating the idea of a circular economy to the public. In fact, changes in people’s behavior that are increasingly concerned about the environment can provide incentives for the government to make policies that are aligned.
Circular Economy Acceleration From an Ecosystem Perspective
Circular economy is an idea that requires cooperation from many parties. Indonesia is unlikely to achieve net zero emissions by 2050, if only one company is trying to make it happen. We can build an ecosystem that has the same vision towards a circular economy in stages. Starting from the corporate, city, regional, to national levels. Ideas that can facilitate cooperation between companies include government policies regarding standardization and tax relief for circular economy actors. Then, they can also provide subsidies or incentives for actors and consumers who buy circular economy-based products. In addition, the use of technology can also help build a free market for waste which can build symbiosis between industries.
The circular economy is a promising future and can accelerate the realization of net-zero emissions by 2050. By achieving this target, we hope that the earth can become a comfortable and safe place for the next generation. Therefore, the various factors above can be a concern for all of us so that various circular economy ideas can be realized in massive quantities soon.