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Understanding Circular Economy Principles

The document discusses the urgent need to transition from a linear economy to a circular economy due to resource scarcity and environmental concerns. It outlines the principles of the circular economy, which focuses on reducing waste, reusing materials, and optimizing resource performance while involving various stakeholders such as public entities, companies, and consumers. Additionally, it highlights the benefits of this model, including cost reductions, job creation, and recent developments in Peru towards adopting circular economy practices.
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0% found this document useful (0 votes)
50 views16 pages

Understanding Circular Economy Principles

The document discusses the urgent need to transition from a linear economy to a circular economy due to resource scarcity and environmental concerns. It outlines the principles of the circular economy, which focuses on reducing waste, reusing materials, and optimizing resource performance while involving various stakeholders such as public entities, companies, and consumers. Additionally, it highlights the benefits of this model, including cost reductions, job creation, and recent developments in Peru towards adopting circular economy practices.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

THE CIRCULAR ECONOMY

THECONTEXT
The era in which cheap fossil fuels and other materials were abundant
[Link],associatedwithdemographicpressure,tothe
scarcity of resources such as water and food products, and the proliferation
of harmful waste, demonstrates the need to rethink our model of
production and consumption, instead of being satisfied with provisional corrections.
In a world of limited resources and with increasingly high energy costs
elevated
How can we rethink and redesign our production model?
CIRCULAR ECONOMY: WHEN WASTE
FROM SOME ARE THE RESOURCES OF OTHERS

Currently, companies and consumers


we are involved in a based economy
in the "take, make, use, and throw away". However,
this economic system has become
unsustainable. In a world with scarce resources,
reality demands us to develop an economy
based on the 'reduce, reuse, and recycle.' How
Will we be able to achieve it? It seems that the economy
circular may be the answer.
What is circular economy?
The circular economy is a development cycle
that optimizes the yields of the resources.
It is based on the management of finite stocks and flows.
renewables. Additionally, it seeks to reduce the
waste, which advocates for the use of
biodegradable materials in production of
a good so that, at the end of its useful life, it can
return to nature without causing harm
environmental.
The circular economy
1 2 34
Thecurrentmodel,which Themodelofthe"economy Nature does not generate We must encourage the
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fromthesolitoprepare that proposes a new digests,turnsintofertilzer. change completely suspicious
productsthatarethenthrownaway, ways of seeing the world In the same way, the ideas about the
notsustan
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"Cannotapply" basadaen theymustdesignandcreatewith n
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indefinitelyasystem the observation of the less amount of energy accountofwhatispossible
linearonaplanetwith nature. possible,andthewaste new
limited resources. theyhavetoreintegratetothe different lifestyles and
production process. sustainable!

Diversityisastrength:inanuncertainandfast-changingworld
evolution,wemustprioritizemodularity,versatilty
The adaptation. Some diverse systems, with numerous
connections and dimensions, are more resistant to the
external shocks that the systems built simply with
views on performance.
Energymustcomefromrenewablesources:Justlikein
life, any system must aim to operate in the long run with
solar energy and generating energy through renewable sources.
Asystemicthinking:theabilitytounderstandthewayin
thathefragmentsn
i fu
l enceeachotherwtihn
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l ments
itseemslikesomethingthat"fits"intotheinfrastructure,themeans
the social environment.
Actors of the circular economy
The circular economy seeks to involve multiple
actors: public entities, companies,
consumers, etc. Each of these plays a role
important in the adoption of the circular economy.
Thus, for example, public entities will be the
responsible for developing the legislative framework for
que el mercado adopte este tipo de economía. De
Likewise, companies must commit.
and they will start to produce under the approach of the
circular economy. Finally, consumers
they will prefer products created under this approach
and they will gradually adapt their consumption habits.
Benefits of the circular economy
In addition to environmental benefits, the economy
circular generates benefits for both companies and
consumers. Among the main benefits
we found:
Reduction of production costs through reuse of
resources.
Reduction of risk due to price fluctuation
raw materials.
Reduction of the consumer price.
Job creation in the management industry
waste.
Generation of spaces for entrepreneurship
The circular economy in Peru
In September of last year, it took place in our
country the '1st International Forum on Circular Economy:
Production of the Future.” This meeting allowed
exchange of knowledge and experiences about
sustainable models of economic development, and
demonstrated the great commitment of our country to the
support for the productive practice based on this scheme.
While the interest in the circular economy seems to be
recently in our country, for the past 57 years, a
Peruvian company incorporated this into its practices.
focus. This is CILSA, a company that is in charge of
recycle automotive lubricating oils of all types.
The circular economy: a necessary change

Water and sustainable food Nutrient recycling


Renewable energies Very low zero emission
Services and products Reuse and recycling
sustainable
Wood and sustainable fibers Fertilization and biogas systems

The circular economy works by extending the lifespan and relocating waste.
from the end of the supply chain to the beginning.

Principle 1: Preserve and enhance natural capital


Principle 2: Optimize resource performance
Principle 3: Promote the effectiveness of systems
The Circular Economy and the industry
The industry activates the circular economy: Technological advancements us
allow progress towards a circular economy

Internet of Things (IoT) and data analysis - Through IoT,


manufacturers can control and analyze their performance,
collect usage information and create business models
circulars, e.g. car-sharing platforms

Robotics - The use of robotics reduces human errors,


increasing performance and reducing waste
3D printing - 3D printing reduces the demand for
spare parts, improves maintainability and extends the lifecycle
of the products.
Circular economy: job opportunities

The greatest efficiency will result from a sustainable and (eco)innovative design.
and technical advances that transform waste into resources.
These waste measures in Europe would create 580,000.
new jobs.
A study of the Île-de-France region suggests that
household waste that is sorted and recycled generates 10 times more jobs
that if it is incinerated, it is 30 times more than if it were deposited in a landfill.
Circular Economy: the political progress

In 2015, the European Commission adopted a package of measures on


circular economy
A financial support platform was created with the Bank
European Investment Bank (EIB), for waste projects to
energy and the improvement of legislation regarding hazardous substances
in electrical and electronic devices.
In 2016, a financial backing of EUR 650 million was obtained.
from Horizon 2020 and EUR 5.5 billion from the
Structural Funds for waste management and investments
in the circular economy at the national level.
In 2018, the first European strategy on plastics was approved.
as part of the transition to a more circular economy.
Slovenia, Italy, and Poland have adopted roadmaps towards a
circular economy.
Circular Economy Package 2015

Measures to reduce waste of Promotion of repairability, durability and


foods recyclability of products

88 tons/year food waste 28 Ecodesign Regulations


Associated cost of EUR 143 trillion 16 Delegated regulations of labels
Objective: reduce 50% of energy
food waste per capita 3 Voluntary agreements in ecodesign
Around 40 mandates of
standards/standardization

Quality standards for materials


secondary cousins Water reuse
1 billion m³/year of reused wastewater
Regulation of the European Commission (2006)
Objective: 6 trillion m³ of water/year for the
about materials and plastic objects
recycled materials intended to enter into 2025
contact with food
Advances in Peru towards a Circular Economy
How is the circular economy being promoted in Peru?

Plastics: As of now, there are plastic bill projects from


Congress and the MINAM that are being agreed upon. The aim is to
prohibit small plastic bags and free delivery.

Waste Management: In 2017, MINAM approved the law on


Solid Waste, which promotes comprehensive management and
sustainable solid waste management in the country, in line with the
concept of CE

Responsabilidad Extendida del Productor (REP):Residuos


of Electrical and Electronic Equipment (EEE) implemented and
others to implement (e.g. tires, batteries, oils, etc.)
Transition to a Circular Economy
Recommendations to accelerate the transition in Peru

1. Strengthen institutional capacities for implementation of


the Solid Waste Law, using the experiences as a reference
from OECD countries and neighboring Latin America

Establish a roadmap with national objectives towards a


circular economy (for example: % of waste minimization,
stimulate the recycling industry; incentives for eco-design,
eco-innovation, etc.

3. Incorporate the circular economy into strategic sectors. For example:


eco-efficient industry; sustainable tourism; agriculture with
minimization of solid waste and low carbon emissions

4. Foster private initiatives: For example, voluntary agreements of


cleaner production in solid waste; applied research.

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