Transition from linear to circular economy to create more sustainable and resilient

environment.? From review of theories to the development of implementation tools.

Abstract:
Our natural resources are diminishing at an increasingly fast pace. Our Consumption have
increased manifold over the decades, due to increasing populations. Natural system is being
overburden and cannot cater to the needs of all the humans. People are becoming aware of
threats of natural disaster and insecurity over the resources. A shift is being witnessed among
the organizations, companies, policy maker and common people to adopt a more sustainable
economic model for survival. A circular economic model has appeared to provide the
alternative solution to our current linear economic model, where the life of products is
extended. “The global economy is only nine percent circular (with Europe twelve percent and
China two percent), and the linear model is still systemically “baked in” [ CITATION Kri \l 1033 ].
This paper is the combinations of literature review and studies carried out on the circular
economy. The set of policy recommendations is presented from a life-cycle perspective that is
necessary for a transition towards a circular economy[ CITATION Kri \l 1033 ].

Introduction:

New services and business models, as well as innovations in organization have received
increased attention as economically viable paths as an alternative to traditional linear and
product-oriented path.[ CITATION Sof171 \l 1033 ]. In current linear economic model, the life of
products is limited as products are disposed after their use, which put burden on the limited
natural resources and creates harmful impact on environment. However, an alternative model
of circular economy, in which the products are recycled back after the use, is replacing the
linear model. The CE model is new concept of economic development, presenting quality
response to global environmental impact and climate change. It is different approach to all
previous economic models, not only in efficient exploitation of material resources, but also in
the area of social responsibility. [ CITATION Drs15 \l 1033 ]. The idea that efforts should be made
for a transition into a circular economy (CE) has gained momentum. Circular economy aims to
reshape global industrial systems following the objective of a zero-waste economy. In the past,
the natural environment was able to survive with amount of natural resources extracted and
the waste produced by humans on global scale. Today, the impact of human activities is
harming the ecosystem. The CE model proposes future in which the “Waste” is recycled and
transformed into useful material that can significantly reduce the burden on resources.
Transition to Sustainable environment require sustainable development that circular economy
offers.[ CITATION Sof171 \l 1033 ]. A lot of theories and research exist on the circular model, but
there is lack of practical application and implementation plan of the model. [ CITATION Kri \l
1033 ]. This literature will further review the policy options and implementation plan that a
country can follow to adopt the circular model.

TRANSITION FROM THE LINEAR CONCEPT TO CIRCULAR ECONOMY:

From industrial age, linear economic model has been the model of growth in the world, where
the huge resources exploitation was the hallmark of economic growth and prosperity. However,
the model has become unsustainable and environmentally harmful. The planet earth is finite
and has limitations, where unlimited growth is not possible. Population increase and economic
growth require greater demand for material resources. [ CITATION Drs15 \l 1033 ]. The awareness
of necessary transition and abandoning the linear model is getting stronger on global level.
Circular model has been designed to replace the traditional model as it requires to efficiently
utilize the resources for the maximum utility. The waste produced is recycled and used again as
raw material. A single product may be recycled many times and reused in cycles of production
processes. [ CITATION Drs15 \l 1033 ]. This concept is based on collection and recycling of waste
material, which does not have an adverse impact on the environment anymore. The
fundamental principal is the efficient use of natural resources, waste collection, recycle and
reuse in production process.

Today there is huge focus on transition from linear to circular economy, but the question is that
does the existing infrastructure, business models, regulations are feasible for this transition.
Adopting the CE model and achieving sustainable development require a fundamental change
in whole organization and involves its stakeholders [ CITATION Sof171 \l 1033 ]. Moving to new
system requires to new solution where traditional ways of working need to change. The most
important consideration for circular economy is having sustainability. This means there is
proper need to include social aspects along with considering environmental and economical
dimensions. To bridge the gap of linear to circular flow of waste, we need to address existing
systematic failures effectively and efficiently. Implementation tools and mechanisms are
required to reap the benefits of this new model. At initial stage, it is necessary to act on the
following consideration.
 Increase awareness and educate people about potential opportunities and benefits of
circular economy.
 Technological innovation is essential for transition to Circularity.
 Implementation of new business model in companies and organization.
 To use materials for longer and to better optimization of resources, supply chain
needs to be effective and efficient.
 Development of material infrastructure that support the CE design and standards.
 Consumers need to change their habits and act on the policies of sustainability.
  Communication of new policies to people is necessary.

SUSTAINABLE DEVELOPMENT:

Human activities are greatly harming the ecosystem and sustainability of the environment.
Human activities will cause the temperature to rise by 2 °C by 2100, which is very alarming.
[ CITATION SAM18 \l 1033 ]. The Paris climate conference has produced a landmark agreement
that marks the new phase in international cooperation on climate change. [ CITATION Kor \l
1033 ]. There was recognition of urgency to act on climate change and the implementation of
circular economy globally will make the Paris agreement achievable. There is clear role of
circular economy in bridging the gap between economic growth and environment
sustainability. Half of the Greenhouse gas emission is related with the basic materials that can
recycled and reused in environmentally sustainable way. For sustainable development, the
implementation of circular economy has become inevitable. The real benefit of circular
economy is to separate things that we want from environment: prosperity, from that we do not
want; wasteful use of limited natural resources. Circular economic model can help countries to
find strategies to reduce the emission.

POLICY RECOMMENDATION--DEVELOPMENT OF IMPLEMENTATATION TOOLS:

People in power have the responsibility to develop the policy on the integration of circular
economy in the system. There are number of countries around the world that are successfully
working on the circular model. China has made significant and timely progress towards the
circular economy. They introduced the two new law in 2002 to move the circular economy
agenda forward- the environment Impact Assessment and the cleaner production promotion
law.[ CITATION Ste \l 1033 ]. Australia has also made transition towards the more sustainable and
consumption models.[ CITATION SAM18 \l 1033 ]. Based on the working models in different
countries, policy response should be developed that can be followed by international
community. This new model requires the development of collaborations for innovation and
efficient exchange of information between the different actors. Statesmen and policy makers
must come up the solid plan to completely implement the model. To make it possible we need
to implement circular economy in our polices.

POLICY#1: ADOPTION OF CIRCULAR DESIGN NORMS AND STANDARD.

To promote CE is to reduce consumption by influencing the behavior of consumers toward the

circular products. An individual behavior is resistance to change, the producers must be
encouraged to embrace the circular design that can help in recycle and reuse of product. This
should be done in consultation with the relevant stakeholder.[ CITATION Kri \l 1033 ]

POLICY #2 CLEAN PRODUCTION ACT

Government should introduce law “Clean Production Act” restricting all the companies and the
producer to operate in eco-friendly way. Product contributing to pollution and require excess
material should be banned from production.

POLICY #3 CHANGE IN TAXES ON CE PRODUCTS

Concession on the circular design product will certainly encourage producer to adopt them and
will reduce their cost of production. Tax break will boost the competitiveness of CE product and
ease the financial burden on the producers. There should be negative impact tax on the
product that are not eco-friendly and require huge raw material [ CITATION Kri \l 1033 ].

POLICY#4 INFRASTRUCTURE OF WASTE MANAGEMENT

Proper waste management system is required to achieve the goal of circular model. Waste
should not considered waste only but, potential secondary resource for reuse. Development of
infrastructure to recycle back the waste into production line is necessary step towards the CE.

Conclusion:

Adoption of new system require radical disruption of the current system. Transition to whole
new system will require action and integrated approach from top organizations, companies,
and individuals. It is important to have sustainable development that fulfill the need of present
generation without the compromising the capability of future generation to meet their own
needs. “Sustainable development, environment protection and economic development become
connected activities”[ CITATION Drs15 \l 1033 ] . “A circular economy aims to keep products,
components, and materials at their highest utility and value at all times,” according to an
organization that is a major proponent of the circular economic outlook (Ellen MacArthur
Foundation 2015a, 2).
Transition to circular economy is not just limited to lessen the negative impact of linear
economy [ CITATION Ell13 \l 1033 ] , instead it is to create long term sustainable development,
generating economic opportunity and providing environmental and social benefits. A close
cooperation among the countries can bring global impact and close the loops necessary to
achieve the sustainable and equitable economic growth. Despite all barriers, circular economy
as new business model will contribute to development of sustainable and resilient
environment, where the resource optimization will be priority.
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To keep materials in the loop for longer and to better management of resources, supply chain
needs to be effective and efficient