Most current patterns of production and consumption follow a linear “extract, produce, consume, dispose” model. n this way, goods lose an average 95% of their raw material value after a single use. Moreover, many goods are only used infrequently – Cars, for example, are only driven for an average of 2% of their lifetime. Climate change and environmental pollution are among the consequences of this highly inefficient economic system. Already today, 50 per cent of global greenhouse gas emissions and 90 per cent of biodiversity loss and water stress are caused by raw material extraction and processing. By 2060, current global material consumption could even double.

Building a sustainable Circular Economy

It is obvious that we need to find a different way of dealing with our natural resources. Away from linear value creation and the associated amounts of waste, towards an economic model in which the value of materials and products is maintained as long and as high as possible. This requires a change of perspective: from a focus on waste and waste recovery to a responsible management of resources.

Circular Economy Initiative CEI
 

The concept of the Circular Economy aims to decouple economic growth from resource consumption. As a consequence, circular, resource-conserving economic activities should go far beyond the classic understanding of a Circular Economy in the sense of recycling. Material and energy cycles will be closed - as far as possible and ecologically sensible.

Circular Economy encompasses the whole life cycle of a product:

  • The design should be made for durability and enable reparability and remanufacturing.

  • The use phase should be intensified and extended.

  • At the end of the life cycle, the various recyclable materials are to be separated as far as possible by dismantling and sorting and materially processed for reuse.

These measures can be used in the Circular Economy to pursue both ecological goals such as climate protection and resource conservation, as well as economic goals such as competitiveness and independence from raw materials. In addition, the focus can also be on social goals, such as securing employment and local value creation.