Circular Economy – Definition, Benefits, And Importance
                     Circular Economy – Definition, Benefits, 
And Importance
Sandra McCall
Writer at Top developments         
creates content to support 
https://top-developments.com/
The circular economy has become quite a significant factor around the world these 
days, and a prominent example of that is the European Union, which is said to produce 
at least 2.2 billion tons of waste yearly! Even as we speak, the region is updating its 
rules and regulations related to managing waste to promote a shift towards the more 
sustainable model we are talking about – the circular economy. The question that needs 
to be asked is what this means and how it can benefit the global economy, at large.
So, what is the circular economy?
Well, circular economy can be defined as a model of consumption and production that 
requires the following actions to be taken with existing products and materials for as 
long as possible:
Sharing
Leasing
Reusing
Repairing
Refurbishing
Recycling
The main aim here is to extend the lifecycle of these phenomena. In practical terms, 
this implies reducing waste to the lowest possible level. Thus, methods such as 
recycling are being used to keep the materials of a product in an economy when the 
latter reaches the end of its natural lifecycle. Hereby, the intention is to use them 
productively as many times as possible, thus creating more value.
What are the benefits of a circular economy?
The most prominent benefits of a circular economy are protecting the 
environment, reducing dependence on raw materials, creating jobs, and 
saving consumers’ money. When you reuse and recycle products, it slows 
down the extent to which natural resources are used. It also reduces the 
disruption of habitats and landscapes and helps limit biodiversity loss.
A significant benefit of a circular economy is the reduction of the emission of 
greenhouse gases in a year. The European Environment Agency says that product 
usage and industrial processes account for 9.10% of said emissions in the EU, while 
the percentage for corresponding waste management is 3.2%.
The population around the world is growing. It means there is a greater demand for 
raw materials. However, the supply of raw materials is not unlimited. It makes some 
EU countries dependent on other countries for raw materials. When you move 
towards a circular economy, you become more competitive, boost economic growth, 
stimulate innovation, and create jobs. It is expected that by 2030, a circular economy 
will create 700,000 jobs in the EU (European Union). By redesigning products and 
materials for circular usage, you boost innovation in many sectors of the economy.
Conclusion
EU is taking several steps to be a circular economy. In March 2020, it presented the 
Circular Economy Action Plan, which aims at promoting more sustainable product 
design, reducing waste, and empowering customers. An example of this is the way 
it’s promoting the right to repair in the region. It focuses on sectors that use a whole 
lot of resources, such as ICT (information and communications technology) and 
electronics, textiles, plastics, and construction. In February 2021, the Parliament also 
took a resolution on the new Circular Economy Action Plan focusing on areas, like 
carbon neutrality and environmental sustainability.
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