Cutting waste and going ‘circular’ could help economies out of COVID slump – World Economic Forum

COVID-19 has further exposed the failures of a linear take-make-waste use of the worlds resources, and highlighted the need for a more circular reduce-redesign-reuse approach, according to a new study.

A group of researchers led by the UKs University of Warwick concluded that a circular economy could help the world recover from the pandemic, while also helping nations reach net-zero carbon emissions goals.

All industries can and should adopt a circular economy, says Dr Taofeeq Ibn-Mohammed, assistant professor in the Warwick Manufacturing Group (WMG), with strategies adapted to each sector.

The global population is expected to reach close to 9 billion people by 2030 inclusive of 3 billion new middle-class consumers.This places unprecedented pressure on natural resources to meet future consumer demand.

A circular economy is an industrial system that is restorative or regenerative by intention and design. It replaces the end-of-life concept with restoration, shifts towards the use of renewable energy, eliminates the use of toxic chemicals and aims for the elimination of waste through the superior design of materials, products, systems and business models.

Nothing that is made in a circular economy becomes waste, moving away from our current linear take-make-dispose economy. The circular economys potential for innovation, job creation and economic development is huge: estimates indicate a trillion-dollar opportunity.

The World Economic Forum has collaborated with the Ellen MacArthur Foundation for a number of years to accelerate the Circular Economy transition through Project MainStream - a CEO-led initiative that helps to scale business driven circular economy innovations.

Join our project, part of the World Economic Forums Shaping the Future of Environment and Natural Resource Security System Initiative, by contacting us to become a member or partner.

More resource-efficient construction

In construction, for example, retrofitting, refurbishing or repairing existing buildings leads to lower emission facilities, is less resource-intensive and more cost-effective than demolition and new construction.

Digital infrastructure technologies such as thermographic and infrared surveys, 3D laser scanning and digital twinning creating virtual models of processes, products or services will play a crucial role in ensuring the low carbon and energy-efficient future of the built environment, the authors say.

Less wasteful food sector

Circular economy strategies could help create a more sustainable and secure food sector.

These include regenerative agriculture approaches such as using food waste to replenish nutrients in the soil. Anaerobic digestion can be used to create biogas from organic nutrients. Urban agriculture cultivating crops and animals for food in and around cities is another circular opportunity.

The authors cite the increased popularity of local farms as a direct consequence of COVID-19, suggesting that people could experience the power of local food cycles and avoid perceived contamination risks in supermarkets.

Companies can boost their resilience against future pandemics like COVID-19 by using disruptive digital technologies or smart manufacturing tools.

Big data analytics, for example, can help companies streamline their supplier selection processes. Cloud-computing is currently being used to facilitate and manage supplier relationships. And logistics and shipping processes can be greatly enhanced through automation and the internet of things the world of connected devices.

The Warwick team urges 'circular thinking' that targets the general well-being of the populace instead of a focus on boosting the competitiveness, profitability or growth of businesses and national economies.

The Ellen MacArthur Foundation recently set out 10 circular investment opportunities across five key sectors.

Image: Ellen MacArthur Foundation

10 circular investment opportunities

The World Economic Forum is a supporter of The Ellen MacArthur Foundation, which works to accelerate the worlds transition to a circular economy. The foundation recently set out 10 circular investment opportunities across five key sectors: the built environment, fashion, plastic packaging, food and mobility.

In an unprecedented response to the COVID-19 crisis, trillions in economic stimulus have been made available around the world, the foundation says, pointing out that this moment in time is a rare opportunity to build a resilient and low-carbon recovery. The circular economy, as an instrument to decouple economic growth from resource use and environmental impact, opens up the way for a resilient recovery.

The Netherlands, Germany, Sweden, Scotland, Denmark and Finland are among the nations pushing forward circular economy agendas.

For example, the Netherlands has a government-wide programme to achieve a circular Dutch economy by 2050.

Denmark is investing 16 million ($19 million) across 15 initiatives as part of a national circular economy strategy.

Scotland also has a circular economy strategy and already employs more than 200,000 people 8.1% of jobs in circular economy-related roles.

More than 40 countries, companies and international organizations work together to accelerate the transition to a circular economy as members of the Platform for Accelerating the Circular Economy (PACE).

Launched in 2017 by the World Economic Forum, the PACE community consists of 80 public, private, international and civil society executive leaders and more than 200 members championing 18 projects across the globe.

The World Economic Forum has created the Scale360 Playbook to build lasting ecosystems for the circular economy and help solutions scale.

Scale360 Playbook Journey

Image: Scale360 Playbook

Its unique hub-based approach - launched this September - is designed to prioritize circular innovation while fostering communities that allow innovators from around the world to share ideas and solutions. Emerging innovators from around the world can connect and work together ideas and solutions through the UpLink, the Forum's open innovation platform.

Discover how the Scale360 Playbook can drive circular innovation in your community.

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Cutting waste and going 'circular' could help economies out of COVID slump - World Economic Forum