circular economy: What does it mean?

Circular economy: What does it mean?

The circular economy has been talked about for a number of years now, but what does it mean? Renew introduces the concept.

In recent years, an alternative to the traditional linear economy approach of ‘make-use-dispose’ has gained prominence, in the form of the circular economy. While the concept is by no means new – having first started to gain momentum in the late 1970’s – an increasing emphasis on the environment and climate change has more clearly highlighted the need for change.

While the circular economy will mean different things to different industry sectors, as a concept it does appear to still be widely misunderstood and this needs to change if the environment and businesses are to reap the benefits it can offer.

The Ellen MacArthur Foundation website (www.ellenmacarthurfoundation. org) offers a good source of information for those wishing to gain a better understanding of circular economy concepts. According to the Foundation, the circular economy is an economic framework that focusses on carefully managing resources so that nothing is wasted. The aim is for products and materials to be kept in use – reused, remanufactured and recycled continuously – to achieve maximum value from them. This restorative and regenerative approach aims to create a closed-loop supply chain that designs out waste. Because the circular economy maximises economic, natural and social capital, it should also be viewed as a valuable tool for empowering businesses, helping them successfully tackle environmental priorities, drive performance and stimulate economic growth.

A SYSTEMIC SHIFT

For the industrial sector the circular economy has often focussed heavily on reducing energy and carbon emissions. However, according to a Bureau Veritas report, transitioning to a circular economy should look much further than this. It necessitates a systemic shift in the way new products are designed, how their input materials are sourced, how they are manufactured and how sub-products are reused and how wastes are recycled.

So, transitioning to a true circular economy model demands control of all materials and processes used in production. Offering an example, Bureau Veritas cites the sale of a T-shirt in a circular economy business model – it requires responsible sourcing of the cotton and chemicals used, and the working conditions in the factory used to manufacture it; control of the energy used in manufacturing, transportation and distribution; and a process for collecting, breaking down and recycling the T-shirt post-use.

A project being undertaken in China offers a good real-life example of the circular economy in action. The Chinese domestic automotive industry has boomed since 2000 and, in 2018 it had astock of 310 million cars. Assuming an average life span of 10 years, it was estimated that 10 million cars would reach end-of-life annually by 2020. This opened up huge market potential for automotive parts remanufacturing businesses and one company to see the potential was Huadu Worldwide Transmission.

AEMT members can help customers reduce their carbon footprint, reduce costs, reduce waste, and increase productivity

The company has partnered with a retail franchise to collect used vehicle parts and remanufacture them into as-new certified spare parts. Remanufacturing conserves the value of machine products and components, returning them to a good condition so they can be used again and again. It offers material and energy savings while providing customers with high quality affordable spare parts.

A CRITICAL ROLE

“Having a great deal of experience as repairers and traders of rotating electrical machinery, Association of Electrical and Mechanical Trades (AEMT) members obviously have a critical role to play in circular economy initiatives,” explained Thomas Marks, Secretary of the AEMT. “As repairers, AEMT members can help extend the lifespan of machinery.They can monitor machinery to ensure it continues to run efficiently and can maximise its lifespan. At the end of life, AEMT members are able to recommend suitable replacements – possibly with higher efficiencies – and are also able to break down old machines to recover reusable parts and materials.”

Thomas says that users of rotating electrical machinery who are interested in adopting a circular economy approach, should talk to AEMT members, who will be able to offer help and advice. In conclusion, he said: “By participating in circular economy principles, AEMT members are able to help make better use of the world’s natural resources and can help customers to reduce their carbon footprint and in doing so, reduce costs, reduce waste, and increase productivity.”