Circular Economy is a concept away from the traditional Linear Economy approach and challenges take-make-dispose model of production and consumption. The philosophy of circular economy is re-defining growth, aims for positive society wide benefits and decoupling of products from finite resources and designing waste out of the system
Circular Economy recognizes the importance of the resource efficiency in economy at all scale – for large and small businesses, for organizations and individuals, globally and locally. Transitioning to a circular economy does not only amount to adjustments aimed at reducing the negative impacts of the linear economy. Rather, it represents a systemic shift that builds long-term resilience, generates business and economic opportunities, and provides environmental and societal benefits.
Integration and implementation of Resource Efficiency framework in Global Economy and Trade Processes will be key mechanism to achieve goals of green growth and sustainable future.
The internationally agreed Sustainable Development Goals (SDGs), have been adopted by 193 nations with a goal to end poverty, protecting the planet and ensuring prosperity for all requires strong national framework for sustainable consumption and production that is integrated into national and sectoral plans, sustainable business practices and consumer behaviour, together with adherence to international norms on the management of hazardous chemicals and wastes.
The commitment of more than 150 C0untries and World Leaders are directly reflected in SDG Goal 12: Ensure Responsible Consumption and
Production Patterns, which calls for fundamental change in production pattern and consumption behavior with shift in circular economy from linear economy. Eight other goals (2, 6, 7, 8, 9, 11, 14 and 15) also promote action on resource efficiency and circular economy.
The New Urban Agenda (NUA), adopted by 167 nations sets a new commitment for Urban Leaders and World Nations to plan, manage and live in cities by implementing sustainable and green growth practices. The third commitment of NUA i.e. from para 63-80 commits for strengthening the sustainable management of the resources, including land, water, energy, materials, forest and food. Para no. 69 specifies the maintenance of ecological and social function of land, including coastal areas that support cities and human settlements.
Circular Economy relies on system-wide innovation and aims to “redefine products and services to design waste out, while minimizing negative impacts. Underpinned by a transition to renewable energy sources, the circular model builds economic, natural an social capital” (Ellen MacArthur Foun-dation).
As more than 80% of global GDP is generated in cities, which therefore means cities are in unique position as living lab to test for circular economy models. The network of national and sub-national governments, private and public sectors, businesses, communities, social enterprise and financial institutions can transform cities into a Living Innovation Lab for addressing the complex challenges of linear economic models. According to the Ellen MacArthur Foundation, a circular city embeds the principles of a circular economy across all of its functions, establishing an urban system that is regenerative and restorative by design. In such a city, the idea of waste is eliminated, with assets kept at their highest levels of utility at all times and the use of digital technologies a vital process enabler. A circular city aims to generate prosperity and economic resilience for itself and its citizens, while decoupling value creation from the consumption of finite resources.
Rationale for Circular Economy:
The accelerated industrialization of economies around the world has influenced the shaping of cities and has resulted in rapid urbanization. The industrial and trade economy, with push for economic growth to sustain demands of exponentially growing population with increased consumptive capacity has resulted in high levels of material use to meet the need for infrastructure growth. UN estimates that the world population is forecasted to rise to 66% by 2050, which is much higher than the increase during the period of 1900-2015. This vicious cycle of unregulated and poorly conceptualized industrialization, continual urbanization and irresponsible consumer behavior has put much stress on natural resources and has resulted in inefficient economic structure where cities and urban centers have owned the share of burden.
In the coming decades, cities will be increasingly important as even greater rates of urbanization are expected, and significant infrastructure investments and developments will be made. Cities could be uniquely positioned to drive a global transition towards the circular economy, with their high concentration of resources, capital, data, and talent over a small geographic territory, and could greatly benefit from the outcomes of such a transition.
India’s Position in Circular Economy
India is at a crucial position as an emerging nation. With an upcoming and fast economic growth, the resources are small in terms of quantity. India by 2020 will be the 3rd largest consumer with a 13% world share (extraction of primary resources increased by 420% from 1971-2010). Circular Economy is ingrained within the Indi-an Society, which has proved to be economically viable to the poorer sections of the society but as the middle class is growing (rise in average income), the thriving population will be swayed into global markets that have one-way model of growth, creating linear economy lock-in. Hence the country needs to adopt a comprehensive strategy to lower the impacts on economy, environment and all access to resources. Being a part of G7 nations (Resource
Efficiency Alliance) and G20 nations (Resource Efficiency Dialogues), India has been trying to develop a sustain-
able and efficient use of resources. Up till last three years initiatives by business, governments and other organizations were only exemplified at the end of the value chain.
In view of commitments of the Government of India towards UNSDGs and Paris Climate Agreement, NITI Aayog formulated a strategy to mainstream resource efficiency in the economic development of the framework.The Indian Resource Panel (InRP) was established by MoEFCC which will help in implementing the European Union-Resource Efficiency Initiative (EU-REI). The InRP will enhance resource efficiency (RE) and promote secondary raw materials (SRM) through a framework; Indian Resource Efficiency Program (IREP) as a guide for policymakers. This makes India the first country to have a legislative framework for the agenda which will also provide recommendation to the Government of India and Bureau on Resource Efficiency (BRE), an example towards its fulfillment of commitments.
All India Institute of Local Self-Government has been working with the Local Governments and hand holding them towards sustainable planning, governance and skill development of the communities. The United Network of Circular Cities will demand creation of an ecosystem and partnership for businesses, communities and individual citizens collaborating with public and private sectors, to promote and deploy solution and economic resources for green growth and resource efficient economy.
The Network will collaborate to consistently apply circular business models in concepts of life-cycle thinking, cradle to cradle design, shared value approach, extended producers’ responsibility and application of urban metabolism and industrial symbiosis. AIILSG will mobilize individuals, private sectors, national and sub-national governments and civil society towards more livable and sustainable future for cities.