The circular economy: A game-changer for decarbonisation
At a glance
The ambitious path to net zero emissions by 2050 is paved with challenges. Circular economy is not a new concept, but it is gaining prominence as a sustainable model that holds tremendous potential to reduce emissions across the value chain. Circular economy solutions tackle not only reducing our direct carbon emission but also the embodied carbon related to the extraction, processing and manufacture of products. Resources are finite, which means ultimately, your business model needs to adapt and evolve. Organisations should consider how they plan and design when it comes to all types of resources, reducing waste and minimising inefficiencies that can often represent significant financial value.
The existing economy model isn't sustainable
The ‘take, make and dispose of’ model comes under greater scrutiny due to resource and emission-intensive activities that result in increased greenhouse gases (GHGs) in the atmosphere. The shift from a traditional linear economy to circular underpins the importance of not only addressing direct carbon emissions but also our production and consumption practices. Circularity emphasises that resources are finite. It is vital to focus on sustainability by eliminating waste and pollution, while maximising product lifespan and value, and regenerating natural systems. The premise is to design an economic system where products and materials are continuously recirculated at their highest and best use. While we are seeing increased attention to this model, the question remains about how businesses can expedite projects to be on track to reach net zero before the global deadline.
Innovators are introducing new solutions and leading the way
The 2024 Climate Investor Forum gathered forward-thinking organisations that presented their circularity journey, at different stages in maturity but with a shared aspiration to offer solutions and uphold sustainability in the spaces they operate. Let’s look at the main themes presented and how these can speed efforts to mitigate the effects of climate change.
Adopting a lifecycle approach and building a sustainable waste stream
A lifecycle approach highlights the importance of responsible production, consumption and disposal or renewal of products. This helps minimise the use of raw materials, reduce landfill waste and prevent further GHG emissions. Millions of tonnes of food waste, for example, currently end up in landfills where they decay and emit methane. For example, Goterra’s modular, autonomous waste management units use larvae to convert food waste into high-value, low-impact protein and fertiliser, which are then fed to animals and crops. Another innovation is Great Wrap’s compostable stretch wraps for use in households and businesses. This new approach reinvented packaging technology, seeking to address plastic pollution and ensure compostable materials can return carbon to soil.
Nature-based solutions are on the rise
More companies are turning to nature for inspiration to tackle climate and sustainability challenges. HydGene Renewables, for example, uses synthetic biology to engineer microorganisms to produce green hydrogen on-site and on-demand from biomass waste streams. Using tiny bugs deployed via stackable cartridges, this scalable solution is carbon-negative and overcomes traditional barriers to green hydrogen production.
The crucial role of data
Data is a fundamental piece for companies looking to deploy, test or invest in technologies to accelerate their net-zero pathways. Data should be accurate, complete, location-specific and site-specific to inform business cases and facilitate better decision-making around technology adoption.
Creating environments for collaboration
For circular economy solutions to be viable and scalable, cross-industry collaborations must take place. A single sector or a single project cannot bring about the kind of systemic transformation needed. Hunter Joint Organisation (JO), in partnership with GHD, aims to bring the circular economy into reality with their circular precincts. These precincts will be governed by several actors intending to unlock the potential for circular materials processing, renewable energy production and value-added businesses.
The circular economy is not just a waste-to-energy or resource-recovery issue. It’s a mindset and strategy shift that involves business remodeling, understanding complex stakeholder engagement structures and making crucial choices and trade-offs. Throughout this evolving landscape, forging partnerships and embracing new ways of thinking are critical enablers.