A Economia Circular: O Caminho para a Sustentabilidade do Futuro

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Circular Economy: The Path to Future Sustainability

by Sabino Borges, CEO of Ruy de Lacerda

The global economy as we know it is based on a linear model of production and consumption. This model, known as ‘take-make-dispose’, has dominated industrial economies since the Industrial Revolution, but it has major drawbacks in terms of sustainability. Resources are intensively exploited, waste accumulates in large quantities, and environmental degradation, biodiversity loss and climate change have been direct consequences of this paradigm.

According to data from the European Parliament, every year more than 2.1 billion tonnes of waste are produced in the European Union alone. In Portugal alone, approximately 5 million tonnes of municipal waste were generated in 2022, excluding industrial, hospital and agricultural waste.

The circular economy has emerged as an innovative and necessary alternative for rethinking the way we produce and consume goods and services. It is a concept that proposes the creation of a regenerative system in which the value of materials and products is maintained for as long as possible, reducing the extraction of new resources and minimising the generation of waste. In this article, we explore in depth the concept of the circular economy, how it works, the benefits and challenges of implementing it.

What is the Circular Economy?

The circular economy can be defined as an economic model that promotes the reuse, recycling and regeneration of materials, rather than relying on the continued extraction of natural resources. It is a model of production and consumption that involves sharing, renting, reusing, repairing, renovating and recycling existing materials and products as much as possible. In this way, the life cycle of products is extended. The circular economy recognises that the Earth’s resources are limited and must be used efficiently and sustainably.

This model aims to create a closed cycle, where products are designed to have a longer lifespan and can be repaired, reconditioned, recycled or reused at the end of their life cycle. Instead of products becoming waste, they are reintroduced into the value chain, keeping resources in use for as long as possible.

Principles of the Circular Economy

The circular economy is based on three fundamental principles:

Eliminate waste and pollution from the design stage: One of the premises of the circular economy is that products and manufacturing processes should be designed to avoid producing waste and emitting pollutants. This means using recyclable or biodegradable materials and designing products in such a way as to facilitate dismantling and reuse.

Keeping products and materials in use: By promoting repair, reuse and recycling, the circular economy ensures that products and materials circulate in the economic system for as long as possible, reducing the need for new resources. This can include anything from extending the useful life of a product to creating new goods from recycled materials.

Regenerating natural systems: The circular economy not only reduces pressure on natural resources, but also helps to regenerate ecosystems. By using practices that preserve and restore resources, such as regenerative agriculture or soil restoration, this economic model seeks to imitate the cycles of nature, where there is no waste and everything is utilised.

How does the Circular Economy work?

Implementing the circular economy involves various strategies throughout the life cycle of products:

Eco-design: The development of more durable, repairable and recyclable products. For example, making electronic devices that allow parts to be replaced easily, extending their useful life.

Materials recycling: Making the most of materials at the end of their use cycle, transforming them into new raw materials for creating other products. An example is the recycling of plastics or metals.

Sharing economy: Business models such as car-sharing or rental platforms make it possible to reduce the need to purchase new products, maximising the use of resources.

Maintenance and repair: Promoting the repair of products rather than replacing them with new ones. This model is gaining momentum with the introduction of laws such as the ‘Right to Repair Directive’, which aims to guarantee access to parts and repair instructions.

Dematerialisation: Focus on selling services rather than products. For example, instead of selling printers, a company could provide a printing service where the customer pays for use, with the manufacturer responsible for maintenance and the end of life of the product.

Benefits of the Circular Economy

The transition to a circular economy can generate a series of environmental, economic and social benefits:

Reduced pressure on natural resources: By reducing the extraction of raw materials, the circular economy reduces the negative impacts associated with mining, intensive agriculture and the exploitation of fossil resources.

Reducing waste and pollution: The circular economy seeks to eliminate waste, which means less waste in landfills and less environmental pollution. Recycling and reusing materials also contribute to reducing pollution caused by the production of new products.

Increased economic resilience: By reusing and recycling materials locally, economies become less dependent on resource imports and more resilient to global shocks, such as fluctuations in raw material prices.

Creation of new jobs and opportunities: Implementing circular systems can generate jobs in areas such as repair, recycling and product design. It is estimated that the transition to the circular economy could create up to 700,000 new jobs in the European Union by 2030, according to data from the European Parliament.

Industrial competitiveness: By adopting the circular economy, companies can innovate and create new market opportunities, while reducing costs associated with the purchase of raw materials and waste management.

The Future

The circular economy offers a promising vision for a more sustainable future, where waste is minimised and resources are reused in an intelligent and regenerative way. However, the transition to this new model requires collaboration between governments, companies and citizens, as well as the creation of a political and economic framework that favours innovation and sustainability.

By adopting the principles of the circular economy, we can not only protect the environment, but also create a more resilient and inclusive economy capable of facing the challenges of the 21st century.

At Ruy de Lacerda we are looking to the future to help Portuguese companies adopt the circular economy and implement more sustainable measures that will enable them to compete in the markets of the future.