Circular Economy: How Businesses Are Turning Waste Into Profit With Innovative Recycling Technologies

Lately, the circular economy has garnered enormous attention from governments, environmentalists, and businesses alike. But is the circular economy a hot topic, or has it been there for ages?

Circular economy doesn't have one origin story but rather draws from the efforts that have gone into refining the concept of circular economy. The different perspectives of businessmen, academicians, and thought leaders are what make the circular economy such a powerful concept.

Back in the year 1966, Kenneth Boulding stated in his book “The Economics of the Coming Spaceship Earth” that humankind must adopt a cyclical ecosystem that facilitates the endless reproduction of earthly remains.

More books discussing the same issue were also published by expert personalities, for instance, “Innovation Inspired by Nature” by Janine Benyus; “The Potential for Substituting Manpower for Energy” by Walter Stahel and Genevieve Reday; “Natural Capitalism: Creating the Next Industrial Revolution” by Paul Hawken, L.

Hunter Lovins, and Amory Lovins; and “The Blue Economy” by Gunter Pauli.

However, these theories never made it to practice until 2002, when American architect William McDonough, also known as the Father of Circular Economy, and German chemist Michael Braungart released their book titled “Cradle to Cradle: Remaking the Way We Make Things." The book focused on designing products that could rejuvenate ecosystems rather than damaging them.

Prior to the late 1800s, a cyclical consumption model was in place. Waste products like sewage and manure were upcycled into fertilizer, while materials such as rags and fats were repurposed into paper and candles, respectively. The remaining waste was left to decay in a natural way.

Up until 1870, materials were circulated from one city to another, along with industries and agriculture. In the late 19th century, the scenario changed altogether, in the way goods were produced and consumed.

This era marked the beginning of industrialization and large-scale manufacturing, where the goods were manufactured, used, and then disposed of without considering their impact on the environment. In the European Union alone, the production of waste per year is 2.2 billion tonnes, as of today.

This has impelled the EU to advocate circular economy and sustainability strategies by renewing its law on waste management.

Likewise, other nations in the world deal with excess production of waste every year, which needs to be strictly controlled in the forthcoming years to reverse the adverse effects on the ecological system.