The Circular Economy and Why It's Better

Written By: Ishitha Reddy Sandadi

Published: April 22, 2025

The Circular Economy and Why It's Better

                 Right now, our world works in a linear economy, where the model is built on extracting raw materials from nature, turning them into products, and then discarding them as waste. This process discards the limited resources on our planet, and contributes to the climate, biodiversity, and pollution crisis.

                However, a circular economy aims to minimize waste and rebuild the environment. It promotes sustainable use of natural resources through smarter product design, longer use, recycling more, and regenerating nature. There are three main principles of a circular economy – eliminating waste and pollution, circulating products at their highest value, and regenerating nature.

Eliminating Waste and Pollution

                 The first principle, eliminating waste and pollution, is founded on the limits of our resources. Currently, we take raw materials from the earth, make products from them, and throw them away as waste. Most of the waste ends up in landfills, mines, or incinerators, and becomes a net loss of resources. This cycle won’t work in the long run, as our planet has a limited amount of resources. The solution to excess waste is to make products that are biodegradable and are of better quality so that the resources we take from the earth are used for longer or “given back” to be used again.

                 Companies have already started implementing this tactic. For example, Apeel is a company that has come up with an innovative way to eliminate shrink wrap plastic packaging on fresh fruit and vegetables, while at the same time tackling food waste. Apeel is a layer of edible, plant-based coating applied to fresh products that mimics and enhances the natural defenses of fruit and vegetables. This slows down the two main things that cause spoilage – water loss and oxidation. Another example is DyeCoo, which has developed a technology for dying textiles without using water and therefore eliminates toxic waste in water. Instead of water, DyeCoo uses carbon dioxide as a solvent in a closed-loop system.

The Highest Value

                 The second principle, circulating products at their highest value, tackles our linear economy’s problem of throwing out used products that still have good pieces. This principle keeps materials in use, either as a product or, when they can no longer be used, as components or raw materials, making sure that nothing becomes waste. There are two cycles for this principle – technical and biological. The technical cycles involve reusing, repairing, remanufacturing, and recycling products. If a product is not working, the components will be taken apart and used for later in other products or sold as materials themselves. Recycling is often seen as a last resort because it means the embedded value in products and components are lost. The biological cycle involves composting or anaerobically digesting organic materials to get valuable nutrients such as nitrogen, phosphorus, potassium, and micronutrients. These nutrients can be used to help regenerate the land so we can grow more food or renewable materials like cotton and wood.

                 One example of a company implementing the second principle is Ecovative, which makes compostable packaging from agricultural byproducts (the parts of crops that cannot be eaten) and mycelium (mushroom roots). Another company, Resortecs, has designed a dissolvable thread, making the disassembly process of clothes easier and helping to keep textiles in the economy.

Regenerating Nature

                 The third principle, regenerating nature, is implemented to shift the focus from the extraction of raw materials to the regeneration of raw materials. The obvious place to start is the food industry. Instead of relying on increasing quantities of synthetic fertilizers, pesticides, fossil fuels, fresh water, and other finite resources, farmers should practice regenerative farming techniques like agroecology, conservation agriculture, and agroforestry (growing trees around or among crops or pasture). This will result in agricultural land similar to natural ecosystems, and will increase soil and water health and help increase biodiversity in the area. The increase of natural land will also decrease the amount of greenhouse emissions and keep the world at a stable balance.

                An example of a company that is regenerating nature is Natura, South America’s largest cosmetic company and the fifth largest beauty company in the world. It produces a huge range of products including soaps, creams, and shampoos, all of which rely on the rich biodiversity of the Amazon for ingredients and materials. Regenerating nature doesn’t just apply to the land, but to the ocean as well. GreenWave’s 3D ocean farming method produces a mixture of shellfish and seaweeds in a nature-positive way. It comprises a simple lattice of ropes and baskets suspended just below the surface, with species growing at different depths. This approach can be used for commercial farming of products used for food, fertilizer, animal feed, and bioplastics, while restoring marine ecosystems.

To conclude...

                There are some challenges that come with the transition from a linear economy to a circular economy. One concern is finance. In the first few years of transition to a circular economy, companies will have to spend more to gather proper equipment and knowledge to start the cycle. However, after the first initial costs, it takes relatively little effort to continue the cycle and keep things running. Another issue is a lack of knowledge. There aren’t many people who know the full depth of the circular economy and how to run one. Being able to educate a mass number of people to understand the circular economy will take time and effort. Lastly, when assessing the actual impact on the world, there are issues such as lack of transparency of supply chains, lack of direct connections with different tiers of suppliers, and complex accounting.

                Athough these challenges do need a lot of effort, time, and money to fix, in the long run, a circular economy can help transform our planet into a safer and more biologically diverse world.