Key Strategies for Mainstreaming Circular Economy

1. The Design congruence

Just like wind sets the boat sailing towards a smooth ride, a product design in true congruence with a sound use in afterlife is the key to achieving circularity. A cradle to cradle and multi-disciplinary approach within the design teams is important. Given the fact that, in circular economy, the aim is to reuse products at their highest value, the design strategies should not just have focus on the physical aspects of a product. It should also be designed keeping in mind the user behavior and resource loops. User behavior should be supplemented with deep dive studies to make the product reach its right destination at the end of life. Short of reuse choices, typical user behavior to dispose of the product is abundant in a linear economy but this can be arrested using smart choices through modular design and economic instruments. Additionally, slowing the resource loop and closing the resource loop in equal measures at the design stage itself ensures the design is congruent to circular economy principles. 

2. Information Symmetry

With an unprecedented exploitation of natural resources and usage to the point of extinction of some, still we are least concerned with end of life usage scenarios of most of the materials. It is only market based incentives which drive environment friendly completion of the loop for certain category of materials. The key missing link, Information! It is the key element which underpins tracking, mainstreaming and utilization of any material category. There is no inventory of outgoing material or the data thereof to think of a better utilization medium. There are always industries in need of waste materials which act as a valuable feed for their processing. Understanding information associated with raw material flow and leveraging it to design a better utilization of end of life materials is the need of the hour. 

   Outgoing Servers can be reused by clients of IT companies

 3. Material Control

State of the art buy back mechanisms work only for big electronics items and other heavy weight (literally!) items but fail abysmally when it comes to plastic packaging. Built in smart design, mandatory economic instruments, information and material control are necessary pre-conditions to a circular micro-economy of any industry. Pan Nation buy-back system embracing brand agnostic levers for scalability, ease of non-banking financial activity to independent parties to handle financial instruments associated with buyback, ease of reverse disposal options to consumers and inter-PRO arrangements for goods handling across state boundaries are key tenets to bringing back the lost circular economy. Finally closing this material loop with ensuring utilization of waste material by the industry which has maximum throughput for the material category. In India, every consumer was a custodian of sorts for closing the loop for glass beverage bottles and many other household items around two decades back. All this stands drastically changed now with companies demanding higher growth than ever and thus replacing sustainable material choices with linear materials. 

Built-in material control with glass bottles

 

 4. Policy Instruments

Just like EEESL for power sector, DCR scheme for solar energy, government’s EV procurement policy etc. a unified and central government run policy cum procurement arm should be envisaged for transitioning to circular economy. It can be started with implementing in government offices, PSUs and then this can later be transformed and mandated across key private sector industries. A policy where it is backed by an in-house implementation arm for a clear vision and time bound outcomes is a great ingredient for a successful outcome. 

  5. Business Models

An enormous amount of economic value lies untapped by companies when working in the linear model of operating. A systemic shift in thinking is needed to move toward resource efficiency and built in sustainability. There are various closed loop business models which hold potential for practical approach to circularity. 

a) Closed loop supply chain model                

There are abundant design and raw material choices available today to aim for a closed loop supply chain. Designing products that come from natural sources and thus can safely assimilate in their regenerative nutrient life cycles are the preferred choice for any consortium of industries committing to closing the loop. Using renewable, low carbon impact materials in the first place with end of life use contracts in place is half the battle won. Maximizing product use and retaining material quality at their highest value is another strategic call which can be built on existing channels. Material combinations with increasing RoHS compliance, bio-based material choices, new age commercial materials such as PLA, renewable materials such as bagasse etc. are increasingly being used across industries. Natural end of life choice will then be a combination of market based incentives and minimal smart choices towards the start of their long circular journey!   

b) Leasing or product as a service model

From cars to electronics to furniture, there is all around transition from pure ownership to leasing or usage based charge. When the full ownership and control remains with the original owner which is more commonly an aggregator or the company itself, the economies of scope increases manifold to do something radically in sync with achieving circularity.  IKEA sustainable initiatives are using furniture as a service model and exploring scalable subscription services for everything from couches to kitchens. 

Lighting as a Service

c) Sharing Economy model   

A sharing model utilizes the highest value of a product or service for maximizing its usage. The end goals of any sharing economy should be to maximize product or service usage through various collaborative models. The sharing models can also exist across industries such as equipment, services, and personnel with multiple business models. 

d) Modular, Repairable Design Economy

Earlier, products contained modular design providing visible, standard access to the inner working of any functioning device. Gradual replacement of this form came about with aesthetics and sturdiness finding the same top pedestal and repair, reuse took a backseat. Prime examples are of course, Apple and Samsung. Any company would strategize to promote its new products over repairing of old ones but government mandated access provisions to the inner most modular part, standardization of spare parts, whole product designs and easy availability of spare parts can solve the problem to a great extent. Large swathes of people still would be willing to continue their favorite gadget provided there is no planned obsolescence and its repairable from the word go.  

A Modular Chair

e) Recycling and Energy Recovery   

For bio-polymers, textiles, plastics, wood, electronics and paper, science has proved time and again that recycling is the most effective and preferred option followed by energy recovery and landfill. This is true barring a few materials which are net carbon negative if opted for recycling. Reduce, reuse of course come much before. In a case where there are not many takers to complete the circular value chain, the material must be diverted for recycling.

Classroom bench made of used beverage Tetra Pak Carton

   

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