🟠 Topic 80: Circular Economy & Sustainable Practices

📌 Introduction

In a linear economy, the production system follows a take-make-dispose model — resources are extracted, products are made, used, and discarded as waste. This unsustainable approach depletes natural resources, contributes to waste pollution, and accelerates climate change.

The Circular Economy (CE) offers an alternative — a regenerative system where materials are kept in use for as long as possible, waste is minimized, and natural ecosystems are protected. It represents a paradigm shift from extraction and disposal to restoration and regeneration.

🔹 What is Circular Economy?

📖 Definition

A Circular Economy is an economic system aimed at eliminating waste and the continual use of resources through principles of reuse, repair, refurbishment, remanufacturing, and recycling.

✔️ Focuses on closing the resource loop, creating a restorative and regenerative economy.

Key Principles of Circular Economy

Circular Economy vs Linear Economy

🔹 Benefits of Circular Economy

1️⃣ Economic Benefits

✔️ Reduces raw material dependence.
✔️ Promotes new business models (repair, refurbish, sharing).
✔️ Enhances resource efficiency, lowering production costs.

2️⃣ Environmental Benefits

✔️ Cuts waste generation.
✔️ Reduces carbon footprint by minimising extraction and emissions.
✔️ Preserves biodiversity by reducing resource extraction.

3️⃣ Social Benefits

✔️ Generates green jobs in repair, recycling, and waste management.
✔️ Promotes community-level circular initiatives (local repair cafes, thrift stores).
✔️ Encourages sustainable consumption patterns.

🔹 Circular Economy in Key Sectors

1️⃣ Agriculture – Circular Agriculture

• Use of bio-waste as compost and bioenergy.
• Precision farming to reduce input wastage.
• Promoting organic farming and natural fertilizers.

2️⃣ Manufacturing – Industrial Symbiosis

• Waste from one industry serves as raw material for another.
• Example: Fly ash from power plants used in cement industry.

3️⃣ Construction – Circular Buildings

• Use of recycled materials (demolition waste, fly ash bricks).
• Modular construction allowing reuse of components.

4️⃣ Textiles – Circular Fashion

• Clothing rental platforms.
• Recycling and upcycling fabrics.
• Use of eco-friendly fibers (hemp, bamboo).

5️⃣ Electronics – E-waste Recycling

• Extended Producer Responsibility (EPR) for e-waste.
• Promoting repair and refurbished electronics market.

Case Study – India’s E-Waste Management Rules

• Introduced Extended Producer Responsibility (EPR) for electronic companies.
• Mandates collection, recycling, and safe disposal of e-waste.
• Circular principles embedded into electronics lifecycle management.

🔹 Circular Business Models

🔹 Circular Economy in India

Key Initiatives

✔️ Resource Efficiency Policy Framework (2020) – Promotes efficient resource use across sectors.
✔️ Swachh Bharat Mission – Focuses on waste segregation, composting, and recycling.
✔️ National E-Waste Management Rules – Mandates circular handling of electronic waste.
✔️ Plastic Waste Management Rules – Enforces Extended Producer Responsibility (EPR) for plastic producers.

Case Study – Circular Economy in Plastic Waste

• India generates ~3.5 million tonnes of plastic waste annually.
• Initiatives like: ✔️ Plastic ban on single-use plastics (2022).
  ✔️ Recycling through informal waste pickers.
  ✔️ Use of recycled plastic in road construction.

Circular Economy in Startups

• Startups promoting circular solutions: ✔️ Phool.co – Converts temple waste into incense.
  ✔️ Recity – Builds technology platforms for waste segregation and recycling.
  ✔️ Rentomojo – Provides furniture and appliances on rent.

🔹 Global Circular Economy Trends

🔹 Challenges in Transitioning to Circular Economy

1️⃣ Lack of Awareness

• Businesses and consumers unfamiliar with circular models.
• Linear economy deeply entrenched.

2️⃣ Regulatory Gaps

• Inconsistent waste management regulations across states.
• Weak enforcement of EPR norms.

3️⃣ Infrastructure Deficits

• Inadequate waste collection, sorting, recycling infrastructure.
• High initial cost for circular business adoption.

4️⃣ Informal Sector Integration

• Informal recyclers handle ~70% of India’s recycling, but lack formal recognition.
• Integration into formal circular economy remains a challenge.

5️⃣ Market Barriers

• Perceived inferior quality of recycled products.
• Lack of incentives for eco-design and circular innovations.

🔹 Way Forward for India’s Circular Economy

✔️ Adopt National Circular Economy Policy with sectoral roadmaps.
✔️ Incentivise eco-innovation and circular startups.
✔️ Expand EPR to cover all major waste streams.
✔️ Invest in circular infrastructure (waste sorting, bio-refineries).
✔️ Promote green public procurement to create demand for circular products.

📚 Practice MCQ

1️⃣ Which of the following best defines a Circular Economy?

✅ Options:
(a) Economy with circular currency design
(b) Economy focused on continuous resource extraction
(c) Economy where waste is minimized by reusing, repairing, and recycling resources
(d) Economy based on exclusive government control of production

2️⃣ In which of the following sectors is Circular Economy particularly relevant?

1. Agriculture
2. Textiles
3. Electronics

✅ Options:
(a) 1 only
(b) 2 and 3 only
(c) 1, 2, and 3
(d) None of the above

3️⃣ Which of the following is an example of Extended Producer Responsibility (EPR)?

✅ Options:
(a) Minimum wage guarantee
(b) Producers responsible for end-of-life product management
(c) Carbon tax on polluting industries
(d) Import tariffs on electronic goods