In contrast to the traditional linear economy system, which is based on extract-consume-throw away, a circular economy model, which proposes an uninterrupted cycle based on reducing waste, recycling and reusing, is increasingly being promoted (in the face of imminent climate change). That is why this time we talk about the benefits of a circular economy in the industrial sector.
What is the circular economy?
The circular economy is a model of production and consumption that involves reusing, repairing, renewing and recycling existing materials and products as often as possible, creating added value. This economic and social system aims to produce goods and services while reducing consumption and waste of raw materials, water and energy sources.
In the circular economy model, economic, social and environmental aspects converge in a single production cycle oriented towards the sustainability and efficiency of the system. This is essential nowadays, as we live in a context of scarce natural resources.
Principles of the circular economy
This economic and production model is based on three fundamental principles.
Optimising the use of resources
The circular economy aims to extend the life cycle of products and thus favour their circularity and recycling, both of the products themselves and of their components.
Promoting the efficiency of the system
It is based on increasing the efficiency of the whole system and establishing effective synergies between all the agents that form part of it.
Preserving and improving natural resources
We know that the use of natural resources is sometimes unavoidable in some human activities. However, as limited and increasingly scarce goods, these resources cannot be wasted. Thus, the circular economy seeks to make efficient and sustainable use of these natural materials.
Benefits of a circular economy
Moving towards a circular economy has numerous benefits, such as reducing environmental pressure, improving security of supply of raw materials or stimulating innovation and competitiveness.
Protecting the environment
This is essentially why more and more of the economy is starting to move in this direction. The circular economy seeks to combat climate change and limit the environmental impacts of resource use.
Therefore, it is based on using renewable energies in production processes, as well as helping to reduce CO2 emissions, minimising the consumption of natural resources, using recyclable materials and reducing waste generation.
Boosting innovation and competitiveness
Because we have in mind to design more sustainable products (eco-design), using less consumption of raw materials, longer life and less waste generation, the circular economy provides consumers with increasingly innovative products.
It also gives companies a competitive advantage in today’s globalised world by adding value.
Savings in production costs
This economic model seeks to minimise the use of raw materials and to shorten the circle as much as possible so that the product can be reused, transformed or remanufactured. By returning to the production process more quickly, companies achieve savings in the material, labour, energy and capital costs incorporated into the product, savings that benefit consumers.
Encourages new business models
The circular economy is committed to product repair, remanufacturing and reconditioning. This leads to the emergence of new business models focused on these activities.
Why ScrapAd promotes the circular economy
ScrapAd is one of those business models that promote the circular economy. It facilitates and streamlines recycling and new forms of waste management. The ScrapAd project is a great improvement in the recycling sector, as it is committed to a circular economic model to provide an outlet for waste that, without a project like this, would have ended up in landfill.
As the leading platform for scrap metal trading and recyclable materials, we hope that we have clarified the benefits of the circular economy for you. Find out how you can access to buy scrap or sell scrap.