Linear Economy V's ReCircular Economy
The fundamental difference between these two economic models is that while the linear economy follows the “take-make-waste” step approach, the circular economy follows the 4Rs approach of “reduce, reuse, recycle, and recover”, completely removing waste from the equation.
The Linear Economy and It's Pitfalls
A linear economy follows a traditional 'take-make-dispose' model, where resources are extracted, transformed into products, used, and then discarded as waste. This approach is fundamentally unsustainable, as it relies on a continuous supply of raw materials and results in significant waste and environmental degradation. The linear economy emphasizes short-term consumption and profit, often overlooking the long-term environmental and economic impacts. As resources become scarcer and waste accumulates, the linear model faces increasing challenges in maintaining its viability.
The pitfalls of a linear economy are numerous and profound. It accelerates resource depletion, leading to environmental degradation and biodiversity loss. The reliance on non-renewable resources contributes to climate change through increased carbon emissions. Additionally, the linear model generates vast amounts of waste, much of which is not biodegradable, polluting land and water bodies. This waste often ends up in landfills or incinerators, causing further environmental harm. Furthermore, the linear economy perpetuates a cycle of consumerism and planned obsolescence, where products are designed with a limited lifespan to encourage repeated purchases, exacerbating waste and resource depletion. This unsustainable approach not only harms the environment but also poses economic risks as resources become scarcer and more expensive to extract.
Resource Depletion:
It is estimated that the global extraction of materials has tripled over the past four decades, reaching approximately 100 billion tons annually as of 2020. This rapid increase is unsustainable and puts immense pressure on natural resources.
Waste Generation: According to the World Bank, the world generates about 2.01 billion metric tons of municipal solid waste annually, with at least 33% of that not managed in an environmentally safe manner. By 2050, global waste is expected to increase by 70% to 3.4 billion tons if current trends continue.
Plastic Pollution:
Around 8 million metric tons of plastic enter the oceans every year. This plastic pollution threatens marine life and ecosystems, with predictions indicating that by 2050, there could be more plastic than fish in the oceans by weight.
Carbon Emissions: The production and disposal of goods in a linear economy contribute significantly to greenhouse gas emissions. For instance, the manufacturing sector alone is responsible for nearly a third of global CO2 emissions. If current practices continue, the linear economy could account for 45% of global emissions by 2050.
E-Waste: The world generated 53.6 million metric tons of e-waste in 2019, and this is projected to reach 74 million metric tons by 2030. Only 17.4% of this e-waste is formally collected and recycled, with the rest ending up in landfills or incinerated, causing severe environmental and health issues.
Economic Costs: The linear economy's inefficiencies result in significant economic losses. The Ellen MacArthur Foundation estimates that transitioning to a circular economy could generate a net economic benefit of €1.8 trillion for Europe alone by 2030.
Defining The Circular Economy
The circular economy is an economic system aimed at eliminating waste and the continual use of resources. Unlike the traditional linear economy, which follows a 'take-make-dispose' model, the circular economy emphasizes designing out waste, keeping products and materials in use, and regenerating natural systems. This approach is grounded in three principles: design out waste and pollution, keep products and materials in use, and regenerate natural systems.
The circular economy came about as a response to the growing recognition of the unsustainable nature of the linear economy. Several factors have driven the shift towards a circular economy:
Resource Scarcity:
With the global population increasing and consumption patterns rising, the demand for raw materials has surged. This has led to the depletion of natural resources, making it clear that the linear model of constant extraction and disposal is not viable in the long term.
Environmental Impact: The linear economy contributes significantly to environmental degradation, including pollution, loss of biodiversity, and climate change. The accumulation of waste and emissions from production and consumption processes has prompted the need for a more sustainable approach.
Economic Efficiency:
The circular economy promotes the efficient use of resources, reducing costs associated with raw material extraction, waste management, and environmental cleanup. By designing products for longevity, reusability, and recyclability, businesses can reduce material costs and create new revenue streams from secondary markets.
Regulatory Pressure: Governments and international bodies are increasingly enacting regulations to curb waste and promote sustainability. Policies aimed at reducing plastic use, improving recycling rates, and encouraging sustainable production practices are pushing industries towards circular models.
Consumer Demand:
As awareness of environmental issues grows, consumers are demanding more sustainable products and practices. Companies that adopt circular economy principles can enhance their brand reputation, meet customer expectations, and gain a competitive advantage.
Overall, the circular economy represents a paradigm shift in how we view and utilize resources, aiming for a more sustainable, resilient, and economically beneficial system for both people and the planet.
Ellen MacArthur's Principles for Engaging in the Circular Economy in IT
Several organizations have provided formal recommendations on how the IT sector can engage in the circular economy. One of the leading bodies in this area is the Ellen MacArthur Foundation, which offers a range of guidelines and principles tailored to various industries, including IT. Here are some key recommendations for the IT sector to adopt circular economy principles:
1. Design for Longevity and Upgradability:
Modular Design: Encourage the design of IT products with modular components that can be easily replaced or upgraded, extending the product’s lifespan. Examples of this are areas in both servers and networking. Memory, CPU and RAM can all be replaced whilst keeping the server units in tact..
Durability: Focus on creating durable hardware that withstands wear and tear, Reducing the need for frequent replacements. Quite often in networking and servers the wearable parts can be replaced. 1.
2. Promote Reuse and Refurbishment:
Product Take-back Programs: Implement take-back and buy-back programs to facilitate the return of used IT equipment for refurbishment and resale. We see OEM's only putting around 15% of the products taken back into the supply chain. Meaning over 85% of the hardware given back is e-wasted. OEM's should not be your only point of call when considering take-back's
Circular IT Products: Promote the sale and use of refurbished IT products to reduce demand for new devices and extend the lifecycle of existing ones. Be under no illusion that the pre-owned marketplace has been in existence for over 30 years. You can read more in our FAC section's below. The hardware is entirely yours for resale and all licenses that go along with it.
3. Improve Recycling and Resource Recovery:
Enhanced Recycling Techniques: Invest in advanced recycling technologies to recover valuable materials from end-of-life IT products. Or this can easily be achieve through selecting the proper e-waste partners.
Material Recovery: Design products to be easily disassembled and recycled, ensuring that precious metals and other valuable materials can be efficiently reclaimed. Precious materials are in short supply. All that we waste should be recovered and added back into the supply chain.
4. Implement Product-as-a-Service Models:
Leasing and Subscription Services: Shift from selling products to offering IT equipment as a service, where customers pay for usage rather than ownership. This ensures products are returned and reused multiple times.
Maintenance Services: Look into alternative sources of maintenance. The OEM models require that you pay extra for older models and drive towards end of life policies. Look outside of the OEM's framework to extend the life of assets.
5. Adopt Circular Supply Chains:
Sustainable Sourcing: Source materials and components from suppliers that adhere to circular economy principles, prioritizing recycled and sustainable materials. Once new technologies have been implemented then adopt a 'Circular First Approach' look to the existing pool of products to cut down on your
Closed-Loop Systems: Develop closed-loop supply chains where materials from end-of-life products are reintegrated into the production of new products.
6. Enhance Digital Solutions:
Software Updates: Regularly provide software updates to enhance the performance of existing hardware, delaying the need for new purchases
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Cloud Computing: Encourage the use of cloud computing and virtualization to optimize resource use and reduce the physical footprint of IT infrastructure.
7. Engage Stakeholders and Collaborate:
Industry Collaboration: Work with other companies, industry bodies, and policymakers to establish standards and practices that promote circularity. Government are yet to push with standards but we know those are coming.
Consumer Education: Educate consumers about the benefits of circular economy practices and how they can participate, such as through responsible disposal and choosing refurbished products.
Engaging In The ReCircular Economy
Lifecycle Services
Lifecycle should be your decision and not the OEM's. How can you keep what you have in place at a declining cost?Optimize your IT systems to reduce energy consumption.
ITAD Services
We want you to get all the value you can from your old assets. That includes us paying YOU to take them away.
Asset Resale
Commit to the Circular Economy and look to see if the assets you require are already available in the market
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