THE CIRCULAR ECONOMY AT THE CENTRE OF EU PUBLIC POLICIES FOR THE COMING YEARS

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For several decades, our economic and social system has been based on a culture of producing, using, and discarding, where speculation and a lack of respect for the environment, natural resources, and energy have been constant features. This development model is precisely what is leading us down a dead-end path that not only pollutes but is capable of extinguishing nature, biodiversity, and the ecosystems of our planet.

In a world where the population is increasingly concentrated and, at the same time, no one wants to give up comfort—even if this drives us towards the abyss—we should reflect on how to decouple excessive growth from the pressure we place on natural resources, ecosystems, and nature. The issue of some of these challenges, including climate change and emissions reduction, cannot be viewed outside a global perspective, where outsourcing is merely a tweak of a larger problem, leading us to adopt a holistic and strategic view of the development process.

In this context, the circular economy, in contrast to the traditional linear model, represents a new model of economic and social development. It identifies a series of processes within our economy relating to the production, consumption, and recycling of the products we use, with the aim of respecting and restoring natural resources, and promoting the renewal and reuse of products and their components. But, above all, the circular economy is also a concept tied to economics, linked to sustainability, with the mission of maintaining the value of products, materials, and resources (water, energy, etc.) in the economy for as long as possible, thereby minimising waste generation.

As can be seen, the circular economy is more than a concept; it is a new way of being and acting, where the parts and the whole are interconnected. It stands above the economy itself, altering the pillars that affect the culture of unbridled economic growth, pushing all development actors towards a radical change in how we behave in light of this new, broad perspective.

However, while the circular economy is a strong card for achieving sustainable development, many voices highlight several drawbacks, ranging from the ultimate effectiveness of the process that supports it to its technical and biological feasibility. For instance, there are concerns about its ability to efficiently handle recycling, design, the use of renewable production inputs, and alternative models given practical, environmental, economic, and even behavioural limitations.

Despite all the challenges, obstacles, and limitations to the implementation of the circular economy in cities, it is nonetheless one of the few pathways available—alongside other economic growth models such as Degrowth and Raworth’s ‘Doughnut’ Theory—to help us overcome the climate, environmental, ecological, and social crises. While it will require effort, dedication, and research, it is an opportunity we cannot afford to squander.

One of the challenges we face is how to resolve the paradox between economic growth, employment, and the increase in greenhouse gas emissions. So, the question we can ask ourselves is: How do we propose sustainable development, given the aforementioned limitations, where some countries depend on others, and not all share the same interests or ambitions in solving the problem? In a globalised economy, it is not simply a matter of acting in isolation. It is futile for some countries to meet international commitments if others do not contribute to achieving development goals.

This same approach can also serve as an example for many other challenges, whether related to pollution, reforestation, biodiversity, or security—challenges that, by their nature, require us to embrace a new way of thinking about the economy and society. It compels us to develop greater and better international collaboration to ensure that problems do not completely overwhelm us in an unbounded race.

Governments and businesses must necessarily adapt to this new reality if we are to avoid a future where events such as global warming, new pandemics, and other adverse occurrences, which are incompatible with human life, become irreversible.

In this direction, the circular economy represents one of the highest expressions of city resilience, embodying a new model of economic and social development. It identifies a series of processes within our economy in relation to the production, consumption, and recycling of the products we use, with the aim of respecting and restoring natural resources, and promoting the renewal and reuse of products and their components.

The fact that less than 10% of the economy is circular, as highlighted by the fifth and final circular economy assessment report, commits all development actors—economic, social, and political—to closing the circularity gap. In doing so, we can protect the environment and work towards a more equitable society.

Understanding cities as dynamic entities that fulfil not only the life cycle of people but also of resources, energy, products, materials, and all inputs needed for development, requires us to delve into social and ethical dimensions that must be integrated into development policies.

This is why it is crucial for this circular thinking to acquire innovation systems, beyond economics, that are capable of extending the principles it inspires to all the challenges and components of cities. This will ensure that it fits properly into our economic development and job creation systems.

We are trapped in a dead-end situation where everything seems almost irrelevant. The problems are piling up: shortages of critical raw materials, fierce competition in markets with countries operating under different economic, strategic, and commercial rules, and not forgetting the increasing polarisation due to the very real risk of large-scale war. Too much tension, and yet no action is being taken to foster peaceful cooperation among countries that can see the real enemy we face—various potential catastrophes resulting from climate change, natural disasters, and even meteorite impacts and space debris.

The European Commission faces the major challenge of transforming key sectors into circular ones. If we continue managing as we have been, development will become unviable. On a planet with limited resources, amidst a worrying climate and environmental crisis, we must adopt bold measures to embrace circular thinking. This will break our traditional cycle of producing, using, and discarding, ensuring that all products, materials, and their components are circular with the support of emerging technologies.

From the chapter of the book that talks about the circular economy: «Gobernanza, Innovación Social y Tecnología -Tendencias Inevitables-.
https://www.osicoplatform.com/gobernanza-innovacion-social-y-tecnologia/