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One of the major changes that have been implemented in recent decades has been to move from a linear to a circular economy. In the first model, raw materials are extracted, converted into consumer goods and, once the useful life or time of use of these products is over, they become waste. They are thrown away, so to speak. This has created different problems, from the depletion of resources due to the need to constantly create new products to the generation of more and more tonnes of waste.
In contrast to this model, the circular economy promotes a continuous life cycle. Instead of depositing products that are no longer needed in landfills and other waste management solutions, they are re-integrated into the life cycle. Things that are no longer needed become raw materials again, from which new products are produced. This avoids generating waste and extracting new materials, as the materials already in circulation are being used.
This is what EnergyLoop does by giving new life to wind turbine blades that are no longer in use.
The benefits of the circular economy
Therefore, one of the main benefits of the circular economy is its positive impact on the environment. Thanks to these processes, it reduces emissions (according to Deloitte’s calculations, by 40%) or avoids the impact of extractive practices.
However, this is not the only outstanding benefit of the circular economy, which also has a positive impact on resource management, the economy and society. For example, it reduces dependence on the extraction of virgin raw materials.
Some estimates suggest that in the last six years some 500 billion tonnes of materials have been consumed worldwide, almost as much as was consumed at the end of the 20th century. This has a harmful impact on the planet. It also generates economic dependency flows: one of the reasons why the EU is supporting the circular economy is to reduce the import deficit, which in 2023 was €29 billion in raw materials.
In fact, another of the great benefits of the circular economy is its economic impact. As an ESADE analysis reminds us, it reduces companies’ operating costs by lowering those associated with the import of virgin raw materials and waste management, but also by being connected to the implementation of sustainable processes that are more efficient in the use of resources. In addition, Goldman Sachs estimates that globally the circular economy could generate economic benefits of 2.9 trillion dollars by 2030.
The economic return is also supported by improved competitiveness (another of the key points highlighted by the EU on the potential of the circular economy) and job creation. In Europe alone, EU estimates speak of some 700,000 new jobs by 2030 thanks to the opportunities of the circular economy. Green jobs are one of the big trends of the 21st century.
