What is a Circular Economy and Why Should We Care?

Circular economy is when the waste products or byproducts of one industry is not considered waste but instead reused in another industry. In this way, waste will not be generated in large amounts and resources to not have to be exploited repetitively. Industries attain useful resources from other industries in which these resources are already deemed non-useful and give resources that they do not need to industries which still need them.

For example, the European company Fairphone is a perfect example of a firm that demonstrates qualities of the circular economy. All its phones can be received by the company after being used by the customer in a take-back program. Its phones can be dissected into 3 types of materials – metals, ceramics, and plastics. While ceramics are biodegradable and can be let to naturally decay, metals can be used to make accessories and plastics can be melted and used again in 3D printing.

It is important that we make efforts to transition to a circular economy instead of the linear one that we have currently. This can help us expand out businesses and economic activities without being at the expense of our planet.