11 Circular Economy

D-r Natasa Simeunovic

There is only one planet Earth, but by 2050, 9 billion people will be living here and will be consuming as if there were three Earths [1], [2]. Global consumption of such materials as biomass, fossil fuels, metals and minerals is expected to double over the next forty years, meanwhile annual waste generation is expected to increase to as much as 70% by 2050 [2]. At the same time, we live in a time of enormous economic inequalities between people and societies, accelerated environmental degradation, climate change and social inequalities. It is obvious that current economic models, whose ultimate goal is economic growth at any cost [3], measured in terms of gross domestic product (total and per capita), are not sufficient to achieve a better distribution of wealth, economic equality and well-being, and their prioritization of economic growth has a negative impact on the environment [4].

Since the early 2000s, different economic models have been promoted that are designed to achieve social equality and inclusion, to stop environmental degradation and to stimulate environmental regeneration while maintaining economic productivity. Some of these are well known - green, blue and circular economy, while others have emerged more recently regenerative economy and doughnut economics.

The circular economy is a fairly well-known concept dating back to the 1960s and 1970s. However, it has gained popularity and application since the late 2000s. The concept was developed as a contrast to the still dominant linear economy model in which the raw materials are extracted from the environment during production and processed into new products that are eventually discarded into the environment [5]. Raw materials are not infinite and eventually run out, while waste accumulates and drives up the cost of its disposal or pollution (Fig. 10.1).