The circular economy: a path to resilience and regeneration

Waste generation worldwide has experienced a staggering increase in recent decades, showing no signs of slowing down. Currently, over two billion metric tons of municipal solid waste (MSW) are generated annually, a figure the World Bank projects to surge by approximately 70 percent by 2050.

The linear economy model of “take, make, dispose” has led to a massive increase in waste production. It is unsustainable and is worsening global problems of resource scarcity, environmental damage, and climate change.

The idea of a circular economy has emerged as a promising solution, as it aims to reduce waste generation and increase resource efficiency. In a circular economy, materials are retained in use at their highest value for as long as possible, and then never treated as waste, but as a valuable material for other uses.

The concept is inspired by natural ecosystems, where the outputs of one process become the inputs of another; and it challenges us to view “waste” as a design flaw to be designed out of a system, instead of an inevitable occurrence. The World Resources Institute has estimated that half of global carbon emissions come from the extraction and processing of materials, which could therefore be addressed using circular economy approaches.

The circular economy builds on the framework of the familiar “waste hierarchy” of reduce, reuse and recycle, but goes beyond this in its emphasis on retaining the value of resources. Central to the circular economy are three guiding principles: the elimination of waste and pollution, the prolongation of product and material lifecycles, and the regeneration of natural ecosystems.

By addressing key environmental challenges such as carbon emissions, pollution, and resource preservation, the circular economy presents a holistic solution.

Circular economy in Southeast Asia

For countries in Southeast Asia – where economic growth is rapid, population density is high, and environmental vulnerabilities are acute – embracing circular economy principles offers a path to resilience and regeneration.

In October 2021, the Association of Southeast Asian Nations (ASEAN) adopted the Framework for Circular Economy for the ASEAN Economic Community, which sets out an ambitious long-term vision for the circular economy, building on the strengths of existing ASEAN initiatives. It also identifies priority areas for action, to accelerate the realization of a circular economy in SEA.

In the first phase of implementation, the region is focusing on a number of broad initiatives such as developing circular economy standards for production processes and products, and improving access to sustainable finance to support circular initiatives.

Overcoming challenges in implementation

However, implementing circular economy initiatives is not without its challenges. There is still some uncertainty about how best to define and measure circularity – simple metrics like the amount of waste recycled can be used as a starting point, but do not capture the full range of benefits. Reusing and remanufacturing products and components is usually very environmentally beneficial, but there may be issues around quality control, warranties, and matching supply and demand both within an organization and with external parties. Economics can also be a barrier, with repair and refurbishment being labor-intensive and hence costly, compared to factory-made new products.

In addition, companies are still reluctant to make the transition to circular economy practices based upon a perceived lack of expected returns. Additional obstacles include a reliance on resource-intensive infrastructure, political obstacles, putting an appropriate price on resource use, high upfront costs, complex international supply chains, lack of consumer enthusiasm, and fostering inter-company cooperation.

Despite these challenges, organizations are adapting by rethinking processes to minimize waste and strategizing to deliver services with fewer material resources. Combining circularity principles with life cycle assessment can be a powerful tool to understanding, challenging and quantifying the impacts of a process. The newly-released ISO 59000 series of standards for the circular economy are expected to catalyze this process and also provide clarity over how to measure and assess performance.

Economic downturns have sparked increased interest in circular economies and green manufacturing, with government policies crucial in accelerating innovation. According to the Ellen MacArthur Foundation, the most profitable opportunities lie in products with a medium lifespan, allowing for reuse and remanufacturing.

Helping organizations implement circular economy as part of our Sustainable Legacies

As part of our Sustainable Legacies commitment, we provide ESG services, including all aspects of the circular economy, and work with companies across a range of sectors from pharmaceuticals, energy and transport to infrastructure and buildings.

The London example

For example, we have collaborated with the Greater London Authority (GLA) to develop guidance for implementing circularity in the built environment, aligning with the Mayor of London’s vision for innovative and circular design in the city’s homes, buildings, and infrastructure.

Policy SI7 of the London Plan mandates referable development proposals to include a Circular Economy Statement and aim for net zero-waste outcomes. We facilitated this process by creating the GLA Case Officer Toolkit, enabling case officers to evaluate planning applications based on circular economy principles, waste management, and resource efficiency across all development phases.

The toolkit establishes minimum standards, such as compliance with BS 5906:2005 and GLA/local authority guidelines, alongside recommended steps, like achieving zero biodegradable/recyclable waste to landfill by 2026. A report by the Mayor of London found that applicants for major developments were providing commitments to policy targets; reducing materials and waste associated with their development proposals, and exploring how waste could be managed more sustainably.

Building on this foundation, we continue to collaborate with architectural and engineering teams to deliver circular outcomes for numerous developments in London.

Conclusion

In transitioning to a circular economy, organizations must put increased emphasis on whole-life considerations and not just construction waste generation, with designs to optimize re-use, recovery, disassembly and adaptability of materials.

Additionally, nations and regions should proactively enact comprehensive frameworks and policies to accelerate circular economy efforts. By integrating circularity into legislation and promoting incentives for sustainable practices, we can create an environment conducive to innovation and investment in circular solutions.

References:

ASEAN. (2022). ASEAN for Business Monthly Bulletin October 2022. Retrieved from https://www.asean.org/wp-content/uploads/2022/11/ASEAN-for-Business-October-2022.pdf

ASEAN Secretariat. (2021). Framework for Circular Economy for the ASEAN Economic Community. Retrieved from https://asean.org/wp-content/uploads/2021/10/Brochure-Circular-Economy-Final.pdf

Kaza, S., Yao, L. C., Bhada-Tata, P., & Van Woerden, F. (2018). What a Waste 2.0: A Global Snapshot of Solid Waste Management to 2050. World Bank. Retrieved from http://hdl.handle.net/10986/30317

ISO. (2024). Circular economy — Vocabulary, principles and guidance for implementation. Retrieved from ISO 59004:2024 – Circular economy — Vocabulary, principles and guidance for implementation

MAYOR OF LONDON. (2024). Greater London Authority: Circular Economy Monitoring 2022. Retrieved from Greater London Authority: Circular Economy Monitoring 2022