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Circular economy

For decades, our economic system has operated on a linear model: take, make, dispose. We extract raw materials from the Earth, transform them into products, and ultimately discard them as waste. This model has fueled economic growth, but it’s also pushing our planet to its limits. Climate change, resource depletion, and pollution are all consequences of this unsustainable approach.

The circular economy offers a transformative alternative. It’s a regenerative system that aims to keep resources in use for as long as possible, extract the maximum value from them, and then recover and regenerate products and materials at the end of their1 life cycle.

The circular economy focuses on designing out waste and pollution from the outset, keeping products and materials in use through strategies like product-as-a-service, leasing, and repair, and regenerating natural systems.

While often associated with the circular economy, the “three Rs” represent a hierarchy of actions: reducing consumption, reusing products, and recycling materials when necessary.

Examples of the circular economy in action include product-as-a-service models like Rent the Runway and Spotify, closed-loop recycling systems like those implemented by flooring manufacturer Interface, and regenerative agriculture practices.

The benefits of the circular economy are numerous, including reduced resource depletion, decreased pollution, mitigated climate change, job creation in repair and reuse sectors, increased resource efficiency, reduced reliance on volatile global supply chains, improved public health, increased access to products and services, and enhanced community resilience.

Transitioning to a circular economy requires significant changes across various sectors, including policy and regulation, business models, and consumer behavior. Governments can incentivize circular economy practices through regulations, subsidies, and investment in infrastructure. Companies need to innovate and adapt their business models to embrace circular principles. Consumers need to be educated about the benefits of circular economy choices and empowered to make sustainable decisions.

The circular economy presents a unique opportunity to address some of the most pressing challenges facing our planet. By embracing this new paradigm, we can transform our economic system and create a more sustainable, equitable, and prosperous future for all.

The circular economy is not just a theoretical concept; it’s a practical framework for building a more sustainable future. By embracing its principles and implementing innovative solutions, we can transform our economic system and create a world where resources are valued and waste is eliminated.

 

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Andhra Pradesh to soon introduce a circular economy policy

The Andhra Pradesh Government is set to release a circular economy policy and establish three circular economy parks, including one in Visakhapatnam, within a year. The initiative aims to boost the state's GSDP by Rs.15,000 crore annually and generate Rs.3,000 crore...

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Burning away the Past: Rebuilding Second-Hand Fashion Markets after the Devastating Kantamanto Fire Note: I’ve tried to maintain the original meaning and tone of the title while rephrasing it in a more concise and engaging way. Let me know if you’d like me to make any changes!

The devastating fire at Ghana’s Kantamanto Market, a global second-hand clothing hub, has highlighted the need for a more resilient and sustainable framework for these markets. Second-hand markets like Kantamanto are crucial in the global circular economy, extending garment life cycles and providing jobs for millions. To rebuild effectively, stakeholders must seize this moment to transform these markets. The article proposes strategies for improving safety, strengthening infrastructure, and embedding circular economy practices.

Safety measures include fireproofing infrastructure, emergency preparedness, and community-led initiatives. Infrastructural enhancements can include permanent structures, waste management systems, digital platforms, renewable energy, and green spaces. Circular economy practices can be promoted through upcycling, textile recycling, take-back schemes, and consumer education. Global collaboration is crucial for fostering resilience, with international organizations, brands, and governments working together to develop sustainable standards and support market development.

To empower traders and communities, support should be provided through microloans, skill development programs, and mentorship networks. By prioritizing safety, investing in infrastructure, and fostering circular practices, stakeholders can transform second-hand markets into sustainable and equitable models for the fashion industry.

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PurFi Global and Arvind Limited Collaborate on Ambitious New Venture

PurFi Global, a company specializing in textile rejuvenation technology, and its joint venture partner, Arvind Limited, a global leader in textile manufacturing, announced plans to scale up their production capacity to meet the growing demand for sustainable textile fibers. The joint venture, PurFi Arvind Manufacturing India (PAMI), will build a state-of-the-art textile circularity facility in Gujarat, India, with an initial capacity to produce 3,500 metric tons of rejuvenated fibers and 5,500 tons of secondary material capacity annually. The facility is designed to expand to 10 large production lines over the next three years to meet global demand. The technology uses proprietary processes to convert textile waste into high-quality fibers, meeting the exacting standards of the global textile industry. The partnership aims to address the global textile waste crisis and support the fashion industry’s transition towards a circular economy. Industry leaders have committed to using 100% recycled or sustainably sourced materials by 2030, and PurFi’s technology is well-positioned to meet this demand, providing a solution to reduce waste and support recycling.

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Ingka Group invests Euro1 billion to bolster recycling infrastructure, furthering sustainability goals.

Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, plans to invest approximately €1 billion in companies that are expanding recycling infrastructure. The goal is to support the transition to a circular economy, where waste is minimized and recycled materials are reused. Currently, only 20% of waste is recycled, and the global economy consumes 75% more natural resources than the Earth can regenerate. Ingka Investments aims to invest in companies that can help increase recycling rates and reduce waste. Peter van der Poel, Managing Director of Ingka Investments, emphasizes the importance of strong legislation to prioritize recycling over incineration and landfilling. The company is actively collaborating with authorities and stakeholders to address these issues. Ingka Group established Circular Investments in 2017 to focus on investments that contribute to a circular economy, with a focus on plastics, mattresses, textiles, wood, and food waste.

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Sustainable Revolution in Furniture Design: Rethinking the Future

IKEA, the world’s largest furniture retailer, is pioneering a new approach to sustainability through its “Buy back & resell” program. The program, launched in 2022, allows customers to return used IKEA products and receive a store credit or have them resold. The program is part of IKEA’s circular approach to reduce waste and extend product lifecycles. IKEA’s sustainability strategy is integrated into every step of the design process, from sourcing to manufacturing. The company aims to become fully circular, with a focus on designing products that can be easily recycled, refurbished, or resold.

In the US, the Buy back & resell program is rolling out, with over 3,000 products currently eligible for resale. The program has faced challenges due to state-specific regulations, but IKEA is working to establish the program in all US stores.

In an interview, Mardi Ditze, Country Sustainability Manager for IKEA U.S., discussed the company’s approach to sustainability and circularity. Ditze emphasized the importance of thinking about waste and sustainability from the design stage, considering factors such as the sourcing of materials, supply chain sustainability, and end-of-life options for products.

IKEA’s flat-pack design, popularized by its iconic blue bags, has been a key part of the company’s sustainability efforts, reducing packaging waste and shipping emissions. Ditze highlighted the example of IKEA’s SILVERSIDA tableware line, which uses ceramic from broken ceramic parts to manufacture new products, demonstrating IKEA’s commitment to circularity.

Despite being a privately owned company, IKEA’s purpose-driven approach allows for a long-term view, prioritizing sustainability and social responsibility over short-term financial gains. Ditze noted that IKEA’s unique ownership structure, with a foundation owning the company, ensures independence and a focus on long-term goals.

The interview also touched on the company’s approach to ownership, with IKEA U.S. being a franchisee of Inter IKEA Group, which is responsible for the global IKEA brand. Ditze discussed the challenges and opportunities of implementing the Buy back & resell program in the US, including the need to adapt to state-specific regulations and regulations around secondhand goods.

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DEOGAM puts forth its innovative EV recycling system, paving the way for a more circular economy.

DEOGAM Inc. is set to showcase its groundbreaking electric vehicle (EV) recycling system at CES 2025 in Las Vegas. The innovative technology, which runs from January 7 to 10, captures energy typically wasted in EV power systems and redirects it for reuse, enhancing vehicle efficiency and supporting sustainability. By recovering and repurposing energy, DEOGAM’s system promotes upcycling and the circular economy. This solution not only boosts EV performance but also reduces resource waste, aligning with efforts to achieve carbon neutrality. This technology benefits both manufacturers and EV users, offering a transformative approach to energy efficiency.

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Empowering a sustainable Malaysia: Unlocking the Potential of the Circular Economy

Malaysia faces a critical juncture in its pursuit of sustainable development, with environmental challenges and economic demands escalating. The Malaysia MADANI framework emphasizes sustainability, innovation, and prosperity, aligning with the principles of the circular economy (CE). The CE model, which prioritizes reusing, recycling, and regenerating resources, is seen as a solution to global environmental and economic challenges. Global reports, such as The Circular Economy in Motion, the Circularity Gap Report 2024, and the Circular Cities Declaration Report 2024, highlight the CE’s role in combating climate change and driving sustainable growth. By adopting CE strategies, Malaysia can align its MADANI vision with actionable steps for a sustainable future. The reports highlight the economic, environmental, and social benefits of CE investments, such as creating green jobs, reducing environmental degradation, and promoting resource efficiency. The time is now for Malaysia to adopt circular economy practices to achieve its vision of a sustainable, prosperous, and globally respected future.

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Leading beverage companies urge startups to drive innovation in the circular economy

PepsiCo has announced the third edition of its Greenhouse Accelerator (GHAC) program in the Asia Pacific (APAC) region, focusing on sustainability and innovation. The program provides early-stage startups with expert business advisory, mentorship, and collaboration opportunities to develop innovations that reduce environmental impact, promote sustainable agriculture, and advance renewable energy. The program has a proven track record of success, with 15 startup pilots launched over the past two years. For the 2024 GHAC, 10 finalists will receive $20,000 grants, with an additional $100,000 going to the winner. The program has also partnered with GC Ventures and Circulate Capital to provide tailored guidance. The program’s success has been demonstrated by past winners, such as Alterno, which developed a thermal energy storage solution for renewable energy. Ashley Brown, PepsiCo’s VP of Supply Chain A/NZ and Chief Sustainability Officer, sees the program as a crucial role in helping entrepreneurs meet growing expectations for sustainability and competitiveness.

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A sustainable furniture reuse program gives new life to discarded items, providing essential support to individuals and families struggling with homelessness.

Birmingham City Council has launched a furniture recycling scheme to support individuals facing homelessness and repurpose unwanted furniture waste. The scheme takes surplus furniture donated by council tenants, stores it, and redistributes it to those in need, such as rough sleepers, temporary accommodation residents, and new council tenants. Councillor Jayne Francis, Cabinet Member for Housing and Homelessness, emphasized the initiative’s benefits, including reducing costs associated with void council homes and making a difference for vulnerable people. The pilot has already provided furniture to organizations such as Age UK and Trident Reach Cranstoun. The scheme has been well-received, and the council plans to scale it up by expanding storage capacity to accommodate a larger supply of reusable furniture.

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A Look Back at 2024 and Forward Thinking for 2025

India is at a crossroads in its journey towards sustainability and a circular economy. Despite significant strides, there is a gap between ambitious goals and ground-level implementation. In 2024, India faced a growing waste management crisis, with a material circularity rate below the global average. While some corporations and startups have shown leadership in sustainability, many have struggled to meet their goals.

In 2025, there are opportunities and challenges ahead. Indian startups and MSMEs are expected to play a key role in scaling circular solutions. The government is introducing policies to promote sustainability, such as the Extended Producer Responsibility framework for e-waste and plastics. Consumer awareness is also growing, with 68% of urban consumers willing to adopt eco-friendly alternatives.

Key areas to watch in 2025 include scaling innovations, strengthening government policies, and consumer awareness and behavioral change. Focus areas will be textiles, agriculture, and construction. Expert opinions highlight the need for robust partnerships between government, private sector, and citizens to drive progress. As India navigates this critical year, it has the potential to lead the way globally in the circular economy movement.

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We commit to robust enforcement of the Circular Economy Package’s sustainable policies.

The Circular Economy package was introduced to boost recycling rates, restrict incineration and landfill disposal, and reform waste management in the EU. The package includes six bills covering waste, packaging, landfill, end-of-life vehicles, batteries, and waste electronics. The European Commission’s First Vice-President Frans Timmermans, who was given a mandate to streamline regulations and deliver “better regulation,” is rewriting the package to make it “more ambitious.” This decision aims to create a more circular economy, reduce waste, and increase the recovery and recycling of materials. This revamp will likely lead to stricter rules and higher recycling targets, which can have significant environmental and economic benefits.

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Northern Ireland pioneering a comprehensive recycling education programme to drive a more circular economy in schools.

Students at St. Naile’s Primary School in Northern Ireland are participating in the Zero Waste Champions program, an innovative initiative that promotes recycling and circular economy principles. Through this program, students are turning discarded materials like banners, bicycle tires, and surplus fabrics into functional items, such as bags. The initiative also utilizes materials from global events, such as the COP26 conference, emphasizing the importance of resource reuse. The goal is to educate students, their families, and the wider community on sustainable practices, with the ultimate aim of reducing waste and driving long-term change. By engaging children in circular economy education, the program hopes to shape positive recycling behaviors and minimize waste.

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Seven-Up is granting N5m to schools as a token of appreciation.

Seven-Up Bottling Company (SBC) has rewarded schools with N5 million as part of its 2024 Sustainability Week, which promoted circular economy and environmental stewardship among students in Lagos State. The event, themed “Championing Circular Economy in Our Business and Communities – The SABI Way,” brought together students, educators, NGOs, and government officials to tackle plastic pollution and promote sustainable practices. The Green-Skill Schools Challenge, held at SBC’s manufacturing plant, drew applications from 330 schools, with 18 selected for the final exhibition. Three schools emerged victorious, sharing cash prizes totaling N5 million. The event also included a Green Skill Scale-Up Bootcamp, organized in partnership with key organizations, to support further training and capacity-building. The Commissioner for Education and the Special Adviser on Climate Change and Circular Economy praised SBC’s efforts, emphasizing the importance of integrating sustainability into youth education. The event was part of SBC’s broader Sustainability Week activities, which also included an internal green competition and the distribution of waste segregation bins to schools and markets.

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As of today, a national ban on single-use plastics takes effect, marking a major milestone in the country’s efforts to reduce waste and protect the environment.

As of January 1, Dubai has banned single-use plastic products, including styrofoam containers and cups, plastic stirrers, straws, table covers, and cotton buds with plastic stems. This is part of a broader plan to enhance the emirate’s eco-friendly approach over the next two years. The next phase, set to begin in January 2026, will prohibit single-use plastic cups, lids, cutlery, food containers, and plates. The goal is to encourage the private sector to use recycled products and promote sustainable recycling practices. To enforce the ban, the government has established fines for non-compliance. The first-time offender will face a Dirham 200 cash penalty, which doubles to Dirham 2000 for repeated offenses within a year. Those who dispute the fines can submit written grievances to the Director-General for review. The committee’s decision is final and overrides any conflicting decisions. This initiative aims to reduce plastic waste and promote a circular economy in Dubai.

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Transforming Waste: Accelerating the Transition to a Circular Economy for a Sustainable Future 2025

The 11th edition of EcoWASTE Exhibition and Forum will take place from January 14-16, 2025, at the Abu Dhabi National Exhibition Centre. The event, co-hosted by Tadweer Group, will focus on “Waste Management in the Circular Economy” and is part of the World Future Energy Summit, which is part of Abu Dhabi Sustainability Week. The event aims to solidify the UAE’s leadership in waste utilization and circular economy development, contributing to national efforts to achieve carbon neutrality. Tadweer Group’s Managing Director and CEO, Eng. Ali Al Dhaheri, emphasized the group’s commitment to innovation in waste management. The event will feature keynote sessions, panel discussions, and exhibitions showcasing cutting-edge technologies, such as artificial intelligence, blockchain, and automation. The event will also highlight Tadweer’s pioneering efforts in organic waste management and spotlight the UAE’s ambitious target of diverting 100% of waste from landfills. Prominent speakers and partners will include industry leaders from Tadweer Group, 3M, IFFCO Group, and more. The event is expected to drive innovation, collaboration, and knowledge exchange, furthering global sustainability initiatives.

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Arab Plast Dubai 2025 sets the stage to spearhead sustainability and circular economy initiatives – News

The 17th edition of ArabPlast, a trade show for plastics, recycling, petrochemicals, packaging, and rubber, will take place from January 7-9, 2025, at the Dubai International Convention and Exhibition Centre. The event will feature over 750 exhibitors from 35 countries, including 12 country pavilions, showcasing innovations and solutions shaping the future of these industries. The show will unite leading UAE exhibitors with global participants from countries such as Austria, China, Germany, and India. The event aims to accelerate industry goals towards sustainability and reinforce Dubai’s role as a global manufacturing and innovation hub. The exhibition director, Nadhal Mohamed Kadar, emphasized the show’s pivotal role in advancing cutting-edge technologies and driving industrial progress globally. The event will also highlight the significance of the petrochemical sector, which contributes significantly to regional GDP.

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Multifaceted routes to propel Vietnam’s shift towards a sustainable circular economy

Vietnam is committed to sustainable development and the well-being of its people, but faces significant challenges, including pollution and waste management. To address these issues, the United Nations Development Programme (UNDP) is promoting the circular economy, an integrated approach that touches every aspect of the economy and society. Four key pathways are proposed to accelerate Vietnam’s transition to a circular economy: integrating eco-design into policies, prioritizing key sectors for circular practices, embedding the circular transition within current institutional reforms, and making it a whole-of-society endeavor. The UNDP is ready to support Vietnam in prioritizing reforms that create a supportive environment for transformation. The circular economy can deliver benefits such as reducing climate impact, increasing competitiveness, and protecting human and ecosystem health. The Vietnamese government should prioritize sectors closely linked to trade, such as agriculture, electronics, and construction materials, to align with international standards and unlock opportunities for sustainable growth. Additionally, effective institutions and coordinated efforts are needed to streamline governance frameworks and regulatory processes.

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Woment-led circular economy revolution is transforming Nigeria’s mining landscape

Women in mining and industry leaders are urging Nigeria’s mining sector to adopt sustainable practices and increase the participation of women. At a presentation, President of Women in Mining Nigeria (WIM Nigeria) Dr. Janet F. Adeyemi emphasized the need for a circular economy in mining, citing examples of countries like Sweden and Chile that are reducing their environmental footprints while improving operational efficiency. Adeybe-Williams, Chair of the Nigeria Diaspora Summit Initiative, highlighted the importance of women in driving innovation and leadership in the industry, citing gender bias and cultural barriers as major challenges. Despite these barriers, women like Bridgette Radebe of South Africa and Precious Ramotswe of Botswana have succeeded in the industry. To achieve growth and sustainability, the leaders advocate for policy reforms, capacity building, and community-centered approaches, as well as increased opportunities for training, networking, and funding. They envision a future where sustainable practices and gender inclusivity drive growth in the mining sector, benefitting both the environment and local communities.

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Nestlé stands out as a winner in food security and circular economy initiatives at the prestigious SERAS awards.

Nestle Nigeria has been recognized as the best company in food security and best in circular economy at the 18th Africa Sustainability Enterprise and Responsibility Awards, SERAS. The award recognizes the company’s efforts in responsible local sourcing, farmer capacity building, grain quality improvement, and providing sustainable and affordable nutrition. The company’s commitment to sustainability is reflected in its approach to reduce its carbon footprint, enhance water stewardship, and develop sustainable packaging. Nestle Nigeria has also been recognized for its impact on women’s empowerment, climate action, and food security.

The company’s sustainability efforts include efforts to ensure accessible nutrition, youth and women empowerment, and community development. It also prioritizes reducing its carbon footprint through energy savings, water reduction, and packaging redesign. The company’s commitment to engendering a circular economy in waste management is also acknowledged. The recognition at SERAS is not new, as Nestle Nigeria was previously named the 2nd Most Sustainable Company in Africa in 2023. The award is a testament to the company’s dedication to sustainability and its impact on the African community.

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The UK’s Ministry of Environment Launches High-Level Taskforce to Accelerate Circular Economy Initiatives

The UK Government has formed a Circular Economy Taskforce to develop a roadmap for England’s transition to a circular economy. The taskforce, composed of experts from various sectors, aims to support economic growth, create green jobs, and contribute to the UK’s net-zero emissions target. The taskforce will work on two phases over the next year, with the goal of publishing the Circular Economy Strategy and roadmaps in 2025. The first phase will focus on identifying metrics to measure the UK’s progress and proposing targets for national and local levels. The second phase will complete the strategy, outlining a policy pathway to deliver on the targets and priority interventions to drive progress over the next 10 years. The taskforce members bring expertise from sectors such as sustainability, materials, and innovation. The goal is to increase resource efficiency, reduce emissions, and support economic growth. The taskforce aims to contribute to the government’s Industrial Strategy and Carbon Budget Delivery Plan, and will involve devolved governments in the process.

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India’s dairy farmers have established 27,000 biogas plants, generating 11,000 carbon credits and contributing to the country’s sustainable energy initiative.

The National Dairy Development Board (NDDB) has installed over 27,000 household biogas plants in 19 states, generating carbon credits for dairy cooperatives. The initiative has helped farmers earn carbon credits, boosting their incomes and promoting a circular economy. The NDDB has demonstrated three models of biogas generation, including the Zakariyapura, Banaskantha, and Varanasi models. Two large-capacity dung-based CNG/Biogas plants are already operational, with 11 more under development. The NDDB has also partnered with Suzuki R&D Centre India to develop innovative business models for utilising cow dung as a source of energy and organic fertilizer.

The Department of Animal Husbandry & Dairying Secretary, Alka Upadhyaya, advised dairy federations to work on a circular economy, with at least one biogas project per state. This will reduce the dairy sector’s carbon footprint and enhance farmer incomes. Discussions also focused on efficient water utilization in the dairy value chain, with automation potentially reducing water consumption at processing plants. The meeting concluded with a call to benchmark dairy industry practices to improve efficiency and reduce costs, and to expedite the formation of cooperative societies to increase milk procurement and improve milk producers’ social and economic status.

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