The current world population has exceededseven billion. Such a number of people poses two to three times more than thesustainable level would be. The population is expected to grow to ten billionby the end of the century, yet the size of the planet Earth remains the same.(World Population Balance 2014.
) As a consequence of a rapidly growingpopulation, the demand for products and natural resources increases and,therefore, the gross domestic product (GDP) per capita as well (Towards theCircular Economy Vol 1 2012). The global natural resources will soon ‘gobankrupt’. This will and already has an impact on the world’s economy. Nowadaysour economy of today use circular economy in order to satisfy the need of thecurrent growing population. Circular economy is industrial term whichindicates recycling instead of production, use and destruction. Circulareconomies offer better value to the customer and society, reducing costs andprotecting resources.
Briefly, circular economy is to use less naturalresources and gain economic profit. In fact, circular economy is opposite of lineareconomy. In linear economy everything produced from scratch however in circulareconomy recycling is essential. In this process, main goal is to recycle wastematerials to economy. Products are designed and optimised for disassembly andreuse. Biological material can be safely returned to the soil.
According to World Economic Forum shifting tocircular economy will be US$1 trillion a year by 2025 and also Accenture hasinformed like a shift could cause an additional US$4.5 trillion in growth by 2030.Many organizations are already trying to implementto circular strategies. Examples electrical goods provider Philips, wastemanager Veolia (see box) and carpet manufacturer Interface.
Even cities, suchas Phoenix in the US, are getting recognition for their work in buildingcircular strategies, targeting, for example, 40% waste reduction through arange of regenerative strategies. ( accaglobal, ABmagazine 01 November 2016 the circular economy – a revolutionary model)However, circular economy is not just forenvironmentally sectors. According to Colin Tetreault who is senior scholar atthe Global Institute of Sustainability at Arizona State University, all typesof organizations are interesting to this innovative model. They areincreasingly implementing that this model (circular economies) ensure the bestvalue to the customer and society, while decreasing costs and saving resources.They can also enlarge financial constancy by managing risks.