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The circular economy turns the waste of some into the raw materials of others. Taking its inspiration from nature, it is a virtuous cycle that aims to prevent the depletion of natural resources, reduce energy consumption, and fight climate change. In the circular economy, we all have a role to play.
Traditionally, most economic systems throughout the world have been based on a linear system, which moves in one direction. It goes something like this:
Extract raw materials
Discard waste
Consume products
Process goods
The circular economy suggests a decidedly more virtuous alternative route: it introduces a new life cycle, which does not end by simply tossing used items in the trash. Instead, it incorporates an optimized use of goods, including reuse or recycling.
Though we may think of the circular economy as a new concept, its basic principles have been around for centuries. Antoine Lavoisier, considered the father of modern chemistry, observed how natural ecosystems endlessly recombine elements. In his 1789 Elementary Treatise on Chemistry, he stated, “Nothing is lost, nothing is created, everything is transformed.” The circular economy takes inspiration from this idea, where wastes produced by one process become a resource for another.
Beyond altering product life cycles, the circular economy also helps reinvent human relationships, work methods and financing means. In fact, it often goes hand in hand with concepts like social entrepreneurship, crowdfunding, microcredits and more. And in BNP Paribas, the circular economy has found a committed partner.
In concrete terms, the circular economy relies on the following tenets:
Reducing consumption of raw materials when designing products
Together with reuse and recycling, the circular economy also promotes new ways of consuming. This is notably demonstrated through collaborative consumption. Examples include car sharing, buying used items from peers, and group purchases. These actions represent new behaviors springing up around the circular economy, as well as the sharing economy.
The circular economy can indeed take many different forms. BNP Paribas is working hard to circulate, promote and support new ideas and concepts, particularly through the Atelier BNP Paribas studio and occasional projects such as ‘Wave.’
Thanks to the French energy transition law promoting green growth, the circular economy has now achieved a certain legal status. The law comprises several different measures – which gradually came into effect in recent months – aiming to reduce consumption of resources and waste. Of great note are the ban on non-biodegradable plastic bags and the legalization of donations of unsold food items to charity organizations.
The related consumption law – which requires retailers to announce how long they will carry replacement parts for a given device – helps reduce planned obsolescence and encourages consumers to repair their devices.
Implementing a circular economy can only come about if everyone involved is on board:
Consumers are invited to sort and recycle their waste. That effort has proved essential: in Europe, 80% of manufactured goods end up in landfills within six months! In 2012, the World Bank projected a 70% rise in the volume of urban waste by 2025.
Individuals can also take part in the sharing economy: trading or sharing goods reduces consumption, thus using fewer natural resources.
Each company in this sector can change the way it operates to reduce its consumption of paper or energy, by favoring recycled supplies and equipment.
BNP Paribas supports the transition towards a circular economy in three ways: