Funding circularity: Investing in Asia’s circular economy business models

The Circular Economy: Funding Circularity in Asia’s Circular Economy Business Models

The Transition to a Circular Economy

For a while now, researchers and policy experts have touted the transition to a circular economy as a way to sustainably handle the world’s growing waste and pollution crisis. The objective is to rapidly replace the “take-make-waste” business model of the linear economy with the “reuse, repair, refurbish and recycle” model of a circular economy. The ultimate goal would be to achieve zero waste.

But beyond the buzzwords now doing the rounds in the media, how do inventive entrepreneurs and companies make sense of the circular economy? How can businesses adopt this model to reduce resource extraction and increase reuse and recycling? And how can small businesses that are successfully exploring innovative circular models find the money to scale up, especially in emerging economies?

Investing in Circular Business Models

To get answers to some of these questions, Mongabay sat down with Ellen Martin, the chief impact officer at Circulate Capital, an investment management firm based in Singapore that funds circular business models in emerging economies. Launched in 2018 with a $100 million fund, Circulate Capital invests in companies in South and Southeast Asia with the aim of scaling up their circular solutions.

In essence, the circular economy business model helps companies rethink and revamp their supply chains — reinventing their relationships with raw materials and waste. A key part of the process is to reduce the reliance on new raw materials by deriving new products from waste.

“It’s a whole way of creating value that decouples the extraction of resources from the environment and finding ways of making those resources more productive,” Martin explained.

But the concept does more than just reduce waste — it could be a powerful tool in combating the climate crisis. That’s because reusing materials consequently reduces the need to make new ones from scratch, which in turn brings down greenhouse gas emissions associated with the sourcing and manufacture of those products. Circular economy businesses can also reduce the threat of looming raw material shortages.

Biodiversity Benefits and Challenges

There are big biodiversity benefits too — at both ends of supply chains. Cutting down on raw material resourcing means less mining and deforestation, less freshwater use and far less pollution. That’s better for wildlife that no longer needs to cope with toxic mining waste and habitat loss and ecosystems polluted with plastics and other dangerous contaminants.

But clearly, if such a wholesale cultural transition is to be

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 14: Life Below Water
• SDG 15: Life on Land

The article discusses the transition to a circular economy as a way to address waste and pollution issues. This aligns with SDG 12, which aims to promote sustainable consumption and production patterns. Additionally, the circular economy model can contribute to SDG 13 by reducing greenhouse gas emissions associated with resource extraction and manufacturing. The focus on preventing plastic waste from reaching the ocean connects to SDG 14, which aims to conserve and sustainably use the oceans, seas, and marine resources. Lastly, the reduction of mining, deforestation, freshwater use, and pollution through the circular economy model aligns with SDG 15, which focuses on protecting and restoring terrestrial ecosystems.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
• Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.
• Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
• Target 14.1: By 2025, prevent and significantly reduce marine pollution of all kinds.
• Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests.

The article emphasizes the need to transition to a circular economy to achieve sustainable resource management and waste reduction, aligning with Target 12.2 and Target 12.5. The circular economy model also contributes to integrating climate change measures, as mentioned in Target 13.2. The focus on preventing plastic waste from reaching the ocean relates to Target 14.1, which aims to reduce marine pollution. Lastly, the reduction of mining and deforestation through the circular economy model aligns with Target 15.2, which promotes sustainable forest management.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP.
• Indicator 12.5.1: National recycling rate, tons of material recycled.
• Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning measures into national policies, strategies, and planning.
• Indicator 14.1.1: Index of coastal eutrophication and floating plastic debris density.
• Indicator 15.2.1: Progress towards sustainable forest management.

The article does not explicitly mention specific indicators, but the following indicators can be used to measure progress towards the identified targets. Indicator 12.2.1 measures the material footprint and its relation to GDP and population, which reflects progress towards sustainable resource management. Indicator 12.5.1 measures the recycling rate and the amount of material recycled, indicating progress in waste reduction and recycling efforts. Indicator 13.2.1 assesses the integration of climate change measures into national policies and planning. Indicator 14.1.1 measures the index of coastal eutrophication and floating plastic debris density, providing insights into marine pollution reduction. Indicator 15.2.1 tracks progress towards sustainable forest management, including the reduction of deforestation.

4. Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: news.mongabay.com

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