On track for a circular economy?
On track for a circular economy? Deutsche Bank
sdgtalks
The Circular Economy: A Sustainable Solution for Raw Material Shortages and Environmental Pollution
The circular economy offers sustainable solutions to major problems of our time, such as raw material shortages, environmental pollution, and fragile supply chains. The concept aims to minimize waste by extending the useful life of products through shared use, repair, and recycling. This approach aligns with the Sustainable Development Goals (SDGs) set by the United Nations.
The Circular Economy vs. the Linear Economic Model
Unlike the traditional linear economic model, often referred to as a “throw-away economy,” the circular economy focuses on reducing waste and maximizing resource efficiency. While mining raw materials remains relatively inexpensive, transitioning to circular business models presents significant challenges.
The Urgent Need for a Circular Economy
In 2021, approximately 100 billion tonnes of raw materials, including oil, metals, and gas, were consumed by humans. Shockingly, only 8.6 percent of these materials were reused, according to the Circularity Gap Report. This means that over 90 percent of raw materials were not effectively utilized. The increasing geopolitical tensions further highlight the risks associated with resource availability.
Embracing Resource Efficiency and Circular Business Models
Recognizing the potential risks and benefits, companies across various industries are exploring new business models that prioritize resource efficiency and the circular economy. This shift towards sustainable practices could lead to a significant boost for businesses operating within this framework.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 12: Responsible Consumption and Production | Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources | Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes | Indicator 9.4.1: CO2 emission per unit of value added |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 12: Responsible Consumption and Production
The article addresses the issue of raw material shortages and environmental pollution, which are central concerns of SDG 12. The circular economy, as mentioned in the article, aims to reduce waste and promote the shared use, repair, and recycling of products, aligning with the principles of responsible consumption and production.
SDG 9: Industry, Innovation, and Infrastructure
The article also highlights the need for companies to adopt new business models that prioritize resource efficiency and the circular economy. This aligns with SDG 9, which focuses on promoting sustainable industrialization, innovation, and infrastructure.
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
The article emphasizes the need to reduce waste and increase the reuse of raw materials. Achieving a higher percentage of material reuse aligns with Target 12.2 under SDG 12.
Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes
The article mentions that companies are exploring new business models committed to resource efficiency and the circular economy. This aligns with Target 9.4 under SDG 9, which aims to upgrade infrastructure and industries to be more sustainable and resource-efficient.
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
The article mentions the consumption of raw materials and the low percentage of reuse. To measure progress towards Target 12.2, indicators such as material footprint, material footprint per capita, and material footprint per GDP can be used to assess the sustainable management and efficient use of natural resources.
Indicator 9.4.1: CO2 emission per unit of value added
Although not explicitly mentioned in the article, reducing waste and adopting circular business models can contribute to lower CO2 emissions per unit of value added. This indicator can be used to measure progress towards Target 9.4.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 12: Responsible Consumption and Production | Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources | Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP |
| SDG 9: Industry, Innovation, and Infrastructure | Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes | Indicator 9.4.1: CO2 emission per unit of value added |
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: db.com
Join us, as fellow seekers of change, on a transformative journey at https://sdgtalks.ai/welcome, where you can become a member and actively contribute to shaping a brighter future.
