What does a circular economy look like… with multiple circles?

The Importance of Mining and Metals in Achieving Net Zero

It is universally acknowledged that we need to reach net zero within the next few decades if we are to mitigate the worst impacts of climate change, and this means transitioning to renewable sources of energy.

With metals and minerals being core ingredients of all clean energy technologies, WEF predicts that we will need around 3 billion tons[1] of metal to attain net zero by 2050.

A weight equivalent of 300,000 Eiffel Towers. This means that mining and metals need to be at the heart of a circular economy.

The Circular Economy and its Importance

The circular economy has often been described as a single circle focused on materials already in the supply chain, thereby marginalising the input of virgin materials and associated output of waste.

In this ’single circle’, circularity is often conflated with recycling. And while recycling of waste is undoubtedly a key tenet of a sustainable supply chain, it alone will not lead to sufficient volumes of materials required to meet demand.

The single circle model also treats durable and consumable materials as if they are the same. Metals have the potential to be used and reused infinitely in systems primed for circularity, in contrast to many raw materials that are created for single or limited use only.

Expanding the Definition of the Circular Economy

This is problematic, as the potential of durable materials is misrepresented, meaning an enormous amount of value is potentially being lost to waste.

Additionally, this thinking cannot lead to an inclusive, just transition. Although some degree of mining can be found in most countries, the industry is largely concentrated in certain parts of the world, including in many lower income countries where the industry may likely dominate GDP[2].

Current models of the circular economy that focus on eliminating primary materials are de facto closing the door to producing countries. To not risk leaving anyone behind, it is essential that we expand our understanding of the circular economy so that producing countries are better able to benefit, all the while allowing for greater collective contribution to the wellbeing of our planet.

A Comprehensive Model for the Circular Economy

We therefore need to challenge our understanding of the circular economy so that it is inclusive of the full value chain of a product. That is, we need a model that encompasses both process circularity, which is inclusive of mining and metals processing, and product circularity, which then considers what happens once metals are in use.

This way of looking at the circular economy, in effect, creates two interconnected circles. The first circle acknowledges the efforts required to make mining and metals processes more circular, such as land remediation, water reuse, valorisation of waste and so on, while the second circle focuses on ensuring that metal is treated as a durable material and never becomes waste.

Unifying the Industry for Circularity

There are many circular initiatives emerging across mining and metals, but these largely remain individual case studies of best practice, rather than scalable industry initiatives spanning companies, countries, and regions. In part, this is because there’s a lack of a clear definition of success.

Success, for example, may be defined by different groups as eliminating all waste, or reaching a set percentage of recycled content within products. It could also be thought of as eliminating the supply of primary materials.

This lack of a unified vision means that it is near impossible for companies to measure and track progress. One organisation may be able to do so, but this information will not be comparable across companies let alone industries. This is not to say that all companies need to take the same approach to circularity.

It is likey in future that some will remain focussed mostly on primary mining, but doing so in a way which is regenerative, whilst others will increasingly focus on secondary supply and more innovative models for providing materials to customers. What is needed is a definition for circularity which allows the value in all these approaches to be recognised.

The Role of Policy Makers in Enabling Circular Economy

Policy and regulatory environments can make or break circularity. At present, different definitions of success are leading to a complex policy landscape that biases certain circular approaches.

If success is seen by policy makers as increasing the use of recycled materials, policies are being designed in ways that could shut the door to primary materials, even if these have been produced in ways that potentially benefit people and the planet. At the same time, policies which make it harder to transport and use secondary metals may increase the volume of waste and the loss of value from the system.

There needs to be a coherent policy approach to the metals supply chain, which both incentivises the responsible production of required primary materials, and then ensures that these can be recovered and repurposed at the appropriate time.

Investment for the Transition to a Circular Economy

Reaching net zero by 2050 is expected to require annual investments of around US$9.2 trillion[3]. Within this is a need to ensure that adequate investment is made to develop inclusive circular business models that are sensitive to the challenges that exist around fluctuations in commodity prices.

For example, re-mining tailings may be financially viable during times where commodity prices are high, but should they drop, the profit-making potential can be lost. As such companies may not be incentivised to develop these opportunities. Investors, therefore, have a huge role to play in incentivising circularity at scale.

Likewise in most cases, one company alone is unlikely to create a scalable circular solution. Take the recycling of tires, which one company may undertake to retain access to certain key materials: while desirable, this action alone isn’t going to be sufficient to prevent significant volumes of waste being transferred to landfill as waste.

However, if several companies in a region collaborate, this may make such a venture more impactful

SDGs, Targets, and Indicators

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix
   • Indicator 7.2.1: Renewable energy share in the total final energy consumption

2. 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

3. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning
   • Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula

4. SDG 15: Life on Land

   • Target 15.3: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought, and floods, and strive to achieve a land degradation-neutral world
   • Indicator 15.3.1: Proportion of land that is degraded over total land area

5. SDG 17: Partnerships for the Goals

   • Target 17.16: Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources
   • Indicator 17.16.1: Number of countries reporting progress in multi-stakeholder development effectiveness monitoring frameworks that support the achievement of the sustainable development goals

Analysis:

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

   The issues highlighted in the article are connected to the following SDGs:

   • SDG 7: Affordable and Clean Energy
   • SDG 12: Responsible Consumption and Production
   • SDG 13: Climate Action
   • SDG 15: Life on Land
   • SDG 17: Partnerships for the Goals

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

   Based on the article’s content, the following specific targets can be identified:

   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix
   • Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning
   • Target 15.3: By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought, and floods, and strive to achieve a land degradation-neutral world
   • Target 17.16: Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources

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

   Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets:

   • Indicator 7.2.1: Renewable energy share in the total final energy consumption
   • Indicator 12.2.

     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: miningreview.com

      

     

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