A circular economy is a non-linear approach that aims to eliminate waste and pollution, keep products in use longer, make better use of finite resources and help regenerate natural systems. In recent years, its critical role in combating global challenges, particularly climate change, and in supporting humanity's search for a sustainable future it is gradually being recognized, evidenced by the consensus at global events such as COP28.

Despite public discourse around the concept nearly tripling in the past five years, global circulation has declined. of Traffic Gap Report 2024 by the Circle Economy Foundation reveals a gradual decline in global turnover from 9.1% in 2018 to 7.2% in 2023. Public consensus and increased awareness of circular economy have not been effectively translated into practical implementation.

Increasing turnover, the cornerstone of the circular economy, requires a joint effort from society. Both the public and private sectors play a critical role in encouraging consumer participation in recycling and reuse. This article examines three critical ways to realize a circular economy through increased circulation: policy incentives, consumer education, and a closed system.

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1. Policy measures to promote circulation

Faced with the urgent challenges of resource depletion and environmental degradationmajor economies around the world are moving forward with policy frameworks to strengthen circularity, demonstrating a growing commitment to circular economy principles around the world.

Of the EU the new circular economy action plan (CEAP), adopted in March 2020, inherited its previous version in 2015. The new action plan aspires to help the union's transition to a circular economy. It focuses on sectors where the potential for resource circularity is expected to be exploited, including but not limited to electronics, batteries, plastics and textiles. According to data by the European Environment Agency, an increase in the circular rate of use of the material has been observed from 2010 to 2022, and countries including Belgium and Italy have achieved an increase of more than 5% in the standard.

Meanwhile, China has committed to its “Dual Carbon” targets, reaching the peak carbon emissions by 2030 and achieving carbon neutrality by 2060 through a mix of regulatory measures and economic incentives that aspire to increase circulation across society. China recently promoted a country-wide, large-scale trade scheme for equipment and consumer goods, creating a comprehensive recycling and reuse system. During the promotion of circulation of goods and materialsthe program hopes to optimize and diversify the reuse options of recycled items, in addition to raw materials, enabling more fiscal support for industrial bodies and consumers participating in the action.

2. Consumer empowerment through education

Customers can play an important role in support environmental ambitions of businessesand business-led educational campaigns to increase consumer awareness and exposure to recycling The options have proven to be essential for increasing consumer participation in recycling and recycling throughout society.

IKEA, known for its commitment to sustainable practices and operations, has launched a series of educational campaigns to increase the circulation of its products by promoting the idea that its furniture can be reused and repurposed. The Swedish company directly involves consumers in their circular economy by repurchasing consumers' used furniture and listing it in IKEA used stores, promoting a more sustainable way of handling furniture and encouraging conscious consumption.

In China, ATREnew, a NYSE-listed company entering the recycling business, has launched a public welfare project in 541 communities in 15 cities nationwide. The project aims to educate residents about recycling using smart recycling kiosks installed in the community and those who place recyclable materials in the kiosks are rewarded with points. With increased exposure and more convenient access to recycling options, resident participation in waste sorting has increased. Within nine months of its launch, over 50,000 residents were introduced to green consumption and recycling education.

3. Creating a closed supply chain system

To further advance circulation, it has become necessary to create a closed system that encourages the return of products for refurbishment, resale, recycling or reuse. This approach goes beyond traditional supply chains by integrating reverse logistics to preserve or recover the value of used products, followed by their subsequent re-entry into the market.

This vision has been embraced by manufacturers around the world, including Coca-Cola. Through collaboration with recyclers, packaging manufacturers and other parties in its supply chain, the company aims to maximize the reuse of its packaging materials, particularly PET plastic bottles and aluminum cans. To completely close the circuit, the company has set an ambitious target in its World Without Waste campaign to collect and recycle every bottle or can sold by 2030.

In addition to the manufacturing giants, recycling and second-hand companies, including India's Cashify, are pioneering closed-loop circular economy models. In India, tens of millions of smartphones are resold every year in a vibrant second-hand market. Through its integrated platform, which includes online services, physical stores and kiosks, Cashify facilitates the convenient sale and purchase of used smartphones and other electronic devices.

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The journey towards a circular economy requires a multifaceted strategy through economic incentives, consumer education and creating a closed loop for recycling and reuse. The shift to a circular economy does not appear simply as the responsibility of an individual sector, but as a collaborative effort involving governments, businesses and consumers. Through unified efforts and a commitment to these strategic approaches discussed, increasing global circulation and transforming the current linear economy into a circular and sustainable economy for the generations of the planet is very achievable.