The way we live today uses 60% more resources than Earth can provide – and creates too much waste, experts say.

Moving to a circular economy is widely seen as the way forward.

In a circular economy, things are made and consumed in a way that minimizes our use of global resources, reduces waste and reduces carbon emissions. Products are used for as long as possible, through repair, recycling and redesign – so they can be reused again and again.

At the end of a product’s life, the materials used in its manufacture are kept in the economy and reused whenever possibleexplains the European Parliament.

The circular economy is an alternative to traditional linear economies, where we take resources, make things, consume them and toss them. This way of life uses limited raw materials and produces large amounts of waste.

For example, the European Union produces more than 2.5 billion tons of waste per year.

The extraction and processing of raw materials has an impact on the environment and increases energy consumption and CO2 emissions.

A circular economy could unlock $4.5 trillion in value by 2030, according to a report from Accenture.

Consumers, businesses and politicians all need to make changes.

Examples are given in The Circularity Gap Reportan annual document on the state of the circular economy, launched at the annual meeting of the World Economic Forum in Davos.

Ideas for creating fewer emissions include adopting a plant-based diet and buying food locally, as well as flying less often and sharing vehicles.

Homes, offices and other buildings can be designed to have multiple uses. For example, an office space that is also a community center and an evening school.

It should also be easy and affordable to repair products, such as a cell phone with an old battery.

Recycling consists of converting waste into new materials and objects. This process itself uses energy and creates emissions, so it can still contribute to global warming.

In an ideal circular economy, products are redesigned to last multiple life cycles, rather than being immediately recycled.

This may include refurbishment and redistribution of products.

A growing number of circular economy initiatives and technologies are already underway.

Examples include the Flyers Acceleratora six-month program led by Uplink, the World Economic Forum’s innovation crowdsourcing platform, to help circular economy innovators scale their ideas. In 2022, 17 start-ups are participating in the program.

They understand Aquacyclean American company that produces electricity from non-treatable wastewater; Done righta Chilean company that develops sustainable food ingredients and Green mininga Brazilian company that recycles consumer packaging.

Scale360° is another Forum circular economy initiative aimed at helping technologists, political leaders and entrepreneurs change the way products are made and consumed. In Germany, for example, a campaign is underway to educate consumers about the environmental impact of ‘white goods’ such as refrigerators and washing machines.

Other companies at the forefront of circular economy innovation include Swedish denim brand Nudie. It offers a lifetime repair service on its jeans and claims to have repaired over 60,000 pairs of jeans in 2019.