Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context: Finland plans road shows across major Indian cities highlighting circular economy opportunities ahead of India hosting World Circular Economy Forum in October 2026.
More in News:
- Finnish Ambassador Kimmo Lahdevirta stated aim is spreading awareness about circular economy beyond waste management, moving discussion upstream to product design and production for better product lifespan.
- India’s circular economy expected to have market value of $2 trillion, create 10 million jobs by 2050 per Government of India estimates; currently focused on waste management and recycling.
- Finnish Innovation Fund SITRA stated opportunities lie beyond waste management in several sectors; switching to circular model could bring $4.5 trillion economic benefits by 2030 per UNDP.
- Circular economy model aims to reduce emissions, create stable jobs, open new green markets; Finland wants to spread awareness across different parts of India through comprehensive roadshow initiatives.
Concept of Circular Economy
- A circular economy is a systemic development model aimed at eliminating waste and ensuring continual resource circulation.
- It rejects the linear “produce–use–discard” system, emphasising closing the resource loop through reduction, reuse, repair, refurbishment, and recycling.
- The objective is to retain product and material value for the longest possible time, preventing resources from turning into waste.
- It promotes a regenerative economic structure where resources remain within the production cycle.
Seven Pillars of the Circular Economy
- Design for Durability and Longevity: Encourages long-lasting, repair-friendly products to minimise replacements and waste generation.
- Reduce, Reuse, Recycle: Advocates decreased consumption, reuse of goods, and recycling to recover materials for repeated use.
- Refurbishment and Remanufacturing: Restores used products—such as electronics or automotive components—to near-new condition.
- Recovery and Regeneration: Extracts useful materials and energy from waste, including waste-to-energy processes.
- Product-as-a-Service Model: Replaces ownership with access through leasing and shared-use platforms, reducing material demand.
- Sustainable Supply Chains: Promotes efficient resource sourcing, minimal wastage, and environmentally conscious production practices.
- Digital Technologies and Data: Uses IoT, sensors, and analytics to track resource flows and enhance efficiency through real-time insights.
Importance in Contemporary Global Context
- Environmental Importance
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- Reduces greenhouse gas emissions by lowering resource extraction and enhancing efficiency.
- Minimises pollution and landfill burden, thereby improving air and water quality.
- Supports ecosystem and biodiversity conservation by reducing pressure on natural resources.
- Economic and Social Importance
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- Generates employment in repair, recycling, remanufacturing, and waste-processing sectors.
- Enhances resource independence and economic resilience by reducing reliance on finite raw materials.
- Expands consumer choice through affordable refurbished goods and sustainable service models.
- Helps governments and industries meet sustainability and climate targets.
Circular Economy in Waste Management
- Recognises waste as a valuable resource, not merely a disposal issue.
- Employs resource recovery to transform waste into new materials or products.
- Implements Extended Producer Responsibility (EPR), making producers accountable for end-of-life waste.
- Adopts Zero Waste strategies through segregation, composting, and large-scale recycling.
- Utilises waste-to-energy systems for non-recyclable waste, providing renewable energy alternatives.
Case Study: Amsterdam
- Amsterdam targets a 50% reduction in resource use by 2030, focusing particularly on building material recovery and electronic waste recycling.
- Demonstrates global scalability of integrated circular economy practices.