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The idea of a circular economy turns on the current linear model of resource extraction, usage and disposal on its head.
It aims to design out waste, eliminate toxic chemicals, and transform product design. This means going beyond simply increasing recycling and instead reducing the creation of waste in the first place, intentionally using the waste that remains as new economic inputs.
The rationale for this is economic as well environmental. Global demand for resources is rising, scarcity is increasing, wasteful resource use costs large amounts of money, and digitalisation is allowing for greater disruption of traditional business models.
The Ellen MacArthur Foundation has a series of in depth reports on the circular economy, including on the business and economic rationale, and a shorter summary of the key arguments and evidence.
The Royal Society of Arts looks at the fashion industry as an example of what circular economy principles might mean in practice. It sets out recommendations for business and government on how to ensure its post-Covid-19 model goes beyond the wasteful status quo.
The World Resources Institute lists five ways to operationalise the circular economy includes calling for commitments to the circular economy to be central to climate agreements.
A healthy natural world is a necessary precondition for healthy societies. Hunger cannot be kept at bay without fertile soil, long term economic planning is impossible in a world of persistent catastrophic storms. In many ways, the fundamental benefits of nature to our economies is not included in how markets and governments value economic decision-making.
Natural capital, a concept that underpins the Government’s 25 year plan for the environment, seeks to calculate the value of those bits of nature that are typically seen as being free. The idea is that putting a figure on the value of nature will lead to better decisions by government and in markets. Some reject this idea, questioning how a value can be put on the aesthetic beauty of a river or on the value of the global nitrogen cycle.
HM Treasury's Dasgupta Review in 2021 marked the first time a finance ministry has published a comprehensive analysis of the relationship between economics and the protection of nature. Our analysis and summary of the review can be found here.
WWF’s Living Planet Report from 2018 includes estimates of the economic value of nature, which it claims amounts to $125 trillion globally.
Green Alliance’s work on Natural Infrastructure Schemes explores how farmers and landowners can profit from protecting the environment, working with others who could benefit, such as local authorities.
Green Alliance have published a set of materials on the green jobs potential of natural environment investment, including a short policy paper on tackling structural unemployment through restoration of the environment; a longer-form report on the economic arguments for environmental investment; and data tool with constituency-level data on labour market risk and “environmental opportunity”.
The government's Natural Capital Committee, which explored the state of natural capital in England, has released a report that summarises all it has learned and its recommendations, including an upcoming environment bill.