DEVELOPING AN EFFECTIVE STRATEGY FOR A CIRCULAR ECONOMY
Dr Ian C Overton and Dr Scott V Valentine , Green Industries SA
ABSTRACT There is an ever growing need , and recognition for the transition to a circular economy . Developing an effective strategy requires an understanding of the complex nature of the change required and the decision context , along with the right approach to strategy development . The economy can be considered as a complex adaptive system and therefore the transition to a new economic model requires a systems approach that considers all its interrelated elements and emergent properties . Strategy is best undertaken considering the decision context around knowledge , values and rules and applying a diversity of approaches across these areas . The strengths and weaknesses of the two more common planning approaches , top-down and bottom-up , are considered and in order to optimise efficacy and mitigate disadvantages associated with both approaches , a hybrid planning strategy is introduced that delivers a synthesised enhancement in comparison to either approach adopted in isolation .
WHAT IS A CIRCULAR ECONOMY ? The global depletion of resources continues at alarming pace with approximately 100 billion tonnes of materials being extracted each year ( Carrington , 2020 ). From 1900 to 2015 the global rate of material extraction increased by 1,200 % to 89 Gt / yr ( Krausman et al ., 2015 ). During this same time , world population increased by 460 %. The security of resources for businesses and countries is becoming a critical driver underpinning the circular economy . Materials such as water , coal , oil , natural gas , phosphorous , lithium , copper , aluminium and many rare earth elements are becoming scarce ( World Economic Forum , 2019 ).
Despite this , the global economy has been estimated to be only 8.6 % circular ( Circle Economy , 2020 ). Approximately one third of the material is added to product stock , another third is dispersed or emitted and another third is sent to waste . In Australia , our per capita consumption and waste generation is increasing . Richie ( 2016 ) found that population in Australia increased by 28 % from 1996 to 2015 , while waste generated increased by 170 %.
VOL 13 NO 2 2020 06 www . edaustralia . com . au