Circular Economy: The Key to achieving Net-Zero and Resilience

When the world calls for achieving net zero emission and sustainable development goals, yet clings to the “Linear Economy” model, it's akin to treating symptoms rather than tackling the root cause. Departing from the linear "take-make-use-dispose" model, Circular Economy adopts a "make-use-recycle" model, fostering a resource-renewable/restorable economic and industrial system. Through REDESIGNing business model and value network, and REDEFINing customer needs, Circular Economy aims to eliminate pollution and waste at their source, accomplishing more with fewer resources while generating greater value.

The three principles guiding Taiwan's implementation of the Circular Economy are:

1. High-value utilization of resources

   The majority of a product's environmental impact is established during its design phase. To optimize resource usage and minimize waste through the entire system, it’s crucial to Redesign elements like material sources, product design, and material flow through the lens of Circular Economy. Circularity can be pursued through two avenues depending on the nature of materials and products: the Biological Cycle and the Industrial Cycle.

2. Product-as-a-Service (PaaS)

   Most business models often thrive on a "produce more, consume more" paradigm, leading to increased externalities. To incentivize producers to adopt circular design practices and empower consumers with flexibility, it’s crucial to Redefine business models. Product-as-a-Service (PaaS) is a business model where producers retain ownership of the product and offer services to customers, thereby mitigating planned obsolescence and promoting both economic profit and resource circularity.

3. Systems Partnership

   "No single country or company can achieve resource circularity or tackle the climate crisis alone!" Brands must collaborate with manufacturers, and exporting countries must collaborate with importing nations. Circular collaboration enhances the seamless interconnection of material flow, information flow, and financial flow, facilitating the emergence of circular good ideas and good businesses. In the long term, this can catalyze an industrial upgrade, shifting the focus from a manufacturing-oriented to a service/knowledge-oriented value network.

Highlights: Textile and Agri/Food

In a resource-constrained era, Taiwan’s textile and agri/food industries have managed to carve out a path of dual resilience in both resources and operations. By repurposing unconventional sources like PET bottles, discarded fishing nets, and even pineapple leaf for textile production, it has not only mitigated the impact of material scarcity and waste, but also enabled both industries to upgrade their value network.

For more information: https://circular-taiwan.org/en/case/