The circular economy: emphasis on environment (1/2)

When the economy goes in circles…

Traditionally, most economic systems throughout the world have been based on a linear system, which moves in one direction. It goes something like this:

• Extract raw materials

• Discard waste

• Consume products

• Process goods

The circular economy suggests a decidedly more virtuous alternative route: it introduces a new life cycle, which does not end by simply tossing used items in the trash. Instead, it incorporates an optimized use of goods, including reuse or recycling.

Though we may think of the circular economy as a new concept, its basic principles have been around for centuries. Antoine Lavoisier, considered the father of modern chemistry, observed how natural ecosystems endlessly recombine elements. In his 1789 Elementary Treatise on Chemistry, he stated, 'Nothing is lost, nothing is created, everything is transformed.'The circular economy takes inspiration from this idea, where wastes produced by one process become a resource for another.

Beyond altering product life cycles, the circular economy also helps reinvent human relationships, work methods and financing means. In fact, it often goes hand in hand with concepts like social entrepreneurship, crowdfunding, microcredits and more. And in BNP Paribas, the circular economy has found a committed partner.