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Circular economy

Meaning and definition of the circular model

What is the circular economy?

The climate crisis and new economic and social challenges are calling for a change of perspective and the spread of a new culture of sustainability for the sake of the future generations. The circular economy is therefore an economic system that redesigns production and consumption models and cycles to recycle and limit waste and ensure sustainable development.

The Ellen MacArthur Foundation defines the circular economy as "an economy designed to regenerate itself".

The circular economy is a production and consumption model based on sharing, reusing, repairing and recycling materials in subsequent production cycles, minimizing waste and recovering energy from waste that can no longer be used as a material, thus minimizing the use of virgin materials and fossil fuels.

La differenza tra economia circolare ed economia lineare

Differenze con il modello lineare

L’economia lineare è un modello intrinsecamente legato al paradigma produci-usa-getta, che ha dominato fin dai tempi della rivoluzione industriale. Questo approccio si fondava su un'abbondante disponibilità di materiali ed energia, permettendo alle aziende di produrre in massa e ai consumatori di acquistare senza preoccupazioni. Tuttavia, tale sistema ha portato a un crescente stress sugli ecosistemi, culminando nella scarsità delle risorse naturali e materie prime. Con l'incremento costante della domanda globale, alimentato da una popolazione in continua crescita, la pressione sulle materie prime è diventata insostenibile.

Inoltre, le attuali dinamiche geopolitiche, i conflitti e la volatilità dei prezzi rendono la questione delle materie prime di grande attualità, in particolare alla luce dei rischi legati all'approvvigionamento e alla dipendenza dalle importazioni. Secondo i dati di Eurostat, l'UE importa circa la metà delle materie prime che consuma. Tale importazione ha anche un significativo impatto climatico, in termini di movimentazione e trasporto di materie prime, semi-lavorati e prodotti finiti. Analogamente, i processi di estrazione delle materie prime comportano un incremento del consumo energetico e delle emissioni di anidride carbonica.

L’economia circolare, al contrario, si propone come un modello a ciclo innovativo e sostenibile, capace di superare le limitazioni dell’economia lineare. Invece di un approccio “usa e getta”, l’economia circolare introduce un ciclo virtuoso, in cui le risorse naturali vengono preservate e valorizzate al massimo. Questo paradigma promuove uno sviluppo industriale ecologicamente responsabile, riducendo drasticamente il consumo di materie prime, gli sprechi e l'inquinamento, e puntando a un equilibrio armonioso con gli ecosistemi naturali.

Il modello circolare non è in contrapposizione con la ricerca di profitto delle imprese. Vengono infatti ripensate le strategie per ottenere un vantaggio competitivo duraturo attraverso l'ottimizzazione delle risorse e l'incremento dell'efficienza produttiva, sviluppare nuove competenze e raggiungere migliori prestazioni che riducono i costi, migliorano l’efficienza e rispondono alle richieste dei consumatori in tema di sostenibilità ambientale.

L'adozione del modello circolare non solo non compromette la redditività delle imprese, ma anzi offre nuove opportunità di innovazione, competitività e crescita sostenibile. Inoltre, rispondendo alle crescenti richieste dei consumatori per prodotti e pratiche più ecologiche, le imprese possono migliorare la loro reputazione e conquistare nuove fette di mercato.

The principles of the system

Sustainability and avoiding waste: the philosophy of the regenerative economy

An underlying principle of the circular economy is systemic thinking, i.e. the ability to understand how different elements influence each other, within a system. This ability also introduces the retroaction principle, which must be applied at the design stage to avoid inefficiencies that may generate waste, wastage, loss of value, etc.

The circular economy is self-regenerating because it uses the least possible quantity of materials and energy resources and reduces the amount of waste and refuse as much as possible through recovery. One can therefore speak of a regenerative economy.

The 5 principles of the circular economy

The key concepts of the idea of circularity

The system is based on 5 pillars that define the guidelines to follow throughout the production cycle:

  1. Sustainable resources: production activities must prefer the use of renewable sources and recycled materials for a lower environmental impact;
  2. Products as a service: products must be designed in a modular manner, to allow them to be broken down and facilitate their repair, remanufacturing and upgrading;
  3. Sharing: by sharing products and services, the costs and the quantity of resources used to produce them can be optimized, while also reducing waste from non-use;
  4. Extended product life cycle: products must be strong and durable, so that they can be used several times;
  5. Recovery and recycling: raw materials, products and even waste must be  regenerated, repaired and re-introduced on the market, even by changing their intended use.

The basic concept of the circular economy is inspired by the biological processes of living things, reproducing the cycle of nature according to the principles of biomimicry. In nature, there is no waste; everything is used to create new value. Think, for example, of dry leaves that fall to the ground and are gradually reabsorbed by the soil, becoming fertilizer and giving new energy to plants for the next season's life cycle.

The primary objective of the circular economy is to minimize the use of natural primary resources in terms of both materials and energy. To achieve this goal, waste management aimed at recovering materials and energy, is an essential element that also includes reducing industrial waste by reusing by-products at production sites.

Ultimately, by spreading recycling and recovery processes and treatments, the concept of waste itself can be overcome in the sense that waste must be perceived as a resource.

Lo schema dell’economia circolare

La filosofia dell'economia rigenerativa

Lo schema dell'economia circolare si fonda su un sistema di "condivisione, prestito, riutilizzo, riparazione, ricondizionamento e riciclo dei materiali", come delineato anche dal Parlamento Europeo

Questo modello si basa sull'idea di mantenere i materiali in uso il più a lungo possibile, riducendo drasticamente la necessità di nuove materie prime. Attraverso strategie di riutilizzo, riparazione e recupero sia di materia sia di energia, si mira a creare un ciclo virtuoso che minimizzi gli scarti e l’inquinamento.

Le principali fasi del modello dell’economia circolare includono una progettazione ecocompatibile, l'uso efficiente delle risorse, la produzione sostenibile e la gestione del fine vita dei prodotti. In questo modello virtuoso, i materiali non cessano mai di essere utili, anche una volta giunti al loro fine vita, ma vengono continuamente lavorati con lo scopo di essere reimmessi nel ciclo produttivo, riducendo al minimo l'impatto ambientale

La chiusura del ciclo avviene attraverso una gestione integrata dei rifiuti, che vengono trasformati in nuove risorse anziché finire in discarica. I benefici ambientali sono molteplici: dalla riduzione delle emissioni di gas serra alla mitigazione dell'inquinamento, fino alla promozione di una cultura del non spreco.

Questo approccio non solo favorisce la sostenibilità ambientale e la lotta al cambiamento climatico, ma innalza anche il livello di consapevolezza e responsabilità delle imprese e dei consumatori, creando un'armonia tra progresso economico e tutela dell'ecosistema.

schema economia circolare
schema economia circolare

The 3 Rs of the circular economy

Reduce, reuse, recycle

The best waste reduction strategy is to extend the life cycle of products. Once the product has fulfilled its function, the materials it is made of are processed, reconditioned, recycled and reintroduced back into a production cycle that may not be infinite, but can last for several cycles and generate additional value.

The ‘three Rs principle’ guides the transition from the linear model to the circular economy.  But what are the three Rs of the circular economy? Reduce, reuse, recycle.

  • Reduce: streamline processes, reduce the amount of energy required at each stage, reduce the use of natural resources and raw materials, as well as waste. This approach is the basis of ecodesign, which involves designing objects not only for use as products but also for management as waste;
  • Reuse: right from the design phase, the product must be designed to be repaired and reused, so that product life can be extended;
  • Recycle: no waste, only value; waste and discarded materials from previous processes must be transformed into new goods, i.e. secondary raw materials, giving them a new life.

Adopting the three Rs leads to a lower environmental impact and safeguards natural resources. It also reduces pollution aa well as the amount of waste sent to landfills, and saves energy.

Advantages of the circular economy

Benefits of the circular model: figures and data

One of the main benefits of the circular economy is the reduction of total annual greenhouse gas emissions. According to the European Environment Agency, industrial processes and product use account for 9.10% of greenhouse gas emissions in the EU.

Recycling and reusing products slows down the depletion of natural resources, reduces the destruction of landscapes and habitats, and helps to safeguard biodiversity.

Producing more durable products that can be upgraded and repaired reduces the amount of waste. Creating products that are more efficient and sustainable also reduces production costs and the use of energy and resources.

Packaging is also an issue that should not be underestimated. On average, each European citizen generates almost 180 kg of packaging waste per year.  The aim is to reduce overpackaging and improve packaging materials for proper recycling.

The adoption of a more circular economy can therefore bring numerous benefits, which can be summarized as follows:

  • Lower environmental impact and lower CO2 emissions;
  • Longer availability of raw materials (now close to depletion);
  • Increased competitiveness, as companies invest in research to improve products and services and in so doing meet new sustainability requirements;
  • Drive for innovation, leading to more durable products that are designed to be repaired and reused;
  • Increased employment, with the creation of 700,000 new jobs in the environment, public health and food safety sectors by 2030, according to estimates by the European Parliament's Commission.

Economia circolare e istituzioni

La transizione verso il modello circolare

Il legame tra economia circolare e istituzioni si rivela essenziale per la transizione ecologica verso un paradigma sostenibile. Istituzioni nazionali e internazionali, come l'Unione Europea, le Nazioni Unite e l'Organizzazione per la Cooperazione e lo Sviluppo Economico (OCSE), rivestono un ruolo strategico nella promozione della circolarità e nella lotta agli sprechi, attraverso politiche incisive e lungimiranti. 

Con interventi mirati, attraverso direttive, regolamenti e programmi di finanziamenti, queste istituzioni non solo incoraggiano le imprese ad adottare pratiche virtuose legate all'economia circolare, ma stimolano anche un cambiamento culturale profondo. Si promuove il riutilizzo creativo dei materiali, la produzione sostenibile e la gestione integrata dei rifiuti, trasformando così le sfide ambientali in opportunità di crescita e sviluppo.

A livello nazionale, governi e agenzie ambientali implementano politiche di sviluppo sostenibile che agevolano la chiusura del cerchio, tra cui sgravi fiscali e incentivi per le aziende che investono in tecnologie green e campagne di sensibilizzazione per educare i cittadini sui benefici dell'economia circolare

Le istituzioni si impegnano anche a promuovere misure volte alla riduzione dell'inquinamento e al raggiungimento della neutralità carbonica, attraverso la promozione di energie rinnovabili, il miglioramento dell'efficienza energetica e la riduzione delle emissioni di gas serra. Questi sforzi sono essenziali per garantire un futuro sostenibile, in cui la crescita economica non comprometta l'ambiente.

Examples of a circular economy: A2A’s commitment

Circularity in our business model

One of the principles on which our business model is based, in terms of a circular economy, is that before we dispose of a residue from our activities, we try to use it as a resource locally. The industrial synergies between our energy, waste and water chains, together with our commitment to spreading a culture of sustainability, allow us to put the principles of the circular economy into practice.

  • Encouraging people to use natural resources respectfully and responsibly is a priority for us. Raising awareness is essential but not sufficient. We too use a collaborative logic. For example, we invest in new technologies to reduce water loss by using sensors that allow us to identify any damage and intervene. We also offer solutions to reduce the use of boilers in favor of district heating, which is also produced by waste-to-energy plants and by industrial waste heat. Here, too, water plays a key role. The district heating network uses a double pipeline to heat buildings by transporting hot water, as well as to return the cooled water to the plants where it is then reheated and recirculated.

  • We are fostering a new culture of sustainability, not only by encouraging proper waste separation, but also by encouraging reuse. From home composting, where kitchen and garden waste can be used as compost, to the creative reuse of furniture. There are many things that each of us can put into practice in our daily lives to contribute to a wider circular model.

  • Our circular economy model allows us to transform waste into resources. Each material follows its own path, through different processes, in special facilities. The starting point is the same for everyone: carefully sorted separate waste collection. By recycling, we reduce the use of landfill sites and produce secondary raw materials, limiting CO2 emissions.

    The various waste fractions, including glass, plastic and paper, from separate waste collection are converted in special plants into new materials that can be returned to the production and consumption cycle.

    At the same time, we recycle the organic waste (OFMSW) from separate collection, and the food, agricultural, vegetable and wood waste to produce fertilizers and bioenergy such as biogas and biomethane, which is fed into our gas distribution networks.

    In addition, waste-to-energy (WtE) plants play a vital role in our virtuous circular economy, diverting waste from landfills and recovering electrical and thermal energy from waste that cannot be recycled. This saves energy resources and reduced CO2 emissions by around 50% compared to conventional landfills. The new energy and heat that is recovered is then returned to the local area through our district heating network.

    Last, in our integrated water cycle model, we use methods to recover the sludge produced from wastewater treatment and convert it into fertilizer and energy, reducing its impact on the environment and health.

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