In an era marked by resource scarcity, environmental degradation, and climate change, it's urgent to rethink our production and consumption models. The linear economy, based on extracting, using, and discarding, is proving increasingly unsustainable. It is in this context that the circular economy emerges as a strategic and necessary alternative, capable of reducing waste, extending the life cycle of products, and adding value to materials. This article proposes a reflection on the principles of the circular economy, the challenges to its implementation, and the fundamental role of technology in building a more sustainable and resilient future.
What is the circular economy?
The traditional economy, widely adopted over the last century, is based on a linear model of production and consumption that follows the logic of "extract, produce, consume, and discard." In this cycle, everything begins with the extraction of raw materials from nature, such as minerals, fossil fuels, or agricultural resources, which are transformed into products through industrial processes. These products are then distributed through retail outlets and consumed by the public. Upon reaching the end of their useful life, whether due to wear and tear, obsolescence, or loss of functionality, these products are generally discarded as waste, often without any reuse of the materials or components. This linear model depends on a constant availability of natural resources and generates large amounts of waste, which significantly contributes to environmental degradation and climate change.
The circular economy emerges as a regenerative and sustainable alternative to this model. Instead of following a straight line that ends in disposal, the circular economy proposes a closed loop, in which products, materials, and resources are kept in use for as long as possible. This is achieved through strategies such as collecting products at the end of their life cycle, disassembling them to separate their components, reconditioning them to restore functionality, remanufacturing to reuse parts in new products, and recycling to transform materials into new raw materials (Figure 1). Thus, instead of considering disposal as an inevitable end, the circular economy reintroduces materials into the production system, reducing resource extraction, energy consumption, and waste production. It is a paradigm shift that aims to reconcile economic development with environmental responsibility.
Figure 1 – Traditional and Circular Economy Life Cycles
What measures is the European Union taking to boost the circular economy?
The European Union has been strengthening its commitment to the circular economy through ambitious policies, such as the European Green Deal, which aims to make Europe the first carbon-neutral continent by 2050. In this context, the proposed Sustainable Products Regulation (ESPR) stands out, establishing mandatory durability, repairability, and recyclability requirements for products sold in the European market. In addition, the new Ecodesign directive broadens the focus beyond energy efficiency, requiring products to be designed from the outset to facilitate reuse and recycling. The European Commission expects these measures to be fully implemented by 2030, promoting an effective transition to circular models in all economic sectors, with a direct impact on industry, consumption, and waste management.
What are the main obstacles to adopting the circular economy?
Despite the transformative potential of the circular economy, its implementation faces several obstacles. One of the main ones is the lack of eco-design: most current products are still designed for mass production, with quick and economical assembly, but are difficult to disassemble, repair, or recycle. This approach hinders the recovery of components and materials at the end of a product's lifespan. Furthermore, many sectors still lack adequate infrastructure for circular processes, such as efficient collection, sorting, and recycling systems. Added to this is the resistance of many industrial partners to change, driven by transition costs, a lack of economic incentives, and a limited understanding of the long-term benefits. This combination of factors reveals the urgent need for integrated policies, investment in innovation, and cultural change in the productive sector.
Is it realistic to invest in the circular economy despite the challenges?
Although the challenges are significant, it is both feasible and necessary to discuss a circular economy. Just look at established examples such as glass, metal, and paper recycling. Currently, in Europe, according to Eurostat, around 75% of glass and 80% of ferrous metals are recycled, with high reuse rates without loss of quality. These processes, which are currently profitable, began slowly and inefficiently, with selective collection even before optimised industrial infrastructures were in place. Paper recycling, for example, already represents an industry with annual revenues exceeding €18 billion in the EU. This shows that, with time, investment, and political will, it is possible to transform sustainable practices into solid economic models. The circular economy follows a similar path: it begins with effort and vision, and has proven potential to generate environmental, social, and financial value in the medium and long term.
How can technology accelerate the transition to a circular economy?
Digitalisation plays a crucial role in the transition to a circular economy, enabling the creation of more sustainable, efficient, and transparent business models. Technology enables traceability throughout the supply chain, allowing for the identification of material origins, monitoring product use, and planning for their post-consumer disposal. Digital tools such as IoT sensors, distributed ledgers, and data platforms facilitate not only waste management and selective collection, but also the integration of communities and consumers into circular systems -through applications that encourage the return of used products or the sharing of resources, for example. Technology also supports the creation of "product-as-a-service" services, where the focus shifts from ownership to efficient and prolonged use.
One of the most promising instruments in this context is the Digital Product Passport, which the European Union intends to make mandatory in various sectors by 2030. This passport gathers and provides detailed information on the composition, origin, environmental performance, and reuse or recycling potential of each product. With it, manufacturers, retailers, consumers, and recyclers gain access to reliable data that facilitates informed decisions throughout the entire lifecycle. In addition to increasing transparency, this mechanism lays the foundation for a more circular economy, enabling more efficient repair, upgrade, and remanufacturing, and contributing to reducing waste and the ecological footprint.
Conclusion
The transition to a circular economy is not only desirable—it's essential to ensuring a sustainable future. To achieve the goals set by the European Union, it's crucial to accelerate the implementation of circular processes and invest in technologies that make them viable and efficient. Digitalisation, innovation in product design, and collaboration across sectors will be crucial to meeting the established deadlines. Only with political commitment, continued investment, and the involvement of society as a whole will it be possible to transform the current linear economy into a regenerative, fairer, and more resilient model.
Opinion Article by Leopoldo Silva, Researcher in Software Engineering and Data Intelligence (EPMQ)
