Circular Economy for India :

Theory and practice from an ecological economics perspective

By: Priyam Kamboj Class: IX D Roll No: 20

Circular economy initiative in India

1998-2002: academic studies 2002-2005: become one of national sustainable strategies and policies 2006-now: circular economy initiative in the 11th five year plan of economic-social development

Three issues on CE

Why (Scenario) India needs to decouple economic growth from environmental impact, but in the sense of relative decoupling What (Model)CE is the kind of multicycled economy towards more services with less throughputs. How (Strategy)How for India to make CE into practice.

1.Why: Decouple environment

economy

with

Three ends of ecological economics

Ecology: sustainable scale Society: equitable distribution Economy: efficient allocation

Three pillars for Indias development

Economic growth (): World Average Income
GDP per capita

Environmental impact (): World Average Impact

Eco-footprint per capita

Social Development(): World Average Wellbeing HDI or RGI

2050:Economic Size of the BRICs

GDP (2003 US$bn) 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2000 2010 2020 2030 2040 2050
GS BRICs Model Projections.

BRICs Have a Larger US$GDP Than the G6 in Less Than 40 Years

BRICs G6 2025: BRICs economies over half as large as the G6 By 2040: BRICS overtake the G6

GDP (2003 US$bn) The Largest Economies in 2050 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0
Ch US In Jpn Br Russ UK Ger Fr It GS BRICs Model Projections.

Three scenarios of India development

Scenario 1traditional growth: Under the present model ,the impact of india will be at least 4 times of the current level; Scenario 2absolutely decoupling: To keep the current impact level, we should at least raise 4 times of eco-efficiency. Scenario 3relatively improving: In the level of relatively decoupling, we should raise 2-3 times of eco-efficiency

Population: How many people India will have in 2020

India has 1.3 billion people in 2000 Increasing 10 million persons per year 1.4-1.5 billion till 2020 in India (1.1 times of the year 2000) Demand of 10 million persons for urbanization per year 60% urbanization rate till 2020 in India

How big is environment impact in 2020 ?

(According to the formula: I=PAT,when T=1)
Year Population (billion) 1.3(1.0) 1.4(1.1) 1.5(1.15) Affluence (GDP per capita) 800(1.0) 3000(3.75) 10000(12.5) Environment impact (how many times) 1.0 4.0 14

2000 2020 2050

1.2 Scenario #2: Absolute Decoupling of economic growth from impacts

Wellbeing Resource throughput Traditional development

Ecological Economy

Alternative development

Different requirements for the developed economy and developing economy

The target for sustainable development is to reduce the global material flow by 50% in the future fifty years, Its known to all that reduction of materials into industrial countries (20% of the materials that human possess), we can organize in this way:increase the material consumption of southern countries temporarily and then reduce it in the material flow reduction plan. Maybe this is a reasonable hypothesis of developing policy. Breek: How large the world needed by human 1994

India: low HDI with low Eco-footprint

Basic Needs for survival and Decent Life

1.3 Scenario#3: Relative decoupling of Indias development and environment

Growth of economy Decoupling Factor
1

Growth of resource use

Relative decoupling
Growth of environmental pressure
Time

Decrease of resource use

Absolute decoupling
Decrease of environmental pressure

Target of India development in terms of three pillars

Indias developing phase
General well-off 1978-2000

Economic growth
$800 per capita

Social development
Human development index 0.7

Environment impact
Eco-footprint s rapidly increasing

Entire Well-off

2001-2020

$3000 per capita

Human development index 0.8

Human development index 0.9

Eco-footprints slowly increasing

Keep the world average level

General 2021-2050 modernizati on

$10000 Per capita

Economic performance on the base of ecological economics

EP= Service/Throughput = Service/StockStock/Throughput Here are three guiding principles

Maximum of service (well-being); Minimum of resource (throughput); Sufficiency of stock (accumulation). To raise productivity efficiency ( Stock/Throughput ) To raise service efficiency ( Service/Stock)

To two efficiency of development

To increase resource productivity

One of the key issue of CE is for India to raise resource productivity. That is to decrease the resource consumption and pollution impacts while to increase the economic output

Economic output

RP

= Resource throughput

Level #1from end-pipe treatment to waste recycling

Recyclin g of wastes

Level #2from throwaway of products to reusing

Product manufacture resource materials Loop 1 Loop 2 waste Loop 1to close the loop of goods (reusing of products) Loop 2to close the loop of materials recycling of waste product use

Level#3: from selling product to providing service

Circular economy emphasizes on value add-on

Low value Value add-on Substance transform

High-value

material

product

Linear economy emphasizes on substance production

Towards a function-oriented lifestyle

degree of ownership TOOL HIRE

LEASING/SERVICE none
use per unit time as required; product not owned by group eg public transit

rental of product per unit time as requiredeg taxi

individual
the majority of consumer Durableseg private cars

shared

specified share of time use of product owned by groupeg company bus

degree of sharing

CONSUMER GOODS

full ownership

CO-OPERATIVE

Manzini, Ezio and Francois Jegou (2003) Sustainable Everyday, Edizioni Ambiente, Milan

(1)Inside level of enterprises

At the individual firm level, managers are to seek much higher efficiency through the 3Rs Principles, reduce consumption of resources and emission of pollutants and waste, reuse resources, and recycle byproducts. In this regard, we want to mention that sustainable product design or DFE (Design for environment) is important in the current Chinese CE concept.

(2)Inter level of enterprises

The second level is to optimizing resource efficiency within industrial parks and clustered or chained industries, which can be larger than the sum of improvements made by unconnected individual actors. But this level is simply not equal to the reuse of by-products within the network of firms.

(3)Regional level: integration of production and consumption

The third level is to integrate different production, consumption and its support systems in a region so the resources circulate among industries and urban systems. This level requires development of municipal or regional by-product collection, storage, processing, and distribution systems. One example is such application is resource-based planning for city and regional development.

Towards a Circular-Economy-based product service system

Product group

Strategy

Issues
Packages, Solvents Household applications Cars and mobility Buildings and housing, Infrastructures and public service

Catalytic goods Reduce and recycle Consumption goods Durable goods Reuse and remanufacture Selling performance

Evolved Kalundborg EIP in Denmark

Ecological economics: think about the next 20 years (2008-2028)

The past 20 years: to establish guiding principles based the high income countries (version 1.0) The next 20 years: to improve and develop theory and policy based on the developing countries practice (version 2.0)

Let India become one of the world labs for Ecological Economics