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Why a Circular Economy?

Building a Circular Economy: Bridging Indigenous Wisdom and Circular Principles
 
Building a circular economy is not just an ideal—it's an urgent necessity for ensuring sustainability in our modern world. The concept revolves around creating a closed-loop system where resources are reused, recycled, and repurposed, minimising waste and reducing the consumption of finite resources. Our interest in establishing a circular economy is rooted in the understanding that our current linear economy, reliant on extraction, production, and disposal, is unsustainable and detrimental to our planet. 
 
At the heart of a circular economy is a commitment to rethinking our consumption patterns and product lifecycle. This means designing products with their end-of-life in mind—encouraging repairability, recyclability, and the use of sustainable materials. An essential part of this transformation involves leaning into our indigenous wisdom, which offers profound insights into sustainable living and resource management. Indigenous communities have long practised principles that align closely with circularity, emphasising respect for nature, community stewardship, and sustainable use of resources. 

In the context of the four big systems that require global attention—energy, transport, built communities, and food—we are focusing on 'kai' as a vital component for sustainable community development. By prioritising innovative and regenerative practices, we aim to strengthen local food systems, enhance community resilience, and actively contribute to the health of te Taiao.

 
By embracing these indigenous perspectives, we can enhance our understanding of ecological balance and sustainability. Indigenous wisdom teaches us to see the interconnectedness of all living things and the importance of maintaining harmony with the environment. This knowledge can guide us in creating systems that are not only efficient but also respectful of the earth and its resources.

What is a Circular Economy?

The circular economy is a system where materials never become waste and nature is regenerated. In a circular economy, products and materials are kept in circulation through processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting.

 

The circular economy tackles climate change and other global challenges, like biodiversity loss, waste, and pollution, by decoupling economic activity from the consumption of finite resources.​

'Circular Rethink of our Progress"click to watch

Source: Ellen MacArthur Foundation

Circular Economy Principles

Principle 1: Eliminate Waste & Pollution


The first principle of the circular economy is to eliminate waste and pollution. Currently, our economy works in a take-make-waste system. We take raw materials from the Earth, we make products from them, and eventually we throw them away as waste. Much of this waste ends up in landfills or incinerators and is lost. This system cannot work in the long term because the resources on our planet are finite.


Principle 2: Circulate Products & Materials


The second principle of the circular economy is to circulate products and materials at their highest value. This means keeping materials in use, either as a product or, when that can no longer be used, as components or raw materials. This way, nothing becomes waste and the intrinsic value of products and materials are retained.


Principle 3: Regenerate Nature / Taiao


The third principle of the circular economy is to regenerate nature. By moving from a take-make-waste linear economy to a circular economy, we support natural processes and leave more room for nature to thrive.

Circular Business Models 

Communities are at the heart of a Circular economy, but so too are the enterprises that help transform systems and value chains. Here are different types of Circular economy business models including: 

  1. Product as a Service

  2. Renewability

  3. Sharing Platforms

  4. ProductLife Extension

  5. Resource Efficiency and Recycling

  6. Circular Economy Enablers

We have a compiled a free resource as part of our Toolkit, to help you explore a world of circular opportunities.

Also checkout  Āmiomio Aotearoa: a transdisciplinary, multi-partner research project funded by the Ministry for Business, Innovation and Employment (MBIE) and hosted by the University of Waikato. 

 

Links to Business/Enterprise Tools to help in the process of design and re-thinking business as we know it:

Ellen MacArthur Foundation:

Doughnut Economic Action Lab

SITRA

​EMF Case study: Evocative 

Mushroom Packaging 

The Doughnut:

A 21st Century Compass for Humanity

Credit: Kate Raworth and Christian Guthier. CC-BY-SA 4.0Citation: Raworth, K. (2017), Doughnut Economics: seven ways to think like a 21st century economist. London: Penguin Random House.

Doughnut Economics graphic
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What is the Doughnut?

Think of it as a compass for human prosperity in the 21st century, with the aim of meeting the needs of the living planet.

The doughnut consists of two concentric rings: a social foundation to make sure no one is left falling short on life's essentials, and and an ecological ceiling, to ensure that humanity does not collectively overshoot the planetary boundaries that protect Earth's life-supporting systems. Between these two sets of boundaries lies a doughnut-shaped space that is both ecologically safe and socially just: a space in which humanity can thrive.

The Doughnut is the core concept at the heart of Doughnut Economics. 

Check Kate Raworth explain

From de-generative to regenerative... but how?

Source: Doughnut Economics Action Lab

What is Doughnut Economics?

If the 21st century goal of is to meet the needs of all people within the means of the living planet - in other words, get into the Doughnut - then how can humanity get there? Not with last century's economic thinking.

Doughnut Economics proposes an economic mindset that's fit for our times. It's not a set of policies and institutions, but rather a way of thinking to bring about the regenerative and distributive dynamics that this century calls for. Drawing on insights from diverse schools of economic thought - including ecological, feminist, institutional, behavioural and complexity economics - it sets out seven ways to think like a 21st century economist in order to transform economies, local to global.

The starting point of Doughnut Economics is to change the goal from endless GDP growth to thriving in the Doughnut. At the same time, see the big picture by recognising that the economy is embedded within, and dependent upon, society and the living world. Doughnut Economics recognises that human behaviour can be nurtured to be cooperative and caring, just as it can be competitive and individualistic.

It also recognises that economies, societies, and the rest of the living world, are complex, interdependent systems that are best understood through the lens of systems thinking. And it calls for turning today's degenerative economies into regenerative ones, and divisive economies into far more distributive ones. Lastly, Doughnut Economics recognises that growth may be a healthy phase of life, but nothing grows forever: things that succeed do so by growing until it is time to grow up and thrive instead.

Source: Doughnut Economics Action Lab

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