What is circular economy?

The circular economy is about restoring as much value as possible from resources. In other words, the circular economy is about using resources properly, and finding how to make waste a resource instead of a cost. It is about finding different ways to better the environment and the economy. 

Canada is consistently ranked in the top ten waste-producing countries in the world. Many Canadians have already started taking part in the circular economy by reusing, repairing, and sharing resources. The Canadian government is very supportive and is expanding these efforts. The circular economy aims to create new economic opportunities and a more environment-friendly and strong economy.

We are currently living in a linear economy where natural resources are used to make something and then often discarded at the end. This linear model is the main cause of our environmental crises like global warming, loss of biodiversity, climate change, and increasing pollution. Noticing the environmental issues and healthy economic opportunities within this built environment sector can only be achieved by adopting circular economy approaches. 

The Benefits of a Circular Economy

The circular economy provides plenty of benefits for the consumer. 

• In the circular economy, a one-time investment in raw materials can reduce the cost-per-use of the finished product.
• Creating a circular economy has a lot of environmental benefits. A circular economy can decrease carbon release. 
• We all know the dangerousness of overusing or wasting limited resources. The circular economy will help to lower the use of energy and resources. 
• The circular economy is leading to a zero-waste model. It leads to better resource productivity, less waste in dumpsites, and less trash in the oceans.
• Every year air, water, and soil pollution cause more than 9 million deaths. A circular economy makes better use of natural resources and helps protect human health and biodiversity. 
• It helps to create better economic opportunities. Research shows that the circular economy offers a $4.5 trillion economic opportunity by offering zero waste and creating employment. 

The circular economy requires a rethink of how products are designed, resources are used, and how new services are used for an economy. It rebuilds economic and natural resources to provide society with good benefits.

Challenges of Circular Economy in Canada

There are several challenges to adopting circularity in Canada. Canada is one of the strongest in producing raw materials. But circularity seeks to reduce it.

Renewable energy sources and eco-friendly technologies are going to create new demand for metals and lithium. 

A circular economy may require a different mindset to move towards sustainability. The most common barrier to practices of circularity is the need for awareness of the circular economy and finding the differences from traditional recycling practices. This lack of awareness can also affect the market demand for circular products. 

The current architecture for recycling is not enough to meet the demand of a circular economy. A circular economy will require enhanced infrastructure with reuse, repair, and recycling facilities. 

The shifting towards a circular economy requires progressive changes and participation from governments, businesses, and society. 

Initiatives Taken by the Government of Canada

A Healthy Environment and a Healthy Economy plan inspire adopting resource-efficient approaches that support a circular economy to build the walkway to a resilient state.

The comprehensive zero plastic waste agenda, action plan on zero plastic waste, and execution of the Canada-wide strategy taken by the Canadian government. It is a national strategy to encourage restoring and other value retention processes.

The greening government strategy is aimed at establishing Canada as a global leader in government operations that are low-carbon, flexible, and eco-friendly. It includes transformation to a circular economy by obtaining goods and services with a lower environmental impact.

Federal, Provincial, and Territorial Housing Agreements by The Canadian Government

The forest bio-economy framework for Canada is an approach that uses innovative and recycled techniques to transform sustainably managed renewable forest-based resources into goods and services.

The Canada-wide Strategy on Zero Plastic Waste highlights the business and economic opportunities that come with long-lasting and durable plastics and identifies areas where improvements are needed across the plastic lifecycle. It includes collection, clean-up, and adding value.  

Action Plan for Zero Plastic Waste Across Canada outlines specific steps and a timetable for putting the Canada-wide strategy on zero plastic waste into practice, to improve the country’s ability to avoid, minimize, reuse, recover, capture, and clean up plastic waste and pollution.

Phase 1 of Canada’s Action Plan to Reduce Plastic Waste Centers on product design, single-use plastics, collection methods, capacity for recycling, and domestic markets. Phase 2 of the Canadian Action Plan to Reduce Plastic Waste is dedicated to consumer education, aquatic activities, research and monitoring, cleanup, and international cooperation.

The Canadian Minerals and Metals Plan envisions a circular economy in which waste from mines is converted into valuable goods.

International Scheme Supported by The Government of Canada

Building on efforts being deployed internationally, the Global Alliance on Circular Economy and Resource Efficiency (GACERE) seeks to offer a global push for activities connected to the circular economy transition, resource efficiency, and sustainable consumption and production.

The International Resource Panel (IRP) offers links and guidance to industry, government, and the public on how to enhance local and global resource management.

The Ocean Plastics Charter establishes the foundation for making sure plastics are made with recycling and reuse in mind. Partners pledge to adopt a more lifecycle-focused and resource-efficient approach to plastics management on land and at sea by signing the Charter.

The platform for Accelerating the Circular Economy (PACE) encourages corporate, governmental, and civil society leadership worldwide to expedite the shift to a circular economy.

Canada’s Achievements in Circular Economy

Food Waste Reduction Challenge: On January 20, 2022, the Semi-finalists for the Food Waste Reduction Challenge for the Novel Technologies Streams were announced by Minister Bibeau.

The winning project for the “Smart Cities Challenge: Our Food Future”, plans to establish the first circular food economy in the nation by 2025 in the municipalities of Wellington County and Guelph.

On May 17, 2019, Canada announced funding for small businesses’ innovative efforts to combat plastic pollution and minimize plastic waste. 

On February 12, 2020, the Canadian government assisted small companies that are coming up with creative ways to combat plastic pollution. 

On March 5, 2021, the Canadian government backed creative, domestically produced solutions to the plastic garbage problem. 

The necessity of shifting to circular economic approaches is visible. Circularity offers important equipment for lowering environmental impacts. The main challenge for governments is to identify which of these equipment suits best for individuals. Having a personal vehicle to use shared transport may be a good strategy but the fact needs to be considered that this is also a country with above the optimum amount of commuting distance. 

Circularity also helps us see new opportunities by placing a greater emphasis on resource efficiency. Examples of these include repurposing end-of-life electric vehicle batteries to support rapidly expanding sources of intermittent power or reducing corrosion in steel, which enables us to make better use of infrastructure. 

The federated structure of Canada makes it difficult to implement a well-coordinated transition to circular practices. However, just like with the present climate efforts, the federal government is crucial in establishing goals and formulating ground-breaking laws. Two examples of how the federal government is already assisting in laying the foundation for circularity are the Zero Plastic Waste Agenda and the Bioeconomy Strategy. 

The Greening Government Strategy is bringing federal procurement closer to circularity, but it might have an even greater impact.