What is the circular economy? | CNBC Explains


Summary

The video introduces the concept of the circular economy, emphasizing leasing products for sustainability. Contrasting with the linear 'take, make, dispose' model, it showcases the benefits of ownership, maintenance, and sustainability. Examples include leasing lightbulbs and garment recycling initiatives by companies like H&M, alongside government support and economic opportunities for businesses. Challenges and opportunities in transitioning to a circular economy are discussed, underscoring the potential financial gains and the need for supply chain redesign. The narrative concludes by outlining steps for widespread adoption, including sustainable practices and promoting circularity.


Introduction to Circular Economy

Introduction to the concept of the circular economy where products are leased instead of purchased, leading to a more sustainable approach.

Linear Economy vs. Circular Economy

Explaining the linear economy's 'take, make, and dispose' model contrasted with the circular economy's focus on ownership, maintenance, and sustainability.

Circular Economy in Practice: Lightbulb Example

Illustration of how a company in the circular economy leases lightbulbs, offers maintenance, and reduces costs compared to traditional selling models.

Circular Economy in Fashion Industry

Discussion on H&M's involvement in the circular economy through garment recycling and the potential economic benefits of circular practices.

Government Support for Circular Economy

Highlighting governments' initiatives towards the circular economy, emphasizing the importance of repair, manufacturing, and waste management.

Economic Impact of Circular Economy

Exploration of the economic benefits of transitioning to a circular economy, including increased GDP and financial opportunities for businesses.

Challenges and Opportunities in Circular Economy

Addressing the challenges and opportunities faced by companies in adopting circular practices, such as supply chain redesign and logistics for recycling.

Financial Incentives in Circular Economy

Estimating potential financial gains in the circular economy, with projections of economic benefits and opportunities for companies.

Transitioning to Circular Economy

Highlighting the necessary steps for the circular economy to become a widespread reality, involving redesigning supply chains and promoting sustainable practices.

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