Skip to main content

Climate Change Benefits from The Circular Economy

The COP26 Summit (in Glasgow, Scotland)  brought parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. Meanwhile, the circular economy is a key sustainability strategy adopted by industry leaders in their efforts to achieve progress.

While the circular economy is still in its infancy in terms of data and metrics, it's a growing phenomenon where technology sectors -- such as the Internet of Things (IoT) for asset tracking -- are set to grow rapidly within the next five years.

Global technology intelligence firm ABI Research forecasts that the world will achieve over 10.5 percent circularity by 2030, as sustainability efforts and incoming legislation start to take effect.

Circular Economy Tech Market Development

"The circular economy is an often-misunderstood concept that goes much further than waste management and can become a blueprint for cities. It is a movement away from our take-make-waste economy to one which designs out waste, keeps products and materials in use, and regenerates natural systems," said Lindsey Vest, research analyst at ABI Research.

According to the ABI assessment, circularity concepts such as remanufacturing, reuse, and the sharing economy will be critically enabled by smart cities technologies such as IoT, artificial intelligence (AI), and digital twins.

There are many different current and upcoming governmental actions that are expected to increase circularity. In particular, the EU has released the Circular Economy Action Plan as a part of the Green Deal, and China recently released its 14th Five-Year Plan (2021-2025) for Circular Economy Development, which will accelerate adoption.

This is in addition to organizations such as the globally recognized Ellen MacArthur Foundation, dedicated to educating and connecting companies and governments around the world on the circular economy and C40 cities, whose members make up 25 percent of global GDP and are continuing to champion the circular economy.

Furthermore, many different technology companies are engaging in circular concepts such a Vodafone’s NB-IoT platform for monitoring water systems to prevent waste, and Cityzenith’s Digital Twins platform which helps companies design out waste in their projects.

With around 70 percent of people expected to be living in cities by the year 2050, ABI analysts believe that it will be essential the infrastructure is in place to support this population volume and density.

Outlook for Circular Economy Tech Applications Growth

Smart cities and their technologies will be essential in facilitating the circular economy. Many current smart city technologies already support a circular economy -- such as the sharing economy, smart lighting, and green infrastructure.

"However, these technologies need to adopt circular practices from cradle-to-grave to make full use of the opportunities brought by the circular economy," Vest concludes.

That said, I'm encouraged the UK government is committed to working with all countries and joining forces with civil society, companies, and people on the frontline of climate change to inspire climate action during COP26 proceedings. Together for our Planet – this is the UK’s year of climate action.

Popular posts from this blog

Artificial Intelligence Growth at an Inflection Point

Business technology investment no longer follows a predictable path to growth. The global venture capital (VC) investment in artificial intelligence (AI) was close to its peak in 2021 reaching $22.3 billion, according to the latest worldwide market study by ABI Research. This is just $400 million shy of the historical high of $22.7 billion recorded in 2019. Compared to the $15 billion recorded in 2020, the market made a remarkable recovery, with a 48.5 percent year-on-year growth. Will the future AI marketplace return to stable growth, or will it remain volatile? Artificial Intelligence Market Development "COVID-19 greatly accelerated the speed of digital transformation within the enterprise. Businesses are looking for solutions to work processes automation, customer care, due diligence, transcription and translation, and sales and marketing enablement tools," said Lian Jye Su, research director at ABI Research . At the same time, COVID-19 led to the Great Resignation of 2021

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th