G20 countries launch coalition to promote circular economy

• Union Minister Bhupender Yadav launched a Resource Efficiency Circular Economy Industry Coalition (RECEIC).

• It is conceptualised under India’s G20 Presidency to promote the practices of resource efficiency and circular economy globally. 

• This industry-driven initiative was launched at the G20 fourth Environment and Climate Sustainability Working Group and Environment and Climate Ministers meeting in Chennai. 

What is circular economy?

• A circular economy entails markets that give incentives to reusing products, rather than scrapping them and then extracting new resources.

• This is a departure from the traditional, linear economic model, which is based on a take-make-consume-throw away pattern. 

• A circular economy reduces material use, redesigns materials, products, and services to be less resource intensive, and recaptures “waste” as a resource to manufacture new materials and products.

• Different forms of waste, such as clothes, scrap metal and obsolete electronics, are returned to the economy or used more efficiently.

• It involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible.

• In practice, it implies reducing waste to a minimum. When a product reaches the end of its life, its materials are kept within the economy wherever possible thanks to recycling. These can be productively used again and again, thereby creating further value.

• This can provide a way to not only protect the environment, but use natural resources more wisely, develop new sectors, create jobs and develop new capabilities.

• Reusing and recycling products would slow down the use of natural resources, reduce landscape and habitat disruption and help to limit biodiversity loss.

• Another benefit from the circular economy is a reduction in total annual greenhouse gas emissions.

Resource Efficiency Circular Economy Industry Coalition

• The coalition is envisioned to be a self-sustaining entity that will continue to operate beyond India’s G20 Presidency, making a lasting impact on environmental sustainability.

• About 39 companies headquartered in 11 different countries have joined the coalition as its founding members.

The mission of this coalition is to:

i) Facilitate and foster greater company-to-company collaboration.

ii) Build advanced capabilities across sectors and value chains.

iii) Bring learnings from diverse and global experiences of the coalition members.

iv) Unlock on-ground private sector action to enhance resource efficiency and accelerate circular economy transition.

The coalition has three guiding principles:

i) Partnerships for impact

ii) Technology cooperation

iii) Finance for scale. 

• Resource efficiency and circular economy industry coalition will also aim to contribute towards progress on key global goals and priorities set by the G20 and other international fora.

• RECEIC will also act as an overarching platform enabling industries to address information gaps and coordination challenges across the G20 members.

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