7 Lessons to Drive the Circular Economy @Green Start-Up’s Event

Author: Antoanela Ionita

Every year, we extract more materials and we use more products than the year before. Yet, the resources we lean on are finite. And we haven’t found a second planet yet. This is the issue to which the circular economy aims to provide an answer in the form of a new production and consumption system.

The world is only 7.2% circular today, which means 92.8% of materials and products are either blocked somewhere (such as in buildings) or wasted. In Romania, the circularity factor is even lower: only 1.4%, according to the Circular Economy Coalition (CERC).

With this in mind, the Green Start-Up Sustainability Forum & Awards organized a panel on the challenges and opportunities presented by the circular economy for the business environment in Romania.?

Today, I’m highlighting 7 key lessons for driving forward the circular economy based on insights shared by industry leaders and entrepreneurs who I’ve had the pleasure to meet on this panel: Alex. Laibar , Executive Director at Coalitia pentru Economie Circulara - CERC , Diana Ceresmis , co-founder at Uphave , Lorita Constantinescu , Business Development Director at Ateliere F?r? Frontiere , Alex Burghelia , co-founder of Flip , and Roxana Puia , Marketing Director at Environ .

Lesson 1: Move from philosophy to policy

We can argue whether old is better than new and if nature can be a good source of inspiration for our economic system. Yet more than a philosophy, the circular economy is a promising economic policy for the transition to a more sustainable society.

The Circular Economy Coalition in Romania, led by Alexandru Laib?r, aims to bridge the gap between theory and practice. By promoting the circular economy at the public policy level and establishing a circular economy think tank, CERC strives to create experts and support educational programs to facilitate the implementation of circular practices.

“We’re trying to move the conversation about the circular economy from theory to practice. We have over 60 companies in our association who have implemented circular economy principles in their businesses. ”

Alex says we have enough laws as we speak, including the national strategy for the circular economy, adopted by the government, and which should be accompanied by an action plan this autumn. The next step is to start implementing, from the government level down to every single city hall in the country.

Lesson 2: Start with prevention

According to Alexandru Laib?r, the first step for the circular economy could be eco-design, but it’s in fact prevention.

By focusing on prevention, the circular economy aims to minimize waste generation and the depletion of natural resources right from the outset. This approach emphasizes the extension of the product’s lifetime by, for instance, designing products that are durable, repairable, and easily recyclable. It can also take the form of reusing products that are already in use or refurbishing in order to extract the highest value out of the product.

Ultimately, prevention acts as a cornerstone of the circular economy, enabling us to break free from the linear "take-make-dispose" model.

Lesson 3: Unlock value from existing products and services

Transitioning from a linear economy to a circular economy requires companies to rethink their business models. Accepting these changes is crucial for industry-wide transformation.?

Companies like Romanian marketplace for refurbished electronics, Flip.ro, are leveraging the circular economy concept to help customers recover the value of their used mobile phones.?

Flip.ro provides a platform where individuals can sell their unwanted phones for refurbishing or purchase a newly refurbished one. On the impact side, this helps extend the phone’s lifespan and thus reducing electronic waste and the need to extract new resources.?

Similarly, another circular economy local startup, Uphave, helps address the problem of overproduction - and thus resource extraction alongside greenhouse gas emissions and waste - in the fashion and textile industry by promoting second-hand/ vintage fashion.?

Lesson 4: Empower consumers

Flip.ro further demonstrates why empowering consumers is crucial to enabling circularity. As Alex Burghelia explains, Flip simplifies the process of selling and buying used phones, reducing the risk associated with purchasing from strangers and making it more comfortable for the customer. On the other hand, customers still get high-quality phones that work similarly to a new one, yet at a more affordable cost.

Meanwhile, Uphave, which focuses on reducing waste in the fashion industry, launched with the mission of making circular fashion more accessible across the country. By buying and selling pre-owned fashion items and accessories, Uphave offers a digital platform that digitizes the offerings of physical second-hand stores. This approach addresses the challenges of limited availability and time constraints faced by traditional thrift stores.

Roxana Puia further points out that in the process of educating consumers around circular economy choices, it is not enough to offer incentives such as prizes and discounts. To create a habit in the long term and therefore to change a consumption paradigm, people need to understand the benefits of this change:

“In a civilized society, we shouldn’t wait for applause for doing something that is healthy for the planet and ourselves.”

Lesson 5: Find the synergy between social and environmental impact?

From Ateliere F?r? Frontiere (AFF), represented at the event by Lorita Constantinescu, we learn how to combine the principles of the circular economy with social impact.?

Through refurbishing and repairing electronic waste, upcycling street banners into fashion products, and operating a regenerative farm, the organization reintegrates vulnerable individuals into the labor market. Their workshops offer craftsmanship opportunities, accessible to the communities they address, while incorporating environmental sustainability principles. Later on, the association reinvests any profits into expanding its workshops and supporting further social and environmental innovations.

Lesson 6: Recycling is a final step, yet we need to have it in place

“Recycling is often seen as the main element in the circular economy, when in fact it should be the final one; when you can’t prevent or reuse, that’s when you should recycle,” says Roxana Puia, Marketing Director at Environ.

When it comes to electronics, which is the fastest-growing waste stream at a global level, or batteries, the most dangerous one, recycling at the end of the product’s life should be a non-negotiable.

Launched 16 years ago, Environ works with electronic equipment producers, from toothbrushes to photovoltaic panels and everything in between, offering waste management compliance services, i.e. taking over the responsibility of separate collection and recycling of these types of products. This means they are also in charge of supporting the development of a waste collection infrastructure, together with local authorities.

“We currently have a poor waste management infrastructure in Romania. By now, we should have had many more separate collection points for packaging and electronic waste. The only e-waste collection points we have are placed in retailer networks, mostly in big cities, and in some schools. However, we currently don’t have any such collection points at the municipal level, as the legislation requires.”

Lesson 7: Collaboration is key

Finally, as we’ve seen throughout these examples, the circular economy demands collaboration between different sectors and areas of expertise.?

Governments need to formulate policies favoring the transition to circular business and consumption models, but they should also oversee the implementation and the development of the required infrastructure.

Companies who are placing products on the market need to take responsibility for their impact and valorization, together with partners. By joining in organizations such as CERC, they can also share knowledge, best practices, and resources, and lift each other up.

Meanwhile, us at home, need to stay open-minded and willing to be challenged.