Beyond Take-Make-Waste: Why we need the circular economy

In a world struggling with mounting waste and dwindling resources, the circular economy may just be the answer we need. But is this model really feasible? Can it continue to promote economic growth while enforcing sustainability? Today, industries and investors alike are focusing in on circularity, shaping a future where waste is not actually waste, but a resource awaiting reutilization.?

$4.5 Trillion Thanks to the Circular Economy

At its core, the circular economy is an economic model designed to decouple economic growth from resource consumption and environmental degradation. Unlike the traditional linear model of 'take-make-waste', a circular economy follows a 'reduce-reuse-recycle' mantra, promoting the efficient use of resources and waste reduction. Currently, a staggering 90% of all materials we extract and use are wasted.

The appeal of a circular economy lies in its promise of sustainability without compromising economic growth. Transitioning to a circular economy is not just good for the environment - it could actually be more lucrative in the long run. According to the World Economic Forum , a circular economy could unlock $1 trillion in untapped resource savings annually by 2025. Circular economy strategies could also generate an additional $4.5 trillion in economic output by 2030. But according to the Global Circularity Gap Report, only 8.6% of the world is currently circular. There’s a lot of room for improvement.

EV Battery Recycling: A Case Study

Circularity can be a great tool for supplying the much-needed materials required by decarbonization. Take the current rise in EVs, for example. Batteries require mining rare metals, and are wasteful once they reach the end of their lifetime.?

Companies like Ascend Elements are taking full advantage of the circular model with their electric vehicle battery recycling initiative. The company has garnered support from investment giants like BlackRock and Temasek , and recently secured $460 million in Series D funding. By repurposing used EV batteries, the company is not only addressing the waste disposal issue but also reducing the need for raw materials to produce new batteries.

16% Increase in Circular Economy Investments

The circular economy is ripe with investment opportunities and there is growing recognition of its economic potential. Investment trends overall are increasingly veering towards sustainable and responsible practices, reflecting a broader shift in the global economic paradigm. In fact, 2022 saw the highest levels of investments in circular economy companies to date, jumping an impressive 16%.

The Future is Circular

The circular economy represents a shift towards a sustainable future where we manufacture with reuse in mind. While the road ahead may be challenging, the promise of a circular economy nudges us a step closer to reconciling economic growth with environmental stewardship, leaving us with the important question: Are we ready to invest in a circular tomorrow?

Climate Deals of the Month

Running Tide lands $54 million for ocean-based carbon removal

The Maine-based carbon removal startup leverages the ocean’s natural ability to store carbon through kelp. The news of their huge Series B round was announced after the completion of their very first carbon removal operation in the open ocean. This breakthrough, backed by their first customer Shopify, delivered 100 carbon credits.

Oxy announces plans to acquire Carbon Engineering

Oxy announced its intention to acquire Carbon Engineering, a leader in direct air capture (DAC) technology, for $1.1 billion. The acquisition is slated to close by the end of the year. The two have been partners since 2019, driving tons of innovation in the DAC space. Congrats to Oxy CEO Vicki Hollub on this great achievement!

UK-based startup Immaterial announces Series A for decarbonization tech?

The Cambridge University spinout is on a mission to make carbon capture economically viable and tackle the challenges of green hydrogen storage. Their patented monolithic metal-organic frameworks (m-MOFs) technology has the potential to drastically cut costs for both industries. Congrats to CEO Mohammed Khan on this great accomplishment!?

Quantron US breaks into North American ZEV market

Germany-based Quantron has its eye on the North American market for zero-emission trucks, promoting their Class 8 hydrogen fuel cell electric vehicle. They anticipate manufacturing 1,000 trucks annually at their Michigan facility. Through their partnership with FirstElement Fuel, Inc. , Quantron will also be building hydrogen fueling stations to power their vehicles. Congrats to Quantron CEO Michael Perschke on this exciting step forward!

Thanks for reading! For more in the world of energy, keep an eye out for next month's Climate Buzz.