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Circular economy and "green technologies"
Nadezhda Avramchikova, Ivan Rozhnov, Tatyana Zelenskaya, Olga Maslova and
Vyacheslav Avramchikov
Reshetnev Siberian State University of Science and Technology, 31, Krasnoyarsky Rabochy Av.,
660037 Krasnoyarsk, Russian Federation
Abstract. The feature of the circular economy is the restorative and
closed nature of the production cycle with the "green" nature-like
technologies application which reduce greenhouse gas emissions, slow
down the temperature rise on the planet and preserve the environment. The
circular economy approaches correspond to the concept of goal-setting of
the United Nations Organization in the mainstream of sustainable socio-
economic development and are widely used in the countries of the
European Union. As a part of their research, scientists have defined a
circular economy as the economy which involves the total multiple
processing of the resources applied and provides energy savings. In this
regard, the circular economy is called "green", i.e. preserving the natural
resources of the planet and the environment on the basis of information
technology. Currently, there is enough evidence that circularity has begun
to permeate linear economics and that innovative products and contracts
are already available in various forms.
1 Introduction
Currently, the tendencies of humanization and human-centricity in the development of
socio-economic systems of different levels are becoming fundamental [1, 2]. The next
phase transition of the world economy was discussed by the countries of the United Nations
(UN) at the international economic forum in Davos (Switzerland) in 2016. The protection
of the environment and the fighting against climate change were the main questions in the
field of sustainable development. At the same time, goals were formulated which ensure
economic growth and liquidation of poverty, an increase of well-being while simultaneous
protecting the planet from the negative influence of the consequences of economic activity.
At the present stage, there is an aggravation of global environmental problems, such as
the reduction of biodiversity and pollution of the natural environment. The lack of
universally introduced environmentally neutral technologies causes pollution of the
atmosphere, water bodies, as well as the increase of waste production [3, 4]. In this regard,
the disturbance of natural balance occurs, what will call into question the further
development and prosperity of mankind.
The indicator of air pollution is the growth of greenhouse gas emissions and the
associated global warming process. To solve this problem, today "green" technologies are
actively promoted and developed, which are designed to reduce greenhouse gas emissions
and slow the rise of the temperature on the planet. The reason for the pollution of water
bodies and soils is the increasing volumes of waste production, as well as the lack of its
© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons
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E3S Web of Conferences 291, 02014 (2021) https://doi.org/10.1051/e3sconf/202129102014
SDGG 2021
proper disposal. This is connected with the reverse side of progress. Humanity throws out
1.3 trillion tons of waste annually, most of which are kept on landfills, what leads to the
poisoning of the entire ecosystem [4]. Despite the existence of individual variants for
solving the problem of waste generation, for example, such as recycling waste or using
waste by burning to produce electricity, these methods of waste management are common
mainly in developed countries. In developing countries, such technologies are lacking, what
negatively influences both the health of the local population and the environment. This
situation inevitably leads to the destruction of natural technologies.
In searching the way out of the global crisis, at the end of the last century, organizations
appeared which were developing concepts for the transition to global equilibrium. For
example, in 1968 such an organization was the Club of Rome, organized by the Italian
industrialist Aurelio Pecci. The idea of global equilibrium was presented in the first report
"The Limits to Growth" under the direction of D. Meadows to the Club of Rome in 1972
[5].
2 Methods and Materials
In recent years, the concept of a circular economy has attracted increased attention. This
concept is defined as an economy which is restorative and regenerative in its design and is
aimed at products’ maintenance, components and materials at their maximum usefulness
and value at all times, separating the technical and biological cycles. It is conceived as a
continuous positive development cycle which preserves and enhances natural capital,
optimizes resource yields and minimizes systemic risks by managing final stocks and
renewable flows. It works effectively at any scale. This economic model is tended to
ultimately separate global economic development from final resource consumption.
The circular economy is oriented on the implementation of the approach which ensures
the return of unused resources to production and their reuse in a new quality. Currently,
research conducted by the Ellen MacArthur Fund has provided enough evidence that
circularity has begun to permeate into linear economics and that it has gone beyond a proof
of concept - a number of businesses are already flourishing on it, and politicians are
recognizing the economy's circular potential to achieve key political goals. Innovative
products and contracts designed for the circular economy are already available in a variety
of forms, from innovative materials and products (such as biodegradable food packaging
and easily disassembled office printers) to pay-as-you-go contracts (for example, tires).
Obviously, what these examples have in common is that they focus on optimizing the
overall system performance rather than the performance of a single component [6].
The convincing business foundation for a circular economy presented in a study by the
Ellen MacArthur Fund allows to paraphrase the discussion on speed of transition. This
speed, in its turn, determines the cost of the transition. Transition expenses can include
investment in assets or investment in the new digital infrastructure, R&D, retraining,
support to facilitate market penetration of new products, or temporary support for affected
industries. Accelerating the transition to a circular economy beyond normal replacement
cycles will increase these transition expenses and create non-recoverable assets. It remains
to be assessed to what extent these costs are additional compared to other development
scenarios and to what extent they can become a stimulus for economic stagnation.
Undoubtedly, there are risks to consider in a systemic transition like this. Existing
industries will have to adapt their business models, and the transition to these business
models can create a redistribution effect in the economy. Balancing the redistributive effect
of the changes that the implementation of a circular economy can produce for consumers,
businesses, and countries will be crucial.
2
E3S Web of Conferences 291, 02014 (2021) https://doi.org/10.1051/e3sconf/202129102014
SDGG 2021
proper disposal. This is connected with the reverse side of progress. Humanity throws out
1.3 trillion tons of waste annually, most of which are kept on landfills, what leads to the
poisoning of the entire ecosystem [4]. Despite the existence of individual variants for
solving the problem of waste generation, for example, such as recycling waste or using
waste by burning to produce electricity, these methods of waste management are common
mainly in developed countries. In developing countries, such technologies are lacking, what
negatively influences both the health of the local population and the environment. This
situation inevitably leads to the destruction of natural technologies.
In searching the way out of the global crisis, at the end of the last century, organizations
appeared which were developing concepts for the transition to global equilibrium. For
example, in 1968 such an organization was the Club of Rome, organized by the Italian
industrialist Aurelio Pecci. The idea of global equilibrium was presented in the first report
"The Limits to Growth" under the direction of D. Meadows to the Club of Rome in 1972
[5].
2 Methods and Materials
In recent years, the concept of a circular economy has attracted increased attention. This
concept is defined as an economy which is restorative and regenerative in its design and is
aimed at products’ maintenance, components and materials at their maximum usefulness
and value at all times, separating the technical and biological cycles. It is conceived as a
continuous positive development cycle which preserves and enhances natural capital,
optimizes resource yields and minimizes systemic risks by managing final stocks and
renewable flows. It works effectively at any scale. This economic model is tended to
ultimately separate global economic development from final resource consumption.
The circular economy is oriented on the implementation of the approach which ensures
the return of unused resources to production and their reuse in a new quality. Currently,
research conducted by the Ellen MacArthur Fund has provided enough evidence that
circularity has begun to permeate into linear economics and that it has gone beyond a proof
of concept - a number of businesses are already flourishing on it, and politicians are
recognizing the economy's circular potential to achieve key political goals. Innovative
products and contracts designed for the circular economy are already available in a variety
of forms, from innovative materials and products (such as biodegradable food packaging
and easily disassembled office printers) to pay-as-you-go contracts (for example, tires).
Obviously, what these examples have in common is that they focus on optimizing the
overall system performance rather than the performance of a single component [6].
The convincing business foundation for a circular economy presented in a study by the
Ellen MacArthur Fund allows to paraphrase the discussion on speed of transition. This
speed, in its turn, determines the cost of the transition. Transition expenses can include
investment in assets or investment in the new digital infrastructure, R&D, retraining,
support to facilitate market penetration of new products, or temporary support for affected
industries. Accelerating the transition to a circular economy beyond normal replacement
cycles will increase these transition expenses and create non-recoverable assets. It remains
to be assessed to what extent these costs are additional compared to other development
scenarios and to what extent they can become a stimulus for economic stagnation.
Undoubtedly, there are risks to consider in a systemic transition like this. Existing
industries will have to adapt their business models, and the transition to these business
models can create a redistribution effect in the economy. Balancing the redistributive effect
of the changes that the implementation of a circular economy can produce for consumers,
businesses, and countries will be crucial.
While companies play a key role in the transition to a circular economy, governments
play an equally important role. Indeed, successfully addressing the systemic restructuring of
the production and consumption model which has dominated the past 250 years requires a
clear agreement of demand, supply and policy. This means that governments must use their
powers to form market conditions nationally and even globally to create the proper
conditions for changing. It also means that they are implementing a circular economy in
their own large organizations and supply chains through such areas as state procurement.
According to a recent study by Accenture and United Nations, 83 percent of business
leaders believe that governments are to activate their efforts to create a favorable
environment for business sustainability efforts. These leaders also believe that only with
more active government intervention (at the global, national, and local levels) can
sustainability move from individual to gradual achievements of collective and
transformative impact. They also want clear policies and regulations which can ensure the
long-term stability of investment, to accelerate the pace of change and increase the volume
of investment. And they call for active intervention by governments and politicians (in
collaboration with business) to agree public policy with sustainability at the global,
national, and local levels, including the adoption of important regulatory, standards, and tax
measures [7, 8].
In the mainstream of sustainable socio-economic development, circular economy
approaches correspond to the UN goal-setting concept and are widely used in the EU
countries. This is facilitated by the existing legal regulation, economic motivation of states
and financial stimulation for investment projects carried out for the development of a
circular economy, both in the EU countries and in other developed countries which support
resource-saving and nature-like technologies [7].
A closed cycle of economic activity is mostly acceptable in such types of activities as
recycling of waste and used products or recycling the application of direct virtual
technologies (books, cinemas, museums and exhibitions), the application of indirect virtual
technologies (online stores, services); incorporation or inclusion in the process of other
participants of the cycle; the application of a variety of virtual financing mechanisms
(including PPP); flexible differentiation of participants, consumers and financial
instruments; remanufacture of components and refurbish of products and some others [8].
These types of activities can be realized in a mass scale only within the framework of
«Industry 4.0".
Within the circular economy, closed production cycles combine both the processes of
direct supply of raw materials and reverse flow processes which serve the application and
consumption of finished products, as a result of which waste is generated.
The demand of modernity, the current state of the environment, the interests of
mankind, put on the edge of survival, dictate to scientific communities around the world the
necessity to study the prospects for the development of a circular economy. According to
studies [11, 12], based on the analysis of the number and location of scientific publications
on the described problem, results were obtained which show the interest to this topic in
different countries. These studies revealed the following pattern: the more extensively the
environmental aspects are integrated into the various directions of state policy, the more
researchers are engaged in this problem investigation [12]. The leaders are China and the
European Union, while Russia currently has only three or four researchers strongly
involved in this activity.
However, the scientific literature also highlights the problems and limitations associated
with the concept of a circular economy, [13], consisting mainly in the differentiation of
approaches to the "green" technologies’ application, taking into consideration the
peculiarities of the economic development of individual countries, limited natural
3
E3S Web of Conferences 291, 02014 (2021) https://doi.org/10.1051/e3sconf/202129102014
SDGG 2021
resources, lack of information base for joining efforts and coordination of actions of
producers and consumers of products, etc.
3 Analysis, Results and Discussion
Innovative and technological orientation, rational nature management, humanitarian
maintenance and the reduction of such global environmental threats as global warming and
waste pollution of water, soil and air are considered to be the main advantages of the
circular economy. The principles of the circular economy, seeing great prospects in it, are
shared by the world's leading consulting companies - McKinsey, Ernst Young, KPMG,
Deloitte, PWC. One way or another, such global corporations as the MacArthur
Foundation, Philips, Ellen, Statoil, Unilever, Accenture, etc. have included in their
strategies the approaches of the circular economy. Denmark, Scotland, and Finland are
striving for global leadership in the newly formed circular economy. China iundertaking
serious development programs in this area. The principles of the circular economy, because
of its great prospects, are shared by the world's leading consulting companies - McKinsey,
Ernst Young, KPMG, Deloitte, PWC. One way or another, such world-wide corporations as
the MacArthur Foundation, Philips, Ellen, Statoil, Unilever, Accenture, etc. have included
in their strategies the approaches of the circular economy. Denmark, Scotland, and Finland
are striving for global leadership in the newly formed circular economy. China is taking
serious development programs in this sphere.
The main risks of a circular economy are its difficulty, manufacturability, complexity,
as well as the cost of implementation at the first stage. It is necessary not only to change
individual elements of the economic model - a complete structural and ideological
reorganization is required, including the consciousness of both consumers and producers of
goods.
Products with the longest life cycle are the basis of the circular economics. In this
regard, the production of goods should be carried out taking into consideration the full
volume of recyclable materials, which must be designed and made with high quality [14].
At the same time, motivated by getting momentary benefits, many manufacturers do not
seek to incur extra production costs - this is a problem of regulatory government, corporate
and tax procedures. The factors which negatively affect the development of "green"
technologies can also include the requirements of the fashion industry and established
consumption patterns in the society. In addition, the opposite effect of the digital economy
can also be attributed to the explosive growth in the production of rare earth metals used in
electronics, since all chains of creating a "green" product must be digitized.
According to the report of the Center of Strategic Research (CSR) at the Russian Export
Center (REC), the Russian Federation in 2018 ranked 72nd in the world in terms of exports
of goods and services per capita. At the same time, in Russia, in such industries as the
nuclear, defense and space industries, there is a large unrealized potential, which consists of
modern technologies, patents and know-how, and human capital with appropriate
professional competencies. [15].
In this regard, according to the CSR experts, Russia is able to almost equal the export of
products realized in the "Industry 4.0" format with the volume of raw materials export and
multiply the volume of non-primary non-energy export of goods and services by 2025.
4 Conclusions
The adequate understanding of the conditions for increasing economic growth and
separating it from the consumption of natural resources, especially in the sphere of big
4
E3S Web of Conferences 291, 02014 (2021) https://doi.org/10.1051/e3sconf/202129102014
SDGG 2021
resources, lack of information base for joining efforts and coordination of actions of
producers and consumers of products, etc.
3 Analysis, Results and Discussion
Innovative and technological orientation, rational nature management, humanitarian
maintenance and the reduction of such global environmental threats as global warming and
waste pollution of water, soil and air are considered to be the main advantages of the
circular economy. The principles of the circular economy, seeing great prospects in it, are
shared by the world's leading consulting companies - McKinsey, Ernst Young, KPMG,
Deloitte, PWC. One way or another, such global corporations as the MacArthur
Foundation, Philips, Ellen, Statoil, Unilever, Accenture, etc. have included in their
strategies the approaches of the circular economy. Denmark, Scotland, and Finland are
striving for global leadership in the newly formed circular economy. China iundertaking
serious development programs in this area. The principles of the circular economy, because
of its great prospects, are shared by the world's leading consulting companies - McKinsey,
Ernst Young, KPMG, Deloitte, PWC. One way or another, such world-wide corporations as
the MacArthur Foundation, Philips, Ellen, Statoil, Unilever, Accenture, etc. have included
in their strategies the approaches of the circular economy. Denmark, Scotland, and Finland
are striving for global leadership in the newly formed circular economy. China is taking
serious development programs in this sphere.
The main risks of a circular economy are its difficulty, manufacturability, complexity,
as well as the cost of implementation at the first stage. It is necessary not only to change
individual elements of the economic model - a complete structural and ideological
reorganization is required, including the consciousness of both consumers and producers of
goods.
Products with the longest life cycle are the basis of the circular economics. In this
regard, the production of goods should be carried out taking into consideration the full
volume of recyclable materials, which must be designed and made with high quality [14].
At the same time, motivated by getting momentary benefits, many manufacturers do not
seek to incur extra production costs - this is a problem of regulatory government, corporate
and tax procedures. The factors which negatively affect the development of "green"
technologies can also include the requirements of the fashion industry and established
consumption patterns in the society. In addition, the opposite effect of the digital economy
can also be attributed to the explosive growth in the production of rare earth metals used in
electronics, since all chains of creating a "green" product must be digitized.
According to the report of the Center of Strategic Research (CSR) at the Russian Export
Center (REC), the Russian Federation in 2018 ranked 72nd in the world in terms of exports
of goods and services per capita. At the same time, in Russia, in such industries as the
nuclear, defense and space industries, there is a large unrealized potential, which consists of
modern technologies, patents and know-how, and human capital with appropriate
professional competencies. [15].
In this regard, according to the CSR experts, Russia is able to almost equal the export of
products realized in the "Industry 4.0" format with the volume of raw materials export and
multiply the volume of non-primary non-energy export of goods and services by 2025.
4 Conclusions
The adequate understanding of the conditions for increasing economic growth and
separating it from the consumption of natural resources, especially in the sphere of big
business, is currently the most important problem of the world community. It is necessary
to solve this problem in the next decade, since according to some estimates, by 2050, as a
result of the dominance of a linear model of economic development, further excessive
consumption of natural resources and the ongoing aggravation of environmental problems
will inevitably lead to a resource crisis, natural disasters and put humanity on the verge of
survival. In this regard, at the present stage, the main driving force of world technological
progress is the approaches and principles of a circular economy that ensure the application
of "green" technologies, which can be realized by organizing the production process, taking
into consideration the full volume of recyclable materials.
Acknowledgements
This work was supported by a grant from the Russian Foundation for Basic Research, the
Government of the Krasnoyarsk Territory, the Regional Science Foundation and LLC
Nizhneboguchanskaya HPP, project No. 21-410-242901 on the topic "Formation of
scenarios for spatial localization of production chains in the technological development of
the Hydropower cluster of Yenisei Siberia (Boguchansk industrial hub)".
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