Circular economy

Circular economy and its importance in protecting our planet

FirstBank

Interest in the circular economy is growing worldwide as a means of achieving environmental and economic sustainability, thanks to its effective role in reducing greenhouse gas emissions to achieve climate goals

The circular economy concept refers to an economic model aimed at reducing the waste of materials, goods and energy, and making use of it as much as possible, so that consumption, waste and emissions are reduced by streamlining processes and supply chains

The circular economy maximizes the utilization of all raw materials, minerals, energy and resources in all their forms, as well as launching recycling, utilization, remanufacturing and development processes, rather than waste and waste dumping patterns

The circular economy is not a modern term, with its roots in the world decades ago, when the concept of recycling and reuse was devised, but it manifested itself in industrialized countries after the Second World War when Governments tried to exploit technology and machinery to recycle.

The circular economy has many benefits for the environment and climate, most notably the elimination of waste and pollution. The circular economy treats waste as a defect in product design. The design specifications of a product must include the entry of its components into the economy cycle at the end of its use.

Many products can be traded by maintaining, sharing, reusing, repairing, refurbishing and recycling, and as a last resort recycling, food and other biological materials that can be returned to nature can function as fertilizer for land regeneration, resulting in increased production of new food and materials

Also benefiting from the circular economy is the reversal of climate change, where greenhouse gases and climate change produce mainly from industrial activities, transport and energy production, and agriculture and food production are rich sources of these emissions.

Several studies show that through effective and circular material use in only four major industrial sectors (cement, steel, plastic and aluminium), circular economy strategies can help reduce global greenhouse gas emissions by 40% by 2050

As if the circular approach were included in the diet, reductions of up to 49% in global greenhouse gas emissions could be achieved

Regenerating nature is one of the benefits of a circular economy, focusing on regenerating rather than extracting nature's resources, through agricultural practices that allow nature to rebuild soil, increase biodiversity and restore vital components to land

It also highlights the importance of the circular economy in reducing the need for land to obtain virgin raw materials, and therefore these spaces can be used to revive wildlife, conserve biodiversity and restore affected ecosystems

Egypt is one of the first countries to have circular economy practices, with some 46 facilities registered prior to 1960 engaged in collecting, processing and recycling, after which the total number reached more than 5,990 as of 2018.

This is due to Egypt's support for circular economy activities in many forms (but the term circular economy is rarely mentioned), as well as the affirmation of the value of sustainable development, which is a fundamental pillar for prosperity and economic well-being

It should be noted that Egypt has enacted legislation in support of waste management Above all, Act No. 202 of 2020 regulating tailings and its implementing regulations of 2022, as well as providing the institutional framework for this market. A waste management system was established in 2015 to organize all waste management processes. in cooperation with ministries and stakeholders locally and internationally, as well as encouraging and attracting investments in this area

The Arab Manufacturing Authority was also tasked with implementing the first integrated complex for the processing, recycling and safe disposal of waste in Abu Qaida in Damietta governorate on an area of 93 acres. These initiatives encouraged the government to attract the attention of the private sector in this area, and the emergence of many companies that invest in waste management and recycling projects and convert waste into energy.

Cement companies were also allowed to establish joint ventures to establish alternative solid fuel and organic fertilizer production plants.

As a result, the efficiency of the waste collection and transportation work increased to 70%, and the amount of alternative fuel, organic fertilizer and discharge from carton, plastic, paper and aluminum, as well as the closure of random dumps, reduced greenhouse gases

The year 2023 also saw the commencement of the first projects to convert waste to energy in the Abu Rawash region of Giza governorate at an investment cost of $120 million, to produce 30 MW/h electricity