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Most of us would readily subscribe the statement that our planet needs a transition towards a circular economy decoupling raw material use from economic growth. In a circular economy deserving this label, pressure on our earth’s natural resources will definitely be reduced. But - what about the economic development? Will political and economic decision makers really manage to return to relevant economic growth rates or will the ecological footprint be reduced because of a constantly stagnating or even contracting economy? If a stagnating economy is the inevitable price for more sustainability, who will pay the salaries and pensions of those who already live in precarious conditions? According to the EU employment statistics, 35.5-53.8% of the population aged 15-24 was jobless in Portugal, Croatia, Italy, Greece and Spain in July 2014. This paper raises many questions and has no real answer. In the economic areas overseen by the author, technologies for processing minerals and metals as well as energy conversion, is conceivable as a symbiosis of economic growth and circular economy: mining and processing of natural resources can be replaced by urban mining and processing; fossil energy carriers can be replaced by renewable resources. The market, however, will not be a driver due to mining and processing of renewable resources being currently more expensive than processing ores and consuming fossil fuels. This will not change, as long as the economy is not picking up. Without a strong demand, prices for commodities tend to go down and new approaches may be even less competitive in the foreseeable future than today. The paper aims at fueling the discussion about the appropriate economic and societal framework and the research needed to come to a realistic and convincing judgment on the potential of the Circular Economy as a pillar for a fair and sustainable social market economy in Europe.
François Maréchal, Daniel Alexander Florez Orrego, Meire Ellen Gorete Ribeiro Domingos, Réginald Germanier
François Maréchal, Daniel Alexander Florez Orrego, Meire Ellen Gorete Ribeiro Domingos, Réginald Germanier