- The best way to build resilience against future pandemics and the impact of climate change is to move to a circular economy.
- Doing so could address 45% of global greenhouse gas emissions and provide a $4.5 trillion economic opportunity.
COVID-19 has created a human tragedy on a huge scale, with deep consequences for the global economy that will lead to an extended recession and long-term hardship.
This foreshadows the greater challenge we face in the years to come as the climate crisis escalates. Already, droughts, tornadoes and floods are threatening the lives and livelihoods of far too many people around the world, yet we are not doing nearly enough to deal with it.
As our thoughts move towards recovering from COVID-19, we must create a more resilient system that ensures the health and safety of all people. We must make sure that we are stronger in the face of the challenges to come. And we must do so without delay
The only way to do this is by re-imagining our relationship with the natural world. We need to entwine social, environmental and economic progress, and decouple economic growth from unsustainable consumption, while driving concrete and collective actions that speed up the adoption of the circular economy and realize systematic change.
Understanding the problem: the take, make, waste system
If we are to build a more resilient system, we must first understand what makes us so vulnerable. Our current linear economic model – in which economic growth is dependent on the endless extraction and use, or misuse, of natural resources – is pushing our planet to the brink.
Over 100 billion tons of resources flow into the economy each year, with the majority eventually lost as waste or emissions, causing lasting damage to the environment and leaving us vulnerable to the ever-worsening effects of the climate crisis.
Any disruption to this flow of resources into the economy also leaves us exposed to huge economic shocks, as has been made all too clear by COVID-19. Global shifts in the labour market, transport and consumer demand have led to wildly fluctuating commodity prices and widespread economic hardship.
With demand for resources expected to double by 2050, our exposure to both environmental and economic challenges will continue to grow.
A visualization of the circular economy in action
A vision for a more resilient world: a circular economy
We need a clear vision for an alternative future. A world in which we can breathe clean air; a world without the climate threats of droughts and floods. A world where resources are plentiful, with enough for all of us to earn a good livelihood. Our vision for the future is ambitious, but it is possible: a circular economy.
A circular economy is focused on designing out waste and pollution, keeping products and materials in use, and regenerating natural systems, so that we do not exhaust the resources of our planet.
Changing the way we make and use products can contribute to addressing 45% of global greenhouse gas emissions, making a critical contribution to mitigating the impending climate crisis. Reducing our reliance on scarce resources increases our economic resilience, and building a circular economy offers a $4.5 trillion economic opportunity by avoiding waste, making businesses more efficient, and creating new employment opportunities. By creating a circular economy we can create a stronger system and flatten or even reverse some of the trends that now threaten the existence of future generations.
1. Focus recovery stimulus on green and circular investment
As economic stimulus packages are introduced to support recovery from COVID-19, there is a huge opportunity to deepen our commitment and promote a circular economy as part of a green recovery. The priorities will be investing in renewable energy, protecting biodiversity and transforming agriculture, and funds should also be used to directly encourage circularity – for instance by investing or providing loan guarantees to circular economy start-ups that are driving solutions.
2. Create a policy framework for a circular economy
Governments play an important role in creating this vision. We need to see an ambitious and broad range of policies introduced to shift our relationship with natural resources and incentivize a move towards a circular economy. There should be subsidies for the re-use of materials, and taxes on waste.
Recycling should be enforced, with an associated investment in the recycling infrastructure needed to make this possible. Carbon pricing is crucial. Procurement should take into account the ‘total cost of ownership’. Single-use plastic should be banned outright.
An ever growing number of global businesses have made a clear call for the introduction of policies for a green recovery to support their own pledges to embed the SDGs in their ways of working, via initiatives such as the UN Global Compact.
What is a circular economy?
The global population is expected to reach close to 9 billion people by 2030 – inclusive of 3 billion new middle-class consumers.This places unprecedented pressure on natural resources to meet future consumer demand.
A circular economy is an industrial system that is restorative or regenerative by intention and design. It replaces the end-of-life concept with restoration, shifts towards the use of renewable energy, eliminates the use of toxic chemicals and aims for the elimination of waste through the superior design of materials, products, systems and business models.
Nothing that is made in a circular economy becomes waste, moving away from our current linear ‘take-make-dispose’ economy. The circular economy’s potential for innovation, job creation and economic development is huge: estimates indicate a trillion-dollar opportunity.
3. Pioneer the adoption of circular business models
Many companies are already shifting away from one-off transactions towards ongoing relationships with their customers. Sharing platforms are on the rise. Some companies are starting to take products back at the end of their economic life – this has the dual benefits of keeping scarce materials in use for as long as possible, while also reducing reliance on availability of raw materials and thus creating a business model that is more resilient against shocks.
The immediate crisis caused by COVID-19 is certainly putting pressure on many companies, but it is crucial that business leaders maintain their commitments to sustainability and circularity during any short-term impact. Long-term thinking is key, but actions make all the difference. When governments introduce measures like carbon pricing and border adjustment tariffs, the companies that are innovating and adjusting their business models will find themselves at a clear business advantage – as well as contributing to the better world we so desperately need.
4. Innovate to stimulate circularity
There are many opportunities for encouraging innovation to change our relationship with our ecosystem, by using new technologies that enable more circular business models. COVID-19 has seen a sudden and dramatic shift towards home working, remote healthcare, and digital virus-tracking, and we can take these lessons forward into the recovery.
We need to encourage the use of new, competitive technologies to reduce energy consumption, to harvest and re-use materials, scale the availability of green energy sources, expand lifecycles of products, and reduce waste. The technology breakthroughs are within reach; we just need to invest in and adopt them.
As we move towards recovery from COVID-19, we must embrace the future, and not postpone the inevitable by hanging on to the past. We must reject waste and adopt circularity. By leveraging all the knowledge, power and influence we have to push forward on these priorities we can build a circular economy. It will take deep collaboration between business, government and civil society, but the rewards will be well worth it; a stronger ecosystem that will be resilient for the decades to come, and a world where people and nature can live together in harmony.
Recent Posts
- In the Large States category (overall), Chhattisgarh ranks 1st, followed by Odisha and Telangana, whereas, towards the bottom are Maharashtra at 16th, Assam at 17th and Gujarat at 18th. Gujarat is one State that has seen startling performance ranking 5th in the PAI 2021 Index outperforming traditionally good performing States like Andhra Pradesh and Karnataka, but ranks last in terms of Delta
- In the Small States category (overall), Nagaland tops, followed by Mizoram and Tripura. Towards the tail end of the overall Delta ranking is Uttarakhand (9th), Arunachal Pradesh (10th) and Meghalaya (11th). Nagaland despite being a poor performer in the PAI 2021 Index has come out to be the top performer in Delta, similarly, Mizoram’s performance in Delta is also reflected in it’s ranking in the PAI 2021 Index
- In terms of Equity, in the Large States category, Chhattisgarh has the best Delta rate on Equity indicators, this is also reflected in the performance of Chhattisgarh in the Equity Pillar where it ranks 4th. Following Chhattisgarh is Odisha ranking 2nd in Delta-Equity ranking, but ranks 17th in the Equity Pillar of PAI 2021. Telangana ranks 3rd in Delta-Equity ranking even though it is not a top performer in this Pillar in the overall PAI 2021 Index. Jharkhand (16th), Uttar Pradesh (17th) and Assam (18th) rank at the bottom with Uttar Pradesh’s performance in line with the PAI 2021 Index
- Odisha and Nagaland have shown the best year-on-year improvement under 12 Key Development indicators.
- In the 60:40 division States, the top three performers are Kerala, Goa and Tamil Nadu and, the bottom three performers are Uttar Pradesh, Jharkhand and Bihar.
- In the 90:10 division States, the top three performers were Himachal Pradesh, Sikkim and Mizoram; and, the bottom three performers are Manipur, Assam and Meghalaya.
- Among the 60:40 division States, Orissa, Chhattisgarh and Madhya Pradesh are the top three performers and Tamil Nadu, Telangana and Delhi appear as the bottom three performers.
- Among the 90:10 division States, the top three performers are Manipur, Arunachal Pradesh and Nagaland; and, the bottom three performers are Jammu and Kashmir, Uttarakhand and Himachal Pradesh
- Among the 60:40 division States, Goa, West Bengal and Delhi appear as the top three performers and Andhra Pradesh, Telangana and Bihar appear as the bottom three performers.
- Among the 90:10 division States, Mizoram, Himachal Pradesh and Tripura were the top three performers and Jammu & Kashmir, Nagaland and Arunachal Pradesh were the bottom three performers
- West Bengal, Bihar and Tamil Nadu were the top three States amongst the 60:40 division States; while Haryana, Punjab and Rajasthan appeared as the bottom three performers
- In the case of 90:10 division States, Mizoram, Assam and Tripura were the top three performers and Nagaland, Jammu & Kashmir and Uttarakhand featured as the bottom three
- Among the 60:40 division States, the top three performers are Kerala, Andhra Pradesh and Orissa and the bottom three performers are Madhya Pradesh, Jharkhand and Goa
- In the 90:10 division States, the top three performers are Mizoram, Sikkim and Nagaland and the bottom three performers are Manipur and Assam
In a diverse country like India, where each State is socially, culturally, economically, and politically distinct, measuring Governance becomes increasingly tricky. The Public Affairs Index (PAI 2021) is a scientifically rigorous, data-based framework that measures the quality of governance at the Sub-national level and ranks the States and Union Territories (UTs) of India on a Composite Index (CI).
States are classified into two categories – Large and Small – using population as the criteria.
In PAI 2021, PAC defined three significant pillars that embody Governance – Growth, Equity, and Sustainability. Each of the three Pillars is circumscribed by five governance praxis Themes.
The themes include – Voice and Accountability, Government Effectiveness, Rule of Law, Regulatory Quality and Control of Corruption.
At the bottom of the pyramid, 43 component indicators are mapped to 14 Sustainable Development Goals (SDGs) that are relevant to the States and UTs.
This forms the foundation of the conceptual framework of PAI 2021. The choice of the 43 indicators that go into the calculation of the CI were dictated by the objective of uncovering the complexity and multidimensional character of development governance
The Equity Principle
The Equity Pillar of the PAI 2021 Index analyses the inclusiveness impact at the Sub-national level in the country; inclusiveness in terms of the welfare of a society that depends primarily on establishing that all people feel that they have a say in the governance and are not excluded from the mainstream policy framework.
This requires all individuals and communities, but particularly the most vulnerable, to have an opportunity to improve or maintain their wellbeing. This chapter of PAI 2021 reflects the performance of States and UTs during the pandemic and questions the governance infrastructure in the country, analysing the effectiveness of schemes and the general livelihood of the people in terms of Equity.
Growth and its Discontents
Growth in its multidimensional form encompasses the essence of access to and the availability and optimal utilisation of resources. By resources, PAI 2021 refer to human resources, infrastructure and the budgetary allocations. Capacity building of an economy cannot take place if all the key players of growth do not drive development. The multiplier effects of better health care, improved educational outcomes, increased capital accumulation and lower unemployment levels contribute magnificently in the growth and development of the States.
The Pursuit Of Sustainability
The Sustainability Pillar analyses the access to and usage of resources that has an impact on environment, economy and humankind. The Pillar subsumes two themes and uses seven indicators to measure the effectiveness of government efforts with regards to Sustainability.
The Curious Case Of The Delta
The Delta Analysis presents the results on the State performance on year-on-year improvement. The rankings are measured as the Delta value over the last five to 10 years of data available for 12 Key Development Indicators (KDI). In PAI 2021, 12 indicators across the three Pillars of Equity (five indicators), Growth (five indicators) and Sustainability (two indicators). These KDIs are the outcome indicators crucial to assess Human Development. The Performance in the Delta Analysis is then compared to the Overall PAI 2021 Index.
Key Findings:-
In the Scheme of Things
The Scheme Analysis adds an additional dimension to ranking of the States on their governance. It attempts to complement the Governance Model by trying to understand the developmental activities undertaken by State Governments in the form of schemes. It also tries to understand whether better performance of States in schemes reflect in better governance.
The Centrally Sponsored schemes that were analysed are National Health Mission (NHM), Umbrella Integrated Child Development Services scheme (ICDS), Mahatma Gandh National Rural Employment Guarantee Scheme (MGNREGS), Samagra Shiksha Abhiyan (SmSA) and MidDay Meal Scheme (MDMS).
National Health Mission (NHM)
INTEGRATED CHILD DEVELOPMENT SERVICES (ICDS)
MID- DAY MEAL SCHEME (MDMS)
SAMAGRA SHIKSHA ABHIYAN (SMSA)
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME (MGNREGS)