The circular economy model. What is it?

Challenging the status quo with a new economic model 

Unlike the traditional linear economic model that is defined by constant waste (make, use and dispose of), the circular economy is one that keeps resources in use for as long as possible, extracting the maximum value of the material and product. The circular economy is based on longevity, renewability, reuse, repair, refurbishment, and sustainability. It aims to solve environmental challenges using innovative technologies and novel business models. The circular economy offers an opportunity for creative innovators to challenge the status quo. The model opens doors to new business opportunities with enormous economic potential, such as new approaches to how products are designed, packaged and used.

Sustainability consists of three components – environmental conservation, social responsibility, and economic development. Whilst most people often associate sustainability with environmental preservation, it is as much about people and the growth of communities. The circular economy by definition requires companies to rethink the way resources are used through innovative designs, technologies, and company structuring. Fortunately, one resource that is unlimited is innovation. There are various companies/startups within Israeli that are doing just that and developing ingenious ways to reduce, reuse and recycle.

TIPA

Plastic causes major environmental damage. Despite its negative impact, it is still used excessively in the food industry. A single item of plastic takes hundreds of years to decompose. As a result, landfills are becoming overloaded. Some companies are making a concerted effort to recycle their plastic but it is difficult to monitor. TIPA is a startup producing compostable bio-plastic packaging. Their packaging solution is offered to various countries and they are rapidly growing in popularity

Inspecto

Founded in 2016, Inspecto is dedicated to creating a nanoscale portable device for early detection of food contaminants in the field. The concept comes in response to the founders watching an exposé on the extreme levels of contaminants in Israeli supermarkets. While the company is relatively new and more work needs to be done, they are making significant strides in developing devices that can identify contaminants. With this data, they hope to encourage companies to reduce contamination.

KitePride

KitePride was born as a solution to and in response to pressing social and environmental issues. KitePride provides rehabilitation employment for men and women exiting human trafficking and modern-day slavery through creating bags from upcycled fabrics such as kitesurfing kites, wetsuits, sails, and parachutes. KitePride uses innovative solutions in order to implement a sustainable revenue and business model into the business.  From sourcing to manufacturing to shipping, KitePride aims at building a profitable, regenerative and equitable revenue streamline.

In short, the circular economy helps use resources more efficiently and increase productivity, reduce the production of waste, harmful emissions, and pollution, and decrease dependency on raw materials. Adopting the circular economy model or elements of it allows one to be most efficient and sustainable.