The global imperative for Circular Economy Development is undeniable, aligning seamlessly with the urgent need for economic recovery and the ambitious pursuit of the Sustainable Development Goals (SDGs). This comprehensive article delves into the core definition, guiding principles, and various practical models of the circular economy. We will explore why this transformative approach is an inevitable trend for fostering green growth and examine Vietnam’s dedicated efforts and strategic commitments towards implementing this sustainable economic model. Readers will gain valuable insights into how the circular economy contributes to a more resilient, resource-efficient, and environmentally responsible future.
What is the Circular Economy?
The concept of the circular economy was first articulated in 1990 by David W. Pearce and R. Kerry Turner in their seminal work, “The Economics of Natural Resources and Environment.” This innovative economic model starkly contrasts with the traditional linear “take-make-dispose” approach, proposing instead a fundamental principle where “everything is an input to everything else.” This establishes the circular economy definition as a system designed for restorative and regenerative capabilities.
Over time, various prominent organizations have refined the understanding of this critical framework. The European Union (EU) defines the circular economy as a production and consumption model emphasizing sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible, thereby extending product lifecycles. Similarly, the United Nations Industrial Development Organization (UNIDO) characterizes it as a closed production cycle in which waste is efficiently transformed back into raw materials for manufacturing, significantly mitigating negative impacts on the environment, ecosystems, and human health.
A widely accepted understanding of the circular economy, embraced by numerous nations and international bodies, was introduced by the Ellen MacArthur Foundation in 2012. Their definition highlights a system that is inherently restorative and regenerative, achieved through proactive planning and design. It fundamentally replaces the notion of “end-of-life cycle” for materials with continuous restoration, advocates for the transition towards renewable energy sources, discourages the use of harmful chemicals that impede reuse, and aims for comprehensive waste reduction through the innovative design of materials, products, technical systems, and overarching business models.
Circular economy model
Principles and Key Circular Economy Models
The principles forming the backbone of the circular economy are crucial for its effective implementation. The Ellen MacArthur Foundation outlines three fundamental principles: first, design out waste and pollution; second, keep products and materials in use for as long as possible; and third, regenerate natural systems. These principles guide the transition from a linear to a restorative economic paradigm, emphasizing resource efficiency and waste reduction.
In Vietnam, specific guidelines for the circular economy are formalized in Article 138 of Decree No. 08/2022/ND-CP, which elaborates on various provisions of the Law on Environmental Protection. These provisions include:
- Reducing the exploitation and reliance on non-renewable resources and water, while simultaneously increasing efficiency in the use of resources, raw materials, and energy conservation.
- Extending the useful life of materials, equipment, products, goods, and components through conscious design and maintenance.
- Restricting waste generation and minimizing adverse environmental impacts by reducing solid waste, wastewater, and emissions, decreasing the use of toxic chemicals, fostering waste recycling, energy recovery, minimizing disposable products, and promoting green purchasing habits.
Several effective circular economy models are currently in practice, ranging from simpler to more comprehensive approaches. The widely recognized 3R model offers a foundational approach centered on three core activities: Reduce – minimizing the consumption of goods and resources; Reuse – extending the lifespan of products and materials through multiple uses; and Recycle – transforming waste into new resources for recirculation. For a deeper understanding of the broader circular economy framework, further insights are available.
Circular economy model with 3R: Reduce, Reuse and Recycle
Expanding on the 3R model, the 6R+ model provides a more holistic framework, encompassing:
- Rethink and Redesign: Encouraging manufacturers to fundamentally shift their approach to product creation, integrating responsibility for recovery, reuse, and recycling into the initial design phase and continually improving product and commodity designs.
- Refuse: Empowering consumers to actively support environmentally friendly products and reject goods that are detrimental to the environment, resource-intensive, energy-inefficient in manufacturing or use, or non-recyclable.
- Reduce: Advocating for a decrease in excessive consumption that depletes natural resources, promoted through shared, collaborative, and storage-optimized models.
- Reuse: Promoting the multiple utilization of products instead of single-use consumption.
- Remain and Repair: Ensuring manufacturers provide essential services like warranty, maintenance, component replacement, and repair to extend the product’s operational life and overall lifecycle.
- Recycle: Facilitating comprehensive resource recovery through efficient collection, sorting, waste disposal, and recycling processes.
The Circular Economy Model: An Inevitable Trend
The linear economic development model, with its inherent reliance on finite resources and significant waste generation, is increasingly proving unsustainable. Rapid industrialization and urbanization have exacerbated these challenges, leading to elevated greenhouse gas emissions, declining environmental quality, and more pronounced climate change impacts. In response, the circular economy has emerged not merely as an alternative but as an inevitable and essential trend. Embracing a circular economy model is paramount for fostering sustainable growth, achieving critical emission reduction targets, and fulfilling carbon neutrality commitments, delivering substantial benefits for both nations and individual enterprises.
Vietnam’s engagement with circular economy principles dates back to the 1980s, exemplified by the traditional garden-pond-barn (VAC) agricultural model. While primarily small-scale and somewhat incomplete, the VAC model demonstrated early on the efficiency and benefits of a closed-loop system. In recent years, numerous initiatives focused on sustainable corporate governance and the promotion of the Vietnam Circular Economy have been proposed and systematically implemented. A growing number of businesses are actively investing in improvements to develop robust circular economy models, adopting green production solutions such as using sustainable raw materials, leveraging clean and renewable energy, practicing stringent energy conservation, and establishing comprehensive collection and recycling processes. Further insights into Vietnam’s green transition journey can provide broader context.
Many businesses use clean energy to green manufacture, toward a circular economy model and sustainable development
A significant milestone for the Vietnam Circular Economy was the Prime Minister’s approval of Decision No. 687/QD-TTg in June 2022, authorizing the National Circular Economy Development Project. This decision outlines several specific and ambitious goals:
- To contribute to the national objective of reducing GHG emission intensity to GDP by at least 15% by 2030 (compared to 2014), with the ultimate vision of achieving net-zero emissions by 2050.
- By 2025, circular economy projects will be in active implementation, driving economic, social, technical, and environmental efficiency, reducing overall energy consumption, and significantly increasing the proportion of renewable energy within the total primary energy supply.
- By 2030, circular economy projects are projected to be a primary catalyst in reducing primary energy consumption, aiming for the capacity to meet most or all energy demands through renewable energy sources.
- By 2025, a substantial 85% of generated plastic waste will be reused, recycled, or properly treated, alongside a 50% reduction in plastic waste found in marine and oceanic environments.
- By 2030, the proportion of municipal solid waste collected and processed according to established standards and regulations, utilizing circular economy models, will reach 50%; furthermore, 100% of organic waste in urban areas and 70% in rural areas will be recycled.
For comprehensive details, the full text of Decision No. 687/QD-TTg, which authorizes the Circular Economy Development Project in Vietnam (released on June 7, 2022), is available here.
Vu Phong Energy Group
