Circular economy: what it is and why it can keep Italy and Europe competitive (and ethical)

Circular economy: what it is and why it can keep Italy and Europe competitive (and ethical)

An economy designed to regenerate on its own

Now more than ever, with global warming, pollution and the surplus of plastic waste, it is essential to rethink the economic cycle in terms of circular economy.
Circular economy means reuse, greater process efficiency and longer product life, all aimed at reducing waste and waste.
In Europe we are getting used to hearing more and more often about the circular economy or the circular economy.
According to the Ellen Macarthur Foundation the circular economy is “a generic term to define an economy designed to be able to regenerate on its own”
Ellen Macarthur is a very active foundation in the field of social responsibility and in particular the circular economy.
For the foundation, and for its supporters, a circular economy is a zero waste economy, where any product is consumed and disposed of without leaving a trace.

The circular economy is therefore something more than the simple recovery and recycling of waste. It foresees the development of a real economy to contrast with the linear one that goes from the production of a product to its becoming waste.

Technologies to support the circular economy

In the circular economy, renewable energies and technologies that reduce waste and produce waste are very important.
In the field of available goods, such as food and drugs, one of the technologies on which the distribution system must rely is temperature controlled logistics.
Every year in Western countries over 20% of food, drugs and natural products are decommissioned by the distribution channels as they are not intact, so they cannot be resold.
The circular economy presupposes a systemic way of thinking, which does not end with the design of products intended solely for sale.
It is an ethical economy, where waste is not accepted.

In this system, the product production and distribution model involves maximizing delivery yields, minimizing waste, resulting in savings on production and management costs, maximizing profits.

The position of Italy

In the circular economy model, Italy is in an excellent position compared to other European countries, although it does not have a precise law that regulates it.
The GDP, for example, represents a compendium of good practices, useful for identifying the most virtuous logistical operations, but still represents law.

Circular economy: European directives

On 2 December 2015, the European Commission adopted an ambitious circular economy package.
The provision obliges member countries to recycle at least 70% of urban waste and 80% of packaging waste, and prohibits the disposal of biodegradable and recyclable waste. The rules should come into effect starting from 2030.
Based on this provision, companies will have to structure themselves to minimize waste production.
So even waste products from poor logistic management will have to be minimized. Therefore, manufacturing and distribution companies will increasingly resort to temperature-controlled logistics operators.

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