With climate change having an increasing impact on productive economic cycles, it is increasingly necessary to find alternatives that allow the economy to function while at the same time protecting the environment.
Every year, more and more natural resources are depleted or being depleted, and it is for this reason, in addition to environmental protection, that it is appropriate to find alternative strategies. In recent years, theories concerning the circular economy have been gaining ground. As a matter of facts, with the right measures, the circular economy could be a viable solution to the challenges facing today’s economy. The transition to a circular economy would indeed be essential to address the challenges posed by the exacerbating climate conditions that the planet is increasingly facing due to pollution and loss of biodiversity.
It is therefore clear that international trade must adapt to this transition towards an economy that is more oriented towards environmental protection. To date, the countries of the world are on very different levels of adaptation to the circular economy. The Global North, mainly due to its financial resources, is far more advanced in this transition to the circular economy than the Global South, which is struggling to access and adapt to the new production techniques. In fact, in order to achieve a solid circular economy at the international level, the countries of the world should cooperate globally and cooperate to prevent the development of a circular trade gap since, it is clear that no country can independently and fully achieve a solid circular economy (1).
The situation to date is that the economic development model is almost linear and, in fact, considerations about the dangerous consequences it brings are quite recent, despite the fact that the damage caused by it has been going on for decades. As specified, the differences between North and South are blatant, and this generates social injustice as well as different capacities to adapt to new economic developments. In point of facts, increasing geopolitical tensions and the likelihood of further global supply-chain shocks and disruptions exacerbate these issues. A transition to an inclusive circular economy is essential to help address these challenges (2).
The development of a circular economic model at the international level might in fact be able to mitigate, in a certain sense, the effects of climate change by redirecting what in the linear model would be considered as waste or misspent into production in different forms. The purpose of the circular economy would be precisely to reduce waste and misspent by redirecting the economic system towards the reintegration of materials into the economic stream. This would protect the environment by helping, with appropriate development of technology and technical capacity, to mitigate and possibly prevent the effects of climate change. Not only that, but a sound development of the circular economy would also provide for the protection of certain significant human needs, such as sustainable livelihoods, a certain degree of employment among the global population and, most importantly, a progressive reduction of the mentioned gap between the Global North and South.
As a matter of facts, an inclusive and international circular economy could make important contributions to human development, global poverty reduction and general welfare improvement. In all of this, the role of international trade would be significant as it would contribute to reducing the waste and misspent of materials used in the production of goods by processing them and putting them back into the market once they have been recycled. Clearly, a circular development of the international economy would lead to significant economic, social and, clearly, environmental benefits. In addition to the reduction of the environmental impact caused by the production cycle, the circular economy could, as specified, significantly contribute to poverty reduction as recycled goods would also be accessible at favorable prices to consumers participating in the supply and demand of goods and services in secondary markets. In addition, of course, a reuse of resources would lead to an increase in international demand for labor, thus helping to reduce unemployment.
Developing a circular economy would therefore be necessary in order to maximize economies of scale and thus reap international benefits.
References:
- https://www.chathamhouse.org/sites/default/files/2022-10/2022-10-04-role-international-trade-inclusive-circular-economy-barrie-et-al.pdf
- https://www.chathamhouse.org/2022/10/role-international-trade-realizing-inclusive-circular-economy
By The European Institute for International Law and International Relations.
