The Future is Circular and It Starts with Us

Every year, over 50 million tons of electronics containing $63 billion worth of gold, copper, and rare earth minerals are discarded, according to the World Economic Forum. By 2030, the world will throw away 148 million tons of clothing annually. As per the United Nations Environment Programme, 400 million tons of plastic are produced each year. This number is forecast to triple by 2060. More than 100,000 marine mammals and one million seabirds are killed by marine plastic pollution every year. These numbers are alarming and a direct reflection of a system built on constant consumption, short-term thinking and designed obsolescence. We live in a world that rewards us for throwing things away. New is better. Fast is success. Growth, as measured by how much we extract and sell, is the ultimate goal. It is a story about everything we make, buy and discard. But that model, the linear economy, is reaching its breaking point. The planet is under strain, inequality is growing and we are starting to feel that maybe this system is not working for people or the planet.

So what if there is another way? One where waste is not an endpoint, but a beginning. Where value is preserved, not destroyed. Where we design with care, repair with intention and regenerate what we take.

This is the promise of the circular economy: a shift in systems and mindset.

The Problem with Linear Thinking

Let’s look at the numbers. Humanity currently uses 1.75 planets' worth of resources each year, according to the Global Footprint Network. That means we are borrowing from the future, burning through nature’s capital faster than it can regenerate.

Worse still, of the 100 billion tons of resources we extract annually, more than 90% goes to waste. Less than 9% makes it back into the economy.

Mountains of materials, wood, metal, plastic, food are used once and then discarded. The cost to the environment is staggering, so is the lost opportunity for businesses and communities.

What is the Circular Economy?

A circular economy flips the script. A circular economy is a fundamental shift in how we design, produce and consume. It is a system where everything is designed to be reused, repaired, refurbished or safely returned to nature instead of designing products for short lives and landfills. It is built on three core principles: design out waste and pollution, keep products and materials in use and regenerate natural systems.

It is not just about recycling; it is about rethinking how we design, produce and consume from the very beginning. At its core, it is an economic system that mimics nature: nothing is wasted, everything has value, and every product is part of a continuous loop. Instead of the traditional linear model of take-make-dispose, the circular economy keeps materials in use for as long as possible, extracts maximum value from them while in use, and then regenerates products and materials at the end of their service life. It prioritizes durability over disposability, access over ownership, and systems that restore rather than deplete. In practice, this means rethinking everything from the way clothes are made to how electronics are repaired, and designing a future where economic growth is decoupled from resource destruction.

In 2016, Finland, , led by the Finnish Innovation Fund Sitra, took a bold step by becoming the first country to develop a national road map for the circular economy. Countries like the Netherlands, France, Japan and Canada have since developed national and regional strategies of their own tailored to their specific economic and environmental contexts. The European Union has made circularity a cornerstone of its Green Deal by putting in place legislative frameworks to support sustainable product design, reduce waste, and enable new business models based on reuse and repair Global brands are already proving that designing for durability, reuse, and regeneration is better for the planet and the business. They are beginning to rethink how products are made and delivered, embracing circular practices like rental models, product-as-a-service, modular design, and material innovation. From fashion to electronics, companies are beginning to see circularity not just as a sustainability effort, but as a competitive advantage.

The circular economy is ultimately about redesigning systems, not just products. It requires collaboration across industries, sectors, and borders. It demands investment in new infrastructure, policy innovation, education, and mindset shifts. And most importantly, it asks us to reconsider what we truly value: endless and mindless consumption, or a future that sustains life on this planet.

Beyond environmental benefits, the circular economy promises significant social gains by creating millions of jobs worldwide in areas such as repair, remanufacturing, and resource management, with initiatives like the World Bank’s “Solutions for Youth Employment” projecting 6 to 20 million new jobs globally, and the International Labour Organization estimating 7 million additional jobs in developing economies if supportive policies are implemented.

Why It Makes Sense

A recent study by Accenture estimates that the circular economy could unlock $4.5 trillion in global economic growth by 2030. This is because circularity reduces costs, improves efficiency, creates new revenue streams, and builds brand loyalty. In an era defined by resource scarcity, rising material prices, and growing consumer expectations, linear models of production are becoming unsustainable and increasingly unprofitable.

At its core, the circular economy helps businesses do more with less. By designing products to last longer, be reused, or be disassembled and remanufactured, companies can significantly reduce their dependence on virgin materials and volatile supply chains. For example, modular design and closed-loop systems reduce the cost of raw materials and minimize waste disposal fees, turning what used to be waste into valuable inputs.

Circular models also open the door to innovative business opportunities. From product-as-a-service models to repair and resale platforms, companies can generate ongoing value from the same product multiple times. Brands like IKEA, Patagonia, and Philips have already begun offering take-back schemes, rental services, and refurbished product lines, lowering environmental footprint, boosting customer loyalty, and lifetime value. Similarly, Adidas has embraced a “three-loop” model: recycle, reuse, regenerate to reduce plastic waste and reinvent its product design. From ocean plastics to fully recyclable shoes, the brand has transformed sustainability into innovation and market differentiation.

Similarly, IKEA is reengineering its full value chain. It has assessed over 9,500 products for circular potential and now offers spare parts, resale programs, and modular designs to extend product life. In 2023, more than 200,000 customers used its buy-back service.

Even infrastructure is going circular. Denmark’s Circle House shows how buildings can be designed for disassembly, with 90% of materials reusable. Meanwhile, the Port of Antwerp-Bruges is turning industrial waste into feedstock for new industries by embedding circularity into an entire economic zone.

There are also clear risk management benefits. Regulations around waste, carbon emissions, and product transparency are tightening globally. Circularity allows businesses to stay ahead of policy shifts by improving compliance and enhancing ESG performance. Moreover, investors are increasingly rewarding companies that demonstrate long-term sustainability and resource efficiency, seeing them as better equipped to navigate economic and environmental disruption. ESG-driven investments now account for over one-third of all assets under management globally, and circularity is a growing pillar of corporate sustainability strategies. 

Consumer demand is shifting too. More customers, especially younger generations, expect the brands they support to be responsible stewards of the planet. Embracing circularity is not just good PR; it is essential for relevance in a market where sustainability influences purchasing decisions and brand trust. It challenges companies not just to sell more, but to design smarter, think longer term, and create value that lasts.

Circular Economy in Nepal

As global interest in the circular economy continues to grow, Nepal is exploring how circular economy strategies can be harnessed to achieve sustainable development. The country’s policymakers and partners have increasingly positioned it as a tool to achieve sustainability, particularly in alignment with Sustainable Development Goal 12: responsible consumption and production. From promoting biogas and waste recycling to integrating these ideas in tourism and agriculture, the country is exploring circular economy as a path to its green and inclusive development ambitions. Influenced by international frameworks such as the EU Green Deal and the Asian Development Bank’s regional focus on circular economy, Nepal has integrated circularity into national plans like the Green, Resilient, and Inclusive Development (GRID) strategy and its Net Zero Roadmap by 2045.

Despite growing visibility, the practical implementation of circular economy in Nepal remains narrow and largely limited to waste management. Nepal’s current initiatives focus heavily on recycling, with limited systemic integration into broader socio-economic or environmental reforms. Circular economy’s mainstream application in Nepal overlooks deeper structural needs: inclusive governance, resilient institutions, social equity, and a climate-adapted economic strategy. Without addressing these systemic prerequisites, circular economy risks becoming a buzzword rather than a meaningful transition tool for Nepal’s economy.

A key indicator of Nepal’s current circular economy capacity is its waste recovery rate, which hovers around 4%, significantly below the global average of 8.6%. Most circular activities in Nepal are focused on municipal solid waste (MSW), plastic recycling, and biogas generation, interventions that, while necessary, fail to address the deeper structural shifts required for a circular transition.

Business and public awareness around circular economy remains limited. A 2019 comparative survey found that most Nepali respondents associated the concept primarily with the "3Rs" (reduce, reuse, recycle), while demonstrating limited familiarity with more transformative circular models such as product-as-a-service, modular design, or reverse logistics. Similarly, small and medium-sized enterprises (SMEs) that self-identify as circular often lack the technical capabilities, infrastructure, or policy support to scale their models beyond niche applications.

Nonetheless, innovative grassroots and entrepreneurial responses are beginning to emerge, signaling the potential for a localized, community-centered circular economy. One such initiative is Chakraviu Nepal’s “From Jeans to Dreams: Upcycling For Education” program, which collects used denims from customers, dead stock from urban communities and businesses, and upcycles them into durable school bags and stationery pouches for under-resourced students in rural villages of Nepal. By transforming textile waste into educational resources, the project not only diverts waste from landfills but also addresses issues of access and dignity in school settings. It exemplifies a circular model that is regenerative, socially impactful, and deeply rooted in the realities of Nepali society. The initiative also mobilizes corporate partners and volunteers, demonstrating how the circular economy can serve as a platform for multi-stakeholder collaboration.

Roots of Circularity Nepal, a program running from 2023 to 2027, represents a coordinated effort to systematize adoption of circular economy across sectors. A collaboration between Impact Hub Kathmandu, the Impact Hub Association, and Wildlife Conservation Nepal, this initiative targets four strategic intervention areas: education, entrepreneurship, policy engagement, and media advocacy.

Nepal's current circular economy ambitions are heavily influenced by European models. However, there remains significant doubt on whether the EU is an appropriate blueprint for Nepal. Nepal’s own history offers valuable insights. There is an informal brilliance in the way Nepalis stretch the life of objects. Practices of resource efficiency, repair and low-waste lifestyles are embedded in traditional communities. Ironically, these local, low-tech models of circularity are now being reframed through a Western lens, potentially overshadowing indigenous systems that could offer more appropriate and culturally embedded solutions.

Future Worth Building

The circular economy is not a buzzword. It is a blueprint for resilience in economic, environmental, and social sectors, and it is no longer optional. The world is shifting. Consumers are waking up. Regulators are catching up. Supply chains are cracking under the weight of waste and resource scarcity. In this moment, the companies that rethink, redesign, and regenerate will lead not just in profit, but in purpose. 

Large brands with reach and resources have the power and the responsibility to act—to not just participate in change, but to lead it. By embedding circularity at the heart of their business model. By reimagining their products, services, and supply chains for long-term value, not short-term extraction. Circularity is no longer about doing less harm; it is about creating more good: new jobs, new value streams, new stories that connect you to the communities and customers who matter most.

But this shift does not happen automatically. It starts with a question: What if we designed everything, products, packaging, profits, even partnerships, with the end in mind?

So ask yourself and your teams:

● Where does our waste go?

● What happens to our products after they're sold?

● What materials are we throwing away that could become a resource?

● How can we partner with communities, startups, and innovators to close the loop?

Then start. Start small if you must, but start. If you are a policymaker, ask what legislation is locking us into linearity and how we can unlock innovation instead.

If you are a business leader, challenge your team to launch one circular pilot this quarter. If you are a consumer, vote with your wallet. Reward brands that repair, reuse, and rethink. The future belongs to brands that waste less and mean more.

If your business isn’t thinking circular yet, the opportunity is still wide open!

This opinion article was first published in November 2025 issue of New Business Age magazine.