Circular economy: solutions and challenges for Romania

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In the context of rapidly depleting natural resources and climate change, the concept of a circular economy has become essential for sustainable development. Unlike the traditional economic model, which relies on resource extraction, use, and disposal, the circular economy promotes waste reduction and the continuous reuse of materials and products in a perpetual cycle. In Romania, this concept is beginning to take hold, and despite significant challenges, success stories show that the circular economy is increasingly relevant for industry and communities alike.

What is the circular economy

The circular economy is a regenerative economic system designed to reduce the negative impact of production and consumption on the environment through two key principles:

  1. Keeping products and materials in use as long as possible: Through sustainable design, reuse, repair, and recycling, products can have a longer life.
  2. Regenerating natural systems: Returning organic matter to ecosystems helps support biodiversity and soil fertility.

This model addresses issues generated by the excessive consumption of natural resources and inefficient waste disposal. In practice, the circular economy turns waste into resources, thereby limiting the need for new resources and reducing environmental pressure.

The benefits of a circular economy

According to the European Parliament, in light of natural resource depletion and environmental challenges, the circular economy offers a long-term solution by transforming waste into resources and reducing environmental pressure. The European Union promotes this economic model, highlighting its advantages for environmental protection, reduced dependency on raw materials, job creation, and consumer savings. Here’s how it works and why its implementation is vital.

1. Environmental protection

The circular economy can significantly reduce environmental impact, being a more sustainable alternative to the linear economic model. Reuse and recycling slow down the depletion of natural resources, reducing the impact on natural habitats and landscapes and helping to prevent biodiversity loss.

One major advantage of the circular economy is its capacity to reduce greenhouse gas (GHG) emissions. According to the European Environment Agency, approximately 9.10% of GHG emissions in the EU come from industrial processes and product consumption, while waste management contributes an additional 3.32%. Thus, the shift to a circular system can play an essential role in achieving climate goals.

Moreover, creating more efficient and durable products from the start can reduce energy and resource consumption, as it is estimated that over 80% of a product’s environmental impact is determined during the design phase. If products are designed to be repaired, reused, and recycled, the volume of waste generated in the long term will decrease. Packaging, in particular, represents a significant issue, with each European generating nearly 180 kg of packaging waste per year. By improving packaging design and eliminating excessive packaging, the circular economy encourages more efficient use of materials, reducing pollution.

2. Reducing dependency on raw materials

As the global population grows, so does the demand for raw materials. The circular economy can help reduce dependency on limited resources. The EU relies heavily on imports for raw materials, importing approximately half of the raw materials it consumes, with a trade deficit for essential raw materials reaching 35.5 billion euros in 2021. This dependency presents economic risks, such as price volatility and uncertainty regarding availability.

The circular economy mitigates these risks by recycling raw materials and reintegrating them into the production chain, thus reducing the need for imports. Recycling is especially critical for essential raw materials, such as those needed for batteries and electric motors—technologies that are crucial for the green transition. Consequently, a circular economic system can ensure greater stability in resource supply and contribute to the EU’s climate objectives.

3. Job creation and consumer savings

The transition to a circular economy has a positive impact on economic growth and employment. The European Union estimates that the circular economy could create 700,000 additional jobs by 2030. This shift requires redesigning materials and products for circular use, a process that stimulates innovation across various economic sectors, from technology to design.

Consumers also benefit from more durable and innovative products, improving quality of life and generating long-term financial savings. Products designed for reuse, repair, or upgrade do not require frequent replacement, reducing household expenses and minimizing environmental impact.

The circular economy in Romania: context and legislation

Romania is at an early stage in the implementation of the circular economy, with the European Union playing a significant role in this regard. EU directives, such as the Circular Economy Action Plan, require member states to adopt measures to prevent waste and manage it in an environmentally friendly way.

Domestically, the waste management strategy and the national circular economy action plan are the primary legislative initiatives supporting the circular economy in Romania. However, implementation remains slow, and Romania faces significant challenges in efficient waste management, infrastructure, and public education.

Challenges in implementing the circular economy in Romania

  1. Lack of Infrastructure – Romania has limited infrastructure for waste collection and recycling. In 2023, the municipal waste recycling rate was approximately 14%, well below the European average of 48%. The lack of modern facilities and insufficient waste treatment capacity hinders the development of a functional circular economy.
  2. Public awareness – Transitioning to a circular economy model requires the population to understand the benefits of this system and be willing to participate actively. In Romania, however, environmental education is underdeveloped, and consumers are not fully informed about the impact of their choices on the environment.
  3. Costs and lack of incentives – Implementing the circular economy may involve high initial costs for companies, such as investments in new technologies and recycling and reuse processes. Moreover, there is a lack of clear financial incentives from the government for companies adopting circular economy practices.
  4. Unstable regulations and legislation – Recycling and waste management legislation has changed frequently in Romania, creating uncertainty for companies. Additionally, enforcement of laws and regulations is often ineffective, and penalties for non-compliance are rare.

Principles of the circular economy

To better understand how the circular economy works, it’s important to look at its fundamental principles, which provide a clear guide for sustainable resource management:

  • Regenerative and sustainable design: Products should be designed for longevity, being easy to repair, reuse, or recycle. Sustainable design focuses on waste elimination from the design phase, reducing environmental impact throughout the product lifecycle.
  • Waste and pollution reduction: A primary goal of the circular economy is to prevent waste generation. This principle promotes material reuse and pollution reduction at all stages of production and consumption, thus minimizing environmental impact.
  • Keeping materials and resources in use: The circular economy favors reintroducing materials and products into repeated cycles of use. Through recycling, repair, refurbishing, and repurposing, products and resources retain their value in the economy, avoiding the need for new resources.
  • Natural ecosystem regeneration: The circular economy also emphasizes the restoration of renewable resources and natural systems. For example, organic matter can be reintroduced into the ecosystem as compost, enhancing soil fertility and supporting biodiversity.
  • Valorization of secondary materials and energy: Any by-product of an industrial process should be reused or converted into energy resources instead of being discarded as waste. Thus, secondary materials and unused energy are redirected to other industrial processes or sectors.
  • Collaboration and innovation: Transitioning to a circular economy requires cooperation between sectors, companies, and organizations to develop innovative solutions that support efficient resource use. Public-private partnerships and the sharing of best practices contribute to finding new, tailored solutions for various industries.

Government initiatives and the role of education in the circular economy

Although efforts toward a circular economy exist, Romania needs more structured measures to develop this model on a large scale. The government should promote policies encouraging companies to adopt circular practices and support citizens in transitioning to responsible consumption.

Education also plays a central role. Educational institutions should include circular economy and sustainability concepts in their curriculum, preparing young people to adopt and promote this model in their future careers.

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The potential of the circular economy for Romania

Implementing a circular economy model could bring Romania significant economic and social benefits. The circular economy can also support local industry development by increasing demand for secondary raw materials and sustainable products, thus helping to reduce resource imports. In agriculture, for example, transforming organic waste into compost can improve soil quality and increase agricultural productivity.

The circular economy, a priority for Romania’s sustainable future

Romania is at the beginning of its journey toward a circular economy, facing challenges in infrastructure, education, and regulation. However, the success stories of companies that have already implemented circular principles demonstrate that this model is achievable. Close collaboration between the government, the private sector, and civil society is necessary to develop innovative solutions and make the circular economy a reality.

In the long term, the circular economy can offer Romania opportunities for sustainable economic growth and natural resource conservation, thus becoming a crucial pillar in the country’s development strategy. Implementing this model is not just a European obligation but also a necessity to protect the future of Romanian communities and the economy.

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