Why in News?

• The Union Minister of Environment, Forest, and Climate Change launched the Resource Efficiency Circular Economy Industry Coalition (RECEIC).
• As part of this, ~39 multinational corporations (MNCs) from various sectors came together to pledge to adopt resource efficiency and circular economy principles. 

What’s in Today’s Article?

• About RECEIC (Mission, Objectives, etc.)
• About Circular Economy (Meaning, How it Works, Benefits, etc.)
• News Summary 

About Resource Efficiency Circular Economy Industry Coalition (RECEIC):

• The Coalition, conceptualised by India’s G20 Presidency, is envisaged to be industry driven and a self-sustaining initiative continuing to function even beyond India’s G20 Presidency.
• The mission of RECEIC is to –
  • facilitate and foster greater company-to-company collaboration,
  • build advanced capabilities across sectors and value chains,
  • bring learnings from diverse and global experiences of the coalition members,
  • unlock on-ground private sector action to enhance resource efficiency and
  • accelerate circular economy transition.
• The coalition is structured around the three guiding pillars of partnerships for impact, technology cooperation and finance for scale.
• The RECEIC will also aim to contribute towards progress on key global goals and priorities set by the G20 and other international fora.

What is Circular Economy?

• The circular economy is one of the models of production and consumption.
• Circular economy model involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible.
• In this way, the life cycle of products is extended and reducing waste to a minimum.
• When a product reaches the end of its life, its materials are kept within the economy wherever possible thanks to recycling.
  • These can be productively used again and again, thereby creating further value.
• On the other hand, Linear Economy model is based on a take-make-consume-throw away pattern. This model relies on large quantities of cheap, easily accessible materials and energy.

What are the Benefits of the Circular Economy Model?

• To Protect the Environment –
  • Reusing and recycling products would slow down the use of natural resources, reduce landscape and habitat disruption and help to limit biodiversity loss.
  • Another benefit from the circular economy is a reduction in total annual greenhouse gas emissions.
  • A shift to more reliable products that can be reused, upgraded and repaired would reduce the amount of waste.
• Reduce Raw Material Dependence –
  • The world's population is growing and with it the demand for raw materials. However, the supply of crucial raw materials is limited.
  • Finite supplies also means India is dependent on other countries for to meet the need of raw materials.
  • Recycling raw materials mitigates the risks associated with supply, such as price volatility, availability and import dependency.
• Create Jobs & Save Consumers Money –
  • Moving towards a more circular economy could increase competitiveness, stimulate innovation, boost economic growth and create jobs.
  • Redesigning materials and products for circular use would also boost innovation across different sectors of the economy.
  • Consumers will be provided with more durable and innovative products that will increase the quality of life and save them money in the long term.
  • The transition to a circular economy could result in an additional US$ 4.5 trillion in global economic output by 2030.
• Benefits for India’s Economy –
  • By 2030, India is expected to be the world's third-largest economy, accounting for approximately 8.5% of the global GDP.
  • The circular economy has the potential to fuel India's growth while also providing significant environmental benefits, making a sustainable and resilient framework.
  • Thus, there are enormous opportunities for a circular economy in India.

 News Summary:

• At the Environment and Climate Ministers’ meeting in Chennai, Union Minister launched the Resource Efficiency Circular Economy Industry Coalition (RECEIC).
• The minister in his speech emphasised that the Coalition would play a pivotal role in promoting alliances, encouraging technological cooperation and knowledge transfer, fostering innovation, and facilitating the exchange of insights to enhance access to finance.
• As many as 39 multinational corporations (MNCs) from various sectors came together to pledge to adopt resource efficiency and circular economy principles.
  • Some of the founding members include companies like Maruti Suzuki, Coca Cola, Unilever, Nestle, Aditya Birla Group, Tata Power and Mahindra & Mahindra.
• Union Minster acknowledged the commitment of the 39 founding members of RECEIC for stepping forward to join this coalition.