Visualising the circular economy through processes such as reuse, repair, remanufacture and recycling.
Increasingly, decision makers around the world, driven by long-term environmental, social and governance (ESG) goals, recognise that the linear production model of “take-make-dispose” is simply unsustainable.
Given diminishing raw materials and resources and increased energy costs against a landscape of rising consumption and waste generation, businesses and economies recognise the need to decouple growth from the consumption of finite resources.
This is where the circular economy model comes in. The circular economy – fast becoming part of the sustainability conversation – seeks to transform the current throwaway economy into one where waste is eliminated, resource efficiency is increased and materials are kept in use.
In 2022, the global circular economy market is estimated at about US$339bil and is forecast to double by 2026. Many companies around the world have committed to switch from the linear to circular economy business model.
Furniture maker Ikea for instance has committed to becoming 100% circular by 2030 – ensuring that all its products can be reused, refurbished, remanufactured and eventually recycled.
One of its approaches towards circularity is using renewable or recycled products in its products, for instance the Ikea Kungsbacka kitchen fronts are made from 100% recycled PET-bottles and wood.
Universiti Teknologi PETRONAS (UTP) Institute of Self-Sustainable Building (ISB) director Assoc Prof Dr Shahrina Md Nordin says industry players in Malaysia need to step up in incorporating circular economy principles into their business models to stay ahead of the curve.
Assoc Prof Dr Shahrina: “Right from the start, we need to address the issue of waste.”
“More than just recycling, the circular economy encompasses a systemic approach to sustainable economic development - impacting businesses, society, and the environment”, she said, adding that in closing the loop to a regenerative circular system the value of products, materials and resources is maximised over time.
“The design thinking approach in a circular economy model involves restoring and regenerating systems to replace the linear model of ‘take, make and dispose’.”
One of the six multi-disciplinary research institutes at UTP, the ISB’s research priorities encompass green and clean energy, water and waste management, smart materials and social and community wellbeing.
Circular economy priorities drive many of the institute’s innovations, particularly in the areas of clean and green energy and waste management.
“Industries are faced with multi-dimensional challenges such as diminishing resources, environmental degradation and the growing demand for clean energy, especially now that industries are more cognisant of ESG requirements that are increasingly integral for investment decision-making,” she added.
“This is where we come in – complementing industry, as well as the country to meet the many sustainability and decarbonisation goals, including net zero carbon emission targets.
“There are multiple factors that influence the thought process when it comes to our innovations, namely future positioning, operational excellence and efficiency. These three would require different interventions.”
Closing the loop
Shahrina explained that in creating a closed loop economic system, waste management is often the last step of the process, and for many industries, the most challenging.
“When we talk about circularity, waste is one of the pain points faced by industry whether it’s wastewater, solid waste or plastic waste. So, right from the start, we need to address the issue of waste. Instead of throwing it away or having it end up in landfills, a lot of thought needs to go into how it is disposed, recycled and reused, and these are at the heart of many of the innovations at UTP,” she added.
At the institute several breakthrough waste management technologies have been developed – offering solutions for those in the agriculture and tourism industries to treat waste generated from their businesses, fulfil environmental priorities and even monetise the waste by transforming it into biofuel or fertiliser.
These technologies include the Integrated Anaerobic Digester and Aerobic Composter (i-ADAC) and the Integrated Suspended Growth Bio-Reactor (i-SGBR) system.
“Various other research based on the circular economy platform are at different levels of technology readiness, for example an innovation that looks at converting food waste into energy is in progress. We are also working with PETRONAS on research in microalgae cultivation and harvesting from wastewater for biomass and biofuel production,” said Shahrina.
Smart materials researchers, she adds, are also developing environment-friendly asphalt pavement containing recycled plastic, which will be a game changer because of the issue of rising plastic waste.
One of the circular economy projects using waste PET for road development by UTP.
Apart from research and innovations in pursuing a circular economy, UTP also offers upskilling and upscaling to meet the needs of the future workforce. Shahrina said there is an impending need for increasing access to new skills and knowledge, pointing to statistics from the World Economic Forum, which estimate that 50% of employees will need reskilling by 2025 in the transition to a circular economy.
“There is an urgency to this - we have to leverage on our experience in the development, innovation and commercialisation of technology and provide the platform for industry to embark on the circular economy journey,” she said.
She added that apart from the state-of-the-art lab facilities, there is no shortage of talent and subject matter experts at the ISB who can collaborate with industry through strategic partnerships to realise innovative circular economy solutions.
