Dr. Matthias Ballweg on the Need to Act Now

Focus on the chances, profits, and gains of the circular economy – and also work with the people that see the opportunity. Even if sometimes the others have the money.

1. Why does the topic of the Circular Economy have to be on the agenda of every company? Why is it worthwhile?

It has long become imperative that we move urgently in the direction of a circular economy, and not just from a sustainability perspective. The fact that many companies are ultimately dependent on the same sources of raw materials further up the supply chain has been impressively observed by the global economy on several occasions in the last three years. Not only when the freighter Ever Given ran aground in the Suez Canal in March 2021, not only when the port of Shanghai came to a standstill in the COVID-19 chaos a few months later – but also in February 2022 after Russia invaded Ukraine. These global crises will become more frequent, and, for this reason too, it is essential that in Europe we learn how our needs can also be satisfied without fresh raw materials.

2. What are the biggest challenges?

Switching business models comes with cultural and financial challenges. Thinking long-term and deciding trade-offs between burdens for future generations and short-term profits is – given slow political and societal change processes – still a major task for business leaders.

3. How would you convince people who are still critical towards the topic?

Focus on the chances, profits, and gains of the circular economy – and also work with the people that see the opportunity. Even if sometimes the others have the money.

4. A thought-leader, book, or podcast you would recommend?

Nice starters are: The Circular Economy Handbook by Peter Lacy, Jessica Long, and Wesley Spindler or The Bubble Economy by Robert Ayres.

5. What are the key requirements for the Circular Economy to succeed and eventually become standard?

Resource mining and refining is causing the majority of the global greenhouse gas emissions and 90% of biodiversity loss. These external effects need a price in our economy. This tax will create the boundary conditions to focus our economic activities on the solutions and will create a society that is more efficient, more equal, and more prosperous without consuming more resources.