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Circular Economy

Why is it important to discuss justice in the CE?

When it comes to the concept of circular economy or transition, people often think of the technological, economic, or environmental aspects of this topic and social and equity dimensions of circular economy are often forgotten. However, circularity and equity cannot be separated due to the fact that they are both necessary to achieve a successful transition (Purvis et al 2023). Putting the focus on justice when discussing the circular economy is crucial. Everyone must have fair access to resources to protect the environment and improve the well-being of people. This means striving for efficiency, sustainability and fairness in economies and operations.

The Great Inequality

Not only within the circular economy but also within climate issues in general is the issue of justice. People who are most responsible for environmental impacts are not always those who suffer the most. For example, a relatively small portion of the world’s population consumes a disproportionate amount of the earth’s natural resources while billions of people struggle to meet basic needs. This is called “the great inequality”. It is therefore essential to integrate justice into the circular transition to promote an inclusive approach to sustainability that recognizes the needs of all people, including the most vulnerable. (Gupta 2022, 2023)

 


(Gupta 2023) The great inequality

 

The Circularity Divide

At the same time, within the circular transition, we see a growing concern about the “circularity divide”. Developed countries have historical advantages that allow them to move faster towards circularity, while developing countries are hampered by challenges such as limited access to technology and finance. This reinforces existing inequalities between countries. Five gaps can be identified here: the digital gap, the innovation gap, the trade gap, the financial gap, and the development gap. It is important for entrepreneurs to be aware of these gaps and commit to inclusive growth in the circular economy. Collaboration, capacity building and fair trade practices are crucial to accelerate the circular transition and share its benefits globally. (Barrie et al 2022)

 

(Revolve media 2022) The circularity divide

 

Conclusion

We see these gaps in justice not only at the international level but also at the national level. One example from another sector in the Netherlands is that the integration of green technologies and subsidies for energy transition does not always provide equal opportunities. People with lower incomes often struggle to take advantage of green subsidies, such as when buying solar panels or electric vehicles, and fewer options to properly insulate their homes. This widens the gap between economic groups and can result in energy poverty (Eva Lia Colombo voor Feminer 2024). These same problems could occur within the circular transition. Because of this, promoting justice in the circular economy on a national level is key to overcoming inequalities.
A fair transition to circularity can create jobs and improve the quality of work, which is important for national economies. At the same time, we must be aware of possible negative effects, such as the shifting of jobs in certain sectors and possible social inequality. An inclusive approach to the circular economy must also take into account the informal sector, which within the Netherlands often involves occupations such as maintenance and repair, domestic work and personal services (NOS). These informal occupations can feel a lot of impact from the transition, and they are often the most vulnerable groups within society working in these sectors (ILO 2023).  Changes within labour if done equitably can contribute not only to economic growth, but also to social justice and sustainability at the national level. It is therefore crucial to discuss these issues and be proactive to promote social justice and equal opportunity within the circular economy.