Developing a circular economy has become an increasingly popular idea in global policy, seen as a solution to environmental sustainability challenges. However, based on our most recent reading The Circular Economy at a Crossroads, we can see that this circular economy model has some issues. The major issue being that CE is often aligned with the inherent dynamics of capitalism, which may undermine its potential to address deeper ecological and social issues. This is caused by the apolitical nature of the circular economy.
Capitalism is built upon constant growth, resource extraction, and the generation of profit. CE is nearly the opposite, as this system focuses on closing resource loops, minimizing waste, and ensuring long-term sustainability. Instead of addressing the fundamental issues of resource overuse and environmental degradation, the circular economy simply becomes a tool for capitalism to continue its expansion under the guise of “green” growth. Circular economy often tries to reframe environmental problems, such as industrial waste and pollution, not as symptoms of a systemic failure but as new opportunities for economic growth. The capitalist model can exploit these issues by turning them into profit-generating activities, such as new “green” technologies. While this can reduce waste in certain sectors, it fails to challenge the true underlying profit-driven motives of the system.
The circular economy’s focus on efficiency and technological innovation, often overlooks the fact that continuous growth and accumulation of capital are central to capitalist economies. CE could become a mechanism for maintaining the status quo rather than fostering radical change. To really address the core issues, the circular economy must be reimagined to account for the contradictions in capitalism. A truly transformative circular economy would need to challenge the capitalist models of production and consumption.