Circular economy - the future of sustainable development

Catering Lunchie&ResQ - cheaper and without waste

Restaurants generate a lot of food waste every day because they have a hard time predicting sales that change from day to day. The mobile technology used by Lunchie&ResQ offers a convenient way to sell leftover food and reduce waste. Everything works as follows. The user installs a mobile application and can use it to buy food from the restaurant (which would otherwise be thrown away) at a good discount. The restaurant publishes information about the remnants of dishes on a mobile platform, the user orders them and picks them up, say, on the way from work.

Valtra tractors with service

Valtra has recently been not only manufacturing tractors, but also servicing them. In particular, they have a gearbox restoration service. They take them in, take them apart, clean them, repair them, replace parts - as a result, energy and material savings reach up to 85%. A repaired box costs the tractor owner 60-70% cheaper than a new one, while the manufacturer's warranty is the same as for a new one.

The essence of the main tools of the circular economy, problems and prospects of implementation at the level of the region and the end consumer.

Design. This tool is based on the main principle of the circular economy - production based on recycled materials. At the beginning of the introduction of the circular economy concept at the regional level, there will be a problem of finding chains of transformation of waste into raw materials, but over time, when more and more industries will switch to the circular principle of production, the problem will be significantly minimized.

Sharing and virtualization. Ensuring the promotion of platforms for user interaction of a product or service, thereby improving the level of its use. Such a tool is interesting for producers who have a low level of product utilization or capacities that are not fully utilized. The tool also allows competitors to cooperate in order to share the load on fixed costs. But the problem of using this tool may not be the desire of large market players to share their resources with competitors, but a necessary change of ideological views in the direction of positive changes thanks to the application of circular economy principles.

Product as a service. The approach is an alternative to the ordinary model of selling a product or service. Such an instrument is an alternative to both the usual direct sale and leasing or renting, for example. With this approach, the client makes a so-called subscription with a fixed monthly or annual payment for the use of the product or service for the time he needs. The end consumer's trust in product quality on the one hand, and the manufacturer's responsibility for control over ensuring this quality on the other, can become a problem.

Reuse in production. According to this approach, certain parts and individual components of products, the use of which is no longer possible, are used for further production. In fact, a very large number of products produced all over the world fail and are disposed of in the presence of parts and mechanisms that are not worn at all. The problem may be the need to establish processes for collecting used parts and mechanisms for further use in production. The need for innovative developments in the field of processing and secondary use of raw materials. The need for investments both for carrying out these innovative research and developments, and for the reequipment of production facilities.

Industrial symbiosis and processing of production waste. The algorithm for using this circular economy tool consists in the interaction of companies with the aim of preserving natural resources and minimizing costs through the use of alternative sources of both energy and other components of production. With this approach, the production waste of one company becomes a source of main or additional income or a component of raw materials in the production of products. The problems of introducing this tool, both on the territory of Ukraine in general and in the regions in particular, include the still insufficient number of such industrial symbioses due to the fact that such interaction requires certain investments at the initial stage, possible modernization and the introduction of innovative developments. But those collaborations that already exist on the territory of our country testify to the indisputable effectiveness of such an approach.

Processing. Recycling is a classic, long-standing, and widely used tool not only in the circular, but also in the conventional form of economy. Recycling refers to the reuse of products that have turned into waste in the process of producing new ones.

Currently, most large state-owned companies are switching to the use of recycled products in the production of new ones. But among representatives of small businesses, the use of recycling is not so widespread. Therefore, the use of processed raw materials in production is currently the prerogative of only large companies. An obstacle to the involvement of small companies in this process may be the need for additional costs for the modernization of the production algorithm and the introduction of innovative developments that will allow the use of secondary raw materials in production. Currently, Ukraine has a draft law on waste management [16], the purpose of which is to stimulate the involvement of an increasing number of producers in the use of recycled raw materials.

Therefore, the tools for introducing the circular economy in Ukrainian conditions have several certain problems. Yes, we cannot now talk about the successful implementation of the circular economy at the state and regional levels, but this does not mean that we do not have strong impulses in this direction. In order to clearly illustrate the current state of circular economy development in Ukraine, we will consider practical examples of its application.

Conclusions

Summarizing the analysis of the application of circular economy tools in Ukraine, efficiency, and problems, it can be noted that:

- the transition to a circular economy should not take place at the level of a separate production or industry, it is a problem at the regional and state level, within the framework of which it is necessary to develop an appropriate strategy and regulation at the legislative level;

- the effect of introducing the concept of circular economy should include: significant saving of raw materials and materials; sustainable resource use; a significant boost in stimulating the introduction of innovative technologies; covering the needs of the population in certain types of products; overall growth of the economy and state revenues due to reuse and increased recycling.

- problems preventing the successful introduction of the circular economy concept in Ukraine may be: insufficient stimulation of the innovative sector; lack of investors; lack of incentives and initiatives from the state in the form of a lack of a licensing procedure, pricing, programs and strategies.

Referencies

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