Sixteen-year old Greta Thunberg is asking good questions like “why are we doing nothing about climate change?” She tells it like it is as we stand unmoving – no group wanting to give anything away. Unions rightly take the stance that workers should not pay with lowered standards. Some want to play with small tax adjustments to see the poor OK.
The New Green Deal says “never mind the economics of it – we’ll just invest in the planet we want.” That is good, but you need to make sure people have the money to pay for those new high speed rail services and electric buses.
So. No easy solution? Perhaps there is.Read More…
Most people take a narrow view of the circular economy, seeing it as renting out your car, selling second stuff etc. All true, but there is more to it. Firstly, things from nature need to circulate – food waste goes to compost goes to soil goes to food- for example. And trees go to wood to waste wood to fibre board to fuel maybe. And things come from the earth, like metals and they are made into, say, raw iron, then steel, then a product, then scrap, then more steel, and so on.
But money needs to go round too. Forget government hoarding surplus – that only removes money from the economy. We need the workers to get good wages so they buy stuff from factories that make good profits that pay good taxes and wages and so it goes round.
Many people react to the idea of people spending more because they think business will extract some stuff and dump others and leave the earth exhausted and polluted. They will. Unless there are either strict laws or stiff fees to stop them. So the circular economy will make it very expensive to extract or dump. And that is where the first and last invoice come in. In the life of a material, be it iron or sand, for example, the first invoice (paying for extraction) is the start of a long chain of invoices that the circular economy continues as long as possible. It puts dumping or burning off – the last invoice – and delays it in time. And the economy is rigged to reward them.
So, there are the basics. If you want to learn more about the three cycles, do look up the relevant course in our online school: https://circleeconomy.teachable.com
Together we aim to help you in your role as business leader, policy maker or entrepreneur to understand the basics of the circular economy to be ahead of coming legislation and to prepare your organisation to thrive in this new situation.
The new site offers short lessons in a wide range of circle-economy related subjects such as:
- understanding the role of nutrients
- the three key elements of the circular economy
- seven points of intersection
- putting circularity into the balance sheet
- policy makers: matching market based instruments and the demands of the circular economy
Business schools purvey the amassed experience of successful entrepreneurs from the last few hundred years. The problem with that is this experience is based on the availability of increasingly vast quantities of energy and cheap raw materials, along with licence to basically release waste straight out into the environment. This two century’s worth of “business” experience treats nature as an unlimited resource store and waste dump. An out-of-date mindset. We have moved on. There is a need for a new way of doing business: a system that takes into account the limitations of the planet and needs to maintain human well-being. That system is called circular economy. Read More…
Extractive economy is business-as-usual and the mental model taught in business schools. It is not called that of course, but examining any business textbook will reveal that the mental model – or paradigm – of extraction is underlying most teaching. This article aims to explain in clear terms what extractive models are, point out some of the shortcomings and hopefully opens up to the possibility of other, more functional, models. Read More…
- Phosphorus is mined and processed into fertilizer along with other nutrients like potassium and nitrogen.
- Applied to the fields, it is incorporated into vegetables and sold direct or as animal feed.
- Phosphorus leaks from agriculture into waterways and is exported to shops as food.
- Consumers purchase food for consumption.
- Phosphorus leaves the body mainly as urine.
- Sewage is processed at water purification plants.
- Some phosphorus is dumped as waste from purification, some ends up in waterways.
- Eventually phosphorus travels to the sea.
- Some phosphorus can be recovered from the sea-bed, most remains in the sea. New technology is being tested to restore seabeds and recover nutrients. Read More…
If business as a discipline is to develop away from extractive practices we need to develop a mathematical language to help economists and policy makers model alternative approaches. Modelling – using both standard business calculations and simulation tools like those developed by Steve Keen – can help decision making at the level of the individual firm and policy level. We propose that adaptations of the Cobb-Douglas Equation can be used to help those doing macro-economic modelling of the sustainable economy. We hope this article contributes to knowledge. Read More…
Just as budgets steer every household and every corporation, so should every nation signed up to the Paris Agreement be steered by a carbon budget. This carbon budget should be treated like a monetary budget, the actions of the Swedish Government (even with the Green Party in power) up to now can only be described as fraudulent. This message comes from Climate Scientist Kevin Anderson, most recently in his presentation to the Swedish Climate Folk Parliament on the 5th May 2018 as it passed a motion to adopt such a budget. Read More…
As world population expands, and the demand for a better standard of living drives the world economy, it is becoming clearer to many that using up the world’s resources will actually put us at risk of ending up with a lower standard of living. It could even drive conflicts. Insecurity and lack of the capability to produce the basics are likely to fan the flames of conflict and undermine peace in the world. We urgently need a new mindset – one that focusses on bringing security of the basics to everyone whilst preserving and indeed increasing the capability of society to provide.
Part of this new mindset requires us to rethink capital. This article breaks down the importance of capital to society, and how the economy should manage capital if we are to transition to a sustainable and peaceful future. Read More…
The funnel concept, introduced by Karl-Henrik Robert Founder of the Swedish Natural Step, explains how increasing pressure on resources reduces the options of future generations to maintain a standard of living. Stress like that on populations radically increases conflict and undermines peaceful societies. In the diagram below, the width of the funnel represents the opportunities to continue society’s per capita resource usage. The depth of the funnel represents time. Read More…