Circular Economy
12 May: Earth Overshoot Day
The planet has limited resources. Earth Overshoot Day marks the date on which all of the resources that it can generate in a year have been consumed. It is usually calculated by country and, for Spain, this day was 12 May A date that marks a sustainable economy with regard to the biocapacity and ecological footprint that we create. There are many actions being developed to reduce our impact on the planet including the application of the circular economy, a production and consumption model that seeks to prolong the life cycle of products as much as possible.
By Raquel Canales Escribano
12 May 2023 was Country Overshoot Day for Spain. From that date, all the resources that the planet can renew in a year will have been consumed. This day is calculated using two principal concepts: the planet's biocapacity, which is the amount of ecological resources the planet is able to generate (in global hectares) and the ecological footprint, i.e. the annual consumption of ecological resources by humanity.
This date undoubtedly reflects the pressure to which we are subjecting the planet, highlighting the need to change how we produce and consume today. In 2023 it was 12 May, but what happened in previous years? Since 1971 this deadline has been continuously brought forward, so that in 2018 the date was 11 June, in 2019 May 29, in 2020 May 27 and in 2021 May 25.
These are dates that point to an unsustainable economy in terms of the relationship with the biocapacity and ecological footprint of our planet, mainly due to certain human activities such as the increase in greenhouse gas emissions chiefly resulting from the burning of fossil fuels, deforestation and agricultural overexploitation. The current consumption model means that, every year, we need the equivalent of 1.75 planets to meet our resource needs, of which 68% are not renewable (such as minerals and fossil fuels, for example).
"The current consumption model means that, every year, we need the equivalent of 1.75 planets to meet our resource needs".
The good news is that in recent years increasingly tangible progress has been made with regard to regulation and sustainable actions by countries, governments, businesses and society in general. Undoubtedly, we are seeing important commitments with the aim of reducing this debt and achieving a sustainable economy. Specifically, Europe has pledged to achieve climate neutrality by 2050, which represents a significant transition towards decarbonisation by countries.
Among the most noteworthy of these actions that push countries towards zero emissions is the circular economy, a production and consumption model that seeks to prolong the life cycle of products as much as possible. Through this economic model, resources are optimised, the consumption of raw materials is reduced and waste is exploited by recycling or giving it a new life by turning it into new products.
Today, our economy is linear, which means that we extract resources, produce, consume and discard, and this is one of the reasons why we are putting the planet under such pressure. Today the global economy is just 7.2% circular.
"Today, the global economy is just 7.2% circular".
According to the Ellen Macarthur Foundation, the circular economy is based on three principles: the elimination of waste and pollution, the circulation of products and materials and the regeneration of nature. These three principles include the use of renewable energies and materials with the aim of decoupling economic activity from the use of finite resources. The circular economy has the well-known butterfly diagram, which illustrates the continuous flow of materials in a circular economy. There are two main cycles:
- Biological cycle: for materials that can biodegrade and safely return to the earth. This cycle mainly relates to products that are consumed, such as food. However, some other biodegradable materials, such as cotton and wood, may progress from the technical cycle to the biological cycle once they have degraded to a point where they can no longer be used to manufacture new products.
- Technical cycle: for products that are used rather than consumed. Products and materials are kept in circulation through processes such as reuse, repair, remanufacturing and recycling.
Therefore, for the business sector, the circular economy involves re-evaluation and transformation of business models based on a systemic vision that generates value for businesses and is also the answer to other global challenges such as climate change, job creation, health and well-being and the generation of social value.
This transformation ranges from sourcing, promoting through designs the use of recycled raw materials, through the generation of energy using renewable sources, the production and transport process, and the end of useful life of products with the aim of reincorporating them into the economy.
Endesa is part of Forética's Circular Economy Action Group, a business initiative whose aim is to lead the transition of companies towards a circular economy model, working on three objectives: Driving ambition in the field, accelerating action through the main tools to move towards a circular economy model and strengthening alliances.
