Question map
Consider the following statements : Statement I : Circular economy reduces the emissions of greenhouse gases. Statement II : Circular economy reduces the use of raw materials as inputs. Statement III : Circular economy reduces wastage in the production process. Which one of the following is correct in respect of the above statements?
Explanation
A circular economy is an industrial system that is restorative or regenerative by intention and design.[1] All three statements are correct and inter-related.
Statement I is correct: Circular economy in industry has the potential to reduce greenhouse gas emissions by around 30 to 50 percent[2] by the year 2050.
Statement II is correct: The circular economy fundamentally involves reducing raw material inputs through recycling and reuse. Small mills use waste paper/recycled fibres, and the [3]paper industry uses raw materials including bagasse, rags, and waste paper[3], demonstrating how circular practices reduce virgin raw material requirements.
Statement III is correct: Losses and wastages could be reduced with the help of efficient cold storage, transportation and minimal processing[4], which are circular economy principles applied in practice.
Both Statement II and Statement III explain Statement I because reducing raw material extraction and minimizing waste in production directly lower the energy consumption and emissions associated with resource extraction, processing, and disposal. The more we buy, the more emissions will be caused on our behalf through the whole lifecycle of products including their manufacture and eventual breakdown[5], confirming that both reduced material use and reduced waste contribute to lower greenhouse gas emissions.
Sources- [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 16: Terminology > 16 Terminology > p. 454
- [2] https://circulareconomy.europa.eu/platform/sites/default/files/2025-06/TI400474-24e__final_abgestimmt_T_I_4_bf_englisch.pdf
- [3] Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 11: Industries > PAPER INDUSTRY > p. 56
- [4] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 13: Food Processing Industry in India > N. Scheme of Cold Chain, Value Addition and Preservation Infrastructure > p. 414
- [5] Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 29: Environment Issues and Health Effects > 29.3.4. Greeenwashing > p. 422
PROVENANCE & STUDY PATTERN
Full viewThis is a 'Logic Check' question disguised as technical trivia. While specific reports quantify the GHG savings, the answer is derived purely from the definition: Circularity means closing the loop. If you close the loop, you logically reduce inputs (mining) and waste (landfills), which inherently cuts the energy/emissions associated with both.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Does the circular economy reduce greenhouse gas emissions?
- Statement 2: Does the circular economy reduce the use of raw materials as inputs?
- Statement 3: Does the circular economy reduce wastage in the production process?
- Statement 4: Does reducing raw material use via circular economy practices lead to lower greenhouse gas emissions?
- Statement 5: Does reducing production waste via circular economy practices lead to lower greenhouse gas emissions?
- Directly quantifies the potential GHG reductions from circular economy measures in industry (30–50% by 2050).
- Links an integrated circular economy approach to lower avoidance costs per tonne of CO2 for key materials (steel, concrete, cement, plastics).
- States the EU introduced the circular economy as a solution and ties it to the policy goal of reducing greenhouse gas emissions.
- Positions the circular economy within the European Green Deal aimed at achieving climate neutrality (reducing emissions) by 2050.
- Shows a real-world example where an organization groups 'circular economy initiatives' among its key focus areas for reducing greenhouse gas emissions.
- Demonstrates that circular economy measures are implemented alongside other mitigation strategies to lower GHGs.
Explicitly links 'this system' (context implies a resource-efficient/systemic approach) to reduced GHG emissions and reduced energy consumption as a community benefit.
A student could map key circular-economy practices (reuse, recycling, product-life extension) to lower energy use in production and thus estimate likely GHG reductions using standard emission factors for manufacturing.
Defines the 'secondary footprint' as lifecycle, indirect CO2 emissions tied to the volume of goods people buy—implying that reducing consumption lowers associated emissions.
Combine this rule with data on reduced consumption from circular strategies (e.g., fewer new products sold) and country-level lifecycle emission intensities to infer possible GHG savings.
Gives the pattern that energy-efficiency measures (energy audits) reduce a building's climate footprint; more broadly, resource-efficiency lowers emissions.
Apply the same logic to circular-economy measures (material/resource efficiency) and use typical energy/emission reductions per unit saved to estimate GHG impacts.
Describes how technological changes or improved practices can reduce greenhouse gases and be accounted for (carbon credits), illustrating that process improvements can lower emissions.
Treat circular-economy interventions as process/technology changes and compare their plausible emission reductions to carbon-credit accounting rules to approximate GHG benefits.
- Describes paper mills that use waste paper and recycled fibres, showing industry-scale substitution of virgin raw materials.
- Use of recycled feedstock in production directly lowers demand for primary inputs like wood and bamboo.
- States that use of substitutes for scarce metals may reduce their consumption, implying input reduction via substitution.
- Frames conservation and substitution as means to extend existing reserves, consistent with reducing virgin material inputs.
- Contrasts exhaustible fossil fuels with renewable energy sources, implying that switching to renewables reduces use of exhaustible raw-material inputs.
- Links sustainable, renewable resources to more sustained and eco-friendly supply of inputs, aligned with circular principles.
- Defines circular economy as an industrial system that is restorative or regenerative by intention and design
- A restorative/regenerative design objective implies minimizing resource loss and keeping materials in use rather than discarding them
- Describes cold chain, value addition and preservation infrastructure that explicitly reduce losses and wastages
- Demonstrates that designing production/handling processes (storage, transport, minimal processing) directly lowers waste in the supply-production chain
- States that modern supply chain management and processing reduce wastage of agricultural produce
- Links process-level interventions (infrastructure, processing) to reduced waste and greater value addition
- Explicitly links the product life‑cycle (secondary footprint) to indirect CO₂ emissions from manufacture and disposal.
- States that greater purchasing/consumption causes higher lifecycle emissions, so reducing material throughput lowers those emissions.
- Describes recycling and improved resource‑use efficiency (residue decomposition, increased recycling) as practices that improve resource efficiency.
- Directly ties such practices to a reduction in greenhouse gas emissions in an applied sector (conservation agriculture).
- Refers to a system that reduces energy consumption and alleviates stress on natural resources while producing reduced GHG emissions.
- Supports the idea that systems lowering raw material/energy demands bring down greenhouse‑gas outputs.
- Defines the secondary (indirect) CO2 footprint as emissions across a product's whole lifecycle, tying production/consumption to greenhouse gases.
- Explicitly links 'use and throw' culture and higher consumption with increased emissions, so reducing production/waste lowers lifecycle GHGs.
- States that diverting waste from landfills via waste-to-energy can generate power without harmful GHG emissions.
- Implies that treating and reusing waste reduces the volume sent to disposal and thereby reduces associated greenhouse-gas impacts.
- Describes greenhouse gases produced as by-products or losses during fuel production, storage, and transport (e.g., methane leakage).
- Implies that reducing production-stage waste and leaks would cut these fugitive GHG emissions.
- [THE VERDICT]: Sitter. This is a fundamental concept covered in every standard Economy (Vivek Singh) and Environment (Shankar IAS) text. No obscure report reading required.
- [THE CONCEPTUAL TRIGGER]: Sustainable Development & Green Economy. The shift from 'Linear Economy' (Take-Make-Dispose) to 'Circular Economy' (Restorative/Regenerative).
- [THE HORIZONTAL EXPANSION]: Memorize the 'Butterfly Diagram' (Biological vs Technical cycles); The 7 Rs (Rethink, Refuse, Reduce, Reuse, Repair, Refurbish, Recycle); India's specific Circular policies: Vehicle Scrappage Policy, EPR Rules (for E-waste, Batteries, Tires, Used Oil); and the concept of 'Urban Mining'.
- [THE STRATEGIC METACOGNITION]: Do not just memorize definitions. Map the *functional outcomes* of a concept. Ask: 'If I implement this, what happens to the Input (Raw Material)? What happens to the Process (Waste)? What happens to the Output (Emissions)?' UPSC tests the mechanism, not just the term.
Reduced energy consumption and energy audits directly lower greenhouse gas emissions, which is a primary mechanism by which circular practices could reduce emissions.
High-yield: energy efficiency is a central climate mitigation measure relevant to policy, industry and urban planning questions. It connects to renewable energy deployment, emission intensity targets and mitigation strategies, enabling answers on how to meet NDCs and reduce sectoral emissions.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 23: India and Climate Change > The benefits > p. 314
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > 24, 22.2. Measures to adapt green economy > p. 343
Lowering the secondary (lifecycle) footprint by reducing manufacture, consumption and disposal cuts CO2 associated with products and consumption patterns.
Important for UPSC: links consumption behaviour, waste management and circularity to national climate outcomes; useful for questions on sustainable consumption, waste hierarchy, extended producer responsibility and lifecycle-based policy.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 29: Environment Issues and Health Effects > 29.3.4. Greeenwashing > p. 422
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 23: India and Climate Change > The benefits > p. 314
Carbon credits/offsets quantify emission reductions and allow emission mitigation through technology adoption or financed projects, offering a compensatory route to lower net GHG emissions.
Relevant to exam as it ties international mechanisms and market instruments to national mitigation strategies; helps answer questions on Kyoto/Paris frameworks, mitigation finance and private sector roles in emissions reduction.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 21: Mitigation Strategies > 21.4. CARBON OFFSETTING: > p. 284
- Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 6: Environmental Degradation and Management > carBon crEdIt. > p. 55
Recycling and use of waste paper/recycled fibres directly reduce demand for virgin raw materials in manufacturing.
High-yield for questions on sustainable industry and resource efficiency; connects industry structure, resource dependence, and environmental policy. Enables answers on how circular practices alter input requirements and industry sourcing patterns.
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 11: Industries > PAPER INDUSTRY > p. 56
Using substitutes for scarce metals reduces consumption of those primary raw materials.
Important for questions on resource management and long-term availability of minerals; links to policy on strategic reserves, import/export controls, and technological adaptation. Useful for framing solutions that lower raw-material inputs.
- INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 5: Mineral and Energy Resources > Conservation of Mineral Resources > p. 64
Shifting from fossil fuels to renewable energy lowers use of exhaustible raw-material inputs.
Crucial for questions on energy transition, sustainability, and circular economy measures; ties energy policy to raw-material demand and environmental outcomes. Helps argue how sectoral shifts reduce primary input consumption.
- INDIA PEOPLE AND ECONOMY, TEXTBOOK IN GEOGRAPHY FOR CLASS XII (NCERT 2025 ed.) > Chapter 5: Mineral and Energy Resources > Non-Conventional Energy Sources > p. 61
Circular economy frames industrial systems to restore and regenerate resources, thereby targeting reduced waste in production.
High-yield for questions on sustainable industrial policy and waste management; connects environmental economics, industrial design and resource efficiency. Mastering this helps answer questions on policy measures that promote reuse, recycling and design-for-recovery.
- Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 16: Terminology > 16 Terminology > p. 454
The 'Butterfly Diagram' distinction: Future questions may ask to distinguish between the 'Biological Cycle' (returning nutrients to the biosphere, e.g., composting) and the 'Technical Cycle' (keeping products in use, e.g., remanufacturing engines). Also, look out for 'Urban Mining'—extracting critical minerals from e-waste.
The 'Mutually Reinforcing' Hack: Notice that Statement II (less raw material) and Statement III (less waste) are practically the definition of Circular Economy. If you use less material and waste less, you *automatically* use less energy (extraction/processing is energy-heavy). Therefore, Statement I (less GHG) is a logical byproduct. They must all be true together.
Mains Link: Critical Mineral Security (IR/Economy). Circular Economy is not just environmental; it is a National Security tool. By recycling batteries (Li, Co) and electronics, India reduces import dependence on China/Africa for critical minerals, aiding Atmanirbhar Bharat.