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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
Guest previewThis 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.
Web source
Presence: 5/5
"in industry has the potential to reduce greenhouse gas emissions by around 30 to 50 percent by the year 2050"
Why this source?
- 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).
Web source
Presence: 4/5
"EU has introduced the circular economy as a solution to these situations. ... The overall goal is to reduce greenhouse gas emissions and become the first climate neutral continent by 2050."
Why this source?
- 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.
Web source
Presence: 4/5
"Yes, Coal India Limited (CIL) has implemented comprehensive projects and initiatives to reduce greenhouse gas emissions ... including greening mining areas, air pollution mitigation, energy efficiency, renewable energy adoption, circular economy initiatives, R&D efforts for carbon sequestration"
Why this source?
- 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.
- 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.
Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 23: India and Climate Change > The benefits > p. 314
Strength: 5/5
“• On a broader scale, this system, along with the activities and processes that lead up to it, will benefit the community at large by improving the environment through reduced GHG (greenhouse gas) emissions, reducing energy consumption, and alleviating stress on natural resources. • Reduced energy consumption without sacrificing comfort levels; • Reduced destruction of natural areas, habitats, and biodiversity, and reduced soil loss from erosion, etc.
All Rights Reserved, No part of this material may be reproduced in any form or by any means, without permission in writing. ffi”
Why relevant
Explicitly links 'this system' (context implies a resource-efficient/systemic approach) to reduced GHG emissions and reduced energy consumption as a community benefit.
How to extend
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.
Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 29: Environment Issues and Health Effects > 29.3.4. Greeenwashing > p. 422
Strength: 4/5
“i 't i I \ t .r "'t ) )I 'l I ) \ ''t • The secondary footprint is a measure of the indirect CO₂ emissions from the whole lifecycle of products we use - those associated with their manufacture and eventual breakdown. To put it very simply, the more we buy, the more emissions will be caused on our behalf.• A carbon diet refers to reducing the impact on climate change by reducing greenhouse gas (principally CO₂) production, without lowering their standard of living. freezing cuts from the plant, or stocking the seeds.”
Why relevant
Defines the 'secondary footprint' as lifecycle, indirect CO2 emissions tied to the volume of goods people buy—implying that reducing consumption lowers associated emissions.
How to extend
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.
Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 24: Climate Change Organizations > 24, 22.2. Measures to adapt green economy > p. 343
Strength: 4/5
“• Energy audit can reduce your building's climate footprint and lead to significant savings in energy costs. • Overfishing in many parts of the world threatens to deplete future fish stocks. We can avoid this by working to promote sustainable fishing practices. • Deforestation accounts for close to 20% of the world's greenhouse gas emissions. • Sustainably managed forests can continue to support communities and ecosystems without damaging environment and climate.”
Why relevant
Gives the pattern that energy-efficiency measures (energy audits) reduce a building's climate footprint; more broadly, resource-efficiency lowers emissions.
How to extend
Apply the same logic to circular-economy measures (material/resource efficiency) and use typical energy/emission reductions per unit saved to estimate GHG impacts.
Environment and Ecology, Majid Hussain (Access publishing 3rd ed.) > Chapter 6: Environmental Degradation and Management > carBon crEdIt. > p. 55
Strength: 3/5
“Te concept of carbon credit was the outcome of Kyoto Protocol, an International agreement between 169 countries. An organization which produces one tonne less carbon or carbon dioxide equivalent than the standard level of carbon emission is allowed for its outft or activity, earn a carbon credit. Countries which are signatories to the Kyoto Protocol have laid down gas emission norms for their companies to be met by 2012. In such cases, a company has two ways to reduce emissions. • 1. It can reduce the greenhouse gases (GHG) by adopting new technology or improving upon the existing technology to attain the new norms for emission of gases.• 2.”
Why relevant
Describes how technological changes or improved practices can reduce greenhouse gases and be accounted for (carbon credits), illustrating that process improvements can lower emissions.
How to extend
Treat circular-economy interventions as process/technology changes and compare their plausible emission reductions to carbon-credit accounting rules to approximate GHG benefits.
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.
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