Resource Recovery Models are one of Circular Business Models (CBMs).
Circular Business Models (CBMs) are designed to turn all that waste that businesses and consumers generate into useful and valuable resources that can be used again in a sustainable way.
There are five commonly Circular Business Models (CBMs) as defined by Organization for Economic Cooperation and Development (OECD) including:
- Circular Supply
- Resource Recovery
- Product Life Extension
- Sharing
- Product Service System
Let’s take a look at how businesses operate under these five categories.
What are Resource Recovery Models?
Resource Recovery Models focus on recovering and reusing resources from waste streams. This can be done through a variety of methods, such as recycling, composting, and anaerobic digestion. The goal of resource recovery is to reduce the amount of waste that goes to landfills and to create new products from recycled materials.
Resource Recovery Models aim to re-use, or recover, resource outputs by re-processing waste materials such as glass, wood, plastics and metals into new and usable resources. They emphasize technological innovations and the use of facilities to recover and reuse resource outputs thereby eliminating material waste and putting less pressure on the use of earth’s scarce resources.
Examples of Resource Recovery Models
There are a number of different resource recovery models, but they can be broadly divided into two categories:
A. Closed-loop systems. In closed-loop systems, the waste from a particular product or process is used to create new products or materials. This is the most efficient type of resource recovery system, as it eliminates the need to extract new resources from the environment.
B. Open-loop systems. In open-loop systems, the waste from a particular product or process is not used to create new products or materials. Instead, it is either land filled or incinerated. This is less efficient than closed-loop recycling, but it can still be a valuable way to reduce the amount of waste that goes to landfills.
Example 1: Re-processing waste materials at the end of the product life cycle into new resources.
Example 2: Collecting, recycling and reproducing waste to make something new. Walt Disney World Resort sends food waste — including grease, cooking oils and table scraps — from select restaurants in its complex to a nearby 5.4 MW anaerobic digestion facility owned and operated by Harvest Power. The organic waste is converted into renewable biogas (a combination of carbon dioxide and methane) to generate electricity, with the remaining solid material processed into fertilizer. The energy generated helps to power Central Florida, including Walt Disney Resort’s hotels and theme parks.
Example 3: Turning waste products or by-products of one industry into raw materials for another.
Benefits of Resource Recovery Models
Resource Recovery Models can preserve the planet’s finite and natural resources.
They are able to minimize the risks associated with damage to the environment including wildlife, oceans and ecosystems as well as save landfill space reserved for waste that has no recycling option. It is also possible to reduce pollution on the land, in the waters and in the air.
Essentially, resource recovery models turn waste into a reusable resource without having any negative impact on the environment. It is because supplying raw materials by way of recycling, instead of from non-renewable natural resources, can reduce greenhouse gas emissions by as much as 90%.
Challenges of Resource Recovery Models
Implementing Resource Recovery Models can be expensive, especially in the initial stages.
Consumers may not be willing to change their behavior to support Resource Recovery Models.
Some Resource Recovery Models require new technologies that may not be readily available.
In summary, Circular Business Models (CBMs) focus on multiple-use resources and products which are reused and remain in the economy for as long as possible. They are decision-making tools that focus on the environmental impacts of business activities through circularity – reducing, reusing, repairing and recycling raw materials, products and waste.
