Why Businesses Should Treat the Circular Economy
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Circular economy is a kind of economic growth model with the principle of “reduction, reuse, and resource utilization†and the basic features of low consumption, low emission, and high efficiency as well as the concept of sustainable development. Its essence is to achieve the coordination and balance between economic development and the effective use of material resources and ecological environment protection through the recycling and intensive use of material resources. From a business perspective, if there are no corresponding policies and measures, such a development model is more like a public-welfare economy. For companies aiming at maximizing profits, enthusiasm is hard to rise. To put it bluntly, if companies cannot obtain real benefits and policy benefits from the circular economy, they will not be very interested.
Chemical companies engaged in circular economy not only need to increase investment, including equipment and technology, which intangibly increases product costs, and more importantly, they must bear the market risk of renewable resource commodities. Given the current waste of resources and the low cost of environmental violations, how many companies will do this kind of business with a responsibility?
Circular economy is a huge and complex system engineering. To make chemical companies consciously “cycle†together, there needs to be some clear supporting policies. For example, what are the incentives for taxation in the process of the cyclical development of chemical companies and what are the supporting policies for product development? None currently. To allow enterprises to develop the main body of circular economy, only the development of circular economy enterprises can get the benefits that others do not get, in order to really enable them to form a spontaneous mechanism for the development of circular economy. Otherwise, it is difficult to stimulate their enthusiasm by saying that breaking the sky.
Therefore, in order for chemical companies to be really hot for the recycling economy, only the current measures to establish several demonstration companies are still far from enough. On the one hand, it must increase penalties for the waste of resources and environmental violations of the law, and on the other hand improve the policy incentives, especially through taxation and leverage, to increase support for the development of circular economy enterprises. In this way, the two companies are squeezed. The company does not want to heat the recycling economy.