How the circular economy can reach its full potential

How the circular economy can reach its full potential

How the circular economy can reach its full potential
By transforming waste into raw materials, circular economy systems drive better product design and environmental progress. (AFP)
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Integrating systems thinking with circular economy models can enhance environmental sustainability, improve resource efficiency, and build long-term resilience.

Systems thinking provides a framework for understanding how different elements within a system interact. When applied to sustainability, it helps assess the broader impact of environmental strategies. The circular economy, meanwhile, focuses on keeping resources in continuous use by repurposing materials and regenerating them for future applications.

A key approach within this framework is life cycle analysis, which evaluates a product’s environmental impact from resource extraction to disposal. According to a 2023 report by the Ellen MacArthur Foundation, companies that adopt LCA strategies can reduce material use by 30 percent and lower their carbon footprint by 20 percent.

By transforming waste into raw materials, circular economy systems drive better product design and environmental progress. Businesses that implement systemic innovation see, on average, a 25 percent improvement in operational performance and a 15 percent reduction in production costs.

For circular economy initiatives to succeed, collaboration is essential. Governments, businesses, local communities, NGOs, and academic institutions all play a role in driving sustainable change.

The EU, for example, has developed the Circular Economy Action Plan, which sets recycling targets, funds eco-innovation projects, and assigns sustainability responsibilities to manufacturers. Standardized regulations help businesses transition to circular models, making them more competitive while also reducing costs.

Academic institutions contribute by researching sustainable materials and designing efficient circular systems. At the same time, NGOs and community groups advocate for policy changes, educate the public, and engage in grassroots efforts to promote circular practices.

For the circular economy to reach its full potential, positive stakeholder engagement and a systems-oriented approach are crucial.

Majed Al-Qatari

According to the Circular Economy Alliance, organizations that collaborate with multiple stakeholders achieve 40 percent better results in their circular projects than those working alone. Joint efforts not only foster innovation but also accelerate the adoption of sustainable practices across industries.

Despite its benefits, stakeholder engagement in the circular economy faces several challenges. Different groups often have competing priorities.

Businesses focus on profitability and operational efficiency, while governments continue to emphasize traditional economic growth over sustainability targets. Environmental organizations and local communities push for greener policies but frequently clash with industries over costs and feasibility.

Additionally, 60 percent of small businesses and non-professional groups find circular economy practices difficult to implement, leading to reluctance in adopting new models. This hesitancy, combined with fragmented funding, slows the large-scale transition to circular systems.

For the circular economy to reach its full potential, positive stakeholder engagement and a systems-oriented approach are crucial. Aligning sustainability efforts with a broader understanding of interconnected systems creates solutions that balance environmental protection, social well-being, and economic growth.

By fostering collaboration, embracing innovation, and minimizing waste, societies can build a more sustainable future — one that benefits both current and future generations.

Majed Al-Qatari is a sustainability leader and ecological engineer experienced in advancing environment, social, governance and sustainability goals.

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Pentagon says leak probe may lead to US prosecutions

Pentagon says leak probe may lead to US prosecutions
Updated 37 sec ago
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Pentagon says leak probe may lead to US prosecutions

Pentagon says leak probe may lead to US prosecutions
  • Hegseth left open the possibility that individuals could be exonerated
  • “We said enough is enough. We’re going to launch a leak investigation,” he said

WASHINGTON: US Defense Secretary Pete Hegseth warned on Tuesday of possible prosecutions of former senior advisers who were fired during a probe into leaks of Pentagon information to the media, saying evidence would be handed over to the Department of Justice once the investigation is completed.
Dan Caldwell, who was one of Hegseth’s top advisers, and two other senior officials were fired on Friday after being escorted out of the Pentagon. But they have denied any wrongdoing and said they have been told nothing about any alleged crimes.
Hegseth, who has come under fire for using unclassified messaging system Signal to discuss plans to attack Yemen’s Houthi group, left open the possibility that individuals could be exonerated during the investigation but played down those chances.
“If those people are exonerated, fantastic. We don’t think — based on what we understand — that it’s going to be a good day for a number of those individuals because of what was found in the investigation,” Hegseth told Fox News.
Hegseth said there had been a number of leaks that triggered the investigation, including about military options to ensure US access to the Panama Canal and Elon Musk’s visit to the Pentagon.
“We said enough is enough. We’re going to launch a leak investigation,” Hegseth said.
“We took it seriously. It led to some unfortunate places, people I have known for quite some time. But it’s not my job to protect them. It’s my job to protect national security.”
He said evidence would eventually be handed over to the Department of Justice.
“When that evidence is gathered sufficiently — and this has all happened very quickly — it will be handed over to the DOJ and those people will be prosecuted if necessary,” Hegseth said.
Caldwell had played a critical role as an adviser to Hegseth and his importance was underscored in a leaked text chain on Signal disclosed by The Atlantic last month.
In it, Hegseth named Caldwell as the best staff point of contact for the National Security Council as it prepared for the launch of strikes against the Houthis in Yemen.
On Sunday, news emerged of a second Signal chat, a disclosure that Hegseth and other officials have blamed on former Pentagon employees.
Despite growing calls from Democrats for Hegseth to resign, President Donald Trump has stood firmly by his defense secretary.
John Ullyot, who was ousted from his job as a Pentagon spokesperson after two months, said on Sunday that Hegseth’s Defense Department was in “total chaos.”
“The dysfunction is now a major distraction for the president — who deserves better from his senior leadership,” Ullyot wrote in an opinion piece in Politico.
Asked about Ullyot’s remarks, Hegseth said: “He’s misrepresented a lot of things in the press. It’s unfortunate.”


Ghana in fresh drive to woo back Sahel states to West African bloc

Ghana in fresh drive to woo back Sahel states to West African bloc
Updated 7 min 15 sec ago
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Ghana in fresh drive to woo back Sahel states to West African bloc

Ghana in fresh drive to woo back Sahel states to West African bloc
  • John Mahama: ‘The recent decision by Mali, Burkina Faso and Niger to withdraw from ECOWAS is a regrettable development’
  • Burkina Faso, Mali and Niger are led by juntas that seized power in coups between 2020 and 2023

ACCRA: Ghana’s new leader said Tuesday he initiated a fresh bid to woo back Mali, Burkina Faso and Niger to the west African bloc ECOWAS after the junta-led countries quit earlier this year.
President John Mahama said his government had appointed a special envoy to “initiate high-level conversations” with the three countries after their withdrawal from the political and economic group.
“The recent decision by Mali, Burkina Faso and Niger to withdraw from ECOWAS is a regrettable development,” said Mahama at the launch of the bloc’s 50th anniversary celebrations in Accra, Ghana’s capital.
“We must respond not with isolation or recrimination, but with understanding, dialogue and a willingness to listen and to engage,” he said.
Before him, Senegalese President Bassirou Diomaye Faye had initiated similar efforts but said earlier this month he had “done everything possible” to bring the three countries back into the bloc, to no avail.
ECOWAS earlier said it had extended invitations to the junta leaders to attend the event at Accra’s International Conference Center.
Officials acknowledged the presence of representatives of the three countries at the event, but did not specify who they were, with the junta leaders apparently having declined to attend.
Mahama, who took office in January, said he has “prioritized diplomatic re-engagement with our Sahelian neighbors.”
Burkina Faso, Mali and Niger are led by juntas that seized power in coups between 2020 and 2023 and have since turned away from former colonial power France and moved closer to Russia.
They lie in the region known as the Sahel, which stretches between the dry Sahara desert in the north and the more humid savannas to the south.
They quit ECOWAS at the beginning of the year, accusing the regional bloc of being subservient to France.
They have joined together in a bloc called the Alliance of Sahel States (AES), which was originally set up as a defense pact in 2023 but now seeks closer integration.
Each has been wracked by attacks by extremists allied with either Al-Qaeda or Daesh for a decade — violence that governments have not been able to eradicate despite previous help from French forces.
Together the three countries sprawl over an area of some 2.8 million square kilometers (1.1 million square miles) — roughly four times the size of France — in Africa’s northwest.


Oman, China discuss strategic relations in political, economic sectors

Oman, China discuss strategic relations in political, economic sectors
Updated 23 min 51 sec ago
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Oman, China discuss strategic relations in political, economic sectors

Oman, China discuss strategic relations in political, economic sectors
  • China commended Oman’s role ‘in promoting the settlement of regional hotspot issues’
  • Two sides discussed their bilateral cooperation in political, economic and cultural fields

LONDON: Oman and China held the 14th round of strategic consultations in Beijing to deepen their political, economic and cultural cooperation this week.

Khalifa Ali Al-Harthy, the undersecretary of the Omani foreign ministry for political affairs, and Liu Bin, the Chinese assistant minister of foreign affairs, led their respective delegations.

The two sides discussed their bilateral cooperation in political, economic and cultural fields on Monday, exploring ways to enhance strategic relations, the Oman News Agency reported.

Special Envoy Zhai Jun, of the Chinese government on the Middle East issue, said that the strategic partnership between Beijing and Muscat had continued to develop steadily, with successful cooperation in various fields.

“China appreciates the important role played by Oman in promoting the settlement of regional hotspot issues and easing regional tensions,” Jun said, according to a statement on the Chinese Ministry of Foreign Affairs’ website.

Khalifa met Jun and Zhang Xiaoqiang, executive vice chairman of the China Center for International Economic Exchanges and vice chairman of the National Development and Reform Commission, the ONA reported.

Nasser Mohammed Al-Busaidi, the Omani ambassador to China, and Abdulaziz Mohammed Al-Hosni, head of the Asia and Pacific Department at the Foreign Ministry, attended the consultations session.


Pakistan stresses importance of trade corridors to increase investment at G-24 finance ministers’ moot

Pakistan stresses importance of trade corridors to increase investment at G-24 finance ministers’ moot
Updated 33 min 55 sec ago
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Pakistan stresses importance of trade corridors to increase investment at G-24 finance ministers’ moot

Pakistan stresses importance of trade corridors to increase investment at G-24 finance ministers’ moot
  • Muhammad Aurangzeb attends G-24 Finance Ministers and Central Bank Governors’ Meeting in Washington
  • Finance minister stresses importance of greater financial and technical support among developing countries

KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb on Wednesday stressed the importance of regional trade corridors and enhanced connectivity to ensure increased investment and cooperation among nations, the Finance Division said.

Aurangzeb was speaking at the G-24 Finance Ministers and Central Bank Governors’ Meeting in Washington. The Pakistani finance minister is currently on a visit to Washington to attend the 2025 spring meetings of the IMF and the World Bank Group, where he has held a series of high-level engagements on the sidelines.

Pakistan has increased the importance of regional connectivity in its economic policy in recent years. The South Asian country is part of the China-Pakistan-Economic Corridor (CPEC), a multi-billion-dollar project that connects both countries via an infrastructure network of roads, railways and energy projects. Islamabad is also pushing for greater connectivity for trade and investment with Central Asian countries, Afghanistan, Turkiye and the Middle East.

“He [Aurangzeb] underscored the importance of regional trade corridors, enhanced connectivity and South-South cooperation as key drivers for increasing investment and trade flows,” the Finance Division said.

“He also stressed the need for greater financial and technical support among developing countries to navigate global economic challenges effectively.”

The minister highlighted the recent financial reforms undertaken by his government, pointing out the macroeconomic stability achieved by Pakistan. He lauded the “strong resilience” of the country’s banking system and the government’s ongoing structural reforms, the Finance Division said.

“Minister Aurangzeb emphasized the need to maintain the reform trajectory in view of evolving geopolitical dynamics, demand fragmentation, rising protectionism, and the risks of spillovers and exogenous shocks, including trade tariffs,” it added.

Earlier on Tuesday, Aurangzeb met IMF Managing Director Kristalina Georgieva, reassuring her that Islamabad would stay the reform course mandated by the global lender.

His engagements also included a meeting with World Bank Group President Ajay Banga. Aurangzeb commended the World Bank’s leadership in developing a transformative Country Partnership Framework (CPF) — a decade-long strategic roadmap centered around measurable impacts and outcomes.

During his visit to Washington, Aurangzeb is expected to meet finance ministers from China, the United States, United Kingdom, Saudi Arabia and Turkiye, as well as officials of global credit rating agencies, commercial and investment banks.


Saudi Arabia raises $990m through April sukuk issuance

Saudi Arabia raises $990m through April sukuk issuance
Updated 48 min 52 sec ago
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Saudi Arabia raises $990m through April sukuk issuance

Saudi Arabia raises $990m through April sukuk issuance

RIYADH: Saudi Arabia’s National Debt Management Center raised SR3.71 billion ($990 million) through its riyal-denominated sukuk issuance for April, reflecting a 40.5 percent increase compared to the previous month, according to an official statement.

The amount marks a significant rise from March, when the Kingdom secured SR2.64 billion through sukuk. In previous months, Saudi Arabia issued SR3.07 billion in February and SR3.72 billion in January, continuing a trend of strong activity in the domestic debt market.

Sukuk are Shariah-compliant financial instruments similar to bonds, offering investors partial ownership in an issuer’s assets. They are structured to adhere to Islamic finance principles, which prohibit interest payments.

According to the NDMC, the April issuance was divided into four tranches. The first tranche was valued at SR1.31 billion and is set to mature in 2029. The second amounted to SR80 million, maturing in 2032, while the third tranche, worth SR765 million, will expire in 2036. The largest portion, valued at SR1.55 billion, is due in 2039.

The Kingdom’s debt market has seen rapid growth in recent years, drawing increased interest from investors seeking fixed-income instruments amid a global environment of rising interest rates.

Earlier this month, a report by Kuwait Financial Center, known as Markaz, revealed that Saudi Arabia led the Gulf Cooperation Council region in primary debt issuances in the first quarter of the year. The Kingdom raised $31.01 billion from 41 offerings, accounting for 60.2 percent of all issuances across the GCC during that period.

In a separate development, global credit rating agency S&P Global said Saudi Arabia’s expanding non-oil sector and healthy sukuk issuance levels could contribute significantly to the growth of the global Islamic finance industry.

The agency projected global sukuk issuance could reach between $190 billion and $200 billion in 2025, with foreign currency-denominated issuances contributing up to $80 billion, provided market volatility remains contained.

A report published in December by Kamco Invest further projected that Saudi Arabia would account for the largest share of bond maturities in the GCC from 2025 to 2029, with a total of $168 billion expected to mature during that period.