MAIN APPROACHES TO THE IMPLEMENTATION OF THE CIRCULAR ECONOMY

Abstract

The ecological situation in the world is deteriorating every year. The transition to a circular economy can mitigate and, in the future, reduce the negative impact on the environment due to the rational use of existing resources. Within the framework of this study, the main opportunities that emerge because of introducing a circular economy are highlighted. The application of this concept provides a reduction in the negative impact on the environment, a decrease in the volume of resources used, and contributes to the development of durable and innovative products. However, there are also a number of financial, institutional and technological barriers to the introduction of a circular economy. Since the transition to a new concept requires the restructuring of the usual production process, many ways and methods were considered to promote the introduction of a circular economy, as a result of which three blocks were identified. As part of the first block, the increase in consumer awareness of the concept of a circular economy through webinars and seminars on global environmental issues, the concept of sustainable development, ESG criteria, environmental campaigns, and active product labeling can be noted. In the second block, the increase in the motivation of companies in the field of implementing the ideas of the circular economy, their involvement in the joint development of criteria for standards in order to conduct socially responsible business was highlighted. In the third block, a special role of the state, which can influence companies through state support such as benefits and subsidies and public procurement, was emphasized. Within each block, the effectiveness of existing practices on the market was considered and recommendations were made to improve the situation.