The regenerative economic model of the circular economy has surpassed all expectations that it will dominate the future as a sustainable economic growth model. The circular economy is essential not only for the survival of the planet but also for sustainable, commercial growth affecting global warming.
In a nutshell, a circular economy is the key to a low-carbon future, to lower and more efficient resource extraction rates while boosting the re-use of products on the EU market. Value is recovered by making use of products at the end of their life cycle therefore tackling resource scarcity and ensuring less waste.
The European Commission's circular economy action plan of 2020 is an updated version of that of 2015 and aims to further strengthen EU competitiveness while simultaneously protecting the environment. At its core, it sets down the objectives for the European economy to become fit for a “greener” future. The particular action plan forms the main building block of the European Green Deal driving the global transition to a carbon-neutral circular economy with set targets by 2050 via legislative and non-legislative measures.
The target of this model is not only to recover natural capital but also all other available types including human, financial and social capital. Governments aiming at promoting circular entrepreneurship put forward incentives to assist industries relating to the environment and raw materials so as to stimulate employment, encourage partnerships and synergies, and promote the clustering of businesses and digital transformation, including digital product passports. The progress of such actions is being monitored by government authorities through performance indicators on a global and national level, at an industrial level and at a product or single firm level. Priority is given to specific product groups identified in the supply chain such as electronics, batteries, vehicles, packaging, construction, and plastics.
Cyprus continues to push forward in adopting and promoting circular economy initiatives through training programmes and educational awareness for the services on offer. A €1.4MM subsidy scheme was recently approved by the Cabinet to promote circular economy in the tourist industry, and more specifically in the hotel sector. By 2026, Cyprus will be able to promote hotels that are certified as having transitioned to a green and circular economic model. In addition to hotels, large enterprises, SME's and private bodies are eligible to participate in obtaining the Circular Economy Certification Scheme.
Taking into consideration the latest estimates relating to the application of the circular economic model, the EU's GDP is expected to grow by an additional 0.5% by 2030 while creating approximately 700,000 new jobs.
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