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The regenerative business model of the circular economy has exceeded all expectations that it will dominate the future as a model of sustainable economic growth. The circular economy is essential not only for the survival of the planet, but also for sustainable business growth that affects global warming.
In a nutshell, a circular economy is key to a low-carbon future, for lower and more efficient resource extraction rates while boosting product reuse in the EU market. Value is recovered by using products at the end of their life cycle, thus tackling resource scarcity and ensuring less waste.
The European Commission’s Circular Economy Action Plan 2020 is an updated version of the 2015 Action Plan and aims to further strengthen EU competitiveness while simultaneously protecting the environment. At its core, it sets the goals for Europe’s economy to prepare for a ‘greener’ future. The particular action plan is the main building block of the European Green Deal, driving the global transition to a carbon-neutral circular economy with targets set by 2050 through legislative and non-legislative measures.
The objective of this model is not only to recover natural capital but also all other types available, including human, financial and social capital. Governments aiming to promote circular entrepreneurship offer incentives to help industries related to the environment and raw materials in order to boost employment, encourage partnerships and synergies, and promote business clustering and digital transformation, including digital product passports. The progress of these actions is monitored by government authorities through performance indicators at the global and national levels, at the industry level and at the product or company 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 forge ahead in adopting and promoting circular economy initiatives through training programs and educational awareness of the services offered. A €1.4 million grant program was recently approved by the Cabinet to promote the circular economy in the tourism industry, and more specifically in the hotel sector. By 2026, Cyprus will be able to promote hotels certified as having transitioned to a green and circular business model. In addition to hotels, large companies, SMEs and private organizations can participate in obtaining the circular economy certification system.
Taking into account the latest estimates on the application of the circular economic model, EU GDP is expected to grow by an additional 0.5% by 2030 while creating around 700,000 new jobs.
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