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Public and private investment plays a key role in improving recycling rates and achieving a circular economy


August 11, 2021 ( Newswire) Global warming is on the verge of getting out of control, according to the latest U.N. climate change report. Climate change is widespread, rapid, and, most importantly, intensifying. It can seriously disrupt the global economy. Extreme weather events cause billions in damages and the increasing temperatures, which could rise by more than 3°C, will only lead to more economic losses. It's expected that the world economy will lose up to 18 percent in GDP if no action is taken. The point is that global warming affects every society, company, and individual.

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What's sure is that our planet is fast approaching a series of vital climate tipping points. The only thing left to do now is to try to minimize the impact of global warming on our environment. Recycling represents an effective, yet simple means to reduce the amount of greenhouse gas emissions, which cause more intensive heat waves, extreme weather, and other negative consequences. Championing recycling can help combat climate change, but efforts must be made by all sides involved.

The world's recycling system has stopped working

The problem is that the world is bad at recycling. Some claim that not enough waste from homes or businesses is recycled. What starts in the home fuels an intricate reverse supply chain that has an impact on the fate of corporate recycled content, not to mention sustainability goals. While the benefits of recycling are straightforward, it seems that the theory isn't designed to be put into practice. China no longer wants to be the West's dumping ground and we could very well be facing a waste crisis.

Since the introduction of curbside recycling, recycling has been heavily promoted as the environmental answer to the ever-growing amounts of garbage. More than half of the rubbish generated is cardboard and paper. Companies and brokers alike acquire the waste, which is transformed into new products. For instance, when it's recycled, cardboard can be used to make paper towels, cereal boxes, writing paper, and so on. Unfortunately, at present, we're dealing with unprecedented disruption. Even the idea of recycling is called into question.

All individuals should recycle just as easily as they throw things away. They need to understand when and how to do so. The global recycling system requires a substantial investment to serve all people's needs and be inclusive. In this respect, it's paramount for public and private players to invest in waste management systems not only to increase recycling rates, but also to build a circular economy. These contributions add real value.

Partnering public and private investment for recycling and the circular economy

Making recycling a reality for everyone requires a considerable investment. It's hard to pinpoint how much money would be necessary exactly. The only thing we can ascertain is that the challenge can be met through collective efforts and collaboration. It's paramount to share the perspective and the resources. Although private capital is regarded as being more productive as compared to public investment, there's no significant difference in terms of output growth. The global economy is slowly but surely recovering from the health crisis generated by the outbreak of coronavirus. In spite of the return of more favorable conditions, it will be hard to return to "normal".

Given that the public investment alone can't meet critical needs, it's essential to encourage a rise in private investment for practical purposes. Investments ought to be made in proven recycling solutions such as balers, which act as important volume reduction tools. Balers are industrial compacting machines that transform recyclables into blocks that can be easily stacked and transported. It has never been more urgent to design a better recycling system. This should be supported by investors with broad influence across foreign countries. It's necessary to make a more aggressive commitment to reduce waste, use recycled content, and achieve higher recycling rates.

Investing in recycling pays dividends

Dividend investing is a strong strategy that gives the chance to make predictable income. There's no shortage of investment options these days, yet not all of them are worth chasing. Recycling is undoubtedly one of the most overlooked investment opportunities. It pays dividends, meaning that it causes good results at a time in the future. Upgrading the current recycling system pays dividends in the future. Recycling contributes to jobs, wages, and, last but not least, government tax revenue. Since the environmental advantages of recycling are often the focus of attention, maybe it's time to talk about the economic side of recycling and disseminate information.

In 2019, the global waste recycling services market was valued at 53.71 billion U.S. dollars. According to Statista, it's highly likely that the market will grow significantly in the following years because more and more consumers understand the importance of safeguarding the environment. Nonetheless, the current recycling rate is too slow to reduce the consequences of climate change. Continued annual investment is necessary to maintain high levels of participation in the recycling process. It's necessary to prepare for a better future. In other words, to invest for the future. Investing in something that produces a reasonable return can make a huge difference in the long run.

The circular economy is what the world needs to move forward. The COVID-19 pandemic has encouraged consumption, the result being that sales plummeted, whether we're talking about clothing, home office equipment, or groceries. People's appetite for stuff worsens the climate breakdown. They're buying too much and recycling too little. Building a circular economy is the best approach. It places emphasis on activities that bring about society-wide benefits.

Anyone can turn a profit from the circular economy. In a world of limited resources, it's a good idea to pursue sustainable growth and profit.

The bottom line is that the "take, make and dispose" model that has dominated the progress of the human race from the dawn of time can't continue. Action needs to be taken right away to salvage whatever is possible. The ROI won't be extremely high, but that's not the main concern right now.

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