Time for Nepali banks to invest in circular economy

The contemporary pattern of production and consumption has a plethora of drawbacks. Human civilization is using resources 1.7 times quicker than the earth can produce, and very soon we shall be in a state of extreme ‘resource deficit.' It has become an imminent necessity to shift from the current mode of linear consumption which focuses on ‘take-make-dispose’ to the circular economy model which concentrates on ‘take-make-reuse.'

The circular economy is a closed-loop, restorative and regenerative strategy which emphasizes the sustainable use of resources for achieving the 'common good.' Its effective implementation fosters resource efficiency, reduces dependency on resource extraction, buffers against price volatility, reduces costs embedded within production, and eliminates geopolitical tensions. The circular economy model not only promotes an environmental agenda and waste management, but it also opens the world to numerous business dimensions like a ‘sharing economy’ and performance-based business modalities.