Zenbird Editorial TeamFacing the global climate crisis, it is not enough to address energy issues. It only accounts for half of global emissions, while the other half comes from the products we use. To address this remaining half, we need to create a Circular Economy that eliminates the error in our current economies: waste.
In this third session, speakers Isao Kitabayashi from Sustainable Business Hub and Kiyokazu Nasu from Circular Economy Hub to reveal more about Japan’s unique Circular Economy model, Circular Edonomy. And we are treated to a surprise of how similar traditional wisdom and modern logic are, thus revealing what we need to learn from Japan’s Circular Edonomy.
Finding a balanced model of consumption that’s good for environment and society
Kitabyashi began strong with an introduction to the doughnut economy, and why it matters to the current climate emergency.
Kitabayashi: “Two circles can be used to describe the doughnut economy: the ecological ceiling and the social foundation. Crossing the ecological ceiling will result in environmental problems. Falling below the line of social foundation and the society will find it hard to strive. Balance is achieved between the thin space between the two circles, where the ideal economy exists. The red areas are where we have overshot and is a problem.”
Kitabayashi shared an intuitive example: imagine an aquarium with fishes and plants. An overhead light provides the energy for the plants to grow. The fishes feed on the plants and provide organic waste for plants to grow healthy. Overeating will deplete plant/food source. A lack of plants is also detrimental to the fishes, leading to starvation and death. This metaphor of our planet teaches us well: our dependence on nature is undeniable, and encroaching beyond the limits of the environment will have terrible consequences for us.
Kitabayashi: “Our current challenge is how we can ensure the prosperity of human civilization while ensuring that we don’t take beyond what nature can provide. And there is a way we can do so without frustration (and even fun!) through concepts like Circular Economy, transparency of production, and authenticity.”
As we have discovered from our second session about Carbon Neutrality and Japan Culture (link), Japan, as a closed country, was able to prosper with the resources only available within Japan. That mindset continues today too.
Kitabayashi: “I work with local industries and get to see how artisans use resources available in that particular region, turning them into beautiful products. Furthermore, the products are designed to be artfully tasteful and spiritually enriching to fit into daily life.
“These artisans understand that overconsuming these resources would eventually hurt themselves. So, they work in a circular manner, not to let things end after taking resources from nature, but also find methods to regenerate those resources for future generations.”
The decades after the Edo Period saw the boom in Japan’s population and development at the expense of nature. This is one of the reasons why we want to study Circular Edonomy, the model of sustainability from Japan’s Edo Period to rediscover our limits.
Understanding the Circular Economy through Ellen MacArthur Foundation’s Butterfly Diagram
Nasu began to help us link both Circular Economy and Circular Edonomy, first by reminding us the need for them.
Nasu: “Till recently, we have been running on a Linear Economy of take-make-waste. Right now, we are in a Recycling Economy where the focus is mainly on recycling waste. Unfortunately, that only pertains to a portion of the things we use, and non-recyclable products are still becoming waste. A Circular Economy is the final form we want to arrive at, which eliminates the production of waste.”
To understand the model of Circular Economy, Nasu shares the Butterfly Diagram from the Ellen MacArthur Foundation.
Nasu: “There are two main circular flows here, referring to organic resources and inorganic resources on the left and right, respectively. Unlike organic resources, inorganic resources like metals, plastic and coal cannot be returned to nature.
“There are four rules in the Butterfly Diagram model. The first is prioritizing the smaller cycles. For example, we should prioritize the smaller cycle of reuse over the larger cycle of recycling. It prioritizes lower environmental impact.
“Secondly, we want to keep resources in the cycle for as long as possible. Rephrasing, we want to use resources for as long as possible. Third is cascading, which maximizes the resources’ use over multiple product lifetimes. For example, collected used clothes are used as fabrics of chairs, after which are then collected to make insulators, before eventually burnt for energy. Or ideally, composted and returned to soil.
“The fourth rule is designing products that are easy to separate into different materials. This will make resources easier to circulate.
“We can find examples in the Edo period. For example, old kimono are made into pillows or dustcloths. They may also be turned into ash as fertilizers. Even inorganic materials stay used, like rental of metal pots, stones and tiles are used to build new walls, or old umbrellas are collected and repaired.”
Harmony with nature is key to happiness and flourishing
Nasu: “There are more than 100 Circular Economy academies in the world. Unlike SDGs where its 17 goals are globally agreed upon, the definition of circular economy varies.
“To me, a circular economy is a method to bring out, heighten and prolong the value of products and services both economically and socially. It is a circular system that aims to design out waste and pollution through prioritizing, easing the continual reuse of resources. The main driver for the system will be renewable energy. These will decrease environmental burden, with a particular intention to return organic resources to regenerate the natural environment. The different processes will create the foundation of society, which also enjoys economic prosperity, that is decentralized, diverse, resilient, and has a sense of community. The result is human civilization harmonizing with nature, thus maximizing the happiness of humankind and the flourishing of the environment.
“We are most familiar with the 3Rs of reduce, reuse and recycle. Within the Circular Economy, 10 Rs are proposed. They are divided into three life cycles: design (Refuse, Rethink, Reduce), consumption (Reuse, Repair, Refurbish, Remanufacture, Repurpose) and collection (Recycle, Recover), with increasing levels of environmental burden.
“Again, we find similar thinking in old Japan. For example, Refusing the use or purchase of what’s unnecessary. In architecture, master builders developed techniques that did not require the using other materials like iron nails. Or in Rethinking how we use things, like renting of pots, books and beddings.”
Other examples included fashion, like how people harvested only what was needed to make clothes, and how repairs are easily made. In addition to that, replaced parts like torn collars were repurposed for other uses. Eventually, everything would find its way back into the soil, mostly as fertilizers for crops.
Kitabayashi: “The world used to be sustainable, when humans were in harmony with nature. But somewhere along the line, we began to believe that the planet’s resources were unlimited. In the past, many countries’ solution when they realized there was a limit to resources was to move into neighboring lands. However, Japan was among the first to realize the limit of resources. Unable to move into lands towards the west, they had to use the resources available to them within the islands of Japan.
“It’s hard to determine if it is a result of circumstance or a conscious decision. What we can say is that within their resource limit, the Japanese found harmony with nature as they searched to maximize life satisfaction within circular systems. That was definitive of Japanese culture.”
The power of culture in creating a circular economy
Culture can dictate what is “cool.” And if we can give people the realization that it is good for the environment at the same time, we can remove the belief that we need to tolerate or suffer to achieve sustainability.
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Kitabayashi: “This was so with Sado (tea ceremony). Fanciness used to be popular. It was until Sen no Rikyuu’s influence penetrated society, changing the perception towards a down-to-earth appreciation of tea. It changed the way people think.”
“Recently, there is a boom in old Japanese-style houses, but we shouldn’t let it end as just as a trend. We want the realization that living in these houses allows us to connect with nature, that it can be both relaxing and exciting, that it is closer to the ideal lifestyle.”
Even though many have the impression to look to Europe as a role model for Circular Economy, Japan also had developed its own circular economy model. Even so, as we have learned from our first session, European culture excels in connecting verbalization to logical thinking, making it easy for anyone to understand.
Features of Edo Japan’s circular economic model
Nasu shared with us the main features of the Circular Edonomy that allowed the circular model to succeed.
Nasu: “Very often, we find references saying that Edo Japan only had access to the sun’s energy. However, it is probably more accurate to say Edo Japan depends on biological resources, like charcoal and even uchimizu, the act of splashing water onto the streets to clean and cool the temperature. So Edo Japan paid more attention to the organic circular system (the left side) of the Butterfly Diagram.
“Edo Japan’s grasp of time is different too. Japanese living in the Edo Period understood and kept a balance between the speed of resource regeneration and harvesting resources. For example, the Japanese buried waste in some lands in the late 1600s. Since the waste was basically organic matter, they waited seventy years before the land turned fertile for farming usage. This is different from today, where we consume resources faster than nature can regenerate them.
“We also talked about beauty in design, where longevity is taken into account. For example, the moss growing on stone lanterns after centuries is expected, and artisans created them to be enjoyable aesthetically by the next generation.
“The third feature is described in a model developed by Walter Stahel involving R and D cycles. In a circular economy, we should focus more on R cycles (reduce, reuse, repair) and delay D cycles (demolish, dematerialize). This was again demonstrated in Edo Japan, though partly because it lacked technology for D cycles. As we have seen, Edo Japan focused on the R’s, making its circular model close to the ideal.
“The thinking of frugality and simplicity played a major part too. Instead of giving in to wants, the Japanese prioritized the safety of their lives and possessions, while seeking the frugality and happiness of all human beings. They were satisfied and happy. Today’s society seems to desire more. Perhaps we can learn something from this period.
“Finally, there were economic benefits to Edo’s circular economic model. Businesses understood that one person’s waste was another’s resource. We can see from the many businesses that collected waste for repair or resell, like organic fecal matter, ash, old umbrellas, wax and so on.”
Lessons we can learn from Edo Japan’s circular economic model
Seek maximum value in biomass
Nasu offers us a few aspects we can think about when using Circular Edonomy for reference. The first is thinking about how best to leverage the forest. According to the MAFF report, out of the OECD, as of July 2020, Japan ranks third in the forest area at 68.4%.
Nasu: “To use biomass solely for energy is to underutilize its value. According to a report from Europe, other sources of energy should be considered beforehand, like cost-competitive renewable energies. Instead, biomass has excellent value when used to make wooden products, paper, boards etc. In that sense, we should learn from Edo Japan on how organic resources were used for maximum value.”
Maximize R cycles
Nasu: “We also talked about giving more weightage to the R cycles over the D cycles. For example, there is tremendous growth in the reuse market overseas [outside of Japan]. There used to be concerns about the hygiene in reusing, but scientists have assured us of the safety.
“Now that the trends like reusing are returning to Japan, we see it being paired with the latest technology, like mercari’s services on an app or Synflux’s usage of AI to reduce textile waste. ”
Design products to last
Nasu: “We should also incorporate time into the design of products and services. Till now, we’ve been focusing on aspects like efficiency, cost performance, technological considerations and safety. For example, demonstrated in a Yahoo news comment, “Calmly thinking about it, we spend a large sum of money to change to a new iPhone every two years, and realize it is quite a waste.” It’s time we thought about the lifespan of the products we make.
“Product as a Service is one business model to get us there. Through subscription, rental, sharing or reuse, we can maximize the customer’s lifetime value. Furthermore, it allows us to ensure the circulation of products in the economy. For example, Netherland’s Gerrard Street provides premium headphones on a subscription, of which the parts are replaceable and 85% reusable.”
Local suitability first
Even if we cannot control the global upstream processes (especially linear ones) of resource extraction, design or manufacturing, we can affect a local circular economy.
Nasu: “The lower we are at the downstream of the supply chain, the more local it becomes, and this is where we can introduce the R’s of circular economy. We can’t change the whole supply chain, but we can change what we can do locally. It will alleviate the burden on the environment.” We can do so by, for example, collecting materials for remanufacture or introducing PaaS business models to prolong product usage.
“Jobs on a local level in a circular economy is something to consider too. According to gaia’s research into the relationship between waste management and future of employment, repair-related jobs will form the majority of jobs, with recycling and remanufacturing jobs next. Jobs relating to landfills or incineration are negatively affected. This is where we can also draw similarities to the job variety available in Edo Japan.
Side discussion on Repair: more than just fixing products
Kitabayashi added that making products repairable raises the level of manufacturers. Firstly, manufacturers understand what part of the products are most prone to breakage, especially if they have access to big data of customer feedback. Secondly, to make something repairable means understanding how to reverse engineer the making of the product, which is harder than making it, thus testing the skills of manufacturers.
Nasu: “The fight for the right to repair is a major topic in a circular economy. It involves discussions such as making electronic products last for decades, or demanding electronic makers release the blueprints of the makeup of the electronic devices. For example, Nikkei news reported that even though Apple has announced its commitment to sustainability, repairers still do not know the makeup of the iPhone. Yet, thinking about Edo Japan, people were already repairing products without even needing to talk about rights to repair.”
Kitabayashi: “Artisans do more than repair, but also customize products to match individual needs too. There are such artisans today, and they are important essences in revitalizing local communities. There is face-to-face communication with artisans who knew how to restore beloved, broken products, which plays a part in elevating the life satisfaction of society.”
