Closed-loop economy in the metallurgical industry

Abstract

The article discusses the transition to a closed-loop economy, also known as cyclical or circular, based on the principle of reusing resources. In a cyclical economy, wastes become raw materials for new production through a closed chain of production and consumption. The ever-increasing needs of humanity, along with limited resources, pose new challenges for government and business. Researchers believe that transition to «green» economy is a possible solution to the problem. Nevertheless, current supply chains, logistics, and resource consumption patterns do not meet the requirements of «green» economy. An intermediate solution is a closed-loop (or cyclic) version. The qualitative transition relies on technological solutions, many of which are still in development. The Russian Federation has also developed and approved an economic policy in this direction, specifically the «Closed-Loop Economy» federal project. Since the metallurgical industry in Russia produces a significant amount of waste compared to other industries, the authors propose to analyze the implementation instruments, future effects, and current realities with particular attention to this industry. After addressing the issue, we can create a structured approach to transitioning to circular economy and eventually to «green» economy.