Author: Wang Feipeng
Green and low-carbon development has become a global consensus. Major economies, including the United States, the European Union and Japan, have adopted the circular economy as an important strategy to address resource and environmental constraints, respond to climate change, and promote economic growth. These countries have deployed comprehensive circular economy action plans to accelerate their development and address new challenges to global resources and the environment.
At present, the mainland is facing continuous growth in demand for resources and energy, as well as a high degree of external dependence on certain major resources, which puts great pressure on resource security. Therefore, the development of circular economy, improve the efficiency of resource utilization and the level of renewable resource utilization have become urgent problems to be solved.
At the heart of the circular economy is the optimization of the after-distribution of used products and the reuse of recyclable, valuable materials.
The development of the circular economy is of double importance to China. First of all, from the perspective of "dual circulation", it will help improve the efficiency of internal circulation, while enhancing China's position in the international industrial chain and reducing external dependence on scarce raw materials. Secondly, from the perspective of achieving the "dual carbon" goal, the circular economy helps to reduce the carbon emission intensity per unit of product by reducing the processing of raw materials with high energy consumption.
In the context of a new round of technological change, AIoT technology has shown great potential in accelerating the transformation of various industries. By combining the deep analysis capabilities of artificial intelligence with the extensive connectivity capabilities of the Internet of Things, AIoT can not only significantly improve the efficiency of resource use, but also optimize waste management processes. This convergence of technologies provides strong support for the development of a circular economy.
What is the circular economy, what industries and industries are involved, what are the potential benefits of developing a circular economy, and what is the size of the market? How will AIoT play a role in the development of the circular economy? and what are the challenges? This article will discuss these issues.
What is the circular economy?
Since the Industrial Revolution, people have adopted a linear mode of production and consumption: raw materials are extracted from the natural environment, industrially processed and manufactured into goods, which are consumed and discarded, and finally buried or incinerated.
This model is constantly depleting the earth's finite resources to create products, which on the one hand leads to increasing resource scarcity, the cost of extracting raw materials and the price of commodities increasing. On the other hand, it also creates a lot of garbage and pollution, destroying the ecological environment of the earth.
Concerned about this vicious circle and its potentially undesirable consequences, some scientists are thinking about how to deal with it. Walter Stahl, known as the "father of permaculture", is one of them, and in the late 70s he came up with the concept of "cradle to cradle".
This concept is relative to the national welfare policy related to a buzzword - "cradle to grave" proposed, its essence is in the product and system design, the introduction of biomimicry concept, the human industry as a process of nature, the raw materials as nutrients that can be circulated in metabolism, from the beginning of the design to consider how to achieve the cycle, from the end of use back to the manufacturing end.
Unlike the linear economy, which will cause the depletion of resources and the destruction of the environment, the circular economy is based on the continuous recycling and utilization of materials, forming a cycle of "resources-products-renewable resources", so that the whole system produces very little waste, or even zero waste.
The concept also adheres to the principle of "only misplaced resources, no real waste", and seeks to fundamentally solve the conflict between economic development and environmental destruction.
The "Law of the People's Republic of China on the Promotion of Circular Economy" defines the circular economy as: the collection or general name of the reduction, reuse and resource utilization activities carried out in the process of production, circulation and consumption, and drives economic development through the infinite circulation, transformation and value-added of materials, and adopts the mode of reversible circulation, multi-directional transformation, multi-level utilization and no waste discharge, reducing the overexploitation of natural resources, and pursuing "zero discharge" without ecological environment damage and pollutants.
The industries involved in the circular economy, the industries and their potential size
The circular economy encompasses both tangible and intangible products, ideas, models and behaviours, including products, infrastructure, equipment and services. This concept applies to all industries, including "technical" resources (metals, minerals and petrochemicals) and "biological" resources (food, fiber, wood, etc.).
As can be seen from the "14th Five-Year Plan" for circular economy, the development of circular economy covers a number of important areas, involving multiple levels of industry, society and agriculture.
First of all, the plan emphasizes the construction of a resource-recycling industrial system and the improvement of resource utilization efficiency. This includes promoting green design for key products, strengthening cleaner production in key industries, promoting circular development in industrial parks, strengthening the comprehensive utilization of resources, and promoting the co-disposal of municipal waste. These measures are aimed at achieving a more efficient and environmentally friendly mode of industrial operation.
Secondly, the plan emphasizes the need to build a recycling system for waste materials to build a resource-recycling society. This includes improving the recycling network of waste materials, improving the processing and utilization of renewable resources, regulating the development of the second-hand commodity market, and promoting the high-quality development of the remanufacturing industry. Through these measures, circular economy planning promotes the efficient reuse and continuous recycling of resources.
Finally, the plan emphasizes deepening the development of agricultural circular economy and establishing a circular agricultural production mode. This involves strengthening the resource utilization of agricultural and forestry waste, improving the recycling efficiency of waste agricultural materials, and promoting the development model of recycling-oriented agriculture. These initiatives aim to promote the sustainability and resource efficiency of agricultural production.
In addition, the plan also mentions a series of key projects and actions, such as the construction of urban waste materials recycling system, the recycling development of the park, the demonstration of comprehensive utilization of bulk solid waste, and the demonstration of resource utilization of construction waste.
These projects not only cover the key technologies and equipment innovations of the circular economy, but also include specific actions on the high-quality development of the remanufacturing industry, the recycling of waste electrical and electronic products, the full life cycle management of automobiles, the control of plastic pollution, the green transformation of express packaging, and the recycling of waste power batteries.
Together, these projects and actions form the framework for the implementation of the circular economy plan, which aims to promote the efficient use of resources and the sustainable development of the environment.
In developed countries such as Switzerland and Germany, the circular economy is highly valued. According to the website of the Swiss Federal Ministry of Environmental Protection, nearly 12 million tons of the 17.5 million tons of construction waste generated in Switzerland in 2018 (cement, gravel, asphalt, etc.) were recycled, and more than half of the municipal waste was recycled.
In the framework of the circular economy, the service life of products is increased, which not only protects the environment and saves resources, but in most cases also saves consumers money, and at the same time provides new business opportunities for companies that reuse resources.
During the 13th Five-Year Plan period, the circular economy in China has also achieved remarkable results: the output rate of major resources in 2020 has increased by about 26% compared with 2015, and the water consumption per unit of GDP has decreased by 28%. In 2020, the comprehensive utilization rate of crop straw reached more than 86%, and the comprehensive utilization rate of bulk solid waste reached 56%. In 2020, the comprehensive utilization rate of construction waste reached 50%, the utilization of waste paper was about 54.9 million tons, the utilization of scrap steel was about 260 million tons, replacing about 410 million tons of iron concentrate with 62% grade (useful components in the ore), and the output of recycled non-ferrous metals was 14.5 million tons, accounting for 23.5% of the total output of the ten non-ferrous metals in China, of which the output of recycled copper, recycled aluminum and recycled lead was 3.25 million tons, 7.4 million tons and 2.4 million tons respectively.
According to the "14th Five-Year Plan" for circular economy, by 2025, the output rate of major resources will increase by about 20% compared with 2020, the energy consumption and water consumption per unit of GDP will be reduced by about 13.5% and 16% respectively compared with 2020, the comprehensive utilization rate of crop straw will remain above 86%, the comprehensive utilization rate of bulk solid waste will reach 60%, the comprehensive utilization rate of construction waste will reach 60%, the utilization rate of waste paper will reach 60 million tons, and the utilization of scrap steel will reach 3.2 100 million tons, the output of recycled non-ferrous metals reached 20 million tons, of which the output of recycled copper, recycled aluminum and recycled lead reached 4 million tons, 11.5 million tons and 2.9 million tons respectively, and the output value of the resource recycling industry reached 5 trillion yuan.
The unique role of AIoT in the circular economy
In the practice of exploring the circular economy, AIoT technology has shown its key role in promoting sustainable development and resource recycling. It is mainly reflected in the product recycling strategy, service-oriented support and industrial ecological construction, providing innovative solutions for achieving economic, social and environmental sustainability.
Support product take-back policies
AIoT technology greatly enhances the information management of product recovery operations by providing real-time product status and remaining life information, thereby facilitating the decision-making process of reuse, remanufacturing, and material recovery. This ability to obtain real-time information reduces the risk of implementing a reuse strategy and improves the accurate assessment of product value.
The application of AIoT technology not only helps the accurate tracking and management of materials, but also promotes the effective recycling of waste, providing technical support for the realization of a closed-loop supply chain. By tracking the entire lifecycle of products, components, and materials, AIoT technology improves the efficiency of waste recycling and reuse, while also providing businesses with a more comprehensive view of their resource reuse. The specific performance is as follows:
- Promote remanufacturing activities. In the circular economy, remanufacturing activities are seen as a powerful means of extending the life cycle of products and materials. AIoT technology greatly improves the efficiency of remanufacturing tasks by monitoring the status, location, and condition of products in real time. Using embedded sensors, AIoT technology can effectively reduce the uncertainty in the remanufacturing process, optimize operation planning, and prevent damage in the product dismantling process, so as to maximize value in the remanufacturing process. In addition, AIoT supports the design of products that are easy to maintain, upgrade, disassemble, and recycle, further strengthening the company's remanufacturing capabilities and extending the life of resources.
- Improve the recycling process. Recycling is a key part of achieving a circular economy, and the implementation of AIoT technology can significantly improve the efficiency of waste sorting and recycling. By employing AIoT devices such as sensors, waste collection and reverse logistics processes can be optimized, improving decision support and efficiency in resource use. The combination of AIoT with other cutting-edge digital technologies heralds the possibility of improving the performance metrics of circular economy models, including the optimization of material circularity, product life, and recovery rates. Through the data generated by smart products, recyclers can obtain detailed information about the material composition of the product, which is essential for developing an appropriate recycling strategy.
Support servitization
In the context of circular economy, the concept of servitization is gradually becoming a key strategy for enterprises to add value and create competitive advantages. Servitization, the process of maximizing the value of a physical product through additional services, has been adopted by many industries and organizations as an important means for them to win the market. AIoT technology has played an integral role in this transformation, not only broadening the boundaries of manufacturing, but also facilitating the transformation of companies from a single product offering to the provision of integrated product and service solutions.
AIoT technology connects products and collects data generated during their lifecycle in real time, enabling companies to expand their service offerings and deepen product-service integration. This integration improves the responsiveness of the business to customer needs, increasing the overall value and longevity of the product.
AIoT technology enables companies to create more value for product refurbishment and end-of-life activities through precise product design, effective customer attraction, monitoring and tracking of product activities, technical support, preventive and predictive maintenance, and improved product experience.
The application of AIoT technology not only improves the service delivery ability of enterprises, but also ensures the efficient operation and maintenance of products, laying the foundation for the pay-as-you-go business model. Relying on AIoT technology, intelligent connected products have become the key to the success of the "product-service" business model, which provides strong technical support for the success of the enterprise's servitization strategy by improving the possibility of product application and increasing its value, and realizing real-time monitoring of product status, functions and external environment.
This technology-driven transformation of servitization not only enhances the adaptability and flexibility of enterprises to the market, but also provides a new way to achieve the Sustainable Development Goals.
Support the establishment of an industrial ecosystem
In the process of promoting the circular economy, AIoT technology has become the key to enhancing the circular business model and promoting cross-industry collaboration.
The development of AIoT technology has led to the innovation of circular business models, which cover multiple fields such as regeneration, sharing, and optimization, and fundamentally broadened the scenarios of AIoT applications.
The benefits of AIoT technology, such as the proliferation of smart products, easy access to product data, and effective management of lifecycle information, make it possible to move from a traditional linear business model to a circular model based on the principles of economic, social and environmental sustainability.
AIoT also plays an important role in driving product development in line with the circular economy. In the context of a new round of digital transformation, the application of AIoT promotes the integration of evaluation tools and management systems, which can effectively collect and process process and business data.
In addition, AIoT supports the development of circular business models and design strategies through its tracking, monitoring, control, and optimization capabilities, providing technical support for maximizing the value of resources.
In addition, AIoT technology has also shown its unique advantages in establishing industrial symbiosis and facilitating connections between different stakeholders along the value chain. AIoT technology promotes the systematic development of collaboration mode, data sharing and resource sharing, and has become a key enabler of circular strategy and automated collaboration mode.
It enables industrial symbiosis to match and monitor the flow of synergistic interactions between materials, products, and companies, increasing parts sharing and reutilization.
From a customer perspective, AIoT technology enables companies to develop a strategic vision in product development that includes the entire production network and consumer behavior, facilitating a closed-loop lifecycle and improving customer satisfaction and well-being.
Connected AIoT devices also facilitate the development of cleaner production strategies and sustainable smart manufacturing, supporting energy-intensive manufacturing companies to make the best decisions.
Case - Hongmiaoling Circular Economy Industrial Park
From the local case of the Hongmiaoling waste treatment project in Fuzhou City, we can get a glimpse of the role of AIoT in the circular economy. The project has innovatively implemented a series of measures by integrating cutting-edge technologies such as big data, cloud computing, and the Internet of Things, thus completely changing the traditional model of municipal waste disposal.
First of all, through the deployment of IoT devices and 5G communication technology, Hongmiaoling Park has realized real-time monitoring of the whole process of waste disposal. The application of these technologies enables park managers to comprehensively supervise and manage all aspects of waste collection, classification, transportation and treatment in the full time and space dimension.
This real-time data acquisition and analysis provides decision-makers with accurate information support, making the waste disposal process more efficient and transparent.
By analyzing the large amount of data collected, project managers are able to identify bottlenecks and problems in the waste disposal process and thus take targeted measures to improve them. For example, through data analysis, waste collection routes can be optimized, processing time and costs can be reduced, and resource utilization can be improved.
It can also realize the precise management of waste disposal. This includes the accurate identification of waste classification and the allocation of resources based on the prediction of waste generation. In addition, through intelligent analysis, the park can monitor the operation status of waste treatment facilities in real time, find and solve problems in a timely manner, and ensure the safety and reliability of the waste treatment process.
Second, the project has established a digital platform that not only promotes mutual trust and oversight among internal collaborators, but also provides a channel for public participation outside the park. Through this platform, the public can inquire about the status of garbage disposal in real time and give feedback. This feedback mechanism strengthens the interaction between the public and the governance body, and ensures that waste disposal policies and measures can be understood and supported by all sectors of society.
Finally, Hongmiaoling Park uses the digital platform to establish a multi-agent collaborative governance pattern. This pattern includes not only the government, enterprises, and third-party professional service organizations, but also the general public. Through technical means, effective communication and collaboration between these subjects have been realized, and they can participate in all aspects of waste disposal. This collaborative governance model greatly improves the efficiency and effectiveness of waste disposal, and is a model of urban management using AIoT technology.
Key challenges in the application of AIoT technology in the circular economy
AIoT technology has shown great potential in the application of the circular economy, aiming to advance the process of sustainability through improved monitoring and operational efficiency. However, this journey of innovation has not been without its challenges.
Although AIoT technology offers unprecedented opportunities for environmental protection and resource optimization, its integration in the circular economy faces significant obstacles at the technical and organizational levels.
First, the highly fragmented nature of the AIoT technology landscape presents challenges of scalability, interoperability, and service adaptability, which exacerbate the complexity of the system. Experts have pointed out that achieving interoperability, adaptability, and upgradeability of AIoT devices requires innovation in hardware and software design.
In addition, cybersecurity risks, privacy protection concerns, low connectivity between devices, and difficulties in data access and management further limit the application of AIoT technology in the circular economy.
Environmentally, while the monitoring and efficiency improvements brought about by AIoT devices have a positive impact on sustainability, the raw materials and energy consumption required to manufacture these devices cannot be ignored. As a result, when AIoT solutions are widely deployed, a comprehensive life cycle assessment is required to ensure that the pressure on the environment is mitigated.
At the organizational and strategic level, the development of circular economy systems enabled by AIoT technology requires ensuring secure connectivity between heterogeneous devices, enabling end-to-end connectivity, and creating adaptive AIoT applications.
This requires an effective communication and integration strategy that takes into account both the needs within the company and the entire value chain. Understanding and meeting the needs of external stakeholders, including customers, suppliers, and governments, is also critical.
However, the inadequacy of existing decision-making methods and data management strategies, as well as the cost of advanced technology, pose a significant barrier to real-time data access for companies with limited budgets.
Write at the end
In the journey of exploring the integration of digital green, circular economy and AIoT technology are working together to outline a grand picture of the integration of ideas and technologies. The circular economy challenges the traditional mode of production and consumption, and opens up a profound change in the efficient use of resources and environmental protection. AIoT technology plays the role of a magician in this transformation, using its wisdom to guide the circular economy towards a more efficient and green future.
Although this journey is full of challenges, we still believe that with the continuous advancement of technology and the emergence of innovative models, the integration of AIoT and the circular economy will become more and more close, and gradually lead us into a new era of efficient resource recycling and environmental friendliness.
Bibliography:
The 14th Five-Year Plan for the Development of Circular Economy, National Development and Reform Commission
Digital Collaboration: A New Engine for Municipal Solid Waste Management – A Case Study of Hongmiaoling Circular Economy Industrial Park, Wang Huimin/Zhang Tingjun
Research on the Integrated Development of Digital Economy and Circular Economy in Mainland China, Nana Li
Opportunities, Challenges and Strategies for the Development of Circular Economy in the Context of Carbon Peaking and Carbon Neutrality, Li Junfu
《Circular Strategies Enabled by the Internet ofThings—A Framework and Analysis ofCurrent Practice》，Sustainability
《The Internet of Things and the circular economy: A systematic literaturereview and research agenda》，Cleaner Production
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