In our first article on net-zero, we took a closer look at its meaning, and the planned timeline to get there. As a circular economy innovation firm, the team at 5REDO keeps a close eye on the climate change and sustainability realms, including the concept of net-zero. So how does it fit into the movement towards a circular economy, particularly here in Canada? Here, we break down some of the key components.
Zooming in on the energy sector
As outlined in the first article for this series, net-zero usually refers to net-zero emissions, specifically of greenhouse gasses (GHGs) that contribute to the warming of our planet. Most people associate GHG emissions with the energy sector, such as from vehicles (with combustion engines) or from the burning of fossil fuels.
There’s a good reason for this – in the United States, the Environmental Protection Agency (EPA), found that about 29% of GHGs come from transportation, 25% from electricity, and 23% from industry. The picture is similar here in Canada, with the oil and gas and transport sectors being the two largest GHG emitters, accounting for more than half of total emissions (based on 2019 data). Other economic sectors like construction, agriculture, and waste, together produce between 7-12% of emissions.
Though the G7 nations have different social or economic landscapes, transport and energy remain the top sectors for GHG emissions across the globe. With this, we see how reducing emissions in these sectors has taken center stage in the discussion about net-zero – but what else is missing from the conversation? By focusing on energy, are we missing out on crucial opportunities to help reach net-zero?
A holistic, sustainable approach
Examining data on where most GHG emissions come from paints a clearer picture of what will be needed to achieve net-zero, and to shift to more sustainable practices. Electricity serves as a prime example – it’s often thought of as a more sustainable alternative to traditional forms of energy, and recent developments in the electric vehicle market speak to this.
However, as the EPA data shows, current electricity production relies heavily on coal and natural gas, two significant GHG emitters. While it’s important to shift away from non-sustainable energy, it’s also crucial to consider the additional pressure that may put on alternatives, especially those that still generate emissions. In a previous piece on Canada’s single-use plastics ban, we outlined a similar scenario; while banning the use of some plastic items can be positive, there must be truly sustainable alternatives (and the means to dispose of them properly), or we’ll just recreate the same problem.
This issue is further made clear by the ‘Highly Insufficient’ rating Canada received from the global Climate Action Tracker, mentioned in our first piece for this net-zero series. After outlining that there are not enough effective policies to achieve current emission targets, the report also points out that Canada’s net-zero target is considered average, and doesn’t cover enough ground. “While Canada’s Net Zero Act has some positive measures, it does not follow good practice on a number of other aspects, such as including emissions from international aviation and shipping into its target,” the report states.
As outlined above, basing net-zero goals around the energy sector and neglecting innovation in other industries can leave us falling short. Like many global issues, cutting emissions and getting to net-zero will require a multifaceted approach, which brings us to another gap in the race to net-zero: factoring in the circular economy.
The missing piece
One thing remains evident: it will take a strong, immediate effort to reach net-zero, and many nations aren’t addressing the whole picture. Experts on the circular economy have argued that its merits have been overlooked and under-utilized in the race to net-zero. This problem is articulated well in an article by Mike Townsend of the consulting group Earthshine:
…going circular presents a major opportunity for any organisation, serious about taking radical climate action while generating business opportunity — especially those dependent on scarce and non-renewable resources. And, given our current progress on the essential road towards net zero and beyond — with only one in 20 European companies on track to meet net-zero climate goals — it would make good sense for more organisations to explore how the alignment between circularity and climate action might work for them, rather than waiting for expensive and unknown future technologies.
Remanufacturing parts, shifting to sustainable materials, extending the life cycle of products, and more pillars of the circular economy are not only better for businesses, but they can play a crucial role in reaching net-zero.
The good news is that Canada can be a leader in this realm. A recent report by the consulting firm Deloitte found that Canada is well positioned to be a model for net-zero and the circular economy, with its combination of natural resources and climate leadership across various realms. For example, the report discussed the domestic “clean tech” industry, which in 2017 alone contributed more than $60 billion into Canada’s GDP and provided 282,000 high-paying jobs.
With continued support for innovation in this space and others, Canadian industry can better address net-zero goals, by continuing on the path towards a circular economy.
With a passion for driving change and creating impact, Mahdi co-founded 5REDO to promote circular economy principles in Canada. He’s an alumnus of the 2021 Ellen MacArthur Foundation’s ‘From Linear to Circular Programme.’ Mahdi played a pivotal role in developing and managing the University of British Columbia’s (UBC) Circular Economy Seed Funding program, fostering partnerships between companies and academic researchers to co-create circular solutions.
Originating from Barcelona, Laia’s educational journey led her to pursue secondary studies in the south of France. Her Bachelor’s degree in Economics and International Management allowed her to develop an analytical mindset. During her Master’s in International Business and Management, she engaged in numerous research study cases and actively participated in the creation of different business plans. This helped her develop an ability to critically analyze and address the strategic challenges that companies encounter.
As the co-founder of 5REDO, Forough brings her expertise in supply chain management, business operations, inventory control, and revenue management to support the implementation of circular solutions within different industry sectors.
Andre has over 5 years of industry experience in project management, polymer and composite processing, materials characterization, and product development. He earned a Bachelor’s degree in Chemical Engineering from the Federal University of Santa Maria, Brazil, and a Ph.D. in Materials Science and Technology from the Federal University of Rio Grande do Sul, where he focused on Polymer and Composite materials. In 2012, he founded a design and manufacturing company specializing in biocomposites made with natural fibers, which he successfully sold in 2015.
As an expert in sustainability, life cycle assessment, circular economy, and green chemistry, Nicolas possesses valuable skills and knowledge that can assist companies in developing and implementing sustainable and environmentally-friendly business models. They can achieve this by utilizing eco-friendly materials, improving manufacturing processes, reducing waste and hazardous chemical use, and advocating for the use of safer and more sustainable alternatives.
Karan is an experienced professional who has worked in multiple geographies and roles along his career. He holds a total of 10+ years of experience in manufacturing operations, and has focused his efforts towards finding solutions for waste recovery and making recovery economical for industries. 
As our Senior Research Scientist, Hormoz draws on his eight years of industrial and nine years of academic research experience in the areas of polymer science and engineering to develop new solutions for advancing circularity and sustainability.
With her significant hands-on experience in developing and characterizing biological and chemical systems, Vicky plays a key role in 5REDO’s efforts toward developing novel products and technologies that offer improved circularity and sustainability to the industry and society. 
With several years of research experience in France and Canada, Fabien lends his expertise and passion for enzymology and microbiology to 5REDO’s sustainability innovation plans. 
By leveraging her expertise in life cycle analysis and process engineering, Ophela helps 5REDO to take a holistic approach to the development of circular solutions and technologies. 
As a recent graduate of chemical engineering from the University of Waterloo, Kyle brings his passion for impactful innovation and his experience with novel recycling processes to 5REDO to support our technology development initiatives. 
Shauna is a freelance journalist that covers a wide range of topics, including health, education, the environment, travel, lifestyle trends, and more. She holds a Master of Journalism from Carleton University, and a Bachelor of Arts (Honours) in Global Development from Queen’s University.