The 21st century is the age of circular economy (CE). Europe has positioned CE as its growth strategy and leads other parts of the globe. The Netherlands, for example, aims to achieve a fully circular economy with zero waste by 2050, and has been launching various initiatives involving the government, private companies and citizens. Philips, one of the Netherlands' leading companies, is striving to build a competitive advantage in this new age by declaring to increase circular economy revenues to 25% of its total sales by 2025. France has strengthened consumers' "right to repair" starting this year to further a shift to CE.

In January 2021, Committee on Environment and Safety of Keidanren and Shinjiro Koizumi, Minister of the Environment, agreed to promote circular economy. In March, the committee launched the "Circular Economy Partnership" together with Ministry of the Environment and Ministry of Economy, Trade and Industry.

The growth and prosperity of the 20th century economy was based on a linear economy of mass production, mass consumption and mass disposal. Circular economy is an economic revolution which fundamentally transforms the linear economy. The growth model of promoting constant purchasing of goods by offering some minor additional functions will come to an end, and time will come when non-circular products would not sell. Designing with consideration to reusability, repairability and recyclability, zero-based reviewing of material procurement, restructuring of value chains in the arterial and venous industries as a whole utilizing digital and data, innovating business models such as XaaS and sharing; these are some of the diverse challenges which will be imposed on Monozukuri Nippon (manufacturing of Japan).

Our globe will be facing a fierce competition for resources as the world population is nearing 10 billion. As Japan has few natural resources, it is indispensable that we make a shift to the circular economy also in light of our nation's security. In addition, circular economy would be a breakthrough in transition to a decentralized society as the approach aims to create small local loops. Repairs, maintenance, recycling and sharing would be done on a local basis and these should generate new employment and facilitate local autonomy. In fact, employment creation is defined as one of the objectives of CE policy in Europe, and positive results have been reported.

Japan has been promoting the 3R initiative over the last 20 years, and we have accumulated a tremendous amount of knowledge, of which we should be proud. From my former experience in the municipal government, I am truly convinced that Japan, with all its experience, could lead the world again, and contribute to the future of our planet by making a leap from 3R to CE.