Science has learnt from natural laws tremendously; nature doesn't waste but economics is build around a paradigm of extract, produce, use and waste. A zero-waste circular economy paradigm will be consistent with natural laws and offers hopes for a sustainable world. We discuss the various aspects of this optimistic prospect.

1. CIRCULAR ECONOMY
Aspirations, Realities and Opportunities
Tariqullah Khan, Professor Islamic Finance
College of Islamic Studies, HBKU
College of Islamic Studies
Views expressed are personal

2. Circular Economy
Paradigm
Linear Economy
Paradigm
Multidimensional
realities
Opportunities
Islamic Economics
and Finance & CE
Lecture Outline

3. Existing Market Paradigm
Extract
Resources
Produce Use/Consume Waste
Atmosphere as
smoke of waste burns
Landfills
Rivers
Seas
 Pollution
 Climate change
and disasters
 Destruction of
Eco System and
species
 Entrance of toxic
elements in food
chain
 Waste of
economic value
 Sanitation, water
and health issues
 Poverty
 Uncertain future
4 billion people live under $10 a day 1.5 billion under $2.0 a day
Resource-based Linear Paradigm
Estimated 6 trillion dollars are wasted in reusable value of waste
Impact of Waste is
Someone Else’s
Concern

4. World GDP and stock of financial
assets 2015 trillion US dollars
Global Economy 2015
WGDP Financial Assets Derivatives
World
GDP 77
trillion
US$
World FAs
300
trillion
US$
World Ds
500
trillion
US$
WGDP
25% of
WFAs
WGDP
15% of
WDs
WGDP
10% of
WFAs &
WDs
Globally, $ 1
of real asset
is against
$10 financial
claims
Financing the Paradigm
Global Finance and Economy
“According to Hotelling’s model
(of economics of natural resources
1931), even when market prices
fully reflect the value of a species,
it will be efficient to exploit a
species to extinction or totally
degrade an ecosystem if the value
of the species or the ecosystem
over time is not increasing at least
as fast as money deposited in an
interest-bearing bank account.”
Costanza, R., Cumberland, J.H., Daly, H., Goodland,
R., Norgaard, R.B., Kubiszewski, I. and Franco, C.
(1997a). An introduction to ecological economics.
CRC Press, Florida: USA.

5. Question: Despite tremendous scientific and
engineering advances why the future of the world is so
uncertain because of the management of resources?
Answer: Because
Science and
Engineering has
learnt from
nature
But Economics has gone against nature
Flying; Swimming; Computers, Nano
Technology etc. Here is a list of 14
beautiful scientific discoveries based on
nature
https://www.bloomberg.com/news/photo-
essays/2015-02-23/14-smart-inventions-
inspired-by-nature-biomimicry

6. Economics Nature
Nature Science
Doesn’t
Waste
Based on
Waste
Why Science Serves and Economics Destroys?
Science in is Harmony with Nature
Economics Extracts and Exploits Nature

7. Lessons that Economics Can Learn from
Nature
Nature doesn’t waste
 Water Cycle
 Oxygen Cycle
 Carbon Cycle
 Food Cycle
Circular Economy Ideas
 (Photosynthesis)
Nature Economics
Need Economics in Harmony
with Nature
Zero Waste Circular Economy

8. https://www.google.com/imgres?imgurl=https://pmm.nasa.gov/education/sites/default/files/article_images/Water-Cycle-
Art2A.png&imgrefurl=https://pmm.nasa.gov/education/water-
cycle&h=1547&w=3023&tbnid=Bu63E8sDNI1PcM:&q=water+cycle&tbnh=102&tbnw=200&usg=AI4_-kRbGy1t58m5sfBdMBl3GMQyEMq9XA&vet=12ahUKEwixt-
_YvpLfAhXFp48KHYdmBDQQ_B0wGHoECAEQBg..i&docid=KlcqrGx4HZ1wHM&itg=1&sa=X&ved=2ahUKEwixt-
_YvpLfAhXFp48KHYdmBDQQ_B0wGHoECAEQBg#h=1547&imgdii=LROIUxFxeBPNIM:&tbnh=102&tbnw=200&vet=12ahUKEwixt-
_YvpLfAhXFp48KHYdmBDQQ_B0wGHoECAEQBg..i&w=3023
Water Cycle
Google Image credit
Oxygen Cycle
https://www.google.com/search?q=photosynthesis+cycle&safe=active&rlz=1C1GCEU_enQA821QA821
&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj44vXVwpLfAhUHSxUIHR45CeoQ_AUIDigB&biw=1920&
bih=969#imgrc=Q9dyWHTC9dqxlM:
Google Image credit
Circularity of Nature

9. Marine Food CycleGoogle Image credithttps://www.google.com/search?safe=active&rlz=1C1GCEU_enQA821QA821&biw=1920&bih=969&tbm=isc
h&sa=1&ei=3ugMXLM1k8y_BInAusgN&q=food+chain+cycle+diagram&oq=food+chain+cycle&gs_l=img.1.1.0l
4j0i7i30j0i5i30j0i8i30l3.90254.91867..96185...0.0..0.394.2328.3-6......1....1..gws-wiz-
img.......0i7i5i30j0i8i7i30.6HtfTM2FSAs#imgrc=VWeLVnevDKikNM:
Carbon Cycle
https://biology-igcse.weebly.com/carbon--water-cycles.html
Google Image credit
Circularity of Nature

10. Linear Paradigm
Extract Produce Use Waste Waste
Waste
Waste
Waste
Waste
Waste
Waste
Waste
WasteDumped into
land fields,
rivers, sea and
atmosphere
as result of
high
temperature
burning
Extract
Design &
Produce
Use & Re-
use Waste
Circular Economy Paradigm
Ideally zero
/minimum
waste treated
to be part of
the Eco system
Turning Waste to Wealth and Wellbeing
Impact of Waste is
Someone Else Concern

11. Cleaner
production
processes
with zero-
waste
After sale
service and
repair
End of life
re-
collection
Reuse and
recycle
Rely on
green
energy
Design of
products -
Long life,
non-toxic,
C2C
Eliminate negative
environmental
impact
Eliminate Waste Reduce Resource
Dependency
Reduce Cost
Circular
Economy
Advantage
1
6
5 4
3
2

12. Design: Eco-friendly, long life, disassembly, reuse, recycle
C2C
CO2 Reduction: Eco-efficiency, Eco-sufficiency
Re-use: Take-back mechanism (C2C), repair, material
re-usability
Recycle: Waste separation at origin, zero-waste
strategies, waste to wealth and wellbeing
Technical nutrient classification – reenter waste into
environment after treatment
Renewable energy:
1
2
3
4
5
6
Pillars of Circular Economy
Cradle
to
Cradle
2002
William McDonough
and Michael Braungart

13. 1. Behavioral rationalization of consumption to eliminate wastage of food,
water, energy, clothing, wealth etc.,
2. Enhancing design, repair and maintenance to eliminate wastage of life
cycle;
3. Promoting sharing and Uberization to eliminate wastage of useful
capacity of assets;
4. Cradle to Cradle to eliminate wastage of material value of waste
5. Implement recycling to eliminate wastage of embedded values of
waste;
6. Promote usage of solar and renewable energy to eliminate wastage of
potential resource
7. Incentivize eco-efficiency and eco-sufficiency to avoid wastage of
energy utilization opportunities
8. Chemically and biological treat waste for remerging with environment
to avoid wastage of beneficial components and avoid smoke of burning
Waste Reduction Opportunties

14. Global Level CE
National Level CE
Macro Level CE
Intermediate Level CE
Micro Level CE
CE Hierarchies
International efforts – SDGs, PRIs, GCPs, RBPs,
RIPs, GRI
Multidimensional Development QNV2030, EU,
OECD and other national zero-waste initiatives
and legislation
Eco cities, collaborative consumption like Uber,
Air BnB, Kareem etc – resources sharing
Eco Parks, Industrial Symbioses, Associations,
Educational, Research and Development
initiatives
Product designs, repair & maintenance, reuse,
retake, separate waste collection and recycling,
supply chain and Econ friendly

15. Comprehensive
Human
Development
Goals
Enhancing
Intellect
Protection
of Future
Generatio
ns
Preserve
Self
Respect
Enhance
Wealth
Preserve
Religious
Values
Circularity of Multidimensional Development
QNV2030
People
CultureEconomy
Environment
Local Aspirations National Priorities Global Goals

16. Extractive
paradigm
Compassionate
paradigm
Maqasid Al Shariah and the Compassionate Paradigm

17. Linear business
paradigm
Circular business
paradigm
Shifting the Islamic Finance Business
Paradigm

18. Opportunities
National
strategies
Pedagogy
Research &
Development
Entrepreneurship
Islamic Financial
Services
Shariah
Governance

19. Social
entrepreneurs
and Circular
Economy
innovation
Social
Enterprises (for
effective service
to society)
Commercial
Finance (for
profit)
Compassionate
Finance (not for
profit)
Blending the Motives
of Compassion and
Profit for Social
Entrepreneurship in
Circular Economy
Government and Regulators
#1 Opportunity

20. #2 Opportunity
Multidisciplinary
and
interdisciplinary
research at all
hierarchical
levels
Global Level CE
National Level CE
Macro Level CE
Intermediate Level CE
Micro Level CE

21. #3 Opportunity
Transformative
pedagogy at all
levels of Blooms
Taxonomy &
Educational
Segments
Evaluation
Synthesis
Analysis
Application
Comprehension
Knowledge

22. #4 Opportunity
Circular
Economy
Transition
Strategies
involving all
stakeholders
Global Level
Macro Level
Intermediate
Level
Micro Level
The Public
and other
species
 International organizations
 Legal, regulatory and tax framework and
policies, federal and provincial
government entities, municipalities
 Knowledge, educational, capacity
building, information and advisory
services and providers
 Businesses, entrepreneurs, financial
services and the institutions and markets
providing them
 Uses and users

23. #5 Opportunity
Best
Practices and
Perception –
Studies
 Government entities at
various hierarchies
 Law and Regulation
 NGOs
 Businesses
 Households
 Individuals

24. #6 Opportunity
Assessment of
Value in Waste
in Qatar and
Different
Countries
Examples:
 Cradle-to-Cradle Value
 Value in Separation of Product
from Use
 Value in Capacity Utilization by
Sharing
 Value in existing abandoned
material
 Value in alternative energy
sources

25. #7 Opportunity
Moving Islamic
Economics and
Finance to the
Circular Economy
from its Current
Location in Linear
Economy

26. Thanks
tkhan@hbku.edu.qa
Think Out of the Box &
Transform the World to Become
a Better Place for Us & the
Generations to Come