Consider the following statements:Statement I: Circular economy reduces the emissions of greenhouse

Q: What is UPSC Prelims?

UPSC Prelims is a competitive examination conducted in India. This question is from the 2025 UPSC Prelims Economy paper.

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This UPSC Prelims 2025 Economy question has a easy difficulty level.

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Question

Consider the following statements:Statement I: Circular economy reduces the emissions of greenhouse gases.Statement II: Circular economy reduces the use of raw materials as inputs.Statement III: Circular economy reduces wastage in the production process.Which one of the following is correct in respect of the above statements?

Accepted Answer

Correct Answer: A - Both Statement II and Statement III are correct and both of them explain Statement IStep-by-step Solution:Statement I (Claim): The circular economy reduces greenhouse gas (GHG) emissions. This is true - the circular economy is fundamentally a climate mitigation strategy. By redesigning production systems to eliminate waste and keep materials in use, circular approaches significantly reduce the GHG emissions associated with virgin material extraction, processing, and waste disposal.Statement II - Circular economy reduces use of raw materials: This is correct. The circular economy model replaces the traditional linear 'take-make-dispose' model with a 'reduce-reuse-recycle-recover' approach. By reusing materials and products, recycling end-of-life products, and designing for longevity and disassembly, the circular economy dramatically reduces the demand for virgin raw materials. This in turn reduces GHG emissions because: extraction of virgin materials (mining, forestry, agriculture) is carbon-intensive; processing raw materials requires large amounts of energy. ✓ (Explains Statement I)Statement III - Circular economy reduces wastage in production: This is correct. The circular economy redesigns production processes to minimise waste generation at every stage - from product design to manufacturing to end-of-life. Industrial symbiosis (where one industry's waste becomes another's input), lean manufacturing, and closed-loop supply chains are circular economy approaches that reduce production wastage. Reduced waste means: less energy used in waste disposal/incineration (which releases GHG); more materials kept in productive use, reducing need for new production (and its emissions). ✓ (Explains Statement I)Both II and III are correct and both causally explain Statement I - because reducing raw material use (II) and reducing production waste (III) both directly contribute to lower GHG emissions (I).Why other options are incorrect:Option B: Incorrect. Both II and III explain Statement I, not just one of them.Option C: Incorrect. Both II and III are correct.Option D: Incorrect. Both II and III are factually accurate.Key Concept: Circular Economy: A regenerative economic system that aims to eliminate waste and the continual use of resources. Principles: Design out waste and pollution; Keep products and materials in use at their highest value; Regenerate natural systems. Contrast with Linear Economy: Take → Make → Dispose (wasteful). GHG reduction mechanisms in circular economy: Reduced extraction → lower emissions from mining and processing; Extended product life → lower manufacturing emissions; Material recycling → lower energy vs. virgin material production (e.g., recycled aluminium uses 95% less energy); Reduced landfilling → lower methane from organic waste decomposition. India's Circular Economy Push: Extended Producer Responsibility (EPR) for plastics, e-waste, batteries. NITI Aayog has a circular economy action plan for multiple sectors.

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