The role of digitalization in accelerating the transition towards a circular economy

Abstract

In this article, it is shown that the lack of a proper digitization in the economy leads to the disruption of the transformation of the value chains, the change of the structure and the functioning of the markets, components necessary for the implementation of the circular model. Good digitization facilitates, through its technologies, the transition to the circular economy through the collection, management and processing of data, the creation of platforms, all of which influence consumer behavior and the way relationships are developed, maintained and advanced, thus increasing value retention and mitigating some of the externalities environmental. The article also analyzes the main economic sectors and sub-sectors in which circular economy measures can be implemented with the help of digitization, which support policies not only by identifying the focal points that can bring the most benefits, but also by reporting them to the broader perspectives of pledged contributions such as Nationally Determined Contributions (NDCs) and other benchmarks such as national carbon budgets.