Circular Harmony: Role of Circular Economy in Enhancing Environment Resilience?

The circular economy (CE) tackles global issues like pollution, waste, biodiversity loss, and climate change by decreasing waste, reusing materials, and recycling products to create a closed-loop system. It requires creative commercial strategies. By separating economic progress from environmental degradation, CE practices promote resilience by extending the lifespan of products and materials. The foundation of environmental resilience is enhancing ecosystems’ capacity to endure shocks by reducing resource extraction and waste production. This chapter discusses the importance of circular harmony, emphasizing CE and environmental resilience by adopting decarbonization practices. The emergence of the CE concept offers numerous economic sectors, new potential for resource utilization and a new phase of development. The study directs the real issue of ecological development harmony under the framework of the CE to develop sustainable business models. Sustainable business models based on CE are more ecologically conscious and utilize the appropriate resources to increase firms’ performance. This chapter further focuses on decarbonization practices to understand the role of CE in decarbonizing processes and the challenges of maintaining harmony between environmental and social well-being. To understand these issues, supported by the institutional, legitimacy, resilience and stakeholder theories, this chapter seeks to develop a new theoretical framework addressing reshaping the organizational culture to achieve sustainable development goals (SDGs) by adopting decarbonization practices through green technology and renewable energy resources.