| Peer-Reviewed

Industry 4.0 and Circular Economy: Opportunities of MENA Countries on the Path to the Sustainable Development

Received: 7 April 2023     Accepted: 27 May 2023     Published: 11 July 2023
Views:       Downloads:
Abstract

For decades, countries have strived to boost their economies through industrial expansion at the expense of natural capital, resulting in major environmental risks. The Sustainable Development Goals (SDGs) have switched the emphasis on resilient economic development that consider environmental sustainability. Against this backdrop, the circular economy has emerged as a vital tool for rectifying industrial progress regarding environmental sustainability. Integrating digital technologies (e.g., Industry 4.0) into circular economy applications has recently gained enthusiasm as a solvent for sustainability and climate change challenges. The current study examines approaches to integrating Industry 4.0 technologies and innovations into the circular economy to fully realize the benefits of both tackling climate change and attaining sustainable development goals in MENA countries. This is done through examining the associations between the circular economy, climate change, and sustainable development, as well as their associated indicators, followed by a scrutiny of the role of the Industry 4.0 pillars in applying the circular economy, a discussion of the challenges and obstacles to applying Industry 4.0 techniques to the circular economy, and finally an examination of Egypt's efforts to integrate the circular economy into the industrial system, as a representative of the MENA region. The article delivers an obvious array of policy implications through thoroughly investigating the Egyptian case, including: developing a comprehensive national strategy for Egypt's industrial revolution; developing traditional industrial cities; establishing the Egyptian Council for the Circular Economy; and establishing a legal and tax structure that fosters the transition to a circular economy, among several others.

Published in International Journal of Economy, Energy and Environment (Volume 8, Issue 4)
DOI 10.11648/j.ijeee.20230804.11
Page(s) 59-81
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Circular Economy, Industry 4.0, Sustainable Development, Environmental Sustainability, MENA

References
[1] Atika, H., Ünlü, F., (2019). The Measurement of Industry 4.0 Performance through Industry 4.0 Index: An Empirical Investigation for Turkey and European Countries. Elsevier. Retrieved from: shorturl.at/xKOQ2
[2] Carbon Brief. (2021). Which countries are historically responsible for climate change? Accessed: 26-2-2022. Retrieved from: https://www.carbonbrief.org/analysis-which-countries-are-historically-responsible-for-climate-change
[3] United Nations Climate Action. (2021). Retrieved from: https://www.un.org/en/climatechange/paris-agreement
[4] United Nations. (2015). Paris agreement. Retrieved from the link: https://www.un.org/ar/climatechange/paris-agreement
[5] Circle Economy. (2021). The Circularity Gap Report 2021. Retrieved from: https://drive.google.com/file/d/1MP7EhRU-N8n1S3zpzqlshNWxqFR2hznd/edit
[6] Piscitelli et al. (2019). Circular Economy Models In The Industry 4.0 Era: A Review Of The Last Decade. Elsevier.
[7] Xu, M., et al. (2018). The Fourth Industrial Revolution: Opportunities and Challenges. International Journal of Financial Research.
[8] Bukht, R and Heeks, R. (2017). Defining, Conceptualizing and Measuring the Digital Economy. Development Informatics Working Paper no. 68, Available at SSRN: https://ssrn.com/abstract=3431732 or http://dx.doi.org/10.2139/ssrn.3431732
[9] World Economic Forum. (2018). Readiness for the Future of Production Report 2018. Retrieved from: https://www3.weforum.org/docs/FOP_Readiness_Report_2018.pdf
[10] Impactotic. (2020). The 5 leading countries in the Fourth Industrial Revolution and Colombia's position in the ranking. Available at: https://impactotic.co/en/the-5-leading-countries-in-the-fourth-industrial-revolution-Colombia/
[11] World Economic Forum. (2022). The Global Smart Industry Readiness Index Initiative: Manufacturing Transformation Insights Report 2022. Available at: https://www.weforum.org/whitepapers/the-global-smart-industry-readiness-index-initiative-manufacturing-transformation-insights-report-2022/
[12] World Bank. (2019). Doing Business 2019: Training for Reform. Retrieved from: https://www.doingbusiness.org/content/dam/doingBusiness/media/Annual-Reports/English/DB2019-report_web-version.pdf
[13] World Bank. (2020). About Doing Business. World Bank. Washington DC.
[14] Hidalgo, CA. & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the National Academy Sciences. 106 (26): 10570–10575. https://doi.org/10.1073/pnas.0900943106
[15] Atlas of Economic complexity. (2021). Accessed 26-2-2022. Retrieved from: https://atlas.cid.harvard.edu/rankings
[16] The Growth Lab at Harvard University (2021). The Atlas of Economic Complexity. http://www.atlas.cid.harvard.edu.
[17] Visual capitalist. (2020). A Global Breakdown of Greenhouse Gas Emissions by Sector. Available at: https://www.visualcapitalist.com/cp/a-global-breakdown-of-greenhouse-gas-emissions-by-sector/
[18] Masterson and Shine. (2022). Available at: https://www.weforum.org/agenda/2022/06/what-is-the-circular-economy/
[19] Fura B, Stec M, and Miś T. (2020). Statistical Evaluation of the Level of Development of Circular Economy in European Union Member Countries. Energies, 13 (23): 6401. https://doi.org/10.3390/en13236401
[20] UNIDO. (2021). The Circular Economy: A driver of inclusive and sustainable industrial development. Retrieved from: https://iap.unido.org/articles/circular-economy-driver-inclusive-and-sustainable-industrial-development#fn-739-0
[21] Ellen MacArthur Foundation. (2019). Completing the picture: How the circular economy tackles climate change. Retrieved from: https://ellenmacarthurfoundation.org/completing-the-picture
[22] European Parliament. (2022). Circular economy: definition, importance and benefits. Retrieved from: https://www.europarl.europa.eu/news/en/headlines/economy/20151201STO05603/circular-economy-definition-importance-and-benefits
[23] Kalundborg Symbiosis. (2022). Partners. Retrieved from: http://www.symbiosis.dk/en/partnerne-bag/
[24] European Circular Economy Platform. (2019). Kalundborg Symbiosis: six decades of a circular approach to production. Retrieved from: https://circulareconomy.europa.eu/platform/en/good-practices/kalundborg-symbiosis-six-decades-circular-approach-production
[25] Hamid Abdel Rahim. (2022). Obstacles and opportunities in the process of transforming to the circular economy.. and raising awareness of it in Egyptian universities. Contemporary economic prospects. The Information and Decision Support Center of the Egyptian Council of Ministers. Retrieved from the link: https://idsc.gov.eg/Upload/DocumentLibrary/Attachment_A/6798/%D8%AF.%20%D8%AD%D8%A7%D9%85%D8%AF%20%D8%B9%D8%A8%D8%AF%20%D8%A7%D9%84%D8%B1%D8%AD%D9%8A%D9%85%20%D8%B9%D9%8A%D8%AF.pdf
[26] Sustainable Development Report. (2021). Sustainable Development Report 2021. Retrieved from: https://www.sdgindex.org/reports/sustainable-development-report-2021/
[27] Cudečka-Puriņa N, Atstāja D, Koval V, Purviņš M, Nesenenko P, Tkach O. (2022). Achievement of Sustainable Development Goals through the Implementation of Circular Economy and Developing Regional Cooperation. Energies. 15 (11): 4072. https://doi.org/10.3390/en15114072
[28] Anupam Khajuria, Vella A. Atienza, Suchana Chavanich, Wilts Henning, Ishrat Islam, Ulrich Kral, Meng Liu, Xiao Liu, Indu K. Murthy, Temitope D. Timothy Oyedotun, Prabhat Verma, Guochang Xu, Xianlai Zeng, Jinhui Li. (2022). Accelerating circular economy solutions to achieve the 2030 agenda for sustainable development goals, Circular Economy, 1 (1). https://doi.org/10.1016/j.cec.2022.100001.
[29] Circularity Gap Reporting Initiative. (2021). The Circularity Gap Report Netherlands. Retrieved from: https://www.circularity-gap.world/netherlands
[30] UNEP. (2020). Switchmed and Circular Economy. Avaialble at: https://wedocs.unep.org/bitstream/handle/20.500.11822/35954/SwitCE_Ar.pdf
[31] C40 Cities. (2018). Amsterdam’s Circular Economy Roadmap: Lessons Learned and Tools for Upscaling. Retrieved from: https://www.c40.org/case-studies/amsterdam-s-circular-economy-roadmap-lessons-learned-and-tools-for-upscaling/
[32] PBL Netherlands Environmental Assessment Agency. (2019). Outline Of The Circular Economy. Retrieved from: https://circulareconomy.europa.eu/platform/sites/default/files/pbl-2019-outline-of-the-circular-economy-3633.pdf
[33] Lee, K., & Cha, J. (2021). Towards improved circular economy and resource security in South Korea. Sustainability, 13 (1), 17. Retrieved from: https://dx.doi.org/10.3390/su13010017
[34] Ellen MacArthur Foundation. (2020). Africa’s first industrial symbiosis programme: Generating multiple benefits for the manufacturing industry. Retrieved from: https://cutt.ly/0b0GlbR
[35] http://library.fes.de/pdf-files/bueros/amman/18985.pdf
[36] https://pacecircular.org/circular-economy-indicators-coalition
[37] https://www.moenergy.gov.sa/ar/OurPrograms/Sustainability/CircularEconomy/Pages/default.aspx
[38] Aramco. (2022). carbon recycling economy. Retrieved from the link: https://www.aramco.com/ar/sustainability/climate-change/managing-our-footprint/circular-carbon-economy#
[39] KAPSARC. (2022). Circular Carbon Economy Index. Retrieved from: https://cceindex.kapsarc.org/cceindex/home
[40] Luomi, M. Yelmiz, F. and Alshahri, T. (2021). The circular carbon economy index results. KAPSARK. Doi: 10.30573/KS--2021-DP021
[41] ElMassah, S., Mohieldin, M., (2020). Digital Transformation and Localizing the Sustainable Development Goals (SDGs). Ecological Economics. Elsevier.
[42] Vrancken, K., (2019). Transitioning to Circular Economy through Industry 4.0. Retrieved from: https://www.uncrd.or.jp/content/documents/7500PS-6%20(A)-PPT-2.pdf
[43] Economic Research Institute for ASEAN and East Asia. (2020). Assessing the Readiness for Industry 4.0 and the Circular Economy. Retrieved from: https://www.eria.org/uploads/media/Books/2020-Assessing-the-Readiness-Industry-40-and-Circular-Economy/Full-Book.pdf
[44] World Economic Forum. (2018). Global Risks 2018: Fractures, Fears and Failures. Retrieved from: http://reports.weforum.org/global-risks-2018/global-risks-2018-fractures-fears-and-failures/
[45] Rajput, S., Prakash, S., (2019). Connecting circular economy and industry 4.0. International Journal of Information Management. Retrieved from: https://www.researchgate.net/publication/332071510
[46] Egypt presidency. (2020). Egypt's Vision 2030. Retrieved from the link: https://www.presidency.eg/ar/%D9%85%D8%B5%D8%B1/%D8%B1%D8%A4%D9%8A%D8%A9-%D9%85%D8%B5%D8%B1-2030/
[47] Abdallah, L., & El-Shennawy, T. (2020). Evaluation of CO2 emission from Egypt’s future power plants. Euro-Mediterranean Journal for Environmental Integration 5, 49. Retrieved from: https://doi.org/10.1007/s41207-020-00184-w
[48] Kandil, A. (2021). Egypt’s irrigation minister calls for rationing water amid GERD crisis. Ahram Online. Retrieved from: https://cutt.ly/anT2qAr
[49] Egypt Today. (2021a). Egypt’s census to reach 119.8 million by 2030: CPAMAS. Retrieved from: https://cutt.ly/FmtywnO
[50] ElMassah, S., (2018). Achieving Sustainable Industrialization in Egypt: assessment of the potential for EIPs. Interdisciplinary Environmental Review. Vol. 19. No. 1.
[51] The Ministry of Environment. (2017). State of the Environment Report 2017. Retrieved from: The Ministry of Environment. (2017). State of the Environment Report 2017. Retrieved from: https://www.eeaa.gov.eg/portals/0/eeaaReports/SoE-2017/Egypt%20SOE%202017%20-%20Full%20Report%20Arabic.pdf
[52] Abdel Wahaab, R. (2014). Wastewater reuse code in Egypt. SWIM-Sustain Water MED 12–16 May 2014, Djerba Plaza, Tunisia. Retrieved from: https://goo.gl/nQpKra
[53] Enterprise. (2020). A look at Egypt’s most polluting sectors. Retrieved from: https://cutt.ly/jb0GDoS
[54] SWEEP-NET. (2014). Country report on the solid waste management in Egypt. Deutsche Gesellschaft für Internationale Zusammenarbeit. Retrieved from: https://www.resource-recovery.net/sites/default/files/egypt_ra_ang_14_1.pdf
[55] Information and Decision Support Center. (2022). Circular economy. Contemporary economic prospects.
[56] Elshishini, S. (2015). Review of status and actual practices of industrial waste management in Egypt. Green Growth: Industrial Waste Management and SME Entrepreneurship Hub in Egypt. Retrieved from: https://cutt.ly/Hb0Gmg8
[57] Shalakany. (2020). New waste-management law brings Egypt closer to going green. Retrieved from: https://cutt.ly/cb2qYVy
[58] Salem, O. (2020). The government plans to generate 300 megawatts of electrical energy from waste. Retrieved from: https://cutt.ly/3b2qp3E
[59] Egypt Today. (2021b). 3 ministers review progress rate of Egypt’s municipal solid waste system. Retrieved from: https://cutt.ly/Xb0FBAH
[60] Egypt Today. (2019). 52 sewage treatment plants are built in Upper Egypt: Housing min. Egypt Today. https://cutt.ly/wb0FLCk
[61] Egypt Today. (2020). Sisi: Egypt to inaugurate the world’s largest wastewater treatment plant in 8 months. Retrieved from: https://cutt.ly/Gb0FXLJ
[62] Hasan, S., Al-Aqeel, T., & El Salmawy, H. (2020). Electricity sector liberalization in Egypt: Features, challenges and opportunities for market integration. King Abdullah Petroleum Studies and Research Center. Retrieved from: https://www.doi.org/10.30573/KS--2020-DP20
[63] World Bank. (2020). Implementation completion and results report. Available at: https://documents1.worldbank.org/curated/en/857651602606636925/text/Egypt-First-Second-and-Third-Fiscal-Consolidation-Sustainable-Energy-and-Competitiveness-Programmatic-Development-Policy-Financing.txt
[64] Ibrahim, M. (2022). Egypt signs two agreements for the production of green hydrogen in the "Suez Canal Economic". https://www.dostor.org/4044889
[65] State information services. (2022). Madbouly witnesses the signing of a memorandum to produce 350,000 tons of green fuel annually in Sokhna. Available at: https://www.sis.gov.eg/Story/233332/%D9%85%D8%AF%D8%A8%D9%88%D9%84%D9%8A-%D9%8A%D8%B4%D9%87%D8%AF-%D8%AA%D9%88%D9%82%D9%8A%D8%B9-%D9%85%D8%B0%D9%83%D8%B1%D8%A9-%D9%84%D8%A5%D9%86%D8%AA%D8%A7%D8%AC-350-%D8%A3%D9%84%D9%81-%D8%B7%D9%86-%D9%88%D9%82%D9%88%D8%AF-%D8%A3%D8%AE%D8%B6%D8%B1-%D8%B3%D9%86%D9%88%D9%8A%D8%A7%D9%8B-%D8%A8%D8%A7%D9%84%D8%B3%D8%AE%D9%86%D8%A9?lang=ar
[66] Lenkiewicz, Z., (2021). Dow and WasteAid launch new plastics partnership in Egypt. Retrieved from: https://wasteaid.org/dow-and-wasteaid-launch-new-plastics-partnership-in-egypt/
[67] Ellen Macarthur Foundation. (2023). What is the circular economy. Available at: https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview
Cite This Article
  • APA Style

    Suzanna Elmassah. (2023). Industry 4.0 and Circular Economy: Opportunities of MENA Countries on the Path to the Sustainable Development. International Journal of Economy, Energy and Environment, 8(4), 59-81. https://doi.org/10.11648/j.ijeee.20230804.11

    Copy | Download

    ACS Style

    Suzanna Elmassah. Industry 4.0 and Circular Economy: Opportunities of MENA Countries on the Path to the Sustainable Development. Int. J. Econ. Energy Environ. 2023, 8(4), 59-81. doi: 10.11648/j.ijeee.20230804.11

    Copy | Download

    AMA Style

    Suzanna Elmassah. Industry 4.0 and Circular Economy: Opportunities of MENA Countries on the Path to the Sustainable Development. Int J Econ Energy Environ. 2023;8(4):59-81. doi: 10.11648/j.ijeee.20230804.11

    Copy | Download

  • @article{10.11648/j.ijeee.20230804.11,
      author = {Suzanna Elmassah},
      title = {Industry 4.0 and Circular Economy: Opportunities of MENA Countries on the Path to the Sustainable Development},
      journal = {International Journal of Economy, Energy and Environment},
      volume = {8},
      number = {4},
      pages = {59-81},
      doi = {10.11648/j.ijeee.20230804.11},
      url = {https://doi.org/10.11648/j.ijeee.20230804.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20230804.11},
      abstract = {For decades, countries have strived to boost their economies through industrial expansion at the expense of natural capital, resulting in major environmental risks. The Sustainable Development Goals (SDGs) have switched the emphasis on resilient economic development that consider environmental sustainability. Against this backdrop, the circular economy has emerged as a vital tool for rectifying industrial progress regarding environmental sustainability. Integrating digital technologies (e.g., Industry 4.0) into circular economy applications has recently gained enthusiasm as a solvent for sustainability and climate change challenges. The current study examines approaches to integrating Industry 4.0 technologies and innovations into the circular economy to fully realize the benefits of both tackling climate change and attaining sustainable development goals in MENA countries. This is done through examining the associations between the circular economy, climate change, and sustainable development, as well as their associated indicators, followed by a scrutiny of the role of the Industry 4.0 pillars in applying the circular economy, a discussion of the challenges and obstacles to applying Industry 4.0 techniques to the circular economy, and finally an examination of Egypt's efforts to integrate the circular economy into the industrial system, as a representative of the MENA region. The article delivers an obvious array of policy implications through thoroughly investigating the Egyptian case, including: developing a comprehensive national strategy for Egypt's industrial revolution; developing traditional industrial cities; establishing the Egyptian Council for the Circular Economy; and establishing a legal and tax structure that fosters the transition to a circular economy, among several others.},
     year = {2023}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Industry 4.0 and Circular Economy: Opportunities of MENA Countries on the Path to the Sustainable Development
    AU  - Suzanna Elmassah
    Y1  - 2023/07/11
    PY  - 2023
    N1  - https://doi.org/10.11648/j.ijeee.20230804.11
    DO  - 10.11648/j.ijeee.20230804.11
    T2  - International Journal of Economy, Energy and Environment
    JF  - International Journal of Economy, Energy and Environment
    JO  - International Journal of Economy, Energy and Environment
    SP  - 59
    EP  - 81
    PB  - Science Publishing Group
    SN  - 2575-5021
    UR  - https://doi.org/10.11648/j.ijeee.20230804.11
    AB  - For decades, countries have strived to boost their economies through industrial expansion at the expense of natural capital, resulting in major environmental risks. The Sustainable Development Goals (SDGs) have switched the emphasis on resilient economic development that consider environmental sustainability. Against this backdrop, the circular economy has emerged as a vital tool for rectifying industrial progress regarding environmental sustainability. Integrating digital technologies (e.g., Industry 4.0) into circular economy applications has recently gained enthusiasm as a solvent for sustainability and climate change challenges. The current study examines approaches to integrating Industry 4.0 technologies and innovations into the circular economy to fully realize the benefits of both tackling climate change and attaining sustainable development goals in MENA countries. This is done through examining the associations between the circular economy, climate change, and sustainable development, as well as their associated indicators, followed by a scrutiny of the role of the Industry 4.0 pillars in applying the circular economy, a discussion of the challenges and obstacles to applying Industry 4.0 techniques to the circular economy, and finally an examination of Egypt's efforts to integrate the circular economy into the industrial system, as a representative of the MENA region. The article delivers an obvious array of policy implications through thoroughly investigating the Egyptian case, including: developing a comprehensive national strategy for Egypt's industrial revolution; developing traditional industrial cities; establishing the Egyptian Council for the Circular Economy; and establishing a legal and tax structure that fosters the transition to a circular economy, among several others.
    VL  - 8
    IS  - 4
    ER  - 

    Copy | Download

Author Information
  • College of Business, Zayed University, Abu Dhabi, United Arab Emirates

  • Sections