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?
(a) Both Statement II and Statement III are correct and both of them explain Statement I
(b) Both Statement II and Statement III are correct but only one of them explains Statement I
(c) Only one of the Statements II and III is correct and that explains Statement I
(d) Neither Statement II nor Statement III is correct

The correct answer is (a) Both Statement II and Statement III are correct and both of them explain Statement I.

Here is a breakdown of the logic:

Statement I: Circular economy reduces the emissions of greenhouse gases.
- This statement is correct. The traditional linear economy (“take-make-waste”) generates huge amounts of greenhouse gases (GHGs) at every stage.
Statement II: Circular economy reduces the use of raw materials as inputs.
- This statement is correct. This is a core principle of the circular economy. By reusing, repairing, and recycling existing materials, the need to extract and process new (virgin) raw materials is drastically lowered.
- Explanation for Statement I: The extraction and processing of virgin raw materials (like mining ores, drilling for oil, or harvesting timber) are incredibly energy-intensive activities. This energy often comes from burning fossil fuels, which is a primary source of GHG emissions. By reducing the demand for these raw materials (as stated in II), the circular economy directly cuts these “front-end” emissions.
Statement III: Circular economy reduces wastage in the production process.
- This statement is correct. Another core principle is designing out waste from the beginning. This includes making production more efficient and ensuring that products at the end of their life are not “wasted” but are instead recovered.
- Explanation for Statement I: “Wastage” that is thrown away typically ends up in landfills or incinerators. In landfills, decomposing organic waste releases methane, a greenhouse gas over 25 times more potent than carbon dioxide at trapping heat. Incineration also releases stored carbon as CO2. By reducing this “back-end” waste (as stated in III), the circular economy directly cuts these emissions.

Therefore, both Statement II and Statement III are correct, and both provide key explanations for how the circular economy achieves the outcome described in Statement I.