Explanation

Statement I is correct. The circular economy is a model of production and consumption that emphasizes sharing, reusing, repairing, refurbishing, and recycling existing materials for as long as possible. By reducing dependence on energy-intensive processes, it directly contributes to lower greenhouse gas (GHG) emissions. The IPCC Sixth Assessment Report (2023) highlights that transitioning to circular models is among the key strategies to mitigate climate change.

Statement II is correct and explains Statement I. The circular economy reduces dependence on virgin or raw materials by promoting recycling, upcycling, and remanufacturing. Extracting raw materials from the Earth is an energy-intensive process that generates significant carbon emissions. By minimizing raw material consumption, the circular economy directly reduces the carbon footprint associated with resource extraction — thereby explaining why GHG emissions fall.

Statement III is correct and explains Statement I. The circular economy targets waste reduction at every stage of production through efficient design and resource reuse. For example, agricultural waste like animal manure is repurposed into organic fertilizer and biogas, avoiding the need for energy-intensive waste disposal methods like landfilling or incineration — both of which are significant sources of GHG emissions. Reducing production waste therefore directly contributes to lower emissions.

Both Statement II and Statement III independently explain Statement I — reduced raw material use and reduced production wastage are two separate pathways through which the circular economy lowers greenhouse gas emissions.