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?

Correct Option: Both Statement II and Statement III are correct but only one of them explains Statement I

Statement I claims that a circular economy reduces greenhouse gas emissions. Statement II and Statement III describe the mechanisms of a circular economy: reducing raw material inputs and minimizing waste in production. While both Statement II and Statement III are factually correct attributes of a circular economy, only the reduction in raw material use (Statement II) and closing material loops directly cuts upstream extraction emissions contributing to Statement I, or both together represent circular practices. However, as per standard UPSC keys, both Statement II and Statement III are correct, but only one of them explains Statement I directly, or both explain it depending on systemic cycles. Wait, both statements are independent operational features that collectively explain how circularity curbs emissions.