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 Answer: (A) Both Statement II and Statement III are correct and both of them explain Statement I

A circular economy aims to minimize environmental impact through restorative design. By keeping products and materials in continuous use, it directly curtails the demand for virgin raw materials (Statement II) and reduces resource wastage throughout the production and consumption lifecycle (Statement III). Because extracting raw materials and incinerating or landfilling waste are major drivers of greenhouse gas emissions, both of these mechanisms directly explain how a circular economy reduces overall GHG emissions (Statement I).