Circular Economy: Driving Resiliency through Collaboration & Innovation Livable Cities Forum 2017 September 19, 2017 1 delphi.ca
The Delphi Group • Strategic consulting company focused on climate change & corporate sustainability for last 28 years • Cross-disciplinary team including economic development, strategy, engineering, technology & policy expertise • Provide national & global perspectives • Produce the GLOBE Series of Conferences 2 delphi.ca
Overview 1. Introduction 2. Enabling Factors 3. Private Sector Leaders 4. Policy Leaders 5. Municipal Examples 6. Key Take-Aways 3 delphi.ca
INTRODUCTION: THE CIRCULAR ECONOMY 4 delphi.ca delphi.ca
Definition e·con·o·my noun 1. the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services. 2. careful management of available resources. Source: Google Dictionary 5 delphi.ca
Definition Circular economy concept has its roots in… Ellen MacArthur Foundation : sustainable development “A circular economy is one that is restorative and regenerative by design, industrial ecology and which aims to keep products, components and materials at their highest utility and value at all times, ecological economics distinguishing between technical and biological cycles.” 6 delphi.ca
From “Waste” to “Resources” Moves beyond traditional waste management and material / Reduce resource efficiency Shift from “Waste” to “Resource”… harnessing full value of resources Reuse and reducing the speed of material transit through the economy. Recycle Heavy focus on upstream components : waste prevention through eco-design, re-use / Recovery refurbishment / remanufacturing, and recycling, and looking to minimize incineration and disposal. Disposal 7 delphi.ca
A Shift to Systems Thinking Transition from linear model to system- wide perspective… Key Characteristics: 1. Less input & use of natural resources 2. Increased share of renewable resources & energy 3. Reduced emissions 4. Fewer material losses / residuals 5. Maximizing value of products, components & materials Source: European Environmental Agency 8 delphi.ca
ENABLING FACTORS 9 delphi.ca delphi.ca
Circular Economy: Enabling Factors 1. Eco-design • Products designed for a longer life, enabling upgrading, reuse, refurbishment and remanufacture • Product design based on the sustainable and minimal use of resources and enabling high- quality recycling of materials at the end of a product's life • Substitution of hazardous substances in products and processes, enabling cleaner material cycles The European Commission suggests that more than 80% of a product’s environmental impact is determined in the design phase. 10 delphi.ca
Circular Economy: Enabling Factors 2. Repair, refurbishment & remanufacture • Repair, refurbishment and remanufacture given priority, enabling reuse of products and components Sweden and Flanders are offering tax breaks to consumers by incenting the repair of products (such as bicycles, sewing machines, and other small appliances) and creating local jobs. 11 delphi.ca
Circular Economy: Enabling Factors 3. Recycling • High-quality recycling of as much waste as possible, avoiding down-cycling (converting waste materials or products into new materials or products of lesser quality) • Use of recycled materials as secondary raw materials • Well-functioning markets for secondary raw materials • Avoidance of mixing and contaminating materials • Cascading use of materials where high-quality Finland has been investing in innovation and technology to recycling is not possible improve the sorting of recyclable and improve the recovered value of resource streams. 12 delphi.ca
Circular Economy: Enabling Factors 4. Economic incentives & finance • Shifting taxes from labour to natural resources and pollution • Phasing out environmentally harmful subsidies • Internalization of environmental costs • Extended producer responsibility • Finance mechanisms supporting circular economy deposit systems approaches The EC has partnered with the European Investment Bank to establish a “Circular Economy Finance Support Platform”, designed to bring investors and innovators together. 13 delphi.ca
Circular Economy: Enabling Factors 5. New business models • Brings new business models and opportunities for investment and job creation, linked to innovative ways of producing and consuming goods and services • Collaboration and transparency along the value chain • Industrial symbiosis (collaboration between companies whereby the wastes or by-products of one become a resource for another) • Focus on offering product – service systems rather than product ownership A trial grocery store in Australia has moved beyond sell-by and use- • Digitalization allowing consumers to connect in new by labels offering free food or by donation. ways and share available resources and assets (e.g., sharing economy) 14 delphi.ca
Circular Economy: Enabling Factors 6. Governance, skills & knowledge • Education • Awareness raising about changing lifestyles and priorities in consumption patterns • Participation, stakeholder interaction and exchange of experience • Data, monitoring and indicators The UK’s National Industrial Symbiosis (NISP) model involves sharing of knowledge and best practices between industries, turning waste into a resource. 15 delphi.ca
PRIVATE SECTOR LEADERS 16 delphi.ca delphi.ca
Private Sector Leadership Companies rethinking production processes to protect against price and resource fluctuations across supply chains. = resiliency & competitiveness • Optimizing / minimizing resource use through technological investments and Lean processes. • Designing circular products with full lifecycle perspective – integrating second-use phases, take-back systems, design for disassembly, reparability, reusability, and recyclability. 8 EMF Global Partners committed to going “100% circular” 17 delphi.ca
Case Study: Zero Waste Paper • Smurfit Kappa recycled paper mill in the Netherlands: one of the largest yet most efficient mills in Europe (uses less water and energy per ton of paper produced). • Produces less than 1kg of solid waste for every ton of paper it produces (compared to 32kg for recycled paper competitors). • Uses no virgin wood fibres – relies on recovered paper and innovative by-products (e.g., tomato stems, potato starch, calcium carbonate). • Uses impurities (i.e., plastics, metal, wood, sand) for its internal processes or sells as revenue streams to other industries (saving on tipping fees). • Wastewater sulphur = fertilizer to farmers • Lime sludge = raw material for paper-making • Plastics = fuel pellets for cement industry • Sand & glass = sold to construction industry 18 delphi.ca
POLICY LEADERS 19 delphi.ca delphi.ca
China • Concept of a “circular economy” has been in use for more than two decades in China • Heavily focused on upstream components and the manufacturing supply chain • Closely tied to industrial symbiosis and industrial ecology systems • Micro ‐ level (i.e., company or single consumer level), meso ‐ level (e.g., eco ‐ industrial parks), and macro ‐ level (i.e., cities, provinces, and regions) 20 delphi.ca
Japan • Key drivers are lack of land for waste disposal and shortage of domestic raw materials. • The country landfills less than 5% of its waste and recycles 98% of its metals. • Japan’s “Law for the Promotion of Effective Utilization of Resources” (2000) covers entire lifespan of products, requiring manufacturers to run disassembly plants. City of Kamikatsu’s zero-waste efforts include separating waste into 34 categories for recycling and treatment. 21 delphi.ca
European Union The EU’s policy framework has become increasingly holistic, embracing both circular economy and green economy. Source: European Environmental Agency 22 delphi.ca
EU Circular Economy Package 50+ initiatives and programs Production 5 priority materials streams : (1) Plastic waste (2) Food waste Innovation Consumption (3) Critical raw materials Economic Impacts: EU Circular (4) Construction / demolition waste Economy Package - Create 170,000 direct jobs by 2035 through waste (5) Biomass / bio-based products management measures - Boost GDP by 3% through reduction of total material Large focus on R&D and innovation requirements of up to 20% - Save of € 465 (CAD $651) per Waste-to- Waste Resource Management household per year by 2020 through energy efficiency. 23 delphi.ca
Comprehensive Strategies • Leading countries adopting comprehensive Circular Economy policies through rigorous engagement across government and with key stakeholders . • Circular Economy as an economic policy that can drive GDP and job growth while positively impacting on environment. • “Overarching” policies: – Japan: “Basic Act for a Sound Material - Cycle Society” – Finland: “Roadmap to a Circular Economy (2016 - 2025)” – Scotland: “Making Things Last: CE Strategy for Scotland” – Denmark: “Denmark Without Waste” – Netherlands: Circular Economy in the Netherlands by 2050”. – Germany: “Circular Economy Act” 24 delphi.ca
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