WCERE conference Gothenburg 27 June 2018 Finland’s Roadmap on the Circular Economy Matti Kahra / Leading Specialist Finnish Innovation Fund SITRA
5 key y facts s about Si Sitra +1 +1 Building our future together 1. A gift from Parliament to the 50-year-old Finland. 2. An independent foresight agency: futurologist, researcher, visionary, developer, experimentalist, partner, trainer, networker. 3. Funded by returns on endowment capital and capital investments. 4. Envisages Finland as a successful pioneer in sustainable well-being. 5. Its vision is supported by three themes, six focus areas and dozens of projects.
LEADING THE CYCLE – FINNISH ROADMAP TO A CIRCULAR ECONOMY 2016-2025
1000 250 66 participants in the action ideas actions in the stakeholder events and comments first wave
1 The life Sustainable food system cycle 2 Forest-based loops continues in a new 3 Technical loops loop 4 Transport and logistics Use 5 Common action The product should be used for as long as possible, it must be serviced and repaired and parts changed when necessary. Primary sector (raw materials sector) Consumer The raw materials are capital for the primary Consumer demand creates a sector. Sustainable solutions are based on the supply of sustainable products wise use of raw materials. and commodities. From company to company Material processing Companies will procure and require their Process planning will reduce the energy needed to refine subcontractors to provide parts that can be huge amounts of raw materials. The use of side streams easily repaired – instead of single-use parts. will be taken into consideration. Retail Manufacturing industry Retailers will sell services Distribution instead of goods and inform Long-term products that can be customers about maintenance repaired and maintained will be Transport co-ordinated and repair services, brought onto the market. between different sectors, environmental impacts, Materials will be separated at the renewable fuels and jointly materials and further use in end of the product’s life cycle. owned transport equipment the final phase of the life cycle. will be used in distribution.
Five focus areas of the Finnish road map Consumers choose food that has been produced through the wiser use of 1 Sustainable food raw materials that starts in primary agricultural production. Nutrients system are recycled. The forest industry's global competitiveness will increase with new 2 Forest-based commercial products, services, co-operation models and digital loops technology. 3 Minimising the use of virgin raw materials and maximising the length of Technical material and product life cycles create a competitive edge. loops 4 Transport will develop into a seamless, smart system that uses fossil- Transport and free fuels. logistics Legislators, companies, universities and research institutes, consumers 5 Common and citizens, and vibrant regions are all needed to achieve systemic action change.
Why these focus areas? The value chains of mobility, food and industry account for 80 % of resource use Major need for and the business potential of circular economy lies in these value chains.
Finland becomes a world leader in the circular economy by 2025 Road map’s ambition: Economy, environment & society: Increased exports and growth Circular economy as a new for companies from scalable and cornerstone for the Finnish comprehensive circular economy economy. solutions. Finland as a model country € Functional domestic market . for the challenge of scarcity. Circular economy into the mainstream through actions and concrete pilots. From adapter to pioneer.
Penttilä, Risto E.J., CEO, Finland Chamber of Commerce Steering group for the circular Reina, Timo, Deputy Managing Director, the Association of Finnish Local economy my in Finland 2017-2019 2019 and Regional Authorities Seppälä, Jyri, Director of the Centre for Sustainable Consumption and Chair Tiilikainen, Kimmo, the Minister for Housing, Energy and the Production, Professor, Finnish Environment Institute Environment, Ministry of the Environment Stranius, Leo, Executive Director, Kansalaisareena – Citizen Forum Chair Sormunen, Kirsi, Professional board member Turunen, Jorma, CEO, Technology Industries of Finland Vice-chair Pokka, Hannele, Permanent Secretary, Ministry of the Vasara, Antti, President & CEO, VTT Technical Research Centre of Environment Finland Ehrnrooth, Henrik, Chairman of the Board, Climate Leadership Council Secretary Hattula, Jussi, Investment director, Tesi (Finnish Industry Investment Ltd) Aalto, Mika, Head of Division, Ministry of Economic Affairs and Hietanen, Sampo, CEO, MaaS Global Ltd Employment Husu-Kallio, Jaana, Permanent Secretary, Ministry of Agriculture and Ahonen, Paavo-Petri, Senior Ministerial Adviser, Ministry of Education Forestry and Culture Ihalainen, Lauri, Minister, Member of Parliament, the Parliament of Eilittä, Eleonoora, Senior Officer, Ministry of Transport and Finland Communications Kankaanrinta, Saara, Chairman of the board, Soilfood Oy Fagerlund, Erja, Ministerial Adviser, Ministry of Economic Affairs and Employment Korkman, Sixten, Professor of practice (Economics), Aalto University Herlevi, Kari, Project Director, Finnish Innovation Fund Sitra Leppä, Timo, Director general, The Chemical Industry Federation of Finland Muurman, Jarmo, Senior Environmental Adviser, YM Marttila, Juha, President, The Central Union of Agricultural Producers and Forest Owners (MTK) Saarnilehto, Merja, Ministerial Adviser, Ministry of Economic Affairs and Employment Palola, Antti, President, The Finnish Confederation of Professionals (STTK) Tasa, Sari, Program Director, Ministry of Economic Affairs and Pantsar, Mari, Director, Finnish Innovation Fund Sitra Employment Peltonen, Petri, Under-Secretary of State, Ministry of Economic Affairs and Vainio-Mattila, Birgitta, Ministerial Adviser, MMM, Ministry of Employment Agriculture and Forestry
Circular economy can be boosted through long-term systemic changes, pilots, scalable solutions, and stimulation of demand Examples of actions in Finland’s roadmap to a circular economy Cooperation with European World Circular CE in public The creation of Climate Foundation – CE as Economy Forum procurement indicators for a means for mitigating 2017-2019 Finnish road climate change map to a CE A list of the most Policy actions Large and small interesting CE A list of the for creating projects , and actions in most interesting Regional functional sharing municipalities companies in the sustainable domestic market CE in Finland best practices food system Finnish industrial CE Centre in Kemi Financing for public- private consortiums CE to become a part of e.g. on revolutionizing education and future decision- CE demostration plant transport in regions making: CE in study programs of for recycling valuable metals of waste schools and universities electrical and electronic equipment
The mo he most t inter interes esting ting comp companies anies in the in the cir circular cular econ economy omy in Finla in Finland nd A list of companies to inspire economic change.
Five business models for the circular economy Product-life extension Products are used according to their original purpose for as long as possible or repaired and refurbished for multiple re-uses, thus reducing the need for purchasing and manufacturing new products. Product as a service The customer pays for certain functions or performance and avoids the risks of ownership. The total costs of ownership remain with the service provider, with revenue being earned by means of, for example, a leasing or rental agreement. Sharing platforms Digital-based platforms are used to promote the increased use of goods and resources and the extension of their life cycle, such as by renting, selling, sharing and re-use. Renewability Renewable, recyclable and biodegradable materials, as well as the principles of eco-design, are preferred for products and their design. Fossil fuels are replaced by renewable energy. Resource efficiency and recycling Technological development enhances resource efficiency in value chains, processes and products, and allows for more effective recycling. Side-streams are valuable raw materials for recycled products and materials.
Example companies on the list 3 Step IT Ekox Emmy RealGreen Valtra EkoRent Enevo L&T Leasegreen Lem-Kem Lindström MaaS Global Martela RePack Solnet Valtavalo Lunchie Maapörssi ResQ Shareit Blox Car Swap.com Sharetribe Vähänkäytetty.fi Arctic Biomaterials BioGTS Gasum Jarmat Kotkamills Metener Neste Paptic Soilfood St1 Grano Kekkilä CrisolteQ Destaclean Durat Finlayson Fortum Globe Hope Remake Kierrätyskeskus Lovia Novarbo Pure Waste Raisioagro RecAlkaline Tarpaper Recycling TouchPoint Palpa Versofood Examples available: https://www.sitra.fi/en/projects/interesting-companies-circular-economy-finland/
All sectors are involved, often in cross-sectorial cooperation
Challenges in accelerating circular economy Legislative barriers. Unpredictability of policy instruments. Steering public procurements. Lack of business logic and critical mass for new business models. Silos in government, industries. System thinking and systemic change. Transitional investments. Mindset and attitudes.
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