CICULAR ECONOMY GLOBAL SUSTAIN Barcelona, October 19 Dr Christian AVEROUS Vice President Blue Plan/UNEP ex OECD

Circular Economy Global Sustain

The world context A changing world: globalisation, environment, digitalisation A search for growth engines: consumption, investment, trade, credit Going against tax evasion

The world context 2015 key year for ambitious world development 2030 agenda UN conference of Addis Ababa (july 2015) on financing development UN summit of New York (september 2015) on sustainable development goals UN conference of Paris (december 2015) on climate change 2016 & beyond: implementation, implementation, implementation

The world context The Addis Ababa conference on financing development The Addis Ababa Action Agenda (AAAA): from ODA focus to agreement: owned, universal, public & private financing applying to north and south, with new SDGs

The world context New York Summit agreement on sustainable development (part of UN General Assembly meeting) 150 Heads State/ Gov. approve SDGs (sustainable development goals) 26 sept 2015: owned, universal, inclusive (no one left behind) 17 SDGs, 169 targets, with indicators, with reporting mechanism A 2030 transformative agenda (production/consumption, including growth, energy,…) with means (finance, innovation/technology, data revolution)

The world context

The world context The Paris agreement on climate change (dec 2015): on greenhouse gases emissions mitigation, adaptation and finance Already in force (ratified now > 55countries, >55% emissions CO2) Starting in the year 2020 To achieve <2°C increase, since preindustrial time in 2050 Commitments to be revisited 2020

The world context Universal commitments full of wisdom and ambition Butressed by commitments to green and inclusive growth (OECD, IMF, World Bank, G20, EU)

Circular Economy (associated to climate issues) The 2030 Agenda contains a clear endorsement of circular economy as part of sustainable consumption and production. A key component of green economy/green growth together with reducing food waste, energy transition (associated to climate issues)

Circular Economy Similar to resource efficiency (parallel to energy efficiency) at global, regional, national, territorial levels Similar to 3Rs concept of reducing waste, recycling waste, reusing waste Key for green growth; change of economic paradigm: three factors of production: labor, capital, ressources Key for achieving sustainable and inclusive development Strong links with most goals (together with reducing inequalities)

Circular Economy At macro level TRADE ISSUE resource efficiency is related to trade concerns. Parallel to energy efficiency Material intensive (importing) economies: Korea, China, Japan, Germany, EU Resources rich (exporting) economies: Australia, Canada STOCK ISSUE Global economy uses less and less material /unit GDP High material /capita: overuse of natural asset base of the planet, excessive footprints of some materials

Circular Economy At sector level Applies to public and private policy orientations Creation of secondary material markets France trade balance in recycled material (3 billion EUR in 2014, x8 over 15 years) Unused ‘urban mines’

Circular Economy A new business strategy Incorporate in: products (goods & services), processes, market approaches, organization Special attention to: life cycle thinking value chain (co-operation with partners) Thereby achieving enhanced performance competitivness Extended producer responsibility

Circular Economy Measuring Framework; stocks and flows Materials: biomass for food and feed, wood, fossil energy, construction materials, industry materials, metals and metal ores Flows of waste and recycled materials Stocks of material natural or man-made (urban mines)

Circular Economy Measuring Data & Indicators available for key ‘international’ materials: iron/steel, copper, aluminum, paper, phosphorus, rare earth Rare earth used in batteries, catalysts, ceramics, glass industry, magnets, metallurgy, phosphors… applications in defense, chemicals, nuclear, water… sectors

Circular Economy Measuring Progress in material flows resource efficiency Gaps: resource prices, taxes, subsidies Leading programs internationally: UNEP, OECD, EU Knowledge available for major actions and advances towards resource efficiency improvements (globally, regionally, nationally).