Circular Economy

WHAT DO YOU THINK OF THIS QUOTE? “The goods of today are the resources of tomorrow at yesterday’s resource prices” PRESENTER NOTES: Q: How might that work? Q: Are there any examples of this working already? - WALTER STAHEL

The Linear Economy Current economic model of ‘Take-Make-Dispose’ World as unlimited resource and waste bin; 65 billion tonnes of raw materials enter the economic system, p.a.; Around 60% of waste ends up in landfill… 11th Sept 2014

Limits to the Linear Economy We are dedicated to provide professional and innovative service for our clients covering a wide variety of Civil, Infrastructure, Residential, Commercial, Industrial, Geotechnical and Environmental projects. Limits to the Linear Economy Rising prices for materials and energy; Supplies of precious materials running low; Environmental damage from resource extraction, landfilling and waste disposal; Improving efficiency offers only short term gains. 11th Sept 2014

THE LINEAR AND THE CIRCULAR ECONOMY These two simplified graphics show the difference between a linear economy and a circular economy. Ask the students to note the differences between the two systems

THE CIRCULAR ECONOMY PRESENTER NOTES: This image is a simplified graphic demonstrating the circular economy: an industrial system which is restorative by design or intention. Ask the audience what they see. Note two cycles of materials: Biological materials are made from things that grow and which ultimately can go back into the soils (perhaps by composting, or through anaerobic digestion) and improve it. They are natural materials that can be safely disposed of in a manner which allows the soil to regenerate; thus they must not contain any toxins. Technical materials are metals, polymers, etc. They are materials designed to continually flow at high quality in closed industrial cycles.

In a sentence, describe the circular economy... PRESENTER NOTES: Listen to feedback, challenge undefined terms, come to a class definition.

THE CIRCULAR ECONOMY The circular economy offers the opportunity to move away from our "take - make - dispose" model, by ensuring, through careful design and innovative business models, that technical and biological materials continuously flow, safeguarding valuable resources and restoring natural capital. PRESENTER NOTES: This is a definition we use. Q: How does your definition differ? Q: Which phrases have you used that are missing from this statement? Q: Do you prefer this statement, or yours? Why?

Towards a circular economy for Europe: policy context Europe 2020 Strategy for smart, sustainable and inclusive growth Resource Efficiency Flagship Initiative Mid-term review: pressure on resources and environmental concerns identified as a long-term trend affecting growth Public consultation till 31 Oct. http://ec.europa.eu/europe2020/public-consultation/index_en.htm 7th Environment Action Programme Thematic objective to turn the EU into a resource-efficient, green and competitive low-carbon economy 18

From a linear economy …

… to a circular economy

Circular Economy Package Specific waste challenges Waste target review Enabling Framework Resource Efficiency target Sustainable buildings COM Sustainable food Marine litter Legislative proposal Impact assessment Fitness check (packaging) Umbrella Communication Green Employment Initiative Green Action Plan for SMEs Progress Report RE Roadmap Analysis of an EU target for Resource Productivity European Resource Efficiency Platform recommendations

An enabling framework Design and innovation Unlocking investment Horizon 2020: large scale innovation projects, skills development, market application and partnership; a coherent product policy, Eco-design; cascading use of biomass Unlocking investment Environmental taxation, innovative financial instruments, accounting rules, fiduciary duties; resource stress tests, potential of the bonds market , GPP and European Funds Harnessing the role of business and consumers Building on the Environmental Footprint pilots, broad stakeholder cooperation under Horizon 2020, action on SMEs and green employment Towards a recycling society – waste as a resource Waste targets review, phasing out landfilling of recyclable waste, work with Member States on implementation, extended producer responsibility, marine litter, food & construction waste A resource efficiency target

zero recyclables or biodegradable waste by 2025 (<25%) 2030 – Waste Targets Food waste 30% PREVENTION REUSE & RECYCLING (incl. compost) min 70% INCINERATION LANDFILL zero recyclables or biodegradable waste by 2025 (<25%) phase out by 2030 (=<5%) ECODESIGN MUNICIPAL WASTE Packaging (80%) 60% plastic (+review) 80% wood 90% metal glass paper Producer Responsibility Separate Collection Landfill Charges Marine Litter 30%

Setting a resource efficiency target 7th EAP: "A long-term and predictable policy framework … will help to stimulate the level of investments and action needed to fully develop markets for greener technologies and promote sustainable business solutions. Resource efficiency indicators and targets underpinned by robust data collection would provide the necessary guidance ..." EREP, 2014: "secure at least a doubling of resource productivity as compared with the pre-crisis trend … equivalent to an increase of well over 30% by 2030"

A possible EU resource efficiency target Improving resource efficiency by 30% can create 2 million jobs and boost GDP by 1% vs. business-as-usual (+15%) Potential gains for businesses of between 3 and 8% of turnover by using resources more efficiently

What are the impacts on GDP? Percentage change

30% more GDP per ton 70%+ <5%