1 Proposed Models of a Recycling Economy also called a Circular Economy developed in support of the Eco-Planning Process in the Dalian Development Zone © 2003 RPP International Using red fonts I added what I judged useful to slides no.: 3,6,9,10,12,13,18,20,28,38,50,51,52.

2 This file included some additions in red by my Polish intern, Jakub This begins with an idealized overview of recycling economy and necessary components and processes. Later there is beginning discussion of sustainable economy, )We need a clear sense of the boundaries for the RE and how that fits within a full sustainable economy planning.) then summary of the the Liaoning RE plan. Notes to consider. RE is not a full sustainable economy approach. The CCICED work doesn’t even set economic questions per se in the action plan, much less social issues. (see below) The focus is on production system, with marketing and consumption issues very secondary. The Recycling Economy is a subset of a sustainable economy model. It’s focus is on resource use within natural (and human) constraints. Liaoning is only prov to start piloting the RE. (Shanghai and Tianjin are doing this at muni level.) CCICED is source of int’l support + japan. Gaps – Energy is weak, except for E2 targets and mention of energy cascading. no mention of renewable energy Transportation and urban planning are important foundations for the RE not mentioned. Omits important areas like building design,. Energy and water requirements of resource extraction or recovery are important to consider.. The graphic at the beginning is one that Jakub added in.

3 Recycling economy goalsdriversconstraintsobstacles Process context actorsactions Methods & tools IE CP DEV EE IT GT Restor. Sust.Plan. Constr. Liaoning Province Recycling Economy Development Plan goalsobjectives indicatorsstrategy projects

4 Goals for a Recycling or Circular Economy Meet the needs of a large and growing population. Improve standard of living through improved quality of life. Preserve socio-political stability Achieve relatively equitable distribution. Provide a foundation for sustainable development. Integrate the natural and economic systems.

5 Drivers for creating a Recycling Economy High level leadership is aware of the environmental and social costs of unrestrained growth China is now suffering. Projections of growth in population and standard of living by a Western path indicate the goals cannot be achieved this way. Global competitiveness demands that Chinese production meet international environmental and social standards. The goal of making State Owned Enterprises profitable and more efficient is not being achieved rapidly enough. (set in 1998) Unemployed workers from failed SOEs and from rural areas are a source of instability.

6 Natural Constraints Natural resources are increasingly limited. The environment is limited in ability to sustain impacts of pollution, waste, and diversion of resources needed for ecosystem functions. Eco-efficiency has natural limits created by energy demand of resource recovery, number of cycles through which materials can be recycled, dissipative uses of materials etc.

7 Economic and Institutional Obstacles The rules of global economy institutions -- WTO, IMF, development banks The dream of a western lifestyle, sold by media and example The belief “we have the right to waste and pollute the way the West did to achieve development.” Administrative inertia Inertia and inefficiency of State Owned Enterprises Corruption Instability due to rural migration and SOE layoffs Low environmental consciousness

8 Context Setting Forces ActionsActors Process for Creating a Recycling or Circular Economy

9 Objectives Indicators Policy & Regulations Market Forces Non-governmental Organizations Trade Organizations Peer pressure Education and Research Awareness & Mobilization Actors Resource providers and processors Industrial producers Government operations as consumers, distributors, and processors Commercial service providers Government service providers Real estate designers, construction and management Households Information Systems Infrastructure & Markets Practice of Cleaner Production Communication Media Economic Development New Ventures Jobs Context Setting Actions Process for Creating a Recycling or Circular Economy

10 Plan for Recycling Economy in Liaoning Province Enterprises Government All Levels Cities & ZonesRegions Other Context Setters Waste Classification Separation RE infrastructure Cleaner Production Reduce Reuse Recycle Energy/water efficiency Pollution prevention Eco-industrial Parks (4) Eco-chains between enterprises RE business development Very rough, will re do in stages Policy, investment, procurement, education Target industries & firms Recycling Economy model Development strategy Objectives/indicators Public investment Households as consumers recyclers Sustainable urban planning RE Information System

11 Economic Model of Recycling Economy Components Public investment Objectives/indicators “genuine progress indicators” Economic development strategy Business development policies and strategies Strategy for improving quality of life “beyond consumption” Public procurement Citizen input Education Preferred industries Banned industries Incentives for private investment Total cost accounting in public investment calculates social and environmental costs & benefits Similar private accounting standards Just beginning here. Really components of a model. Maybe title is strategy, not model.

12 The System that Acts (Actors) Resource providers and processors (mines, forests, farms, fisheries) Industrial producers Commercial service providers Government service providers Government operations as consumers, distributors, and processors of resources Real estate design, construction and management – industrial, commercial, residential, and public Households

13 The System that Sets the Context for Action Government (and Communist Party) as sources of policy, regulation, investment... Market forces, regional, national, and international Foreign investors [particularly important for a country like China] International organizations [+MEAs] Non-governmental Organizations and Community Based Organizations Trade organizations and peer pressure in industry Educational and research institutions Media

14 Actions Required Redefine economic development in terms of a sustainable quality of life Internalize externalities - hidden costs of economic activity Redefine business model from selling products to selling service -- Replace product driven economic model with service model. Increase efficiency of resource utilization by factor of 7-10 Reduce impacts on air, water, and land Reduce impacts on society

15 Actions Required 2 Improve integration and coordination of resource management organizations and resource using organizations Transform production system Develop infrastructure to support high efficiency resource utilization Create means of citizen and worker participation

16 Methods and Tools Industrial Ecology Cleaner Production Ecological Economics and Environmental Economics Economic Development Sustainable urban planning, including architecture and transportation Methods and tools support policy development and implementation. Learning Organization Information Technology Green technologies Real estate design, construction and management Ecosystem restoration and renewal

17 Industrial Ecology Industrial metabolism, resource flow analysis Life cycle assessment Design for environment Service economy model Eco-industrial Park, Eco-industrial Network as local points of intervention above the company level

18 Sun Atmosphere The Market Agriculture & forestry Mining & drilling Hydrosphere Manufacturing Construction Services Transportation Households & personal consumption Disposal & recovery The flows of industrial metabolism LithosphereEcosphere Biota Environmental cycles & services Water management Based upon Robert Ayres 1994

19 Cleaner Production Pollution prevention Energy efficiency Reduce volume and toxicity of resource use. Reuse resources internally. Recycle resources internally and externally. Manage supply chain upstream and downstream. Short payback period.

20 Ecological Economics and Environmental Economics Indicators (sustainability indicators, genuine progress indicators, replacing straight GDP) Dynamic input-output modeling Adoption of full cost accounting in public investment to effectively analyze true costs and benefits of technology and environment decisions Analysis of constraints on eco-efficiency and resource recovery

21 Ecological and Environmental Economics 2 Creation of economic models enabling financial viability of resource recovery industry Analysis of economics of consumer lifestyle choices Economic Development [detailed 3 slides later] –Venture and real estate development funds (including EIP development and brownfield cleanup) –Business incubators

22 Sustainable Urban Planning High density, mixed use land-use planning –Human scale jobs/services/housing balance –Appropriate services accessible –Industrial land-use planning supports resource recovery and efficiency Sustainable design of built environment Green spaces and urban forestry Public oversight of integrated planning process. Community involvement in planning process.

23 Urban Planning -- Transportation Integrated transportation network at neighborhood, urban, and regional levels. –Integrated intelligent transportation systems to promote ease of use and decongestion –Accurate accounting of subsidies to different modes –Alternative fuel vehicles for all modes

24 Economic Development Policy and strategy at all levels of government Venture and real estate development aligned with RE principles Business incubators Target EIPs, brownfield redevelopment, resource recovery industry, renewable energy, water systems for reuse, etc. R & D funding to move emergent technologies to commercial status.

25 Learning Organization Inventing a recycling economy calls for a creative and dynamic learning process that includes: –Working with a shared vision that integrates efforts of all stakeholders; –Clearly perceiving how beliefs condition perception and action and how well our actions match our values and intentions; –Reflecting upon the group's learning process regularly to improve capacity for team learning and synergy; –Seeing each part in the whole and the whole in each part – the dimension of systems, holism, and interconnections.

26 Vision Reflection Learning Holistic seeing thinking & acting Personal clarity Team synergy The Learning Organization Copyright 1998 RPP Int’l

27 Information Technology –Modeling systems –Geographic information system –Virtual reality depiction of complex systems –By-product resource logistics and exchange system –Monitoring and feedback systems –Public access and input for education and action

28 Green Technologies –Green chemistry –Renewable energy and energy efficiency –Resource recovery: recycling, reuse, remanufacturing –Water efficiency, distribution and redistribution –Clean combustion –Hazardous materials recycling and disposal. –Using natural processes wherever possible. –Biotechnology, bionics.

29 Ecosystem restoration and renewal Restoration of land and waterways Site planning for EIPs Cleanup of brownfield sites Landscaping of industrial and public sites with local native and endangered species Degraded land used for wind and sun energy farms

30 Policy Development and Implementation –All of the above methods and tools feed into policy development –Regulations –Public Investment –R&D –Economic Development –Incentives –Penalties –Enforcement

31 Sustainable Development Sustainable development seeks two basic objectives: –Widely-shared, high quality of life for humans, continuing through the generations; –Healthy, diverse local ecosystems and restored balance in global systems. The challenge to both industrialized and developing economies and societies is to create a timely transition from the present, very unsustainable system without major disruption and breakdown.

32 Sustainable Economy The purpose of the sustainable economy is developing quality of life for people within natural carrying capacity. Production of goods and services operates at a very high level of resource efficiency and a very low level of pollution and waste. Operates in a relatively closed-loop mode with optimal levels of recovery, reuse, and recycling of all resources. Demonstrates relatively equitable distribution of wealth and income and access to the goods and services providing quality of life.

33 Processes Toward a Sustainable Economy Economic planning at every level is holistic. Planning tools of perception and modeling make clear the impacts of decisions on social, political, economic, and environmental systems. Short-term decisions are taken within a view of long-term consequences and using the precautionary principle. Economic progress is monitored using holistic indicators of the health of natural, social, and economic systems.

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35 CCICED FILL IN OUTLINE China Council for International Cooperation on Environment and Development –Taskforce for Promotion of Circular Economy and Cleaner Production –Background – Goal and Objectives –Technical Pathways –Project Components –Team Members

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37 Summary of Liaoning Province Recycling Economy Development Plan By Changhua Wu and Ernie Lowe Dalian, September 2002 Updated February 2003

38 Eco-Planning for RE Liaoning is the pioneer province for designing the RE. Liaoning has asked the DDZ to develop a model of the RE and a demonstration EIP. The goal of Eco-Planning is to develop this model. All of this helps to realize the goals of the Cleaner Production law

39 Goal Implement sustainable development strategy while restructuring economy improve resource use efficiency build recycling-economy enterprises, ecological industrial parks and resource recycling cities; establish recycling economy legal system and scientific/technological support; design a new economic development model and promote the revitalization of Liaoning’s old industrial base become a role model for other locations in China and elsewhere

40 Main Objectives - In 5 Years Establish a group of RE-type enterprises, EIPs and a few RE-type model cities and greatly improve resource use efficiency Build regional resource recovery basis and initiate new economic growth points Promote RE concept and enable public participation in a RE 45 Establish the mechanisms and framework to develop a Recycling Economy

41 Main Objectives - in 10 Years Build a new economic development model. Establish improved mechanisms and framework to develop a RE. Lead Liaoning’s old industrial bases towards a sustainable development path with growth of production, improved quality of life and a healthy environment

42 Focus - Enterprises Cleaner production key polluting enterprises, 10 State-level CP demo enterprises Zero wastewater discharge - 20 enterprises Wastes recycling and reuse - large and medium-sized joint enterprises Energy and materials concentration - large and medium- sized joint enterprises Adopting key chain connection technologies - large enterprises with capacity Jakub Kronenberg: Aren’t 600 enterprises too many? I assume these have to be rather large enterprises... Jakub Kronenberg: Aren’t 600 enterprises too many? I assume these have to be rather large enterprises...

43 Focus - Eco-industrial Parks Specifies development of 4 EIPs at Dalian, Shenyang, and Yingkou DZs and Anshan high tech park. Adopt key chain connection projects Upgrade environmental performance of existing industries Lower enterprises’ production costs Increase enterprises’ competitiveness Recycle and reuse wastes and hazardous wastes Improve infrastructure and services of parks

44 Focus - Cities Urban gray water reuse Urban garbage classification and recycling Upgrading systems of specially classified wastes recycling and reuse Building regional resource reuse bases

45 Focus - Policies Speed development of related local legislation Increase fee for urban [and industrial?] sewage treatment and charge new fees soon for urban garbage disposal. Study policy on fees for some specialized waste recycling and reuse. Strengthen incentives - fully take advantage of State taxation preferential policies on integrated resource use and used resources recycling Encourage commercial banks to support RE projects

46 Targeted Industries Petrochemical Metallurgical Chemical Power Building materials Paper-making Brewery Pharmaceuticals

47 Targeted Indicators Coal consumption per 100,000 yuan added industrial value Water intake per 100,000 added industrial value Rate of industrial water Reuse Rate of integrated use of industrial solid wastes Gray water reuse in cities Rate of recycling for used materials/products

48 Targeted Indicators - continued Waste gas emissions per 100,000 yuan industrial output Wastewater discharge per 100,000 yuan industrial output Industrial solid waste discharge per 100,000 industrial output Total pollutant load emissions control, urban garbage treatment, urban garbage classification and recycling, urban sewage treatment, storage or disposal of hazardous wastes

49 Recycling Economy Strategy I Improving and relying on legislative and regulatory systems Strengthen economic policy support and establish pluralistic investment mechanisms, e.g. taxation, fees, credit guarantee, more financing for infrastructure, flexible ownership Strengthen technological R&D Increase space for intermediary organizations to participate in RE activities

50 RE Strategy II Build information platforms for more public participation and access to info Strengthen publicity and education and advocating green consumption Strengthen international cooperation Strengthen government’s leadership as a role model Clarify responsibilities among stakeholders (government, industries and public)

51 Uncertainties I Vision is holistic, but lacks integrated strategies/process to connect the big picture and the patch work of projects. Policies are geared towards incentives and market-based instruments, but enforcement is unclear Structures to insure that collaboration among multiple agencies unclear. Inadequate support for public-private partnerships Nothing to attract Foreign Direct Investment to participate. [participating in this project, depending on its marketing, might be an important point they would like to raise in their environmental communications; however some more direct benefits would be well perceived]

52 Challenges to DDZ What are the challenges to developing an effective model for the Recycling Economy? Great expectations [role model] To show so much in such a small area Overcoming ‘lack of awareness’ barrier

53 Opportunities for DDZ What do you see as the opportunities the Recycling Economy plan opens for DDZ and its firms? Business opportunities (new industries, new companies) Savings [when full costs of economic activity are considered] New image First industrial zone to adopt recycling economy in China – rent of priority International support Existing legal framework Government support

54 Eight DDZ RE Projects The Environmental Protection Department has identified eight initial action projects as part of its required response to the Liaoning Recycling Economy Plan. The first three have the highest priority.

55 I. Integrated Solid Wastes Reuse Project Targets: Hazardous solid wastes, waste and used household electric appliance and waste and used electronics Timeline: Two years Implementing Unit: Dalian Dongtai Wastes Treatment Company

56 II. Integrated Fly Ash Reuse Project Total Generation of Fly Ash in DDZ is about 100,000 tons per year. Target: To develop new type building materials Timeline: Two years Implementing Unit: DDZ Thermal Power Plant

57 III. Integrated Urban Domestic Garbage Treatment Project Target: To adopt the most advanced technology to treat domestic garbage and to maximize the reuse. Timeline: Two years Implementing Unit: DDZ Sanitation Company

58 IV. Urban Gray Water Reuse Project Target: To expand the use of gray water beyond the existing greening and construction. Implementing Unit: DDZ Drainage Company

59 V. Project to Use Waste Paper to Make Buffering Materials for Packaging Status: On-going and will be put into production within one year Implementing Unit: Dalian Dashi Packaging Materials Company, Limited

60 VI. Wood-Plastic Composite Material Project This project will import Canadian technology to use waste wood and rice straws, as well as other natural fiber and waste and used thermal plastics to produce wood-plastics composite materials and substitute materials. The project is on-going and will be put into production this year. Implementing Unit: DDZ Jinxi Packaging Material Company, Limited

61 VII. Industrial Fluid Recycling and Reuse Project Targets: Cutting fluid and other industrial fluids for machinery processing Implementing Unit: Dalian Dongtai Huaxing Science and Technology Company Limited

62 VIII Wastes and Resource Recovery Project Targets: To collect all the leftover materials from enterprises in the zone and provide a large amount of reusable resources. This focuses on management of wastes from foreign companies importing materials. Implementing Unit: DDZ Zhongchu Wuliu Company Limited

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64 Holistic Solutions from Nature Ecosystems function through closed-loop resource management. They utilize 100% renewable resources. The recycling function is a major contributor to ecosystem health. Organic toxic materials are created and used locally. All energy is ultimately solar, the major input from outside the loop..

65 Nature’s Resource Recovery The great majority of ecosystem energy is devoted to recovery of the value in dead plant and animal materials. A diverse system of animals, insects, fungi, and microorganisms turn dead material into nutrients and media for new life. The dynamics of recycling in nature can inspire highly effective human systems.

66 Industrial Metabolism Studies of resource flows through human systems show an overemphasis on production and consumption and neglect of the essential recovery function. More than 90% of materials extracted are used less than 8 months before disposal. Sustainable sources of life are thrown away as “wastes”.

67 Optimize inputs to achieve integrated financial and environmental benefits Minimize non-product outputs to achieve integrated financial, social, and environmental benefits Energy Water Air Materials Air emissionsSolid wasteHeatLiquid effluents Governmental Operations Manufacturing Sector Households Service Sector Agricultural Sector Physical Objectives of Recycling Economy Design and Construction Real Estate

68 Energy Extraction & harvesting Separation refining Material preparation Forming Fabrication Use Resource recovery Water Air Materials Air emissionsSolid wasteHeatLiquid effluents Discard Lifecycle for manufacturing sector By-products

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