1. Making the circular economy work
Presented by: Hermann Erdmann
CEO – REDISA NPC

2. The Circular Economy

3. Net positive impact on GDP 200
REDISA’S EXPERIENCE
Over
3000
jobs created
Net positive impact on GDP
Target by end year 5:
In 3½ years, tyres
diverted went from 4% to
63%
Over
200
small businesses created
100%

4. JOBS AND SMME POTENTIAL
Based on experience with tyres, by 2025: (Adjusting for density and complexity)
SMME potential: 15 jobs/SMME
tons/year
tons/year/job
Jobs
SMMEs
Building rubble
3,970,000
250
15,880
1,059
Packaging
3,096,000 25
123,840
8,256
WEEE
64,000 13
5,120
341
Organic
1,965,000
125
15,720
1,048
Total
160,560
10,704

5. Policy Framework and Controls
BUILDING VALUE
Transforming a cost to the environment into value:
Policy Framework and Controls
Value
Cost

6. MONITOR TO CONTROL How do you manage creating 160,000 jobs?
Use modern information technology:
Communicate with all stakeholders
Monitor, evaluate, verify all transactions
Provide direct access to information to all levels of government
Prioritise compliance:
Good controls and regulation are essential

7. MAKE EXTERNALISED COSTS VISIBLE
Extended Producer Responsibility Organisation (EPRO) is not a subsidy
Assign lifetime costs where they belong
Without visibility and measurement, there’s no control

8. EXPORT CREDITS
Export credits:
Protect international competitiveness

9. UNDERSTAND THE STAKEHOLDERS
Waste-pickers
Collectors
Transporters
Storage site operators
Processors
End product facilities
Producers
Universities

10. RAPID PAYMENTS TO INFORMAL SECTOR
Direct payments to waste-pickers
Trickle-down doesn’t work
Rapid payments for cash flow
Twice-weekly

11. ENVIRONMENTAL RATINGS
Environmental Ratings link fees to lifetime costs
Better rating  lower fees
Gives Government a tool to stop pollution by setting minimum permissible ratings
Motivate industry to design for recycling
Move away from downcycling
Subsidise upcycling

12. CREATE RECYCLING CAPACITY
Nurture and incubate recycling capacity
Provide financial, technical and administrative support
Nurture and incubate downstream production facilities
Create off-take for recyclers

13. RESEARCH AND DEVELOPMENT
R&D is key to developing new markets
5% of funds to go to R&D
Universities
Build skills
PRODUCT TESTING INSTITUTE

14. FIXING BAD PRACTICES Bad practices get locked in:
Look at long-term cost/benefit
Allocate funding to removing them

15. ADDRESS HISTORICAL IMBALANCES
We have an opportunity to build completely new industries:
Favour the previously disadvantaged sector without taking away from existing industries
Adopt a collaborative approach
Separate the success of the company from the success of the entrepreneur
Cumulatively to February 2016 REDISA has invested R789m in 226 businesses

16. CIRCULAR ECONOMY AND THE BIOSPHERE
The Circular Economy model is the base for:
Market development
Influencing design
Driving beneficial rather than harmful products
Ultimate integration into the Earth’s biosphere

17. EPRO PLANNED OBSOLESCENCE
An EPRO should aim to:
Develop value
Create a self-supporting circular system in its industry
Make itself redundant

18. JOBS AND SMME POTENTIAL
Based on experience with tyres, by 2025: (Adjusting for density and complexity)
SMME potential: 15 jobs/SMME
tons/year
tons/year/job
Jobs
SMMEs
Building rubble
3,970,000
250
15,880
1,059
Packaging
3,096,000 25
123,840
8,256
WEEE
64,000 13
5,120
341
Organic
1,965,000
125
15,720
1,048
Total
160,560
10,704

19. Net positive impact on GDP 200
REDISA’S EXPERIENCE
Over
3000
jobs created
Net positive impact on GDP
Target by end year 5:
In 3½ years, tyres
diverted went from 4% to
63%
Over
200
small businesses created
100%

20. ANY QUESTIONS?