Circular Business Models Dr. Arthur ten Wolde Head of Circular - - PowerPoint PPT Presentation

Circular Business Models

• Dr. Arthur ten Wolde

Head of Circular Future Member of Coop ARC

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• No waste in the environment
• redesign, share, production, use, reuse, maintain, repair, refurbish, recycle,

2nd life sales, renewable energy

• Performance based contracting
• Responsibility shifts
• From possession to use
• From sustainability to economy
• How a company creates, delivers and profits from value added to

the economy of tomorrow

• 22 business models in 6 categories of circular value creation

What is a circular economy?

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Innovatie

Graph from: ‘Ondernemen in de circulaire economie’, OPAi and MVO Nederland, 2014

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Winnaars

Cost reduction Turnover perspectives Innovation Long term contracts Customer loyalty Chain cooperation

Advantages circular business models

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• CE could make 3 million jobs by 2030
• Up to 600 billion Euro could be saved

per year in EU

• CE can lead to resource resilience by

saving resources and leave them in there natural base.

• CE leads to Waste reduction and

reduced environmental impact

Sources: European Commission, the Ellen MacArthur Foundation (EMF), WRAP and Accenture

Opportunities for European Economy

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1. Short cycle: Pay per use, repair, waste reduction, sharing platforms, progressive purchase 2. Long cycle: Performance based contracting, maintenance, take back management, next life sales, refurbish & resell, product-based services 3. Cascading: Cascading, recycling, upcycling, collaborative production 4. Pure circles: Cradle to cradle, circular sourcing 5. Digitisation: physical to virtual, subscription based rental 6. Produce on demand: Produce on order, 3D printing, customer vote (design)

22 circular business models in 6 categories

Source: Coop ARC / Koen van Renswoude, Arthur ten Wolde and Douwe Jan Joustra, Circular Business Models, IMSA Amsterdam, April 2015

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Pay per copy

Category 1: Short cycle

• 1. Pay per use
• 2. Repair
• 3. Waste reduction
• 4. Sharing platforms
• 5. Progressive purchase

Sharing platforms

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• 6. Performance based

contracting

• 7. Maintenance
• 8. Take back management
• 9. Next life sales
• 10. Refurbish & resell
• 11. Product-based services

Category 2: Long cycle

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Category 3: Cascading

• 12. Cascading
• 13. Recycling
• 14. Upcycling
• 15. Collaborative production

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16.Cradle to cradle 17.Circular sourcing Category 4: Pure circles

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Korte cyclus

• 18. Physical to virtual
• 19. Subscription based

rental Category 5: Digitisation

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Korte cyclus

• 20. Produce on order
• 21. 3D printing
• 22. Customer vote (design)

Category 6: Produce on demand

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Korte cyclus

Coop ARC Circular Business Scan

Value Proposition Design Supply / Procurement Manufacturing Use Second life

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Korte cyclus

CIRCO Value Hill

Source: Circo, The Netherlands

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Korte cyclus

• 1. Lack of demand pull for circular products and

services, especially from public procurement

• 2. Lack of transparency through the value chain

Main barriers to doing circular business

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Korte cyclus

• Overall: Market pull measures & design requirements driving innovation

to circular products and services

• Clear price incentives for producers and consumers: Extended Producer

Responsibility (EPR), VAT, tax shift

• Green Public Procurement: massive training program
• Expand Ecodesign directive to circularity for all (end) products
• Add ambitious goals for reuse, repair, sharing etc.
• Enforcement of existing and smart circular economy regulations
• An attractive research programme
• Stop EU subsidies for incineration plants until recycling capacity in place

Main asks for a strong EU Circular Economy Package

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Korte cyclus

• Differentiate levies down to product and company level
• Ensure mandatory harmonized criteria
• Extend EPR to cover more and more products and

sectors

• Mandatory investment of the EPR funds in circular

economy

• Modulated fees may involve other considerations than

waste management costs but should be transparent and based on relevant, consistent criteria

• Boost ecodesign and secondary raw materials markets

Improve and expand Extended Producer Responsibility (EPR)

THANK YOU FOR YOUR ATTENTION Arthur ten Wolde +31 6 1319 6238 arthur.ten.wolde@circular-future.eu