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Circular Economy: Driving Resiliency through Collaboration & Innovation Livable Cities Forum 2017 September 19, 2017 1 delphi.ca The Delphi Group Strategic consulting company focused on climate change & corporate sustainability

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Circular Economy:

Driving Resiliency through Collaboration & Innovation

Livable Cities Forum 2017

September 19, 2017

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The Delphi Group

  • Strategic consulting company focused on climate

change & corporate sustainability for last 28 years

  • Cross-disciplinary team including economic

development, strategy, engineering, technology & policy expertise

  • Provide national & global perspectives
  • Produce the GLOBE Series of Conferences
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Overview

  • 1. Introduction
  • 2. Enabling Factors
  • 3. Private Sector Leaders
  • 4. Policy Leaders
  • 5. Municipal Examples
  • 6. Key Take-Aways
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INTRODUCTION: THE CIRCULAR ECONOMY

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Source: Google Dictionary

e·con·o·my

noun

  • 1. the wealth and resources of a country or

region, especially in terms of the production and consumption of goods and services.

  • 2. careful management of available resources.

Definition

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Definition

Ellen MacArthur Foundation: “A circular economy is one that is restorative and regenerative by design, and which aims to keep products, components and materials at their highest utility and value at all times, distinguishing between technical and biological cycles.”

Circular economy concept has its roots in… sustainable development industrial ecology ecological economics

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From “Waste” to “Resources”

Moves beyond traditional waste management and material / resource efficiency Shift from “Waste” to “Resource”… harnessing full value of resources and reducing the speed of material transit through the economy. Heavy focus on upstream components: waste prevention through eco-design, re-use / refurbishment / remanufacturing, and recycling, and looking to minimize incineration and disposal. Reduce Reuse Recycle Recovery Disposal

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A Shift to Systems Thinking

Transition from linear model to system-wide perspective…

Key Characteristics: 1. Less input & use of natural resources 2. Increased share of renewable resources & energy 3. Reduced emissions 4. Fewer material losses / residuals 5. Maximizing value of products, components & materials

Source: European Environmental Agency

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ENABLING FACTORS

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Circular Economy:

Enabling Factors

  • 1. Eco-design
  • Products designed for a longer life, enabling

upgrading, reuse, refurbishment and remanufacture

  • Product design based on the sustainable and

minimal use of resources and enabling high- quality recycling of materials at the end of a product's life

  • Substitution of hazardous substances in

products and processes, enabling cleaner material cycles

The European Commission suggests that more than 80% of a product’s environmental impact is determined in the design phase.

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Circular Economy:

Enabling Factors

  • 2. Repair, refurbishment & remanufacture
  • Repair, refurbishment and remanufacture given

priority, enabling reuse of products and components

Sweden and Flanders are offering tax breaks to consumers by incenting the repair of products (such as bicycles, sewing machines, and other small appliances) and creating local jobs.

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Circular Economy:

Enabling Factors

  • 3. Recycling
  • High-quality recycling of as much waste as possible,

avoiding down-cycling (converting waste materials or products into new materials or products of lesser quality)

  • Use of recycled materials as secondary raw materials
  • Well-functioning markets for secondary raw materials
  • Avoidance of mixing and contaminating materials
  • Cascading use of materials where high-quality

recycling is not possible

Finland has been investing in innovation and technology to improve the sorting of recyclable and improve the recovered value of resource streams.

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Circular Economy:

Enabling Factors

  • 4. Economic incentives & finance
  • Shifting taxes from labour to natural resources

and pollution

  • Phasing out environmentally harmful subsidies
  • Internalization of environmental costs
  • Extended producer responsibility
  • Finance mechanisms supporting circular

economy deposit systems approaches

The EC has partnered with the European Investment Bank to establish a “Circular Economy Finance Support Platform”, designed to bring investors and innovators together.

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A trial grocery store in Australia has moved beyond sell-by and use- by labels offering free food or by donation.

Circular Economy:

Enabling Factors

  • 5. New business models
  • Brings new business models and opportunities for

investment and job creation, linked to innovative ways

  • f producing and consuming goods and services
  • Collaboration and transparency along the value chain
  • Industrial symbiosis (collaboration between companies

whereby the wastes or by-products of one become a resource for another)

  • Focus on offering product–service systems rather than

product ownership

  • Digitalization allowing consumers to connect in new

ways and share available resources and assets (e.g., sharing economy)

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The UK’s National Industrial Symbiosis (NISP) model involves sharing

  • f knowledge and best practices between industries, turning waste

into a resource.

Circular Economy:

Enabling Factors

  • 6. Governance, skills & knowledge
  • Education
  • Awareness raising about changing lifestyles

and priorities in consumption patterns

  • Participation, stakeholder interaction and

exchange of experience

  • Data, monitoring and indicators
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PRIVATE SECTOR LEADERS

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Private Sector Leadership

Companies rethinking production processes to protect against price and resource fluctuations across supply chains.

= resiliency & competitiveness

  • Optimizing / minimizing resource use through technological

investments and Lean processes.

  • Designing circular products with full lifecycle perspective –

integrating second-use phases, take-back systems, design for disassembly, reparability, reusability, and recyclability.

8 EMF Global Partners committed to going “100% circular”

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Case Study: Zero Waste Paper

  • Smurfit Kappa recycled paper mill in the Netherlands:
  • ne of the largest yet most efficient mills in Europe

(uses less water and energy per ton of paper produced).

  • Produces less than 1kg of solid waste for every ton of

paper it produces (compared to 32kg for recycled paper competitors).

  • Uses no virgin wood fibres – relies on recovered

paper and innovative by-products (e.g., tomato stems, potato starch, calcium carbonate).

  • Uses impurities (i.e., plastics, metal, wood, sand) for

its internal processes or sells as revenue streams to

  • ther industries (saving on tipping fees).
  • Wastewater sulphur = fertilizer to farmers
  • Lime sludge = raw material for paper-making
  • Plastics = fuel pellets for cement industry
  • Sand & glass = sold to construction industry
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POLICY LEADERS

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China

  • Concept of a “circular economy” has been in use for

more than two decades in China

  • Heavily focused on upstream components and the

manufacturing supply chain

  • Closely tied to industrial symbiosis and industrial

ecology systems

  • Micro‐level (i.e., company or single consumer

level), meso‐level (e.g., eco‐industrial parks), and macro‐level (i.e., cities, provinces, and regions)

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Japan

  • Key drivers are lack of land for waste disposal and

shortage of domestic raw materials.

  • The country landfills less than 5% of its waste and

recycles 98% of its metals.

  • Japan’s “Law for the Promotion of Effective

Utilization of Resources” (2000) covers entire lifespan of products, requiring manufacturers to run disassembly plants.

City of Kamikatsu’s zero-waste efforts include separating waste into 34 categories for recycling and treatment.

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The EU’s policy framework has become increasingly holistic, embracing both circular economy and green economy.

Source: European Environmental Agency

European Union

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EU Circular Economy Package

50+ initiatives and programs 5 priority materials streams: (1) Plastic waste (2) Food waste (3) Critical raw materials (4) Construction / demolition waste (5) Biomass / bio-based products Large focus on R&D and innovation EU Circular Economy Package

Production Consumption Waste Management Waste-to- Resource Innovation

Economic Impacts:

  • Create 170,000 direct jobs by

2035 through waste management measures

  • Boost GDP by 3% through

reduction of total material requirements of up to 20%

  • Save of €465 (CAD $651) per

household per year by 2020 through energy efficiency.

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Comprehensive Strategies

  • Leading countries adopting comprehensive Circular

Economy policies through rigorous engagement across government and with key stakeholders.

  • Circular Economy as an economic policy that can

drive GDP and job growth while positively impacting

  • n environment.
  • “Overarching” policies:

– Japan: “Basic Act for a Sound Material-Cycle Society” – Finland: “Roadmap to a Circular Economy (2016-2025)” – Scotland: “Making Things Last: CE Strategy for Scotland” – Denmark: “Denmark Without Waste” – Netherlands: Circular Economy in the Netherlands by 2050”. – Germany: “Circular Economy Act”

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Policy Areas of Focus

Maximizing Value of Materials & Resources Decoupling Resources from Negative Impacts Strategies for Bio- based Economy Strategies Focused on Waste Prevention Focus on Repair, Reuse & Remanufacturing Innovation Funds Green Public Procurement Landfill Bans & Taxes Industrial Symbiosis Programs Recycling Efforts & Producer Responsibility

Upstream Downstream

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MUNICIPAL EXAMPLES

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  • The Eco Town Program introduced the zero

waste concept, where any waste generated from one industry is to be utilized as material by another.

  • Eco Town Plans created by towns, cities, or

business unions are submitted to prefectural government for endorsement, after which Ministry of Environment (MOEJ) and Ministry

  • f Economy, Trade, and Industry (METI)

provides comprehensive, multi-facetted support.

Case Study: Japan’s Eco Towns

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  • Zero Waste Scotland provides funding

and resource assistance to attain town- wide targets of 70% household recycling rate and 33% reduction in waste food by 2025.

  • The ZWS Resource Efficient Circular

Economy Accelerator Program is helping implement ideas.

Case Study: Scotland’s Zero Waste Towns

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  • 8 municipalities under FISU set targets to

become carbon neutral, waste free, and to limit ecological footprints to Earth’s carrying capacity by 2050 (at the latest).

  • Have developed collective Roadmap and are

participating in measurement studies of per capita CO2 emissions, material losses, and

  • verall ecological footprint to raise awareness of

citizens and businesses, and to work towards having a ‘resource wise’ population.

Case Study: Finnish Sustainable Communities (FISU)

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Case Study: Circular Amsterdam

  • City committed to circular economy as a pillar of its

sustainability and economic resiliency policy.

  • The first Circle City Scan was completed with the city
  • f Amsterdam. Scan consisted of 4 phases:

1. Material and energy flows, along with employment levels. 2. Value chain inter-connectedness (macro-economic). 3. Visioning of 2 ‘circular’ sectors of highest priority. 4. Action agenda and roadmap developed.

  • Stakeholder engagement prioritized construction

sector and organic residual flows.

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EMF’s Circular Cities Network

  • Ellen MacArthur Foundation’s Circular Cities

Network is a platform for knowledge exchange between cities to learn from challenges and success stories.

  • There are 12 cities in the Network (by

invitation) including Vancouver and Toronto.

  • Can also engage through EMF’s Policy Toolkit.

EMF Policy Toolkit: Includes 11 tools, case study

  • n Denmark, and a focus on key sectors (F&B,

construction, manufacturing).

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KEY TAKE-AWAYS

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Key Take-Aways

  • Systems thinking is key
  • Collaboration is driving innovation
  • Investments in R&D improving resiliency
  • CE policies providing GHG reductions
  • Economic development potential is big
  • Awareness, education, training is important
  • Good governance and supporting frameworks
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THANK YOU!

Contact:

Paul Shorthouse

Regional Director, The Delphi Group

pshorthouse@delphi.ca