morten hoejer | policy lab netherlands 2015

Energieffektivitet i byggeriet:xxx

The Circular City: Lessons from Copenhagen

EUKN Policy Lab, The Hague

June 18, 2015

Morten HojerCity of Copenhagen

Outline

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Reflections on the “Circular Economy”

CPH 2025 Climate Plan

CPH - Mainstream Partnership

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2

3

The resource base of human activity

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”All our activities are dependent ultimately on resources found in Nature. Whether it is consumption or production, or wheteher it is exchange, the commodities and services that are involved can be traced to constituents provided by Nature. Thus, the ingredients of a typical manufactured product are other manufactured products, labour time and skills, and resources found in Nature. Each of the constituent manufactured products is in turn a complex of yet other manufactured products, labour time and skills, and resources found in Nature. And so on. This means that the manufactured product with which we began is ultimately a combination of labour time and skills, and resources found in Nature.

But labour, too, is a produced good. Even raw labour is an output, manufactured by those resources that sustain life; resources such as the multitude of nutrients we consume, the air we breathe, and the water we drink. It follows that all commodities are traceable to natural resources”.

Sir Partha Dasgupta,Frank Ramsey Professor Emeritus of EconomicsUniversity of Cambridge

What can the idea of a ”circular economy” do for us?

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Pros

• Externalities across global value chains• Joint externalities (energy, environmental resources, time, public health)• Huge potential for innovation

Cons • Economic limits to circularity?• Focus on resource flows, but what about capital stocks?

Roadmap for transition towards a ”circular economy” – the shift has alrady begun

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2025

Materials costsavings (%)

Industry leaders build competitive advantage

Pioneeringphase

Advancedscenario

> 20%

Transitionscenario

12-14%

Mainstreamingphase

▪ Circular product design and manufacturing

▪ Business model innovation

▪ Building capacity for reverse logistics

▪ Leverage of brands and market shares

▪ Transformational changes in corporate sector and government

▪ Organizing reverse-cycle markets

▪ Rethinking incentives

▪ Innovation, entrepreneurship and education

▪ Collaborative consumption models

▪ Patterns of “creative destruction” involving winners and losers

Circularity goes mainstream

Potential market sizefor revalorized materials

Outline

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Reflections on the “Circular Economy”

CPH 2025 Climate Plan

CPH - Mainstream Partnership

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2

3

Climate and ”green growth” – putting visions into practice

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Copenhagen as a driver for sustainable innovation

The Copenhagen Story

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Challenges and opportunities

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Room for growth

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• 1000 new inhabitants every month

• 20 % increase in population towards 2025

• +25.000 new housing units

• +2,8 mio. m2 of office spaces

• +20.000 new private sector jobs

Creating a smart city

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Engaging key stakeholders

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Partnerships and clusters

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London School of Economics has identified Copenhagen as a ”green economy leader”

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Gross value added per capita, 2009 USD

Euro

pean

Gre

enCi

ty In

dex

If Copenhagen is to maintain its leading position, integrated policy programmes will be needed across three broad strategic areas:

Competitiveness in the shortand medium term

Inde

xed

grow

th

1994 2010

Becoming carbon neutralby 2025

Maintaining a compacturban form

Providing effective supportfor growth and innovation

1 2 3

High and growing levels ofenvironmental performance

Sustainable growth in outputand welfare

CopenhagenUSD 70.000/cap.

GVA/cap.

CO2/cap.

1

2

3

2004 2009

LSE: ”Is there is an economic rationale for early action on ’green growth’ in cities?”

CPH 2025 includes ambitious CO2 reductions from plastics

Source: CPH 2025 Climate Plan.

54

17

10

360

365

100

30

40

40

30

25

10

7

3

70

1,161

Mobility

Total

Copenhagenmunicipality

Energyproduction

Energyconsumption

New initiatives

▪ Wind

▪ Biomass

▪ Separation of plastics

▪ Peak load conversion

▪ City of bicycles

▪ ITS and mobility planning

▪ Public transport

▪ Alternative fuels

▪ Buildings

▪ Transport

▪ Street lights

▪ Commercial energy

▪ Household energy

▪ PV

7 %

100 %

74 %

11 %

2 %

6 %

InitiativesExpected reductions, 1.000 ton CO2 by 2025 Pct. (%)

8 %

Outline

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Reflections on the “Circular Economy”

CPH 2025 Climate Plan

CPH - Mainstream Partnership

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2

3

From vision to practice – focus on significant material flows

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The city of Copenhagen has has partnered with Project Mainstream to develop a ”Global Plastic Packaging Roadmap”

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Plastic packaging is a 100 MT business which is…

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• Prevalent, growing… and overwhelmingly linear• Performing a multi-dimensional role vital to the brand and

product• Subject to intensive innovation – on materials, formats and

recycling• Almost entirely single-use in the consumer space• High-volume, low-value, widely dispersed• Falling into municipal waste – which is highly fragmented• In a range of formats, some with no chance of effective

collection• Creating systemic post-use leakage, resulting in increasing

attention on issues such as ocean plastic waste• In close interaction with other value chains – energy and food• Optimised in a linear context, often with lightweighting and

incineration

GPPR well-positioned for a range of city-focused pilots – how can we work together?

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Thank you

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MORTEN HOJERChief Advisor onClimate and Economy

(+45) 23 39 34 43morten.hojer@tmf.kk.dk

www.kk.dk/climate and www.kk.dk/english