barriers & drivers towards a circular economy
TRANSCRIPT
Towards a Dutch Circular Economy Hotspot! Barriers & Drivers towards a Circular Economy
Freek van Eijk, Managing Director AcceleraAo
We have a decent theoretical model (courtesy EMF)
Drawing: Geanne van Arkel
But making resources circle in reality is slighty more fuzzy
AEB: vision on the Future
What are the Barriers & Drivers towards a Circular Economy? A complex picture emerges out of the inventory
Source: EU Scoping Study 2014
Reducing the complexity using several lenses Barriers and drivers along the various stages of the value-chain
Different geographical levels for action for the recommendations
Type of barriers
Barriers & Drivers
Institutional
Cultural Acceptance
Policy & Regulation
Access 2 Financing
Technological Infrastructural
0-1
1-3
3-5
>10
Barriers & Drivers
General Framework
Design & Production
Consumption
Recycling & Recovery
Logistics
Institutional
Cultural Acceptance
Policy & Regulation
Access 2 Financing
Technological Infrastructural
High-‐lighAng some examples of IdenAfied Barriers & Drivers
Barriers related to Policy & Regulation
Barriers & Drivers
General Framework
Design & Production
Con-sumption
Recycling & Recovery
Logistics
Policy & Regulation
(Value-chain) collaboration versus Antitrust Harmonisation of standards and definitions
Certification & Industry Standards Dynamic standards; from prohibition to effect based controls Eco-Design (of for example non electrical appliances, link with resources and energy efficiency) Substitution of critical substances or substances of high concern
Extended Producer Responsibility Certification & Industry Standards Dynamic standards Waste status review Legal clarity/standards for EoW and ByProducts Preferred position in hierarchy for re-use-repair-refurbish-remanufacture Conflicting regulation & subsidies energy-waste/recycling Status of Bio-fuels in waste hierarchy: energy recovery or recycling? Lack of Resource Passport No tradable permits
Anti-trust in joint logistics concepts for inner cities/ between cities
The importance of Design
Stretch the preferential Treatment Staircase: More focus on Re-use, Repair, Refurbish & Remanufacture
Courtesy: De Groene Zaak et all 2015
Barriers & Drivers
General Framework
Design & Production
Consumption
Recycling & Recovery
Logistics
Cultural Acceptance
Green Public Procurement Reaching the SME target Group Vested interests/incentives support Linear Economy
Eco-label Awareness & behavior Education Consumer acceptance of models based on service and usage instead of ownership
Lack of EducaAon Consumer acceptance of “access to service” Lack of (internaAonal) standardisaAon of methodologies for labelling products Food waste: best before and use by confusion
Industrial Symbiosis Bio-degradable versus bio-based confusion Consumer apps
Lack of standardization and collaboration between cities
Shared Economy & enabling Access over Ownership
Recommendations: Individuals
Freek van Eijk 13 24-09-15
General Framework
Design & Production
Consumption
Recycling & Recovery
Logistics
Access 2 Financing
Removal of distorting subsidies Alternative funding Private funding (not only focus on governmental subsidies) New risk & business models Impact of stranded assets Transparency, Integrated Reporting and more ESG consideration Liability, insolvency and insurance challenges with lease models
Lack of VAT differentiation based on sustainability (for example no reduced VAT for recycled content)
Barriers & Drivers
General Framework
Design & Production
Consumption
Recycling & Recovery
Logistics
Technological Infrastructural
Lack of Competences & Knowledge Importance of new Business Models and Design for sustainable footprint (eco-design, circular design, design for reuse- repair-refurbish-remanufacture-recycling, design for services instead of ownership)
Lack of Specific Skills
The importance of Education: create the leaders for tomorrow
Specific for Businesses • Support programmes for
businesses investing in eco-innovation
• Support programmes for companies that avoid using combinations of materials and include reusable parts in the design of products (eco-design) – e.g. Framework Programme Renewable Resources (Germany, € 800m fund).
• The development of an extensive raw materials information service
• The promotion of cleaner production methods in SMEs
Barriers & Drivers
General Framework
Design & Production
Consumption
Recycling & Recovery
Logistics
Institutional
Linear Accountancy Rules Mandatory/accountable integrated reporting New economic indicator beyond GDP Independent data/certification systems Increased collaboration versus antitrust, data protection and security Pricing in externalities - Economic incentives - Tax measures - Subsidies Regulatory options - Extended Producer responsibility - Choice Restriction
Climate Agreement
Shift in tax from labour to resources: quantify the impact
We are at the start of a transition towards a Circular Economy A transition with winners and losers that might last 1 or 2 generations
Courtesy: Drift
We are not in an era of change but in the change of an era
Dank voor uw aandacht!
Five non-profit organizations have joined forces with our government in the RACE coalition: Realizing Acceleration towards a Circular Economy
They have set up an ambitious program with seven themes to realize the benefits of a Circular Economy. Acceleratio coordinates theme 3: inventory of barriers that hamper investments and a transition towards a Circular Economy
They communicate under the name of:
With power concentraAons in value-‐chains…..
What role to play for government in cultural issues? • AWARENESS
• OPPORTUNITIES TREATS VISION
• TRUST INTERDEPENDANCY SYMBIOSIS • COLLABORATIVE CO-‐CREATION • DIVERSITY EXPERIMENTATION GIVE
THE EXAMPLE • BUILT DEMOLISH
RESILIENCE • EDUCATION MAKE IT EASY
• CREATE CONDITIONS
RegulaKon in general
“We are looking with old spectacles to new initiatives”
Barriers • Some ineffecAve or insufficient policy tools, • Unaddressed implementaAon problems, • Lack of coherence between policy instruments • creaAon of administraAve burden and barriers • Lack of harmonised definiAons & standards • The present regulatory system is pre-‐dominantly sectorial
and has a one sided orientaAon on risks. • We tend to be late and reacAve in our adjustments of
regulaAon which is frustraAng new iniAaAves. • Pre-‐dominant focus on “end-‐of-‐pipe”