Barriers & drivers towards a circular economy

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


High-‐lighAng some examples of IdenAfied Barriers & Drivers

Barriers related to Policy & Regulation

Barriers & Drivers

General Framework

Design & Production

Con-sumption


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


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


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


Logistics


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


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”

Barriers & drivers towards a circular economy

Economy & Finance

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