Martin R. Stuchtey: A Circular Economy Roadmap for Finland
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Transcript of Martin R. Stuchtey: A Circular Economy Roadmap for Finland
1
SystemiQ Ltd
160921 A Circular Economy Roadmap for Finland
Prof. Dr. Martin R. Stuchtey
SITRA
2
Paradigm crisis?
SOURCE: Thomas Kuhn, Structure of a Scientific Revolution (1964) 1
3
Out of steam …
6SOURCE: Insee, Statistisches Bundesamt, U.S. Bureau of Economic Analysis
80751960 7065 10
6
2000950
-6
2015059085
2
-2
4
-4
8
Germany
USA
France
4.8%
3.2%2.7%
2.5%
1.3%
4
Growing together
… diverging …
“The Great Divergence”
500
400
300
200
100
80 959085 201005
Median family income
2000
Global GPI per capita
Private employment
Real GDP per capita
Labor productivity
50 55 751947 60 65 70
U.S. labor productivity, GDP per capita, employment, median income, and Global GPI per capita
Indexed to 1947
2SOURCE: Federal Reserve Bank of St. Louis, Brynjolfsson and McAfee , Kubiszewski et al. (2013)
5
… and exposed.
4SOURCE: UNEP (2011)
100
0
50
Metabolic rate, t/cap/yr
GDP per capita, Constant year 2000 US$
Africa
Europe
North America
West Asia
Latin America and Caribbean
Asia and Pacific
Mongolia
Mauritania
Somalia
DR
Congo
Afghanistan
Burundi
ComorosEquatorial Guinea
Gabon
Puerto Rica
French Polynesia
Switzerland
Japan
Norway
Bahamas
Great Britain
Denmark
Sweden
GermanyFranceItaly
Brunei Darussalam
IsraelBelgium
Finland Iceland
USACanada
Ireland
United Arab Emirates
Qatar
Australia
New Zealand
New CaledoniaKuwait
Greece
Cyprus
SpainPortugal
Saudi ArabiaArgentina
SloveniaUruguay
Estonia
Malaysia
Poland
Hungary
Libya
MaltaOman
Mexico
Sierra
LeoneBangladesh Timor-Leste
Yemen Congo
Sri LankaAngola
HaitiGambiaRwanda
Liberia
MyanmarCambodia
MalawiTajikistan
Guinea-Bissau
Niger
Ethiopia
Eritrea
Nepal
ChadMali Togo
Kenya
India
Cote d'Ivoire
Armenia
Georgia
Central African Republic
Ghana
Guinea
Senegal
Zimbabwe
Sudan
Lesotho
Uzbekistan
Ukraine
Turkmenistan
Indonesia
NicaraguaHonduras
Philippines
CameroonCape Verde
Samoa
Iraq
MoroccoAlgeria
El Salvador
EgyptAlbania
China
Serbia
BelarusCuba
Swaziland
Peru
Thailand
Dominican Republic
Latvia
LithuaniaPanama
Turkey
Namibia
RussiaBolivia
Kazakhstan
Paraguay
Papua New Guinea
Guyana
Chile
Suriname
South Africa
Brazil
Mauritius
Croatia
Lebanon
R2 = 0.60
50 100 1,000 10,000 100,000
6
Last June, at the European Commission in Brussels
"I passionately believe in the opportunities of
the circular economy. The future is not
making things with finite components."
Frans Timmermans, EU Commission First
Vice President
"I am very impressed by the findings of
Growth Within report, looking forward to
developing our shared agenda"
Karmenu Vella, EU Commissionner
Environment, Maritime Affairs and Fisheries
"Circular economy will be a similar mega
trend in economy as globalisation. I'm
convinced that the circular economy can
enable a triple win: economic, environmental
and social."
Jyrki Katainen - EU Vice President Jobs,
Growth, Investment and Competitiveness
7
A vision for an economy that reconciles planet and prosperity
3
Circular material backbone
▪ Reducing waste in our largest
systems recognized as a major
source of wealth and improved
environmental performance
▪ Focus on mobility, food, housing, as
these three systems represent 70-80
per cent of all resource use
▪ Cities play major role in all the three
largest systems of mobility, food,
housing
▪ Shift to renewable energy sources
(hydro, solar, wind, biomass, …)
▪ Abundant cheap clean energy
recognized as a key driver of
economic growth
Net positive norm ▪ Company norm of net positive impact across manufactured, natural and human capital
▪ ‘Good’ – not ‘less bad’
▪ Initially a voluntary norm, over time supported by formal externality pricing in more and more areas
Abundant clean energy High-productivity systems
▪ Clear separation between biological
and technical materials
– Biological materials consumed,
then returned safely to biosphere
– Technical materials re-used many
times (not consumed)
▪ Use of virgin finite materials radically
lower than today
▪ Large secondary material industry
and market
▪ A well-kept bank of materials that
circulate many times in the economy
seen as a competitive advantage for
a country
8
… based on circular economy principles
SOURCE: Ellen MacArthur Foundation (2013)
Comprehensive, ambitious, inclusive.
10
Finland – championing again?
1
The narrative to rally people behind the transition to a circular economy in Finland needs to include more than
the resource efficiency benefits. It must relevant to the social reality of lives.
The overall Roadmap to a Circular Economy for Finland has a very high ambition level, however it requires a
stronger implementation mechanism.
A measuring and evaluation system needs to be set up that incorporates all relevant dimensions. The
circular economy, properly applied may be a central tool to drive the Inclusive Wealth Index (IWI).
The transition must be managed carefully. Businesses and assets most at risk should be identified early on,
transitional planning and support mechanisms should be defined in order to mitigate resistance.
Strengthen the international dimension, in order to accelerate the transition and ensure the relevance to
the export sector.
Finally, let the young generation own the program. Your ambition is nothing less than a fundamental
redesign of the industrial platform and you should deeply involve (school and university) students.
Integrate the digital and circular economy agenda in Finland as some of the largest opportunities
come with virtualization, web-based sharing and intelligent assets.