www.ieep.eu @IEEP_eu

Solutions for Sustainable Production and Consumption Patrick ten Brink

Head of Green Economy Programme, IEEP with thanks to

Jean-Pierre Schweitzer, Alison Ratliff and Céline Charveriat

Next steps for a sustainable European future: Reforming Europe, implementing SDGs

European Economic and Social Committee

Sustainable Development Observatory Conference

Brussels, 7th July 2016

Contents: Sustainable Production and Consumption

1. SDG 12 and beyond – Ensuring sustainable consumption & production (SCP) patterns central to SDGs

2. Decoupling as a lens

3. Limits of linear economy

4. Opportunities in a circular economy

5. Tools – policy instruments to bring circularity

6. Sustainable Consumption – examples

7. Sustainable Production – examples

8. Looking forward to innovation in Europe

SDG 12: Ensuring sustainable consumption & production (SCP) patterns

Goal 12 key targets & indicators: - Policy – national SCP policies - Resources – material footprint;

DMC/capita; DMC/GDP - Food systems – global food loss

index - Waste – recycling rate;

hazardous waste standards - Business/CSR – company

sustainability reports - Public sector – GPP programs - Education – sustainability

mainstreamed

Relevance of SCP for other SDGs

• SCP is central to SDGs, it has cross-cutting relevance and requires a comprehensive and global response

• Reaching goals for SCP would bring us closer to achieving :

Relevant specific targets include: Targets 8.4 on resource efficiency, 7.2 Renewable Energy, 6.4 Water Efficiency, 14.2 on managing pollution of oceans (marine litter); also an opportunity to develop a fairer society through the inclusion of wide range of stakeholders (towards gender equality, more jobs created)…

Decoupling as a lens

Decoupling and earth systems science can be used as a lens to consider SCP

Source: Fedrigo-Fazio, D.; Schweitzer, J.-P.; ten Brink, P.; Mazza, L.; Ratliff, A.; Watkins, E. Evidence of Absolute Decoupling from Real World Policy Mixes in Europe. Sustainability 2016, 8, 517. http://www.mdpi.com/2071-1050/8/6/517

Relative decoupling of resource use and pollution is welcome and necessary But absolute decoupling essential to ensure sustainability

Decoupling

Effective decoupling looks beyond GDP, respecting absolute resource limits, ecosystem critical thresholds and planetary boundaries. An emphasis on increasing well-being & resilience useful to complement economic growth.

Source: Patrick ten Brink in Fedrigo-Fazio, et al

Our linear economy

Source: Patrick ten Brink and Paulo Razzini

Limits of our linear economy: built in wastefulness

• Waste – significant economic losses, – average EU citizen 16 tonnes of material consumed, >60% to

landfill/incineration, 95% of material and energy value lost • Future trends – growing populations and consumption.

– 5 billion global middle class by 2030 increasing environmental & resource pressures

• Environmental pressure – over exploitation of natural capital threatens planetary boundaries and the economy

The economy is currently based primarily on linear production and consumption model. Consequently resource use and wastefulness are inherent. The economy is closely coupled with environmental degradation and advancing planetary boundaries.

Extraction Production processes

Distribution Consumption/

use Collection

The Circular Economy

Source: Patrick ten Brink and Paulo Razzini

Opportunities in a circular economy

• Reducing input – efficiencies, closing the loop, industrial symbiosis, diversifying streams

• Reducing demand – sharing/collaborative models, repair • Innovative design – biological waste streams, intelligent/modular

design • Creating social opportunities – job creation, inclusion of minority

groups and promotion of gender equality in the development of this economic model

Circular economy approaches can reduce the extraction of raw materials and reduce the production of waste – hence support decoupling.

This offers benefits for job creation in processes/innovation and in value retention in otherwise waste or underutilised materials.

This requires changes in both production and consumption systems.

Policy opportunities at the EU level not limited to CE Action Plan i.e. CAP reform; Innovation via FP7/Horizon 2020; trade dialogues e.g. TTIP

Tools – policy instruments to bring circularity

A number of instruments can support the transition to a circular economy. These can support sustainable production and consumption systems.

Policy Instrument Type of intervention Example

Regulatory based

Eco-design regulations; Emissions requirements; Product bans; Land planning

Micro-bead ban in cosmetics in the USA, Styrofoam ban in San Francisco

Market based

Pigovian/environmental taxes; Charges; Deposit Refund; Quotas; Cap and trade; GPP; EHS reform

AB Svenska Returpack deposit refund on PET, glass and cans in Sweden

Information based Certification; Labelling; Education; Awareness Raising

EU Ecolabel

Assessment tools/indicators Whole life costing; Foot-printing; Life Cycle Analysis

Eurostat Resource Efficiency Scoreboard

Other, non policy Grass roots; Volunteering; Collaborative/sharing models; Industrial symbiosis

Community Supported Agriculture (CSA) schemes across EU

Unsustainable Production – Microbeads

Plastic micro beads in cosmetics (EU wide) – plastic beads used as an abrasive in cosmetics Policy: USA ban on micro beads from

June 2017, EU only voluntary agreements

Impact: estimate more than 4,000 tonnes of microbeads used in 2012, straight into the ocean as not captured in water treatment facilities.

Relevant SDG – 14.1 By 2025 reduce marine pollution from land based activities; 12.4 By 2020 environmentally sound management and all wastes throughout their life cycle

https://www.ellenmacarthurfoundation.org/assets/downloads/publications/EllenMacArthurFoundation_Growth-Within_July15.pdf Plastic Soup Foundation (2016) Companies that have pledge to stop using microbead. Beatthemicrobead. Available online (21st June 2016) at: https://www.beatthemicrobead.org/en/industry

Sustainable production – restoring fish stocks

Sustainable fish stocks (national, Iceland) - over exploitation of fisheries led to a collapse of fish stocks and marine biodiversity. Policy mix: Total Allowable Catches

(TAC), Individual Tradable Quotas (ITQs) and a resource tax were slowly introduced.

Impact: Fish stocks have been stabilised and industry demonstrates growth. Exploitation stabilised less than 10% of catches, doubling of biomass (1997-2012)

Relevant SDG – 14.4.1 Fish stocks within biologically sustainable levels

Source: Fedrigo-Fazio, D.; Schweitzer, J.-P.; ten Brink, P.; Mazza, L.; Ratliff, A.; Watkins, E. Evidence of Absolute Decoupling from Real World Policy Mixes in Europe. Sustainability 2016, 8, 517. http://www.mdpi.com/2071-1050/8/6/517

Sustainable production – CSA permaculture

TERRA Urban Farming (local, Luxembourg) – agricultural systems in the EU are highly unsustainable, dependent on subsidies and fertilizers Policy Mix: grass roots, cooperative

community supported agriculture (CSA) 1.5 ha farm in Luxembourg City, permaculture and heritage cultivars

Impact: initiative supports local sustainable food production for 150 families, employment, biodiversity and community engagement.

Relevant SDG – 2.4 By 2030, ensure sustainable food production

Schweitzer J-P., Mutafoglu K., ten Brink P., Paquel K., Illes A., Gitti G., Kettunen M., TwiggerRoss C., Baker J., Kuipers Y., Emonts M., Tyrväinen L., Hujala T., and Ojala A. (2016) The Health and Social Benefits of Nature and Biodiversity Protection: Annex 1: 20 Cases. A report for the European Commission (ENV.B.3/ETU/2014/0039), Institute for European Environmental Policy, London/Brussels http://ieep.eu/assets/2075/Health_and_Social_Benefits_of_Nature_-_Final_Report_Annex_1_-_20_cases_sent.pdf

Unsustainable Consumption – EHS

Tax reduction for diesel fuel – lower tax on diesel intended to favour commercial vehicles. Example for DE: Policy: 47.04 cents per litre

compare to 65.45 per litre for petrol (2010)

Impact: concession for diesel of EUR 6.15 billion per year, diesel 10x more nitrogen oxides, and 13% more CO2

Relevant SDG – 12.c – rationalise inefficient fossil fuel subsidies

https://www.umweltbundesamt.de/sites/default/files/medien/publikation/long/3896.pdf Oosterhuis F. and ten Brink P. (Eds) (2014) Paying the Polluter. Environmentally Harmful Subsidies and their Reform. Edward Elgar 2014) http://www.e-elgar.co.uk/bookentry_main.lasso?currency=US&id=15338 http://www.e-elgar.com/shop/paying-the-polluter?___website=uk_warehouse

Sustainable Consumption – Bag tax Ireland

Plastic bag tax (national, Ireland) – single use plastic bags a common issue for terrestrial and marine litter. Policy mix: 2002 incrementally

introduction of a plastic bag tax (EUR 0.15 – 0.22), accompanied by an awareness raising campaign. Funds from the tax were earmarked for environmental protection.

• Impact: measurable reductions in bag use (328 per capita p.a. to 14)

• Relevant SDG – 14.1 By 2025 reduce marine pollution from land based activities

Department of the Environment, Community and Local Government, 2016, Plastic bag levy. http://www.environ.ie/environment/waste/plastic-bags/plastic-bag-levy http://www.mdpi.com/2071-1050/8/6/517

Sustainable Consumption – GPP Denmark

Green Public Procurement (national, Denmark) – public procurement is equivalent to EUR 2 trillion in the EU (19% of GDP), EUR 38 bn in Denmark Policy Mix: DK established a

Partnership for GPP with the Ministry of Environment and Food. 14 partners integrate greening across 11 product groups

Impact: total procurement value now EUR >5 billion

Relevant SDG – 12.7 Promote sustainable public procurement practices

https://www.ellenmacarthurfoundation.org/case-studies/denmark-public-procurement-as-a-circular-economy-enabler

SDGs, SCP, decoupling and the circular economy

• SCP can help realise a range of SDGs

• Need to accelerate relative decoupling and move to absolute decoupling to meet SDGs and SCP ambitions.

• Need to fast track circular economy measures to keep resources and their value in the economy and out of the environment

• These will bring benefits to the economy, society (i.e. jobs) and environment

• Range of tools that address each – from fiscal reform, to standards, product design, information provision, enabling civil society action, assessment tools, investment….

• Requires all stakeholders to engage

• EU has self-interest in progress & responsibility within global context

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Recent and ongoing work at IEEP

Analysing new areas of policy …

• e.g. The optimised cascading use of wood– for DG Growth

Assessing socio-economic costs…

• e.g The Socio-Economics of Marine Litter – for UNEP

Assessing socio-economic benefits …

• e.g. Health and Social Benefits of Biodiversity and Nature Protection – for DG Environment

Presenting the evidence base and innovative solutions …

• e.g. Paying the Polluter book edited by Oosterhuis and ten Brink

Reviewing stakeholders roles …

• e.g. Building the Europe we want: Models for Civil Society Involvement in the Implementation of the SDGs

Engaging stakeholders and capacity building …

• e.g. Capacity building in environmental taxation reform (ETR) to address resources & pollution – for DG Environment

Disseminating best practice …

• e.g. Beyond GDP Service – for DG Environment

Pooling knowledge …

• e.g. ACES: Alliance for Circular Economy Solutions – for the MAVA foundation, with the Green Alliance and partners:

Aldersgate Group (UK), De Groene Zaak (NL), Ecologic Institute (DE) & UnternehmensGrün (DE)

IEEP aims to make the value of the environment better understood and to better integrate it into policies in Europe and beyond. Work on the SDGs and supporting SCP, decoupling and the circular economy are priority areas for IEEP. Our activities include: