A circular economy model implies structural changes in companies and many Spanish SMEs do not consider this sustainable transformation and are unaware of the multiple benefits that circular economy brings, not only for the environment, but also on an economic and social level. It does also highlight the need for collaboration something which is often talked about. There are various policies that promote sustainable development, ecological design, recycling or sustainable construction, but it is common to find many obstacles that hinder progress towards circular economy. Jul 9, 2018 -- 8 Photo by Himesh Kumar Behera on Unsplash W hich country is winning the race to a circular economy? Spanish initiative is quite focused on design. There is clear progress in the policies and regulations approved, but this has shown that there are still structural changes needed to facilitate the transition to a green economy and efficient use of resources. And thats going to be extremely boring. Its latest Circular Economy Vision 2020 policy roadmap encourages industries to shift to new business models with higher circularity and to improve resource efficiency. Adequate economic and governance conditions should be in place to unlock its potential. And the Commission really pushed on this when they asked the Secretariat General, which is a coordination mechanism that deals with all the Directorate Generals, to be in charge of circular economy and to coordinate. Although the circular economy is increasingly gaining ground in the Netherlands, implementation at national level is not as high as it should be. To look at it simply, in some cases the stuff that some countries used to send abroad is going to end up on their soil, and what if its contaminated? Phil Lattimore reports in this cover article from the March/April edition of Circular Magazine. Every economic model shapes the society it operates in and if this one is as positive as we tend to describe it, then it should be something that people can vote for. Finland has been extremely collaborative with its roadmap and it was the first one actually published. On July 7, 2021, the National Development and Reform Commission released the Development Plan for the Circular Economy in the 14 th Five Year Plan . So that co-creation process to a certain extent does exist. With momentum growing so quickly, can you see any untapped or missed opportunities? Both our partners and we use cookies on our website to personalize content and advertising, provide functionalities to social networks or analyze our traffic. If you are an admin, please authenticate by logging in again. Bigger countries also tended to have higher circular economy scores, due in part to the fact that they have larger economies with more private investment and patents. Please create an employee account to be able to mark statistics as favorites. In conclusion, we see the trend of the European economy towards circular economy, but there is still a long way to go. Invest in education. Since hosting COP25, Chile has made great strides in environmental areas and its Roadmap for a circular Chile by 2040, published in June 2021, is an important pillar. In 2019, the consulting company Kaizen Institute carried out a study which concluded that only 30% of companies are incorporating initiatives on the use of resources, renewable energies or eco-design. More recently, weve been involved with theDeutschland entkopppeltinitiative, with Acatech and SYSTEMIQ, which promotes industry leadership around circular economy. The power of countries to close the Circularity Gap Say youre a business, you want to invest in circular economy, but something prevents you from doing it. The Sustainable Development Strategy, the Resource Efficiency Programme and the National Programme for Sustainable Consumption are some of the policies adopted in Germany. Compared to Europe or countries like Japan, the context is considerably different, both in terms of sheer availability of resources and of space, as well as when it comes to political priorities at federal level. We dont have a lot of room either, to bury the waste. The circular economy is based on a fundamentally different concept to the linear model of economic activity with which we are all familiar. However, assessing which nations are ahead of the pack on circularity is not as straightforward to measure as with a linear economy model., According to a recent EU eco-innovation action plan, while there is no indicator that can be a single measurement for the circular economy, a number of existing indicators can help measure performance in several areas that directly, or indirectly, contribute to circular economy development., These involve metrics in areas such as sustainable resource management (lowering resource demands), societal behaviour (engagement, behavioural change and consumption patterns), and business operations (adapting business models to the principles of a circular economy, including material sourcing, design for durability, remanufacturing and recycling).. The fact is that exporting countries will now need to deal with their stuff, and because there are countries that dont really have a lot of wiggle room for that, then its going to become a very big issue very quickly. With the global population predicted to approach 9 billion people by 2030, we are using more resources than the planet can provide. One of the really important things to stress is that the linear economylinear economyAn economy in which finite resources are extracted to make products that are used - generally not to their full potential - and then thrown away ('take-make-waste'). For example, here is the African Circular Economy Alliance [ACEA], and the World Circular Economy Forum 2022, to be held in Rwanda later this year, showing how countries are working together on a regional level.. Cities and regions have a key role to play as promoters, facilitators and enablers of circular economy. In Chile, another Scale360 initiative hosted co-creation sessions with leaders from the largest industrial corporations to identify 150 opportunities for industrial symbiosis, she explains. Circular Economy: An Introduction | edX The segments are estimated using a Monte Carlo-like estimation that approximates, per year, how many consumers "purchase" in each of the CMO-categories and how much they would spend. article Which country is leading the circular economy shift? Our latest research may provide sustainability-minded investors a new lens to assess opportunity in the growing circular economy. The G7 also raises the question of the US. But we know that in pockets, cities like New York, Phoenix and states like California, Colorado and Washington there is interest. By 2030, resource use is expected to be reduced by 50% and by 2050, a 100% circular and waste-free economy is expected. In a circular economy,products last as long as possible, and when they need to be scrapped they are recycled and the materials are reused. Meanwhile, global circularity has dropped from 8.6 percent in 2020 . 3 lessons from Finland on transitioning to a circular economy Weve seen more and more governments coming up with plans, and those plans can be a precursor to policy., Circle Economy, based in Amsterdam, the Netherlands, aims to accelerate practical and scalable solutions to put the circular economy into action. After a 70-year wait, will Europes new patent system be a total flop? Towards Circular EconomyA Comparative Analysis of the Countries of the The motivations can vary, from creating a more competitive economy or meeting the needs of a growing population, to complying with emissions targets and better social outcomes. created this sort of race to the bottom, in the sense that the businesses want to maximise their profits and regulators were there to curb the excesses. To this end, the European Commission has launched in 2015 a Circular Economy Action Plan including a monitoring framework to measure progress and to assess the effectiveness . Currently, you are using a shared account. This is why getting the language and the proposition right is so important. Recognising the need to accurately measure the circular economy to understand how we can move towards circularity or monitor progress effectively, it developed the first Circularity Gap Report, which was published in January 2018.. Which country is leading the circular economy shift? She agrees that there are no simple, one-size-fits-all metrics that enable us to definitively rank nations in a circular economy league table, and that such assessments of circularity require greater nuance. The circular economy can contribute to achieving the SDGs, however, circular economy solutions remain severely underfunded. In Belgium the term circular economy has a strong presence in all sectors and has important support from the government in all French regions. Which countries are leading the change in circular economy? By logging in, you confirm acceptance of ourPOLITICO Privacy Policy. Published May 22, 2018 Kristin Musulin Senior Editor Industry Dive/Waste Dive Dive Brief: Politico has released a circular economy index ranking the European Union's (EU) progress on reducing waste and boosting recycling, based on data from Eurostat and the European Parliament. MSCIs suite of indexes defining the Circular Economy can help you to identify companies that facilitate a transition to a circular economy, tackling global resource challenges such as energy scarcity, biodiversity loss, waste and pollution. Meanwhile, by transitioning to a circular economy, countries like Jordan are creating opportunities for women, . Explore the live extension of our journalism, The wonk's survival guide to the EU Green Deal, ChatGPT boss to meet Ursula von der Leyen in Brussels, Blocked! The worldwide revenue of circular economy transactions, comprised of the categories . Much of what weve discussed so far relates to government departments and legislation. Poland and the Czech Republic rank near the top of POLITICO's list of the EU's most circular economies, while ostensibly green Nordic countries lag behind. The MSCI Circular Economy Indexes represent the next leap forward. Although the Netherlands, Denmark and Sweden rank fairly well in innovation and recycling, their scores are dragged down by high levels of waste and food waste. Luxembourg's priorities include eco-innovation and circular economy, and public administrations are implementing many measures to achieve the objectives in these areas. Its complicated, she says. The latest news, data and analysis on the worlds pandemic response. So it sits at the crossroads of two really big strategic things for the Commission, and its vital that this bio side of the economy is taken more and more into account. Europe is at the forefront of the global transition towards a sustainable and circular economy. Circular economy is increasingly in vogue in Spain, although many measures are still only on paper. Which region and which sector leads the circular economy? CEBIX, a Heightened concerns about environmental, social, and economic degradation magnify the importance of moving to a circular economy. Our future depends on reusing what we have in a sustainable way. This is partly because practices that reduce impact on health and the environment don't necessarily contribute to circularity. Ranking behind it were the Netherlands with 24.5 percent, and Austria with 9.7 percent. For the empirical analysis, we applied 17 Eurostat . French minister threatens to ban Twitter if it doesnt follow EU rules, Europe pitches AI Pact to curtail the booming techs risks, Rare diseases: Little known disease has big impact on patients, families and society, Business Development Manager Finance Sector (London or Brussels), Content/Graphic Designer - Pro Analysis (Brussels/Berlin), POLITICO Pro Workshop The EUs battery regulation in the era of strategic autonomy. The Circular Economy: Facts, Frameworks, and Strategies (PDF 1.5 MB) The changing financial and regulatory landscape has highlighted the importance of the circular economy. In December 2019, the European Green Deal was presented, a roadmap for transforming the European economy into a modern, resource-efficient and competitive one. Which countries are leading the change in circular economy? [Online]. It really shows that theres a willingness from the regulators to understand what stands in the way. Theres a lot of service, theyre very nimble and agile, very open to new ideas. Helen Burdett is head of circular economy at the World Economic Forum (WEF). The move from an economy based on extraction and consumption to one of regeneration and restoration has become an increasing priority for policymakers around the world. Something went wrong while submitting the form. Its progress can help inspire others and provide ideas for action. made by countries, regions and cities in developing circular economy strategies and related measurement frameworks. One was the fact that geologically, its a relatively poor continent. A densely populated, highly industrial and resource-constrained country, Japan adopted ambitious waste-management policies early. In terms of the development of circular economy across Europe, are there any geographic trends? plans, and when the topic might eventually become an attractive proposition beyond business circles a model for thriving societies, and something citizens could be compelled to vote for. From a European perspective its clear that the EU Commission has taken the lead on this, seeing as the principle of a circular economy package was adopted in June 2014, which is quite a long time ago already. The concept of circular economy (CE) that has its foundations as early as in the 1960s has been adopted by scholars and practitioners as an alternative to the model of linear economy [].At the moment, these foundations are based on a completely new paradigm (different to the mentioned linear business model) [], according to which it is necessary to analyse the existing economic systems in . It's not something one country can achieve by themselves, but in recent years, certain nations have taken the lead by clearly embarking on major circular economy agendas. It shows the importance of upstream. It was very much end of pipe, the three Rs. Included in the plan were 54 measures to "close the loop" of the life cycles of products, mainly focusing on five sectors, including construction and demolition. You have to use materials that dont contain toxic substances. The circular economy encompasses a sustainable economic model based on a production, consumption, distribution and maintenance process that reuses as much as possible. China was a very early adopter of the technical circular economy, and a leader in driving legislative packages that explicitly targeted the circular economy. A new trend that appeared among the EU countries is the impact of circular economy principles on a country's strategic direction. At a moment when it was key to start thinking about a new growth and competitiveness agenda, which was the mandate of the Juncker commission, it became evident that something which had a potential attraction for business was also a very good idea. The revenue arising from circular economy transactions is calculated by estimating the three segments of secondhand, refurbished, and rental separately. Within the so-called "Third Industrial Revolution (TIR)" circular economy is understood as a horizontal axis within the 6 main sectors: food, industry, construction, energy, transport and finance. In this paper, we have analysed the level of advancement in circular economy (CE) in the EU-28 countries. These 11 companies are leading the way to a circular economy The United Nations Development Programme's Human Development Report 2020 highlights the need to design . The author focuses her CE-related reflections and research in this paper on the macro-level (research . The objectives include a 30% reduction in national consumption of materials, a 15% reduction in the generation of waste and a reduction in greenhouse gas emissions below 10 million tonnes of CO2. If you do not have an account you can register here. We explore the roots of the circular economy together with experts in the fields of industrial ecology, cradle to cradle and biomimicry. But the main differences you can see between Netherlands and Germany is that Germany, being a very heavy industrial economy, has looked at this through material flows and material availability. Probably the most known and renowned definition is the one given by the Ellen MacArthur Foundation ( EMF, 2013 :14): circular economy is "an industrial economy that is restorative or regenerative by intention and design". Its focused on waste management. In general, countries with the highest circular economy scores Germany, the U.K. and France respectively topped the ranking have robust recycling systems and high levels of innovation in circular economy sectors. The transition to a more circular economy is an essential contribution to the EU's efforts to develop a sustainable, low carbon, resource-efficient and competitive economy. To see this co-ownership of the topic says a lot about the transverse, horizontal nature of the change which is required. How can you objectively scan the horizon for new investment opportunities and capture Circular Economy related themes in your portfolio? The Dutch government currently has one of the most ambitious goals for circularityaiming for a fully circular economy by 2050. Singapore: A global hub for sustainable innovation, Sustainability LIVE London 2023: Meet the speakers, IHS Towers releases its 2022 Sustainability Report, 50% of American companies exaggerate sustainability efforts, Surge in XaaS adoption can help save the planet, Microsoft progress on emissions 'too slow', says its CSO, The state of sustainability: Ernst & Youngs take, BCG's 2022 Sustainability Report: Growth, impact & action, As Sustainability LIVE London is fast approaching, were proud to introduce the first three speakers who will be taking centre stage. This plan included 54 measures to "close the loop" of the product life cycle and was mainly focused on 5 sectors, including construction and demolition. Finland presented its roadmap last year, France has just published one, Slovenia published its own strategy in May, Italy has revealed the building blocks of its roadmap Germany has been working on bits of a circular economy, although their definition is closer to resource efficiency, which is something that they have been involved in for a long time already. "A circular economy in the Netherlands by 2050" sets out the actions and strategies to be carried out to manage raw materials, products and services more efficiently. According to the Circular Economy Network 2020 Report, carried out by the Italian Foundation for Sustainable Development, together with COREPLA (National Consortium for the collection, recycling and recovery of plastic packaging) Italy is in the top positions in Europe in circular economy. Its of course difficult to say just how much it is a factor, but it certainly is one. It published the findingsin a report called More from Lessthat shows that even if it is going in the right direction its still very waste oriented. Within the so-called "Third Industrial Revolution (TIR)" circular economy is understood as a horizontal axis within the 6 main sectors: food, industry, construction, energy, transport and finance. Lack of public awareness, political constraints and lack of public and private investment slow down the transition of the economy. Back in the early 2010s, resources prices and volatility soared, the financial crisis was in full swing: suddenly things were not cheap anymore, to put things simply, so generating revenue by feeding on easily available resources did not seem like a promising avenue. It aims to generate 100,000 green jobs by 2030., The WEF is involved in a number of global initiatives to promote the transition to a circular economy, acting as a forum for public- and private-sector collaboration to drive the shift. Structural economic changessuch as shifting demographics and social change, technological breakthroughs, scientific discoveries, climate change and resource scarcityare evolving at an ever-faster pace. Germany is a clear leader in waste management, but it still has a long way to go to transform its economy into a circular system of production and consumption. By clicking subscribe below I agree that Circle Economy may add me to its email contact list to receive copies of its newsletter and other updates on its work. First, we used a synthetic measure to examine CE advancement in EU countries in each of the Eurostat CE distinguished areas, i.e., production and consumption, waste management, secondary raw materials, and competitiveness and innovation. For example, burning waste for energy, a common practice in Nordic countries, minimizes landfilling but doesn't help boost recycling and reuse rates, so it's not very circular and didn't help a country's ranking. The plan aims to help keep resources circulating in the economy for as long as possible and contains measures for businesses, public authorities, and consumers. *Adapted from Circular Economy: Measuring Innovation in the Product Chain by Potting, et.
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