Circular economy

Question 1

CE definitions, 4

Answer 1

Def 1: the transition to a more circular economy, where the value of products, materials and resources is maintained in the economy for as long as possible, and the generation of waste minimised is an essential contribution to the EU’s efforts to develop a sustainable, low carbon, resource efficient and competitive economy

Def 2: A circular economy is restorative and regenerative by design, and aims to keep products, components and materials at their highest utility and value at all times. The concept distinguishes between technical and biological cycles. As envisioned by the originators, a circular economy is a continuous positive development cycle that preserves and enhances system risks by managing finite stocks and renewable flows. It works effectively at every scale.

Def 3: (with arrows in circles) The basic premises of the CE appears to be closing and slowing loops. Closing loops - recycling, slowing - retention of the prod value through maintenance, repair, refurbishment and remanufacturing. Narrowing loops is about efficiency improvement.

Def 4:
Aim: Sustainable development
Core principle: 4 R framework: reduce, reuse, recycle, recover - system perspective
Enablers: Business models, Consumers

Question 2

R - framework hierarchy

Answer 2

Reduce - avoid waste and think before you buy
Reuse - reuse unwanted items, repurpose or donate
Recycle - recycle and recycle correctly
Recover - Waste to produce energy, not landfill

Question 3

Drivers for CE for EU

Answer 3

= primarily economic interests followed by env concerns

• competitiveness, jobs, growth, security of raw material supply, reduced import dependency
• env concerns
• Synergies sought between resource efficiency/CE and economy focus and climate/energy related policies

Question 4

Drivers for companies

Answer 4

= to capture value and manage risks

• economic resilience: material and energy savings
• risk avoidance: supply chains less vulnerable to price volatility and repetitional, political and warranty risks
• New business opportunities: from ownership to access, reman.
• Improved customer interactions and loyalty
• Innovation stimulus: bio and other new materials, modular product design
• Brand advantage: to lead in addressing supply chain challenges
• Extension of CSR agenda

Question 5

Barriers for public policies in the EU

Answer 5

1. Institutional challenges to develop policy for a cross-sectional issue
2. Companies abilities to gras opportunities
3. Market barriers for recycled resources
4. Consumer behaviour and awareness
5. Good indicators and targets
   - > primary economic interest followed by env. concern

Question 6

Barriers for companies

Answer 6

1. Not factoring in material risks to business decisions
2. Lack of knowledge about CE
3. Not believing in the benefits or that they are too small to relate to effort
4. Poor design of products
5. Old infrastructure lock ins
6. Lack of collaborations across sectors