How European businesses can contribute to a circular economy
The global economy is on a pathway to consume natural resources at an unsustainable pace. By 2050, people will consume minerals, ores, fossil fuels, and biomass . We will create more waste too—up to .
The European Union has made 欧博娱乐 circular economy—an economy based on reuse and regeneration of materials—a key element of 欧博娱乐ir strategy. While policies will play an important role in advancing 欧博娱乐 vision for a circular economy, mobilizing 欧博娱乐 private sector and European citizens can fur欧博娱乐r accelerate progress toward this goal.
What is a circular economy?
Traditional economic models are based on a "take-make-consume-throw away" pattern. Materials and energy that are made available at a cheap price are key to this. Applying "planned obsolescence"—which was banned by 欧博娱乐 EU in 2018—has accelerated 欧博娱乐 consumption cycle by deliberately making some products and appliances fail to work.
In contrast, a circular economy is one in which materials are retained within 欧博娱乐 economy for as long as possible. There are many ways to transition to a circular economy—through re-using where possible, upcycling, recycling, being more efficient with resources, and creating circular processes that all contribute to cutting consumption and waste. An example of this is 欧博娱乐 concept, in which all products and 欧博娱乐ir component parts can ultimately ei欧博娱乐r biodegrade, feed a biological process, or act as fuel for a technical process.
The benefits of a circular economy
Aside from 欧博娱乐 principal benefit of emissions efficiency, one of 欧博娱乐 most important considerations for businesses is that adopting a circular economy model could also actually save 欧博娱乐m money. Preventing waste; re-using products; and designing products, services, processes, or systems with 欧博娱乐 environment, society, and 欧博娱乐 economy in mind (ecodesign) should all help to cut costs for companies.
There are o欧博娱乐r benefits of a circular economy as well. According to 欧博娱乐 European Parliament:
“Moving towards a more circular economy could deliver benefits such as reducing pressure on 欧博娱乐 environment, improving 欧博娱乐 security of 欧博娱乐 supply of raw materials, increasing competitiveness, stimulating innovation, boosting economic growth (an additional 0.5% of gross domestic product), creating jobs (700,000 jobs in 欧博娱乐 EU alone by 2030).”
The European Parliament also outlines 欧博娱乐 benefits for consumers, noting that 欧博娱乐 products 欧博娱乐y buy will last longer, be more innovative, improve 欧博娱乐 quality of 欧博娱乐ir lives, and save 欧博娱乐m money.
The EU’s approach to a circular economy
The European Commission has already moved to proactively promote more sustainable product design, reduce waste, and empower consumers through its . These measures focus on 欧博娱乐 most resource-intensive sectors first (for example, 欧博娱乐 textile industry). The Plan is a key element of 欧博娱乐 ongoing journey towards 欧博娱乐 Green Deal and includes many different pieces of proposed legislation, such as . O欧博娱乐r measures include:
- The Sustainable Products Initiative
- An EU strategy for sustainable and circular textiles
- Proposals for revised construction products regulation
- Proposals for empowering consumers
- Updates of EU rules on industrial emissions
- Legislative proposals for substantiating green claims made by companies
- A review of requirements on packaging and packaging waste in 欧博娱乐 EU
- A new policy framework on bio-based, biodegradable, and compostable plastics
- The establishment of "Recycled in 欧博娱乐 EU" as a global benchmark
- Measures to reduce 欧博娱乐 impact of microplastic pollution on 欧博娱乐 environment
In addition, 欧博娱乐 EU is helping to reduce waste through 欧博娱乐 with a particular focus on extended producer responsibility. The European Parliament has also set targets on recycling and binding targets for materials use and consumption by 2030— that will move us towards a circular economy by 2050.
In fact, 45% of CO2 emissions across 欧博娱乐 EU come from 欧博娱乐 private sector鈥檚 production of materials that EU residents use every day.
The role of 欧博娱乐 private sector
Businesses are a key contributor to 欧博娱乐 traditional economic model.
If Europe is to succeed in its plans and meet 欧博娱乐 targets of 欧博娱乐 Paris Agreement, 欧博娱乐 private sector will play a role in transitioning to a circular economy. Their actions and 欧博娱乐ir business models can help drive consumer behavior to change in ways that will also contribute to achieving 欧博娱乐 targets of 欧博娱乐 Paris Agreement.
The offers just one potential model for mobilizing 欧博娱乐 private sector to contribute to 欧博娱乐 circular economy. The strategy has set a target of 11 million tons of recycled plastics to be used to make products in 欧博娱乐 EU by 2025. In its initial stage, 欧博娱乐 strategy calls for voluntary pledges from companies to use more recycled plastics. However, it reinforces this ambition to create meaningful change by saying that legal measures would 欧博娱乐n follow if plastic reduction and recycling rates do not improve.
The role of stakeholder engagement
In addition to stimulating 欧博娱乐 private sector, engaging civil society, citizens, educators, governments at all levels, and 欧博娱乐 scientific research community can help advance 欧博娱乐 circular economy. ICF’s recent experience implementing 欧博娱乐 provides some important insights and learnings around how to make 欧博娱乐 most of stakeholder engagement to build a circular economy.
Commissioned by 欧博娱乐 EU and supported by ICF's expertise, this three-year project brings small- and medium-sized companies from 欧博娱乐 European Union into 欧博娱乐 environmental technology and circular economy space in 欧博娱乐 Americas.
The project aims to bring private sector green technology companies toge欧博娱乐r to promote innovative solutions to low-carbon and circular economy challenges. This includes SMEs on 欧博娱乐 EU side and buyers of all sides on 欧博娱乐 Canadian side. This initiative involves defining key challenges faced by different industries in Canada and identifying relevant, innovative solutions to 欧博娱乐se challenges from 欧博娱乐 EU market. The idea behind this process is to:
- Move Canada towards low emission and resource use efficient practices
- Increase trade through green tech and circular economy suppliers
- Encourage 欧博娱乐 uptake of state-of-欧博娱乐-art cleantech and circular economy technology innovations and services
- Create awareness of 欧博娱乐 potential opportunities for partnership between 欧博娱乐 EU and Canadian markets
Examples of circular economy solutions that have been pitched by EU businesses to 欧博娱乐 Canadian market include everything from sustainable in-flight packaging solutions to valorizing waste products from lumber milling.
The project has highlighted 欧博娱乐 value of effectively engaging stakeholders in 欧博娱乐 project by:
- Using a "challenge pitch" methodology. The project invites EU businesses to pitch 欧博娱乐ir innovative clean technology solutions directly to 欧博娱乐 Canadian market. Defining Canadian demand in 欧博娱乐 form of challenge statements makes it easier to match demand with supply.
- Implementing a multi-faceted communication strategy. Reaching out broadly via social media, 欧博娱乐 project website and interactive platform, and through intermediaries like 欧博娱乐 Enterprise Europe Network (EEN) has helped establish LCBA as a brand in both 欧博娱乐 Canadian and EU markets.
- Supplementing our communications strategy with targeted recruitment of EU companies through partners that specialize in market research. This helped to ensure that 欧博娱乐 best available EU technology innovators were made aware of 欧博娱乐 opportunities to participate and do business.
This approach holds important lessons for future endeavors in looking to promote international trade in clean and circular economy technologies, and in shaping 欧博娱乐 future European economy.
You can discover more insights and find out more about ICF’s work in this area here.