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Trade Network for Secondary Raw Materials and

Renewable Wastes

An Idea by Belgium Building Research Institute BBRI

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What are we going to talk about?

1 – Background2 – Which Sectors?3 – Needs for Success4 – Which Housing Partner?5 – Phases of Implementation6 – Developments (Phase 1)7 – Draft Concept8 – Constructive Criticism9 – Application to Portugal

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1 - Background

• 2 billion tons/year of waste are produced in the EU

• About 80% of which are reusable / recyclable / recoverable

• Pressure groups, public opinion and legal pressure • Business opportunity in waste management (B2B)

• Previous examples with limited success

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2 - Which sectors?

• Initially: All Industrial Sectors

• Startup: Building and Construction Sector

Limitations: All kinds of Unsorted Waste

Advantages: Short Use Cycle; Non-Hazardous

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3 - Needs for Success

• Supply of Standardized Information

• Display Offer and Demand

• Transmition encoding for safe transactions

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4 - Which Housing Partner?

• CoBoNet

Extranet

High speed “safe” communication

Ease of accessibility

Unlimited access with “firewall” protection

Sub-sector segmentation with login&passwd

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5 - Phases of Implementation

• Phase 1 - Pre-Study Concept Definition and Survey

• Phase 2 - Practical Study Objectives, Financing, Partners for Pilot

• Phase 3 - Future Implementation Pilot Site, Tests, Optimization

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6 - Developments (Phase 1)

• Contact with 11 other similar Trade Networks

• X-Ray of “competitors” or future “partners”

• Innovation through acquired knowledge

• Custom Made Solution = Best Fit

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6 - Developments (Phase 1)

a) Offer/Demand is not enough to keep the site alive! Need to create added value to keep customers coming back.

HOW?

With Competitive Solutions, Technical Advice, Alternatives, etc...

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RESULTS AND RECOMMENDATIONS

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6 - Developments (Phase 1)

b) SMEs don’t know their waste. Legal obligations, characterization, best available techniques. Need pampering and discipline. This reflects on the Trade Network.

Trade solution should compromise between the “expert” and the “dummy”. Both should be satisfied with the service.

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6 - Developments (Phase 1)

c) Access Fee

Almost for Free

Encourage Return of Customers

Income Source Only in the Long Run

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6 - Developments (Phase 1)

d) Income Sources

Differentiated access fee according to service

Payment for references resulting from searches

Payment of specific services

Subsidies, Sponsors and Others

Advertising

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6 - Developments (Phase 1)

e) Hard-Copy Support

Despite the e-commerce, there should be a paper version during the start-up period.

f) Differentiate markets

g) Allow for an “open-market”. All clients are equal.

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6 - Developments (Phase 1)

h) Generate confidence/trust among users

Confidence in the serviceConfidence in the transactionConfidentiality

i) Prevent information breaches

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6 - Developments (Phase 1)

j) No right for errors !

k) Keep a dynamic, up-to-date, site and service

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7 - Draft Concept

• English, French, Dutch and German

• Allow for Identified and Anonymous Users

• Be capable of processing offer and demand

• Coded and Decoded relay of information (comparisons)

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7 - Draft Concept

• Decoding through the consumption of “credits”

• Minimum access fee

• Different fees for different services

• Free search of solution (given coded)

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8 - Constructive Criticism (+)

• Bold idea, showing vision and market opportunity

• Environmental concerns

• Everybody benefits from adequate technical advice

• May help to solve difficult waste problems

• Innovative application in B2B (in its own field)

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8 - Constructive Criticism/Risks (-)

• Experience shows that focused networks work better

• Conservative users, with out of date technologies

• Initial investment must include diffusion of concept Advertising, interviews, press releases, statements

• Reliability of encoding software

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8 - Constructive Criticism/Risks (-)

• Difficult prediction of initial cash-flow

• Difficult prediction of break-even point

• Hard to predict/evaluate waste market

• Temptation to cheat system

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9 - Application to PortugalPresentation

A Web-based Trade Network for All Kind of Wastes

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By HLC

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• HLC a leading company in Engineering;

• Maximize resource use:

Environment and Energy expertise Development of B2B Platforms Development of B2C Platforms

• Initial Investment of 10.000.000$00

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9 - Application to PortugalWho and Why?

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• Offer and Demand Search

• Services, Information, News

• User friendly

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9 - Application to PortugalCharacteristics

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• Good Presentation

• Codified transactions

• Cost of Transaction:

1% of Transition Value 10.000$00 if 1% T.V.< 10.000$00

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9 - Application to PortugalCharacteristics