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THE CIRCULAR ECONOMYA POWERFUL FORCE FOR CLIMATE MITIGATION

WHY THIS STUDY – KEY MATERIALS ACCOUNT

FOR 21% OF GLOBAL CO2 EMISSIONS

• Steel, plastics, aluminium and cement account

for 21% of global emissions

• Steel and cement alone emit more than light-duty

vehicles

• Discussions to date focus on supply side – with

significant challenges

• New processes, CCS, international competition,

large investment, large energy needs

• Demand side not in focus – but can be the

missing piece of the puzzle

CO2 EMISSIONS FROM ENERGY AND INDUSTRY, 2014

Gt CO2

Other

Transport

Key materials

Buildings

Other industry

34

21%

A MATERIALS HUNGRY WORLD: OUR CURRENT ECONOMIC

STRUCTURE REQUIRES MATERIALS USE TO GROW 2-4 TIMES

STEEL

Gt per year

0

1

2

3

4

2015 2050 2100

x 2.3

0.0

0.5

1.0

1.5

2015 2050 2100

x 4.2

0

100

200

300

2015 2050 2100

x 3.4

0

2

4

6

8

20502015 2100

x 1.7

PLASTICS

Gt per year

ALUMINIUM

Mt per year

CEMENT

Gt per year

A LOW-CARBON ECONOMY MUST BE CIRCULAR – LOW-CARBON

ENERGY WILL NOT BE ENOUGH TO MEET CLIMATE OBJECTIVES

CO2 EMISSIONS AND CARBON BUDGET

Billion tonnes CO2

800

918

649

Materials emissions

with energy

efficiency and zero-

carbon energy

2°C carbon budget for

industry and energy

300

Materials emissions

with energy efficiency

Carbon budget

available for

materials production

Carbon budget to 2100 CO2 emissions from materials to 2100

HOW THE CIRCULAR ECONOMY REDUCES CO2 EMISSIONS

1MATERIALS RECIRCULATION

2PRODUCT MATERIAL EFFICIENCY

3CIRCULAR BUSINESS MODELS

High-value recycling and less

new material

High-value recycling

• Increased collection rates

• Design for disassembly and

improved materials

separation

• Less contamination and

downgrading of materials

GHG

MATERIALS

Material

Product

Product

Less material input for each

car, building etc.

Improved production

• Less production waste

• Avoid over-specification

Reuse of components

Improved design

• High-strength materials

• New design principles

• Variation in size

Fewer products to achieve

the same benefit

Higher utilisation

• Sharing of products

• Product as service

Longer lifetime

• Design for durability and

disassembly

• Long lasting materials

• Improved maintenance

• Remanufacturing

MATERIALS

PRODUCT

PRODUCT

USEFUL SERVICE

A MORE CIRCULAR ECONOMY CAN REDUCE

EU EMISSIONS FROM MATERIALS BY 56%

EU EMISSIONS AND REDUCTION POTENTIAL, 2050

Mt CO2 per year

Circular

business models

2050 Baseline Materials

recirculation

2050 Circular

scenario

Product

materials

efficiency

56

530 178

62

234

-56%

Plastics

Steel Aluminium

Cement

A MORE CIRCULAR ECONOMY CAN PROVIDE HALF THE

ABATEMENT REQUIRED FOR GLOBAL CLIMATE OBJECTIVES

CUMULATIVE GLOBAL EMISSIONS, 2015-2100

Gt CO2

Current

low-carbon

processes

Emissions

required for

climate targets

Baseline

emissions

Demand-side

measures

(circularity)

Further

reductions

178

Remaining

emissions

918 333

408

Cement

AluminiumSteel

Plastics (production)

Plastics (embedded)

Thank you

http://bit.ly/CEReport2018

Material Economics Sverige AB Grev Turegatan 30, 114 38 Stockholm, Sweden materialeconomics.com

Material Economics Sverige AB Grev Turegatan 30, 114 38 Stockholm, Sweden materialeconomics.com

Robert Westerdahl

Associate Partner

Material Economics

Phone: +46 (0)70 372 14 78

E-mail: robert.westerdahl@materialeconomics.com

Web page: www.materialeconomics.com

Address: Grev Turegatan 30, 114 38, Stockholm, Sweden