Сircular economy and innovative business cases
TRANSCRIPT
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Circular economy and innovative business cases,
job creation and growth potential
Kenty RichardsonInternational Relations & Strategic Development, REC
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www.rec.org
Regional Environmental Center (REC)• “… is an international organisation with a mission to
assist in solving environmental problems (…)”• The REC is legally based on a charter signed by
30 countries and the EC• Multi-stakeholder international Board• 190 staff (some 30 nationalities)• Offices in 17+ countries• 100% project based organization
• over 200 running projects• 10 – 12 million € annual turnover
• Operates in various regions:• EU Members of Central and Eastern
Europe• EU Enlargement countries, candidates
and potential candidates• Eastern Partnership Countries • EU27• Operation beyond the REC Country
Office Network
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Study:
Cases of implementing resource efficient policies by the EU industry
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Aims of the study
21 case studies addressing:
• how industry has improved its resource efficiency
• motivations• obstacles• links with policy framework
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Selection criteria
• scale of initiative• type of resource affected• critical raw materials affected• potential to reduce resource use• cost reduction potential• risk mitigation potential• job creation potential• SME perspective• up-scaling potential• maturity of the initiative
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Why is gypsum interesting?
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• gypsum is fully and eternally recyclable
• one of the few construction materials for which closed loop recycling is possible
Why is gypsum interesting?
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Gypsum Recycling International A/S
(Denmark)
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Gypsum Recycling
• developed an innovative recycling system
• product: recycled gypsum powder
• deals with all types of gypsum waste from demolition and reconstruction activities (plasterboard waste, drywall and gypsum wallboard waste)
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Gypsum Recycling
Mobile recycling unit:
• to lower transport costs by servicing more recycling facilities• could be transported to each of the countries and facilities
where the company wanted to set up the business • 1,5 million EUR investment cost saved per facility
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Gypsum Recycling
Future prospects:
Gypsum-based waste stream will certainly grow in the future: plasterboard was introduced in the market in the 1950s, and the lifetime of a plasterboard system is estimated at 50 years.
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Cobiax(Switzerland)
lightweight concrete
structures
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Idea: how do birds fly?
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assembly of the modules
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concrete casting
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Janssen Pharmaceutica(Belgium)
solvent leasing
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Janssen Pharmaceutica
Source: based on De Bruyn et al. 2014, p. 20
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Janssen Pharmaceutica
Source: A. Priyadarshi
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Janssen Pharmaceutica
• 20% reduction of used materials
• reduction of water use due to more efficient upcycling phase
• energy efficiency gains in the upcycling stage
• investments paid back in 2-3 years
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Solvic NV(Belgium)
chemical leasing
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Solvic NV
Source: based on De Bruyn et al. 2014, p. 20
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Enablers
• material and cost efficiency (Cobiax)• ambition to reduce environmental footprint (GRI, Janssen)• customer demand for resource efficiency (GRI)• legislative pressure (GRI)• high landfill taxes (GRI)• entering niche markets to develop a competitive edge• improving security of supply of raw materials• corporate strategy targeting sustainability (Janssen)
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Obstacles
Gypsum Recycling International:• varying level of landfill tax across MSs• strong price fluctuations• reluctance of the industry to change production processes
Cobiax:• construction sector is very traditional, not sensitive to innovations• complexity of decision making process
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ObstaclesJanssen Pharmaceutica:• difficulties to obtain end-of-waste certificates• compliance with REACH regulation• different interpretation and implementation of EU Waste Framework
Directive across MSs• technical feasibility: ensuring quality of upgraded solvent
other cases:• high investment costs• perceived lack of policy support• frequently changing laws, regulations, interpretations• access to finance• specialized know-how needed
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Job creation potential
A circular economy creates economic value by using more labour and fewer resources.
Based on a study from the UK (Green Alliance):
• Circular economy can generate jobs for a range of skill types.
• The recycling and waste management sector offers a larger proportion of low and intermediate skilled employment in the area of collection, handling and processing materials.
• Remanufacturing, in common with original manufacturing, tends to require more skilled workers. The growth of remanufacturing sector is likely to require significant investment in training to develop the right skills.
• More extensive development of the circular economy, involving more remanufacturing and repair, could create employment near existing manufacturing sites where unemployment tends to be higher.
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Job creation potential
Estimates of current jobs in circular economy across Europe:
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Growth potential
Source: Ellen MacArthur Foundation and McKinsey Center for Business and Environment, 2015
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Policy implications
• The success of the measure and business viability can be strongly determined by policy instruments.
• Diversity of implementation of the Waste Framework Directive, the Landfill Directive, Green Public Procurement practices hinder upscaling of CE measures across Europe.
• A regulatory instrument coupled with an effective economic incentive can stimulate intensively the development of CE measures.