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The Bellagio process Non-country entities 18 June 2020 Establishing the Bellagio Principles of Circular Economy Monitoring Building on the succes of the 1996 Bellagio Principles: Guidelines for the Practical Assessment of Progress Toward Sustainable Development

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Page 1: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The Bellagio process – Non-country entities18 June 2020

Establishing the Bellagio Principles of Circular Economy Monitoring

Building on the succes of the 1996

Bellagio Principles: Guidelines for the

Practical Assessment of Progress

Toward Sustainable Development

Page 2: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The process

Country perspective 17th June 2020

Non-country perspective 18th June 2020

Writing group:

Advisory group

ISPRA

EEA6th May 2020 (done)

Page 3: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Time Agenda item

10.00 – 10.20 Welcome and overview of the agendaPeder Jensen, Expert on resource efficiency in a circular economy (EEA)

Overview of the Bellagio Process and introduction to the draft Bellagio DeclarationAlfredo Pini, Technologist Manager (ISPRA)

10.20 – 10.35 The involvement of cities and regions in the monitoring of circular economyPhilippe Micheaux Naudet, Programme Coordinator Greening the Economy, Eco-Innovation and Circular Economy, Association of Cities and Regions for sustainable Resource management (ACR+)Elina Ojala, European Green Capital, Lahti, Finland

10.35 – 10.50 Discussion

10.50 – 11.05 Innovative approaches to circular economy monitoring – use of non-traditional datasetsKarl Vrancken, Research Manager Sustainable Materials, VITO

Taxonomy for sustainable business activities and its relevance for circular economyAndreas Barkman, Senior expert for sustainable finance (EEA)

11.05 – 11.20 Discussion11.20 – 11.25 5-minute comfort break

11.25 – 11.40 The involvement of sectoral organizations in the monitoring of circular economyPlastics: Tobias Nielsen, Researcher, Swedish Environmental Research Institute (IVL); Giuseppe Riva, Director, Plastics Europe Italy

Consumption footprint of products: Serenella Sala, Project Officer, Scientific Research, Joint Research Centre of the European Commission (JRC)

11.40 – 11.55 Discussion11.55 – 12.55 Moderated discussion around the role of non-country entities when it comes to monitoring of circular economy

Co-moderated by EEA/ISPRABio-economy and its relevance for Circular Economy, Fabio Fava, Prof. University of Bologna

12.55 – 13.00 Wrap upPeder Jensen, Expert on resource efficiency in a circular economy (EEA)

Page 4: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Housekeeping

• All participants except speaker will be muted to avoid noise

• Please ask questions via the chat function. If you send to all then all can see questions and not repeat them

• Please state name and affiliation in the chat together with the question

• We will try to cover as many questions as possible but willalso need to be mindful of time

• Webinar will be recorded

• Documentation including slides will be available after the webinar: https://epanet.eea.europa.eu/reports-letters/monitoring-progress-in-europes-circular-economy

Page 5: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The Bellagio Process6th May – 16th October 2020

Principles of Circular Economy Monitoring

Building on the succes of the 1996

Bellagio Principles: Guidelines for the

Practical Assessment of Progress

Toward Sustainable Development

From a single event (6-8 may 2020) to a

Process

Page 6: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

KEY DRIVERS

Fully inclusive (EU led)

Gaps: e.g. harmonisation

(systemic approach)

Focus on implementation

and innovation

User driven and political back up

Page 7: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

THE BELLAGIO DECLARATION

A commitment to follow agreed principles to

monitor progress towards circular economy

implementation, to identify and fill gaps in the

monitoring exercise, and to verify that

innovation is not hampered.

Page 8: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

THANK YOU FOR JOINING US!

Page 9: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The involvement of cities and

regions in the monitoring of circular

economy

Bellagio Process and Bellagio Declaration, 18 June 2020

Philippe Micheaux Naudet, ACR+

Page 10: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Some members:

+1,100municipalitiesrepresented

25countries

in56

publicauthoritiesmembers

100

+Join us!

ACR+ & the circular economy

Association of Cities and Regions for sustainable Resource management

www.acrplus.org

Page 11: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Starting from waste data

Municipal waste: the most commonly circular economytopic monitored:

– Monitoring the municipal service– Various level of knowledge at local level– Quite inconsistent monitoring practices (e.g. on local

composition analysis, costs, etc.)

Various scope and rules for includingnon-household waste

EPR schemes (retailers, etc.)Re-use organisationDeposit refund systemsIllegal collection…

Page 12: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Several projects on data and comparisons

Consistent comparisons

Identification of good practices

Aligning waste collection withrecycling

Page 13: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Municipal waste: some knowledge gaps

Waste producer

Collection Sorting RecyclingEnd-

application

Waste collection systems

• Still little understanding on waste production

• Little monitoring of waste prevention actions

• Re-use: heterogeneous approaches

• Very various, usually limited knowledge on the outcomes of

sorted materials at local level

• Little monitoring on quality, lack of traceability until the end-

application

• Little focus on aligning collection system with end-application

Page 14: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

6

Regional perspective

Different roles of regions:– Regulation…– … or only planning / strategy– Different (economic, legal) instruments to promote

circular economy strategies

Different level of knowledge: municipal waste / business waste…

A shift towards more circular economy strategies, but still centred on waste strategies

Page 15: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

7

Connecting monitoring with local strategies

Current monitoring practices reflect the scope of local strategies (e.g. municipal wastemanagement)

The recycling value chain is still fragmented in terms of perspective and knowledge

Monitoring is very much weight-based…

Page 16: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Beyond waste data in cities and regions

MFA as a snapshot of the flows in/out a territory

Page 17: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

ESPON CIRCTER and data regionalisation

www.espon.eu/circular-economy

Measuring the circular economy: what’s wrong with

material consumption indicators?

• Domestic Material Input (DMI) and

Domestic Material Consumption (DMC)

are calculated by means of simplified

mass balances.

• These indicators do not take into

account the raw materials originally

necessary to produce the traded goods

(hidden flows)

• More comprehensive indicators based

on a ‘material footprint’ approach, like

RMI (Raw Material Input) or RMC (Raw

Material Consumption), are needed

Page 18: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

ESPON CIRCTER and data regionalisation

⌛09/2015 -02/2020

www.espon.eu/circular-economy

Circular Economy and Territorial Consequences

*The data on the left map have been estimated based on national

figures. The expected accuracy of the estimated values is high

Page 19: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The Urban Agenda Partnership on C.E.

⌛09/2015 -02/2020

ec.europa.eu/futurium/en/circular-economy

Issue paper on C.E. indicators mapping and tentative list to be applied by cities

Page 20: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The Urban Agenda Partnership on C.E.

ACR+ Working Group on C.E. monitoring

Means / Action / Process

Result / Outcome

Impact / context

• Propose a framework that is aligned with the European monitoring framework

• But adapted to cities (and regions) and more operational

• This list can be improved (e.g. re-use, etc.) and tested

1. Production and consumption2. Waste management3. Secondary raw materials4. Competitiveness and

innovation

Page 21: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The limit of weight-based monitoring

Soils

Mineral waste from

construction and demolition

Vegetal wastes

Combustion wastes

Metallic wastes, ferrous

Remaining

Top 5 Waste Materials by Weight

Animal and mixed food

waste

Textile wastes

Metallic wastes, mixed

ferrous and non-ferrous

Discarded vehicles

Chemical wastes

Remaining

Top 5 Waste Materials by Carbon Impacts

Source: Zero Waste Scotland

Page 22: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

14

Getting a broader perspective: the « More Circularity, LessCarbon campaign »

2017 GLOBAL emissions:

53.5 GtCO2e

Recycledquantities

Incineratedquantities

Landfilledquantities

THE INTERNATIONAL CARBON METRIC

ENERG

Y

Waste treatment

PRODU

CTS

www.acrplus.org/morecircularitylesscarbon

Page 23: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Circular procurement will also need accounting

20% CO2 saved per

pilot

25% of waste

prevented per pilot

20% virgin materials avoided per pilot

https://northsearegion.eu/procirc

• Circular Procurement Toolbox• Procurer Learning and Action Programme• Communities of Practice• 30+ Pilot design, execution and evaluation

Page 24: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Applying LCA to regional policies

⌛09/2015 -02/2020

Page 25: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Thank you!

Contact: [email protected]

acrplus.org

circular-europe-network.eu

Page 26: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The Urban Agenda Partnership on C.E.

Page 27: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The Urban Agenda Partnership on C.E.

Page 28: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The Urban Agenda Partnership on C.E.

Page 29: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The Urban Agenda Partnership on C.E.

Can be improved (e.g. re-use, etc.) ACR+ Working Group on C.E. monitoring

Page 30: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Circular economy Territorial vs Consumption accounting

Page 31: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Lahti – European Green Capital 2021

Elina Ojala, Environmental Director, City of Lahti

Bellagio Process - Monitoring Experiences

18 June 2020

Page 32: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

An annual competition organised by the European Commission:European Green Capital Award

1. Climate change: Limitation

2. Climate change: Preparation

3. Sustainable mobility

4. Sustainable land use

5. Nature and biodiversity

6. Air quality

7. Noise

8. Waste

9. Water

10. Green economy and eco-innovations

11. Energy efficiency

12. Management

Indicator-based assessment:

http://lahdenvuosi.fi/european-green-capital-2021-application/

Page 33: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

How did we do

in the

comparison

between the

finalist cities?

Page 34: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)
Page 35: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)
Page 36: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)
Page 37: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

7

Textiles

¼ to

recycling

and reuse

¾ to landfills or

energy use

Page 38: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Solutions, suggestions

Page 39: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Exampleroofing felt

recycled to asphalt

Page 40: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

CitiCAPa personal cap-and

trade scheme for

urban mobility

Page 41: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Open data• material flows meet potential users

• more efficient use of materials

• transparency

Page 42: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Thank you!

Elina Ojala, Environmental Director, City of Lahti

[email protected]

Page 43: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

INNOVATIVE APPROACHES TO CIRCULAR ECONOMY

MONITORING – USE OF NON-TRADITIONAL DATA SETS

Karl Vrancken – VITOBellagio process workshop – 18 June 2020

18/06/2020

©VITO – Not for distribution 1

Page 44: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

18/06/2020

©VITO – Not for distribution 2

Mobile phone signals provide routing advice

Page 45: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

18/06/2020

©VITO – Not for distribution 3

Tracing of people and products prevents infections

Page 46: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

18/06/2020

©VITO – Not for distribution 4

Blockchain technology provides proof of source of materials

Page 47: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

18/06/2020

©VITO – Not for distribution 5

Smart characterization generates mass balance of complex waste stream

Page 48: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

DIGITAL CIRCULAR ECONOMY

18/06/2020

©VITO – Not for distribution 6

Processes: sensors, robotization, machine learning, AI, 3D printing

Products: RFID, IoT, digital twins

Platforms: apps, websites, communities

Issues:• Data ownership• Transparency of the value chain• Aggregated data

Page 49: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

FOR YOUR INSPIRATION

18/06/2020

©VITO – Not for distribution 7

• Do you see alternative/unexpected data sources that can help tracking the (growth of the) circular economy?

• What are the data we want to aggregate to do monitoring? At which level product, sector?

• How do we realise transparency of the value chain without endangering competition?

Page 50: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

8

Karl [email protected]@vito.be

JOIN THE CIRCLE

Contact: [email protected]: @KarlVrancken

Page 51: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Andreas Barkman, Sustainable Finance, EEA

The EU taxonomy for sustainable economic activities

Circular Economy

Page 52: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Sustainable Finance in EU Sustainability Policy - 2019

2030 Climate and

Energy Framework

Energy Union Package

EU Strategy on

Adaptation to Climate

Change

(EU Climate Law)

Climate and Energy

Natural Capital

Management

Air

Water

Land

Biodiversity

Circular Economy

Environment

Investment Plan for

Europe (Fund for Strategic

Investment (EFSI); EU

Cohesion Policy funds)

External Investment plan

Horizon 2020

InvestEU

EU recovery packages

Investment and

Growth

Sustainable Finance

within the Capital Markets

Union

Action plan for

sustainable finance

Sustainable Europe

Investment Plan

Renewed sustainable

finance strategy

Sustainable Finance

EU Sustainability Policies

European Green Deal

Page 53: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

2018 Action plan on financing sustainable growth

• Reorient capital flows towards sustainable investment inorder to achieve sustainable and inclusive growth;

• Manage financial risks stemming from climate change,resource depletion, environmental degradation and socialissues; and

• Foster transparency and long-termism in financial andeconomic activity.

Page 54: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Key features of the EU Taxonomy

What is not?

Objective

Provide a classification tool to help investors and companies to make informed

investment decisions on environmentally sustainable activities for the purpose

of determining the degree of sustainability of an investment

We need a taxonomy that is robust, science-based, and ambitious, in line with

our shared environmental objectives, including going towards climate

neutrality in line with the Paris agreement

Use: is it obligatory ?

• Obligatory disclosures for institutional investors and asset

managers marketing investment products as ‘green’

• EU Member States are required to use the EU Taxonomy

when creating public labelling schemes for ‘green’ investment

products and corporate bonds

Further voluntary use by a range of actors

What is it?

A list of economic activities that are environmentally sustainable.

To be included in the Taxonomy, an economic activity must meet the following

criteria:

1. Climate change mitigation

2. Climate change adaptation

3. Sustainable use & protection of

water

4. Circular economy, waste prevent &

recycling

5. Pollution prevention and control

6. Protection of healthy ecosystems

6 environmental objectives

What is it not?

A rating of good or bad companies

A mandatory list to invest in

Making a judgement on the financial performance of an

investment

Inflexible or static

substantially contribute to 1

of the 6 objectives

Do not significantly harm any

of the other 5 obj.Minimum social*

safeguards+ +

* Observe International Labour Organisation (ILO) core labour conventions

Page 55: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Intended Impact of an EU Taxonomy

EC 2019

Market practice Intended impact

A harmonised list of economic activities

that can be considered environmentally sustainable for

investment purposes.

Costs for real economy to raisecapital and for financialinstitutions to provide clarity

Different taxonomies amongMember States and institutions hinder cross-border capital flows

Certainty for economic actorsand financial market participants

Protection of private investorsand mitigation of Greenwashing

Easier for real economy to raisecapital

EU SustainableTaxonomy

Mitigation of market fragmentation

Burdensome for investors tocheck and compare information

Hampering investments into amore sustainable economy

Reorienting capital flowstowards sustainable investment

Basis for further policy action

Page 56: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Some next steps

• Ongoing: exploring use of taxonomy and concepts for EU green spending/budget (e.g Invest EU), recovery package

• September: Platform on Sustainable Finance starts – Assist the European Commission to develop criteria for what economica activties which

contribute substantially to CE etc etc.

– Soon: Call for experts to the Platform goes out soon

– Default members of the Platform are:– The European Environment Agency,

– The European Investment Bank and the European Investment Fund;

– The European Supervisory Authorities (ESMA, EBA, EIOPA) SAs;

– The European Union Agency for Fundamental Rights;.

• December : Delegated act on climate mitigation and adaptation to apply 1 Jan 2022

• December 2021: Delegated acts for CE in application from 1 Jan 2023

Page 57: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

[email protected]

Useful taxonomy link:

https://ec.europa.eu/knowledge4policy/publication/sustainable-finance-teg-final-report-eu-taxonomy_en

Page 58: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

2018 - Action plan on financing sustainable growth

Taxonomy1

Standards and labels2

Incorporating

sustainability in

financial advice

4

Developing sustainability benchmarks

5

Sustainability inprudential requirements

8

Strengthening

sustainability

disclosures and

improving accounting

9

Develop an EU classification system for

environmentally sustainable economic

activities

Develop EU standards (such as EU Green

Bond Standard) and labels for sustainable

financial products (via Ecolabel) to protect

integrity and trust of sustainable finance

market

Amend MiFID II and IDD delegated acts to

ensure that sustainability preferences are

taken into account in the suitability

assessment.

Develop climate benchmarks and ESG

disclosures for benchmarks

Explore the feasibility of reflecting

sustainability in prudential rules (where

justified from a risk perspective)

Enhance climate and sustainability-related

information provided by corporations

(Revise NFRD Guidelines on CC etc)

Fostering investment

in sustainable projects3

Exploring measures to improve the efficiency

and impact of instruments aiming at

investment support. Mapping on investment

gaps and financing.

Fostering sustainable

corporate governance10

Collect evidence of undue short-term

pressures from capital markets on

corporations and consider steps for

promoting corporate governance that is more

conducive to sustainable investments.

Disclosures by

financial market

participants7

Enhance transparency to end-investors on

how financial market participants consider

sustainability

Sustainability inresearch and ratings

6

Explore how credit rating agencies could

more explicitly integrate sustainability in to

their assessments. Study on sustainability

ratings and research and exploring possible

measures to encourage their uptake.

Commission’s actions stretch across the whole investment chain

Page 59: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)
Page 60: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Euroepan Commission 2020

Page 61: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

EC 2019

Establish EU Sustainable Taxonomy

1 Taxonomy Proposal (In trilogue). Proposal setting out criteria to determine the environmental sustainability of an economic activity ('taxonomy').

Disclosure regulation: agreed, draft RTS for review in spring 2020. (i) introduce consistency on how institutional investors and asset managers should integrate sustainability in investment decision-making processes; (ii) increase transparency towards end-investors.

Benchmark regulation amendment (agreed), Delegated acts drafted, in force Q1 2020: EU Climate Transition Benchmarks, EU Paris-aligned Benchmarks and sustainability-related disclosures for benchmarks .

Ensuring that sustainability preferences are taken into account in the suitability

assessment when providing financial advice by investment firms and insurance

distributors.

Develop Sustainability Benchmarks

5

Clarify institutional investors and asset managers duties

7

4

Incorporate Sustainability into Financial advice

The most urgent actions from the AP were taken forward as Legislative Proposals in May 2018.

Page 62: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Intended Impact of the Benchmark proposal

EC 2019

Minimum Standards

for EU Climate Transition

and Paris-aligned

benchmarks

Minimum ESG disclosures

for all benchmarks

No wide use by investors

Lack of harmonisation for low-carbon indices

Significance in overall portfolio allocation limited

Develop Sustainability

Benchmarks

5

Lack of transparency for benchmark methodologies Mitigate risk of

greenwashing

Reliable reference tool for investors

Increase transparency

of benchmarksRisk of Greenwashing

Hampering investments into a more sustainable economy

Reorienting capital flowstowards sustainable investment

Market practice Intended impact

Page 63: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Sustainability in disclosures and financial advice

EC 2019

Include explicit questions

on sustainability into

suitability tests

Market practice Expected impact

Disclosures on integration of sustainability risks and

impacts of financial products

Lack of transparency on howfinancial entities integratesustainability risks

Risk of greenwashing and

misselling in principal-agent relationships

Financial entities will beincentivised to bettermanage sustainability risks

Encouraging a shift in retail investor mindsets by integrating

sustainability in product information and

financial advice

Regulation on disclosures by

financial entities

Adverse sustainability impacts will be

integrated in due dilligence. This will also

help to gradually price in negative

externalities

Negative externalities remainlargely neither considered, nor

priced in

Hampering investments into a more sustainable economy

Mainstreaming sustainability into risk

management and scaling up

sustainable investments

Financial advice

7

4

Page 64: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

In 2019, TEG delivered 4 reports

EC/TEG

Report on the EU Taxonomy (440pp)

Report on the EU Green Bond Standard

Interim report on climate benchmarks

and benchmarks’ ESG disclosures

In June, the Commission followed up

on this report by publishing new

guidelines for companies on how to

report climate-related information.

Report on climate-related disclosure

June

January

Page 65: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Tobias Dan Nielsen

18 June 2020

Monitoring Plastics

Page 66: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

IVL |

Plastics

MONITORING PLASTICS

Page 67: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

IVL |

Better monitoring is essential to achieve policies on plastics

● Single Use Plastic (SUP) Directive (EU 2019/904)

● Waste Framework Directive (EU plastic strategy)

● 2015 EU Directive on lightweight plastic carrier bags 2015/720

● European Chemicals Agency (ECHA)

● Increasing national/local policies, e.g. European Plastic Pact

MONITORING PLASTICS

Page 68: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

IVL |

Challenges

●One name, many types.

●Lack of coordinated efforts on monitoring and traceability.

●Lack of information between lifecycle stages.

●Trust in recycled/reused plastics.

MONITORING PLASTICSSource: Plastic Europe

Page 69: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

IVL |

Principles to consider…

●Polymers and additives, % of recycled and bio-based, etc. in plastic applications.

●Standardised/guidelines for monitoring (traceability).

●Monitor/trace plastics applications throughout their life cycle.

●Focus beyond short lived packaging/SUP.

●Further discussions on function/information/level of detail/systems need to enable a better monitoring and traceability of plastics to go beyond todays CE targets.

MONITORING PLASTICS

Page 71: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

IVL |

Pathways towards sustainable plastics

PRESENTATION TITLE

Page 72: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

IVL |

Several technical solutions for tracability

●Polymark/WRAP – enabling sorting of PET food grade plastic to be sorted/recycled

●FiliGrade: 2D- och 3D-water marking of PET-bottles and HDPE-packaging

● Digital QR marking (SCANNECT®) tires.

●Range of techniques: laser marking, water marking, DNA tagging, blockchain, readable microstructures…

●Plastic recycling is a fragmented sector across MS and within, monitoring and traceability should not add to this.

PRESENTATION TITLE

Page 73: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

IVL |

Plastic waste in Europe

PRESENTATION TITLE

Page 74: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

The end of life of Plastics Goods in Italy:

An index to measure the circularity

Federchimica/PlasticsEurope Italia

June 18th 2019

Page 75: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

• Following the indication of Italian Minister of Environment the

Italian Association of Plastic Producers, together with ISPRA,

has carried out a study regarding the end of life of plastic

goods in Italy.

• The study has also pointed out the objectives to be achieved

to maximize the circularity of the plastic products.

• In this context an «Index of Circularity» to check any step

forward is under definition.

Introduction

2

Page 76: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

42,20%

34,90%

22,90%

PLASTIC WASTE IN ITALY

WASTE MANAGEMENT

4685 Kt

5709 Kt become 5042 Kt

2016

RecyclingLandfill

Thermovalorization/

Incineration

Riciclo

1074 kt

1634 kt

1977 kt

3

2030 Hypothesis

Mechanical Recycling= 50%

Landfill = 0

Chemical Recycling = 1.000 KT

Ban Effect on the Market= 433 KT

Ecodesign Effect= 234 KT

1521 kt

Ban Effect= -433KT

2521 kt

1000 kt

Mechanical

Recycling=

50% Plastic

Waste

Thermovalorization

Chemical

Recycling

667 kt

2521 KT

are equal to 30,5%

of the market of

Plastic Resins in

Italy

26,6%

17,5%

44,2%

11,7%

Export >50%

Ecodesign Effect= -234KT

Chemical Recycling will reduce Energy Recovery and help to reach the European Targets

Page 77: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

• Link the definition of Circularity Index with CO2 emissions

(Energy Requirements) of the materials

• Two dimensions to define the Circularity index:

1) Circularity percentage CO2 basis;

2) CO2 total impact.

Note: Determination of CO2 based on homogeneous methodology of

various materials

Rational for the definition of Index of Circularity

4

Page 78: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

• CO2 x Virgin Plastics = 3,5 Tons/Ton of plastics;

• CO2 x Recycled Plastics= 2,7 Tons/Ton of plastics.

• Total Plastic Demand in Italy (2016): 7,200 Million Tons;

• Total Recycled Plastics in Italy (2016): 1,977 Million Tons;

• Total Plastics Landfilled in Italy (2016): 1,074 Million Tons;

Some data to calculate the Index of Circularity

5

Page 79: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Index of Circularity in Italy - 2016

Circularity percentage CO2 basis in Italy - 2016 = 23,0 %

CO2 of Recycled Plastics = 5,347 MLT __________________________________________________________________________

CO2 of 100% of Recycled Plastics 19,440 MLT + CO2 of Landfilling 3,759 MLT = 23,199 MLT

CO2 of Recycled Plastics = 5,347 Millions Tons;

CO2 of Landfilling = 3,759 Millions Tons;

CO2 of 100% of Recycled Plastics= 19,440 Millions Tons.

6

CO2 Total Impact in Italy - 2016 = 23.618 MT

Page 80: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Index of Circularity in Italy – 2030, accordingly with the

study PlasticsEurope Italia- ISPRA

Circularity percentage CO2 basis in Italy - 2030 = 46,7 %

CO2 of Recycled Plastics = 10,411 MLT __________________________________________________________________________

CO2 of 100% of Recycled Plastics 22,315 MLT + CO2 of Landfilling 0 MLT = 22,315 MLT

CO2 of Recycled Plastics = 10,411 Millions Tons;

CO2 of Landfilling = 0;

CO2 of 100% of Recycled Plastics= 22,315 Millions Tons.

7

CO2 Total Impact in Italy – 2030 = 26.111 MT

Page 81: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

• All packaging to be collected in a differentiated way

– Education

– Collection Consortia

– Development of Municipal platforms for «Non Packaging Goods»

(Involvement of citizen)

• Development of competencies , infrastructures, collection, selection, recycling.

– Concept of waste treatment at km 0

– Competence center(s) at national level

• Legislation

– Zero Landfill (max 120-150 KT nel 2035)

– European Directives

– Legislation for the use of plastic waste in chemical Recycling Plants

• Facilitations

– Fiscal Terms

Conclusions and proposals

8

Proposal of a «Working Group» for the implementation of the

proposals of the Roadmap

Page 82: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

9

Page 83: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Consumption footprintLife cycle based indicators to monitor the circular economy

Serenella Sala

Bellagio Process webinars 18/06/2020

Page 84: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

• Life cycle thinking as underpinning principle of circular economy

• Consumption and consumer footprint indicators

Summary

Page 85: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Circular economy and life cycle assessment

The new Circular Economy

Action Plan presents new

initiatives along the entire

life cycle of products in

order to modernise and

transform our economy while

protecting the environment.

Tackling environmental

problems are by changing

the way we consume and

the way we produce

Focusing on key sectors

and product groups

• Holistic method for assessing environmental impacts

from extraction of raw materials to end of life

• Unveiling trade-offs and avoiding burden shifting

• Possibile integration with macro-economic

modelling

• Mentioned in better regulation to support impact

assessment of policies

Page 86: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Consumption and consumer footprintTwo sets of LCA-based indicators:

Page 87: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Consumer footprintConsumer Footprint: set of 16 life cycle-based indicators whose purpose is to assess the

environmental impacts of the consumption patterns of an average EU citizen

Page 88: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

• Modelling production,

consumption (intensities

and behaviour),

infrastructures (including

waste management)

• Linking the micro scale

(product) with macro

scale objectives

System thinking

Page 89: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Consumer footprint

16 environmental

impact indicators

Contribution by product

Contribution by life cycle stage

Contribution by emission

type/resource uses

Testing circular

economy options

Monitoring consumption patterns and their evolution

Consumer footprint key features

• Which is the product or

product group which

impact the most?

• Which is the life cycle

stage that impact the

most?

• Which are the key

emissions contributing to

the impacts?

• Which are the climate

benefits of circular

economy interventions?

• Which are the trade-offs

(reducing impact on

climate is increasing

impact in other

categories)?

• How consumption patters

are evolving?

• Are impacts within

planetary boundaries?

• Which are the main hotspots of consumption in

terms of environmental impacts?

Page 90: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Evolution (2010-2015)

Evolution of consumption patterns over time

Baseline Benefits of circularityConsumption

intesities increase

Testing options

Page 91: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Where to find methods and results

All reports are available at:

https://eplca.jrc.ec.europa.eu/sustainableConsumption.html

Science for policy

report and related briefTechnical report

Technical reports for each

area of consumption of the

Consumer Footprint

Leaflet of the

indicators

Page 92: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

• Consumption and consumer footprint are holistic indicators to implement

system thinking and link micro (products) and macro scale (policy

objectives)

• Monitoring circular economy requires:

• a system of indicatoros which takes into account al stages of products life cycle as

well as intensity of consumption

• multidimensional indicators to unveil trade-offs and burden shifting (from one

category of environmental impact ot another or from one life cycle stage to another)

Take home message

Page 93: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

https://rmis.jrc.ec.europa.eu/?page=libraryhttps://eplca.jrc.ec.europa.eu/

Thank youSerenella Sala

[email protected]

Page 94: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Circular Bioeconomy in Europe:its relevance and monitoring

Fabio Fava

Scientific Coordinator of the Italian Bioeconomy strategies (BIT & BIT II)

Italian Representative, i) Horizon2020 SC2 (Bioeconomy) Programming

Committee; ii) “States Representatives Group” of Public Private PartnershipBiobased industry (BBI JU)

&

School of Engineering, AlmaMater Studiorum-Università di Bologna, Italy

(E-mail: [email protected])

MONITORING PROGRESS IN EUROPE’S CIRCULAR ECONOMY. THE BELLAGIO PROCESS

June 18, 2020

Page 95: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

Food drink industry

Agriculture

ForestryFishery

Aquaculture

BlueBiotech, costal agroforestry

BiorefineriesWood/PaperBiomethane

Livestocks

City biowastewastewater

(Bio)

Cosmetics

Chemical

Textile

Pulp/

Paper

Food ingredients

Pharma

Fertilizers,

Feed

The EU Circular Bioeconomy landscape(according to the EU Bioeconomy Strategy, 2018)

EU: ≈2.300 Bln €/y and 18 Mln of jobs (2018)

Also given its environmental and social benefits, it offers strategic pathstowards a sustainable, regenerative, inclusive and healthier growth, inline with the SDGs, the EU Green Deal and Recovery packages.

Energy

Fuels

Page 96: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

BiorefineriesIn Europe

224 in Europe

€ 300 Bln/y turnover1.44 Mln jobs

After: BBI JU & Nova & JRC (2018)

Page 97: The Bellagio process Non-country entities · Time Agenda item 10.00 –10.20 Welcome and overview of the agenda Peder Jensen, Expert on resource efficiency in a circular economy (EEA)

A large number of indicators for monitoring biomass availability, productivityand employment structures; human capacity; investments; innovation;markets, and the economical, environmental and social sustainability, areavailable (600 World Development Indicators, 232 UN SDG Indicators, 100 EUSDG Indicators, etc) but some of them are often not suitable and/or flanked byrobust data (projects MontBioEco, BioMonito, etc; DE publication). Further, weneed an EU shared definition of the Bioeconomy sectors, a unique frameworkto disclosure information on the value chains, a common system for accountingnatural capital and ecosystem services, etc.

The Circular Bioeconomy monitoring

Thus, a joint EU Bioeconomy Monitoring System based on better establishedand harmonized indicators, high quality, homogeneous and aggregated data,tailored for both products and territories, is sought.

FAO and EU commission (JRC) are jointly working on this, via a stepwiseapproach, widely shared with stakeholders and based on the a) collection andselection of novel and system-based indicators, b) development of aggregateindicators, c) web development and d) alignment with MS and international

context. A closer cooperation with non-bio CE paths experts is suggested.

Circular Bioeconomy produces a wide number of novel products, via differentvalue chains, often specific for a territory, with “dynamic” markets and trades.