THE CIRCULAR ECONOMY CANNOT BE IMPOSED FROM ABOVE

This article was written as a possible introductory lecture to the EIT Western Balkan HEI Capacity Building on Circular Economy program. https://eitrawmaterials.eu/wp-content/uploads/2021/07/EIT-Western-Balkan-HEI-Capacity-Building-on-Circular-Economy-program_Call-Text.pdf

There is a Dutch translation of this article on: https://earaernl.tumblr.com/post/660521751248338944/circulaire-economie-laat-zich-niet-van-bovenaf

Although many OECD countries are working on it, the economy is only slowly developing from linear to circular. However, many economists are convinced that this is the only viable path if we want to prevent a climate catastrophe by 2050 and thereby leave a habitable and developable world for the next generations. Numerous articles in the press point out that many companies are only at the beginning of a gigantic effort to make their production CO2 neutral but also sustainable and that a lot of innovation will be needed before that happens. So what are the reasons why the transition towards a circular economy is so difficult to make? This article attempts to provide an overview of the causes.

The 3 R's

Not every country is as far along when it comes to introducing a circular economy. Prof. dr. Herminio Sastre, director of the Chair of Circular Economy at the University of Oviedo (Spain) and professor of Environmental Technology, sums up the three principles again in an article published this year in El País: Reducir, Reutilizar y Reciclar[1] or Reduce, Reuse and Recycle. And although the same professor points out in the same article that this is a principle already successfully used by our grandparents to minimize the waste they produced, there are big differences between the period of those grandparents and the present one. Our grandparents lived close to the land on which food was harvested, bought utensils and furniture that were often still produced in workshops no more than two hundred kilometers from their home, and spent most of their income in shops situated within 1 kilometer of their home.?They could also call on repairmen such as electricians, mechanics or plumbers who gave the best of their capacities to get the appliances working again. One of the indictments of the students in May 68 was a cry against the emerging consumption society. Multiple were already?the closures of factories in textiles, mechanics, metallurgy throughout Europe and America. Many utensils, products, food, etc. that we currently consume as families were now produced on an industrial scale, often even far from home, or with parts that have completed a 4 month sea voyage. The post-industrial consumption society has also become a throwaway society, with concepts such as fast food, fast fashion and even fast furniture.

It is only from the second decade of the twenty-first century that the multinationals that had hitherto been geared to a type of hyper-consumption and also stimulated this behaviour, were confronted with a call for change. Their first reaction has been one of greenwashing: pretending. Poignant examples are H&M and Ikea that supposedly greened their production, but only did this with words. And after a while the other – smaller – companies looked down on this fake behaviour. Because studies from independent research institutes such as the British Eco-Age were published that denounce such practices. [2]

And here we come to the core of our argument: the evolution from linear economy to circular economy cannot be imposed from above and must also be developed from an economically sound model. An example is packaging: in Europe there has been a trend for twenty years - and later laid down in European directives - to make the polluter pay for the processing of his waste. Organizations have therefore arisen in every country, in which the business sectors are the shareholders, to recover the packaging of their goods and even recover the entire discarded goods. And they have to do something with that: so a thinking about recycling has arisen based on the principles mentioned above: Reduce, Reuse and Recycle. A recycling industry has thus emerged that is achieving great first successes. This process has not yet started in the US: the companies left the recovery of packaging to the local government, which sold it to China. It was a non-profit operation that should cost the municipalities and counties nothing. Until at the end of 2018, China closed the door to American packaging and municipalities were saddled with a recycling hangover. It is only now, 2021, that a number of states (New York, California, Indiana, Massachusetts, Maine and Oregon) are starting to take steps to copy the European – and also Canadian – “polluter pays” [3] model.[4]

Circular economy: what is it really about?

Québec Circulaire, a group of French-Canadian organizations focused on the transition to this new mode, defines the circular economy as follows: “New economic model aimed at decoupling economic growth from natural resource depletion and environmental impact through two main mechanisms: 1) Rethinking our production-consumption methods to consume fewer resources and protect the ecosystems that generate them 2) Optimize the use of resources already circulating in our societies.” [5]

Our organisation, European Academy of the Regions, which advocates the regionalisation of a number of economic and socio-cultural sectors, closely follows the development of the circular economy. The reader will notice later that the most successful initiatives are taken by regions and/or cities. Since the beginning of May 2021, we have therefore set-up a blog in which newspaper articles are translated from various countries to English with examples of successful circular economy initiatives or of critical studies: earaercircular.tumblr.com .

To date, we have made a statistical study on the 91 articles published between 3/5/2021 and 25/08/2021 that will give the reader an idea of the themes that are most frequently discussed and of the remedies that are created. The articles come from newspapers and magazines from Belgium (Dutch and French), the Netherlands, Germany, Spain and the US and to a lesser extent from Switzerland, Canada and France. Here is an overview of the topics covered:

As a Dutch article[6] from the very useful electronic newsletter Change Inc already points out: there is a lot of good will, but a lot still needs to be achieved, especially when it comes to circular techniques such as the reuse of materials: plastics in the first place, since there are 80,000 different types that are often used in combination and the result of which becomes difficult to recycle, batteries in the second place, which in turn gives electric cars an Achilles heel, concrete in the third place because breaking down and clearing sorted rubble is a perilous and therefore expensive undertaking. Textiles, on the other hand, are going in the right direction, especially when it comes to natural yarns, jeans are a headache because they are run through by chemicals, among other things to stretch them. [7] It is very striking that so few articles are devoted to innovations, not because universities do not work on them, but mainly because it is the large companies that do not want to invest in completely new production processes. Small-scale agriculture is regularly brought to the attention, but does not appeal to the general public so much: it is difficult and an important effort to make time for varied shopping. We feel that especially avoiding plastic packaging has become a hype that consumers are starting to pay attention to. But here too, according to Rogers’ innovation theory[8] , we are still only in the stage of the innovators and early adapters and it is the first hesitant early majority that should start to act. Circular business models such as leasing[9] ?sofas or electrical appliances instead of buying them, allowing manufacturers to take them back and rearrange them, has so far been a theory that has been implemented only very modestly. The share economy is gradually getting underway, especially with bicycles and steps in cities. But is it sustainable in view of the multiple abandoned pieces alongside the road.

Technology as an accelerator of processes and business models?

Large companies that are serious about their transition to a circular economy are using technological innovation as an ally to accelerate. The strategy often is based on four axes. Ecodesign: The products are based on approaches that meet sustainability criteria from birth, allowing them to extend their service life and increase the subsequent recycling of their components. Efficiency and innovation of processes: it is about optimizing resources and processes so that waste is given a new destination. Renewable energy and alternative raw materials: Renewable energy sources and raw materials of residual origin are used in the manufacture of the products. New consumption patterns: Initiatives are promoted that prioritize renting over product purchases, promoting more responsible consumption.[10]

Pressured by public opinion that has reacted scandalously to the news that returns from e-commerce for fashion brands have been incinerated, major brands have turned to technology that allows a customer to better see how a garment would fit on his/her body. Zalando wants to integrate that technology on its platform. Clothing chain H&M is also developing such a virtual fitting room. It is not yet known when these developments will be ready for use. [11]

Circular economy: the triple helix once again

?In our study, we also pay attention to indications of how initiatives are created, who is the influencer:

These are very striking results. Many initiatives have arisen from companies whose top management is aware of the bend that urgently needs to be made and who also see commercial opportunities to start early. They are often supported by their trade association, especially when the industry has a large number of financially strong players, who allocate sufficient resources to their trade association to carry out R&D or have it done. They also influence legislative initiatives by speaking out for or against them. In the discussion about levying a deposit for beverage cans in France, a large number of industry associations spoke out in favor of introducing this. [12] ?The industry associations of professionals in the recycling industry[13] , on the other hand, expressed their reluctance. In the US, the lobby group Ameripen, a group of stakeholders from the packaging industry, has recently suggested that they are open to the idea of EPR, extended producer responsibility (see above).

There are also a number of cooperative initiatives, mainly in southern Europe, that still succeed in creating successful initiatives from a small-scale approach. The large Basque cooperative bus builder Irizan is collaborating with the Spanish public transport company Iberdrola in a plan for city buses, battery recycling and smart charging network[14] . La Fabrique Circuit Court in the province of Namur in Belgium brings together cooperative processing workshops, independent workshops and logistics spaces. All committed to the short food chain. An indispensable link for small artisan producers. [15] In Antwerp, a cooperative association Warmte Verzilverd has persuaded the multinational Agfa-Gevaert to use its residual heat in a new residential area a few kilometers away.[16] .

A second important player in this conversion is the academic world, especially faculties or even entire universities that have been conducting research into new materials or new applications for a long time, such as Wageningen and Saxion in the Netherlands, BOKU in Vienna, Hochschule München, Universities of Ghent and Antwerp, Aalto in Finland, Oviedo in Spain, etc. Large NGOs also contribute by commissioning studies: WWF, Greenpeace, Ellen MacArthur Foundation, etc. The initiatives sometimes come from the university itself, sometimes on behalf of companies or industry associations, sometimes from regional authorities with sufficient funds, but they are stimulating.

The traditional third player are the authorities, but very often regional governments or large cities. They stimulate by doing seed financing. The Walloon and Brussels governments have thus set up and provided means for several public agencies to link circular economy projects to social projects[17] .[18] ?But also by enacting local regulations. For example, the government of Flanders imposes through its public tenders[19] ?that new public construction initiatives are to be realised on the principles of the circular economy. As a result, contractors are forced to organize themselves in a certain direction. The city of Apeldoorn in the Netherlands, on the other hand, put out a tender[20] ?to realize a link between its database with all existing building materials in public space and a digital marketplace. This makes it possible to trade released materials so that they can be reused elsewhere.

Circular economy: what contributions can regions make?

As already mentioned, there are numerous puzzle pieces that all need to fit together. The first part concerns the collection and processing of waste. Although separate waste collection is promoted in the EU, this is often still very rudimentary in many member states. Composting is one of the basic activities that a family with a house can do themselves. There are also towns such as Vitoria in the Spanish Basque Country that offer communal composting services, for those who live in an apartment and don’t have space to compost. The municipality installs these devices in certain parts of the city and users only have to go there to deposit organic waste. Disused clothing or electrical/electronic equipment should also be taken care of by the local authorities. [21] ?Electronic components and clothing go to the container parks[22] ?that the municipalities have built in different parts of each city. Separate collection is being implemented even more thoroughly in thirty Dutch cities. Where in the past they mainly collected residual waste, paper and organic waste, there will soon be a line for orange peels, coffee grounds and foil. Smart collection is concerned with the issue of how we can collect waste separately at the source in an efficient and sustainable way, without the inner city environment silting up with trucks. [23] Antwerp in Belgium encourages residents and visitors to throw their waste in the trash can outside the home as well. By scanning the packaging, they can save digital coins that they can cash in at local merchants. [24]

Another puzzle piece consists of stimulating initiatives. For example, the municipality of Haarlemmermeer is the first municipality in the Netherlands to use circular asphalt in a motorway. The supplier of the asphalt, construction company Dura Vermeer, only uses residual waste for the asphalt mixture, and does not add any new products to it. [25] ?Another example of stimulation can be found in the Walloon Region in Belgium. Use the waste of one SME as raw material for another SME. Promote reuse or recycling instead of incineration. Reducing unnecessary transport … These are the objectives of a circular economy pilot project that is being carried out in a zoning plan in the Liège region. This project, initiated by the Walloon Minister for Sustainable Development, aimed to make SMEs network in order to bundle their waste management and promote their recycling or reuse. [26]

Ultimately, legislation is a final piece, at whatever level. The public sector is by far the largest customer of the construction sector in Switzerland, accounting for about half of the order volume. It has an important role model function by ordering more recycling material. With the new procurement law that came into effect on January 1, 2021, quality and sustainability should become more important. By also introducing the construction with recycled material in the tender conditions, builders make an effective and concrete contribution. [27]

Final remarks

Circular economy can only be successful if companies see a profit model in it, or are forced to change their course by public opinion because of negative perception. We are not yet there: Southern Europe has not yet really developed a recycling economy that can develop profitable activities and therefore act in stand-alone modus. This is the case in Northern Europe. The US, in particular, is lagging. This is mainly due to a lack of legislation. Yet it is striking that quality newspapers such as the New York Times regularly refer to the European legislative framework, which has grown from a consensus. The large non-profit organizations also take the European directives as a starting point and example. The stubborn refusal of American multinationals to release funds for research to develop business models in that direction made them build an advantage over European companies. This attitude has disrupted the level playing field. We argue that this aspect should also be raised at G-7 and G-20 meetings. This kind of disruptive economy is one that is based on greed and not innovation. It is a dangerous precedent in a world where climate change is the main jammer of the century.

[1] Julio Nú?ez , Cuando lo que hacían tus abuelos era la base de la economía circular, in El Pais, 18-03-2021 , https://elpais.com/sociedad/ecoembes-espacio-eco/2021-03-18/cuando-lo-que-hacian-tus-abuelos-era-la-base-de-la-economia-circular-da-tu-el-siguiente-paso.html

[2] Ruben Mooijman, Duurzame mode of volksverlakkerij? , in: De Standaard, 30-06-2021, https://www.standaard.be/cnt/dmf20210629_97579521

[3] In the US it is referred to as EPR, extended producer responsibility.

[4] Michael Kimmelman, Recycling in America Is a Mess. A New Bill Could Clean It Up, in New York Times, Jan. 27, 2021, https://www.nytimes.com/2021/01/27/arts/design/recycling-packaging-new-york.html?referringSource=articleShare

[5] Vincent Ayotte, ? Quatre entreprises qui tirent profit de l’économie circulaire ? in : PME Montréal blog, 25 juin 2019, https://pmemtl.com/blogue/quatre-entreprises-qui-tirent-profit-de-l-economie-circulaire ?

[6] Marc Seijlhouwer, Circulaire economie is nog lang geen realiteit in Nederland, Change Inc, 21 januari 2021, https://www.change.inc/circulaire-economie/circulaire-economie-nederland-35467

[7] TOM MICHIELSEN , Textielonderneemster Julie Lietaer: ‘Met bosjes planten alleen gaan we het niet halen’, in: De Tijd, 01 juni 2021, Textielonderneemster Julie Lietaer: ‘Met bosjes planten alleen gaan we het niet halen’ | De Tijd

[8] https://nl.wikipedia.org/wiki/Innovatietheorie_van_Rogers Rogers’ Theory of Innovation (as described in his book Diffusion of Innovations) is a theory that tells something about the diffusion of an innovation (a new product or idea) within a group. The original theory was conceived by Frenchman Gabriel Tarde, but made popular by Everett Rogers.

[9] Sarah-Mie Luyckx, Machteld Rijnten (53) vindt het tijd dat u leert over de nare gevolgen van fast furniture. ‘Weg met de Ikeabank!’, in: Trouw, 21 augustus 2021, https://www.trouw.nl/duurzaamheid-natuur/machteld-rijnten-53-vindt-het-tijd-dat-u-leert-over-de-nare-gevolgen-van-fast-furniture-weg-met-de-ikeabank~babede58/

[10] Mariano Ahijado, Un nuevo modelo productivo para llegar a 2030 en buena forma, in: El Pais, 17 dic 2020, https://elpais.com/economia/el-futuro-no-se-detiene/2020-12-17/un-nuevo-modelo-productivo-para-llegar-a-2030-en-buena-forma.html?utm_source=Facebook&ssm=FB_CM&fbclid=IwAR2rQwGtED5cfUduJZjPFwk8_o29TWz5o21qWsQ7QSjyatPpl7KrtE4GtCU#Echobox=1608222521

[11] Heleen Bastiaanse: Ja, retourneren is gratis, maar die trui die toch niet paste gaat misschien wel de verbrandingsoven in, in: Trouw, 16 August 2021 https://www.trouw.nl/economie/ja-retourneren-is-gratis-maar-die-trui-die-toch-niet-paste-gaat-misschien-wel-de-verbrandingsoven-in~bcd678f4/ ?

[12] AFP, Les industriels de la boisson favorables à la consigne in : Ouest-France, 07/07/2019, https://www.ouest-france.fr/economie/industries/les-industriels-de-la-boisson-favorables-la-consigne-6434050 - "The deposit for the recycling of beverage packaging is necessary for a truly circular economy,” say the signatories to the forum. The signatories represent Boissons énergisantes France (BEF), Boissons rafra?chissantes de France (BRF), la Maison des eaux minérales naturelles (MEMN), la Fédération du commerce et de la distribution (FCD), la Fédération nationale des boissons (FNB), la Confédération nationale du commerce de gros et international (CGI), du Syndicat des eaux de sources (SES), le Syndicat national du lait de consommation, l'Union nationale interprofessionnelle des jus de fruit, et enfin Citeo.

[13] Fnade, la fédération des entreprises du recyclage et du traitement des déchets & Fédération Federec

[14] Javier Vadrillo, Iberdrola e Irizar se alían en la movilidad eléctrica, in: El PAíS, 20-7-2021 https://cincodias.elpais.com/cincodias/2021/07/20/companias/1626778110_839044.html

[15] Valentine Van Vyve, La Fabrique Circuit Court, le cha?non manquant pour les petits producteurs, in : La Libre Belgique, 02-08-2021, https://www.lalibre.be/planete/inspire/2021/08/02/la-fabrique-circuit-court-le-chainon-manquant-pour-les-petits-producteurs-VQGQHRUR75HJTPJKJJMID5JBUY/?fbclid=IwAR3mC2ETAq8VpcJKTheh-x2iqsl1QPsg18HVOdfDMYVXHpl6vEz7O7VwbHk

[16] Celine Bruyndonckx , Nieuwe woonwijk in Edegem zal verwarmd worden met restwarmte van Agfa-Gevaert, in: VRT News, do 02 jul 2020, https://www.vrt.be/vrtnws/nl/2020/07/02/woonwijk-edegem-verwarmd-door-restwarmte-bedrijf-agfa-gevaert/

[17] Anne Masset, "L'Amazon vert" lancé par deux Belges : "être un entrepreneur ‘à impact’, c’est encore plus difficile" in : La Libre Belgique, 8-08-2021 https://www.lalibre.be/economie/entreprises-startup/2021/08/08/etre-un-entrepreneur-a-impact-cest-encore-plus-difficile-QOUFTLCTNFB2ZDTCVV2N2D5XDU/

[18] Pierre-Fran?ois Lovens, Cette start-up qui veut responsabiliser le business des GSM et tablettes reconditionnés, in?: La Libre Belgique 27-7-2021 https://www.lalibre.be/economie/entreprises-startup/2021/07/28/la-start-up-belge-qui-veut-responsabiliser-le-business-des-gsm-reconditionnes-ZVVW34PNIRFDDHNFESON3NE4SE/#:~:text=Le%20march%C3%A9%20du%20reconditionnement%20des,carte%20de%20la%20fili%C3%A8re%20locale.&text=Son%20business%20concerne%20la%20collecte,de%20GSM%20et%20de%20tablettes

[19] Antonin Marsac, Du "béton circulaire" pour réduire les émissions de CO2 du secteur de la construction (et oublier un fiasco du passé à Bruxelles), in La Libre Belgique, 12-06-21, https://www.lalibre.be/economie/entreprises-startup/projet-zin-de-befimmo-du-beton-circulaire-pour-reduire-les-emissions-de-co2-du-secteur-de-la-construction-et-oublier-un-fiasco-du-passe-a-bruxelles-60c378a37b50a6318dca2a2d

[20] Teun Schr?der, Gemeente Apeldoorn lanceert database en marktplaats voor circulaire materialen, in: Change Inc, 7 juli 2021, https://www.change.inc/circulaire-economie/gemeente-apeldoorn-database-marktplaats-circulaire-materialen-36725 ?

[21] Julio Nú?ez, Cuando lo que hacían tus abuelos era la base de la economía circular, in El Pais, 18-03-2021 , https://elpais.com/sociedad/ecoembes-espacio-eco/2021-03-18/cuando-lo-que-hacian-tus-abuelos-era-la-base-de-la-economia-circular-da-tu-el-siguiente-paso.html

[22] In Spain these are referred to as puntos limpios.

[23] Teun Schr?der, Schone en veilige binnenstad door slimme afvalinzameling en digitale innovatie, in: Change Inc., 15 juli 2021, https://www.change.inc/circulaire-economie/schone-veilige-binnenstad-slimme-afvalinzameling-digitale-innovatie-36783

[24] Jan Stassijns, Antwerpse actie om afval ook buitenshuis in vuilnisbak te gooien,?in: De Standaard, vrijdag 2 juli 2021, https://www.standaard.be/cnt/dmf20210701_97614170

[25] Romy de Weert: Van afval naar asfalt: gemeente Haarlemmermeer legt circulaire autoweg aan, in: Change Inc, 15-12-2020 https://www.change.inc/circulaire-economie/van-afval-naar-asfalt-gemeente-haarlemmermeer-legt-circulaire-autoweg-aan-35275

[26] Gilles Toussaint, Ton déchet, ma ressource, in?: La Libre Belgique, 1-3-2021 https://stories.lalibre.be/inspire/numero24/index.html

[27] Patric Van der Haegen, Kreislaufwirtschaft: Gemeinsam nachhaltiger bauen, Presse blog,?13. April 2021 https://www.presse-blog.com/2021/04/13/kreislaufwirtschaft-gemeinsam-nachhaltiger-bauen/

?

?