Circular is about Resource Security

This article is translated from a German publication originally published via Brutkasten

Harald Friedl is one of the world's leading experts on the circular economy and special adviser for Circular Economy for Austria's?Ministry for Climate action, environment , energy, mobility, innovation and Technology. In this interview, he explains how Austria is positioned in terms of the circular economy and how we are getting along with it’s concrete implementation.

A regenerative circular economy is a fundamental lever for combating the negative consequences of the climate crisis and achieving climate targets. The focus is on resource-efficient and low-emission production and a reduction in use of primary raw materials. This is made possible by using, repairing, refurbishing or recycling products and keeping materials inside the loop for as long as possible.

But how is Austria positioned in terms of a circular economy?

Harald Friedl, Circular Economy Officer of the Ministry of Climate Protection (BMK), provides answers. Friedl is considered one of the world's leading experts in the field of circular economy and advises governments, cities and companies internationally on the implementation of the circular economy. He was CEO of Circle Economy, an impact organization based in Amsterdam, from 2017-2020, is supporting author of the Global Circularity Gap Report 2018/19, and also advised the COP 26 Global Climate Action Champion team on circular economy.

In this interview with Brutkasten Earth, Friedl talks about, among other things, how we can improve the 9.7% circularity rate for Austria through more collaboration. He also discusses the goals of the first Circular Economy Summit Austria , which will take place in Vienna on March 22, 2022.

Why is the circular economy so important right now?

We are once again seeing - also as a result of the Ukraine crisis - how important it is to be more independent in the supply of raw materials and energy. The implementation of the circular economy can play a very important role in this regard, and it also has strong security policy relevance - which will strengthen Austria as a business location in the medium term. The Circularity Gap Report Austria has shown that Austria is 9.7% circular - sharing that there is great potential for improvement. And this is a mega-task that we can only accomplish together.

Is Austria a frontrunner or a latecomer when it comes to the circular economy?

There is certainly a lot happening in Austria, especially in recent months and years. We have great industrial companies, SMEs, startups and scaleups that are also attracting international attention in the field of circular economy. That's something to be proud of. Be it Lenzing, the material nomads, Eloop or ?BB. I am pleased to see that there is more and more enthusiasm and leadership for this topic. Climate Protection Minister Leonore Gewessler is also making an important contribution here. And I think it's great that she's doing this together with all the relevant ministries. There is no other way.

What are the benefits of the circular economy for the business location?

On the one hand, the circular economy is necessary because we can only achieve the climate targets by restructuring our economy. We need to think more locally and balance out what has gotten out of hand too unilaterally in recent decades. After all, we all want a people-oriented economy that should and can also be profit-oriented. But it cannot be the other way around. In that case, the market economy as we know it today will be reduced to nothing.

What specific market opportunities are there for Austrian startups in the field of the circular economy?

The opportunities are huge. Let's look at Grover in Germany or Back Market, which has become the first "Circular Unicorn" from France. That's mega news. And as Austrians, we are of course super proud of startups like Refurbed, Unverschwendet, Blün or Matwash. As Circular Economy Startups and Scaleups, they are now also causing a stir internationally.

Appropriate funding opportunities, an active investor community and even more competitions in the field can turn Austria into a true global Circular Innovation and Startup Hub. However, we must not forget that a lot of innovation comes from SMEs and industry.

And why is this relevant for domestic jobs?

At the Circular Economy Summit we will bring some frontrunners in front of the stage. In large industrial companies, Circular Economy is implemented in current corporate strategies: Investments in the site and thus the creation of more local and long-term jobs are positive effects of this.

Currently, the BMK is developing its own circular economy strategy. What are the key points of the strategy and what are its objectives?

The aim of the strategy is to provide a clear framework for where we want to go. It is a good basis - and it contains framework conditions, but no action plans yet. These are certainly still urgently needed in all sectors, which must be rapidly transformed in a circular sense. The global and EU framework conditions will change drastically in the next three to five years. The consequences of climate change, raw material scarcity and high raw material prices will play an increasingly important role. Secondary raw materials will become increasingly important. What all companies along the entire value chain in every industry need are trustworthy platforms where direct and action-oriented future facing conversations about necessary decisions for a circular future can be honestly held. Together with the right accompaniment and involvement of the private sector as well as the public sector.

What do you see as the biggest hurdle to accelerating the circular economy?

Rigid thinking and an old set of rules. If we think in a new way and with the right motivation, we can work together to solve major problems quickly. The only thing is, everyone has to play along. Business, government - regional and national - and civil society. I can't do much with people shifting responsibility or pointing fingers; everyone has to get into action as quickly as possible.

And what is the biggest accelerator?

Innovation, entrepreneurship and the enthusiasm to make a difference. There is increasing pressure from the population for real change. In addition to social crises, there are the environmental crises - and we need good answers fast. System change and Circular Economy are part of that.

What do you want to achieve with the Circular Economy Summit?

The most important goal is to show national solidarity - that government, business and civil society acknowledge that the topic is one of the most important issues of the future. It's not about getting into definitional issues, but discussion on the hard question: how do we get this implemented? Action Action Action - must be the call to all.

Watch the interview (in german)

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