GREEN ECONOMY AS PILLAR FOR REGIONAL DEVELOPMENT?
Louis Delcart
Senior consultant and trainer in retail banking, circular economy and result based management
It is clear that green economy and circular economy do not only offer solutions for the major problems of climate change. They also create new jobs. This is necessary because due to digitization and the introduction of robotics and artificial intelligence, many labour-intensive jobs for the low-skilled will be lost. Decentralised countries have a feeling for regional development and the benefits of it.
A striking testimonial comes from Australia, a federation of states with a lot of autonomy. The New South Wales website www.nswcircular.org dedicated on the circular economy mentions: “Regional development strategies are particularly well suited to planning with the circular economy in mind. Communities with remote and decentralised industry, energy and water systems already know the benefits of local closed loops in using locally available resources, and minimizing transport costs. Agricultural and mining communities, for example, are constantly being challenged to adapt to climate change, resources depletion and high production costs.”[1]
We also see that it is the cities and regions that are taking the lead in supporting both start-ups and large companies that have started the actual conversion.
Port cities as traditional economic forerunners
Traditional port cities for example often are quicker in setting up initiatives in that perspective, because they usually also have an industrial hinterland and do not want to see that lost.
I read examples from Antwerp and Bordeaux where the city and the region, via local agencies, are targeting new start-ups, supporting scale-ups but also large companies. I found also public initiatives in port cities like Kiel (D) and Malm? (S) concentrating on collaboration in order to reuse waste and renewable energy or reduce CO2.
An incubator for sustainable chemistry called BlueChem[2] opened in May 2020. It is an initiative of the Port of Antwerp. A year and a half later, 12 start-ups and 6 large companies have been established, with which the incubator is currently at an occupancy of 63%. The City of Antwerp provides financial support to start-ups that rent a lab in BlueChem in order to furnish that lab. To this end, a BlueChem Kickstart Fund was established in 2019. With this fund worth 3.4 million euros, the city can help new start-ups in BlueChem on the long term. The first files for the BlueChem Kickstart Fund were approved by the council of mayor and aldermen last week: Inopsys[3] and Peace of Meat[4] . BlueChem is located in the NextGen district[5] , the former site where the Opel cars were was produced, that is converted into a circular hub in the port of Antwerp. ?????????
French Tech Bordeaux on the other hand is a combination of entrepreneurs, engineers, designers and developers of the Bordeaux and Nouvelle-Aquitaine region but not only! It is also investors, large groups, associations, media, public operators, research institutes, educational establishments and communities who are committed to the growth of Bordeaux start-ups and their international influence. Recycling is becoming a promising sector even in the world of start-ups. Especially in the Bordeaux ecosystem where they are multiplying.[6]
In the same region there is also EPA Bordeaux Euratlantique (Bordeaux Public Development Establishment) a state body specializing in urban development and in particular responsible for developing the banks of the Garonne in the Bordeaux metropolitan area. It intervened recently in guaranteeing the future of a former paper mill, owned by the Belgian group Etex that stopped its activities in March 2021. Under Euratlantique’s impulse the Burgundian industrialist Global Hygiene, was selected to ensure the paper mill’s conversion aiming to eventually produce 30,000 tons of single-use products by concentrating on the production of wadding from recycled paper.[7]
In the same way goes the evolution of the port city of Kiel on the Baltic Sea. One of the major projects in Kiel: the port should be climate neutral by 2030.
Huge shore power systems are to supply anchored ships with green electricity and the city is negotiating with shipping companies to convert their ships accordingly. In addition, Kiel is striving for an alliance with other ports in order to prevent environmental dumping. However, the area of influence of the city administrations is clearly limited when it comes to the really big levers.[8]
Malm?, an important port in Sweden also on the Baltic Sea, makes efforts in the same direction. Although still in its early stages, the industry players in the harbour of Malm? City are collaborating in new ways, particularly with a focus on innovative utility systems that have the potential to support the wider City of Malm?[9] .
Residual heat flows in the port area were mapped in detail, helping to develop a new district heating system with private-sector partners trialling types of hybrid ‘ecto-grid/smart-net pilot,’ as ways to support energy recovery and the development of low temperature heat network solutions. Progress was made towards new food production systems based on residual flows, including technological and economic assessments for an aquaponic systems, which gained positive results.
“Donut”-cities
One of the economists whose theories have the greatest impact on the evolution from linear to circular economy is the British professor Kate Raworth. In her book “the Donut Economy”, published in 2017, she states that the economy balances between an ecological upper limit and a social lower limit. That lower limit consists of human rights such as safety, health and sufficient food. The ecological upper limit concerns issues such as air pollution, climate change and soil depletion. The economy is therefore subordinate to the planet. When one draws this model, you see a large circle (the planetary boundaries) with a small circle (the social lower boundary), hence the name donut economy. The space between those two circles forms the donut. The 'sweet spot': a circular economy that is good for people and the environment.
Her theories are adhered by many politicians -mostly regional and local politicians- and NGO’s worldwide. But she figures out that the city is where it starts first. At the donut economy action lab, that is a platform that helps people and organizations put the donut economy into practice, she and her fellow researchers never asked anyone to talk about the donut, use the donut, or implement the donut. Everything that happens is because people decided to use it. Cities are leading the way in this. More than countries, more than villages. Amsterdam has been the first city in the world to have applied her theories in practice. In addition to Amsterdam, other cities, like Birmingham, but also the Caribbean island of Barbados, also started using it, which provides inspiration. But there is also something about the scale of the city that makes cities pick it up. The city has power over housing, transport and heating. So the city has opportunities to do things. There is also a limit to what a city can do, as the city is embedded in national regulations, yet a city can do a lot. And it is her -and also my- opinion that a lot of people feel more connected to their city than to their country.[10]
Regions and cities all over Europe take useful initiatives
Regions and cities are not only tasked with collecting and processing garbage. Healthcare, education, economic development are all themes that quite a few regions, counties and cities are trying or even wishing to include. Not every regional authority has the necessary financial resources, but they can influence all and get things going. Due to the fact that the EU uses cohesion funds to promote regional development, regional functioning is taken seriously in many countries. However, that does not mean that every region or city is equally dynamic or has the same emphasis.
Italy
According to the GreenItaly 2021 report produced by the Symbola Foundation and Unioncamere, Italy is the leader in Europe in the circular economy. In the Peninsula, recycling of all waste (urban and special) amounts to 79.4%. A result well above the European average (49%) and that of other large countries such as Germany (69%), France (66%) and the United Kingdom (57%) and, finally,?Poland (54%) and which allows an annual savings of 23 million tonnes equivalent of oil and 63 million tons of CO2 equivalent in emissions. The Boot also confirms its leadership in the reduction of raw materials per unit of product, as well as being awarded the best score in the circular economy performance index for the third consecutive year. The latter measures the degree of efficient use of resources in five categories: production, consumption, waste management, secondary raw materials market, investment and employment. The growing sensitivity towards environmental issues on the part of companies, consumers and citizens is also driving the adoption of the circular economy. Fears related to the climate emergency and the outbreak of the pandemic have in fact led to greater ecological awareness and to re-evaluate the impact of human activities on the health of the planet. From a recent survey conducted by the Political and Social Analysis Laboratory of the University of Siena, which involved a sample of 2,049 Italians, 89% believe that the climate emergency represents the main threat to national security, increasing compared to 2020, when 84% considered it as such.[11] The administrative subdivisions of Italy are made up of municipalities, provinces, metropolitan cities, regions and the state. Regions are territorial entities while metropolitan cities, provinces and municipalities are local entities.
Emilia-Romagna was the first region to adopt the principles of the circular economy in 2015. It established the permanent forum for the circular economy to which local institutions, representatives of civil society, business organizations representing companies and environmental associations participate. The commitment of the Region is continued in 2016 with the resolution relating to the Regional Waste Management Plan (PRGR), operational tool with the necessary actions to achieve the challenging objectives of the law. The main tools identified by the Plan are: incentives for municipal administrations, application of punctual pricing systems, promotion of reuse, participatory programs, supply chain agreements, coordination with trade associations for by-products, symbiosis, industrial activities, information and education activities on prevention and recovery.
The Tuscany Region introduced in 2018 the principle of the circular economy in its own Statute. The goal is to guide regional policies towards a circular economy model through the Regional Development Program (PRS) with the identification of minimum objectives and contents. Another regional instrument is the Plan for the management of waste and the remediation of polluted sites (PRB). The Region sets up technical tables concerning different districts and production sectors, in particular the extraction of marble, the textile, paper, steel, tanning and chemical sectors, waste from electrical and electronic equipment and those from construction and demolition, the fans from the purification of waste water, the integrated cycle of municipal waste.
The Lombardy Region has equipped itself with a Roadmap for research and innovation on the circular economy. Based on the development priorities present in the roadmap, widely shared between regional stakeholders, private and public investors can work together to support emerging initiatives, with financing instruments that include both public administration incentives and additional and complementary investor financing instruments institutional. In this context, a Plan towards the circular economy is being developed, new regional waste management program including the regional reclamation program for polluted areas. The Region has also published a public notice to verify interest and the availability of universities and public research centres in Lombardy for research on new plants, innovative technologies, integrated circular economy solutions and models of business.
France
France has traditionally been a highly centralized state with a government that is strongly governed by legislation. In recent years, the French national government has also been a frontrunner in the evolution towards a circular economy in creating more national legislation that steers the economy in that direction. Its anti-waste law, one of the first to propose initiatives in favour of the circular economy, promulgated in early 2020, entered into force on January 1st 2022. From January 1, 2022, the over-packaging of certain fresh fruits and vegetables weighing less than 1.5 kg will be prohibited.
Companies will no longer be able to landfill or incinerate clothing, hygiene products, childcare products, school books, batteries or electronic products and furniture that have not been sold. They must first be put in service once again, reused or recycled. The “Triman” logo[12] will be displayed on all packaging to indicate that the waste is subject to a sorting rule. Companies will also have the obligation to clearly inform individuals on how they will have to dispose of them (terminals, recovery in store, yellow bins, etc.).[13]
The fact that France has set strict standards in the production of new plastics, that require the processing of a significant percentage of recycled plastics, has led the large French multinationals, such as LVMH, Estée Lauder, Clarins, Danone, L'Oréal, to join forces with processors like the American Eastman or the Canadian Loop who invest into factories in France that process plastic waste into new raw materials.[14]
In this context a nice case is the one of the Auvergne-based company Carbios. This interesting scale-up recreates a virgin resin, through a technology unique in the world, based on enzymes, from plastics that could only be buried or burned. Including synthetic textiles, of which only a third are reused. The SME will create two factories, one in France and one in Germany. Listed on the stock exchange, it also convinced to enter its capital the French multinationals L'Oréal, L'Occitane and Michelin, the latter hosting its industrial demonstrator in Clermont-Ferrand (Puy-de-D?me).
On the other hand, France also has a decentralized administration. There are three levels of local authorities: municipalities, departments and regions, known as ordinary local authorities. A fourth intermediate stratum between the municipality and the department is made up of inter-municipal cooperation structures (public establishment of inter-municipal cooperation with own taxation or unions), which are not local authorities, but whose deliberative assemblies are made up of elected representatives from member municipalities. The structure occurs by necessity because of the small size of many French municipalities. The European Commission noted already in 2013 that 40% of all municipalities in the European Union are French, for an average population of 1,800 inhabitants, against 5,500 in the rest of the EU. These scattered local authorities contribute also largely to a public call for a strong centralised government. In France, the finances of the various levels of the local authorities, like their competences, are determined by law. The resources of local authorities are of four kinds: (1) Own resources (local taxation);(2) State grants and subsidies;(3) Advances and loans;(4) Income from property and services rendered.
Partly inherited from former provinces and historic regions, administrative regions were created from 1960 on. The number of administrative regions decreased on January 1, 2016 from twenty-seven to eighteen (thirteen in mainland France and five overseas).
Examples of stimulating the circular economy can be found in many regions. I quote hereby one coming from a less known region in order to show that the concept lives throughout France.
Originally founded to lead the Territoire Zéro Déchet Zéro Waste (2015-2018) initiative set up by the 4 local authorities of the two departments in the historic Savoie region (Grand Annecy, Grand Chambéry, Grand Lac and Rumilly Terre de Savoie), the association SoluCir[15] was established “to identify and support circular solutions for the territory”. Today, the association has 102 members, including 72 companies from Savoie and Haute-Savoie, who want to “influence public policies in favour of the development of the circular economy”. The SoluCir association wants to make of its trade fair edition 2022, held for the first time in 2020 in Annecy[16] , the major event for the circular economy. Large industrial groups will be present: Danone Waters will exhibit its Terragr'Eau project, Tefal will show how it organises the collection of old stoves in Rumilly and the Fournier group, a major sponsor of SoluCir, will explain how it intends to become the leader in the reuse of used furniture.[17] .
Spain
Spain is divided into seventeen autonomous communities and two autonomous cities. Not all regions developed active economic policies. And not all regions chose the green economy and the circular economy. The Basque Country, like Galicia, has resolutely promoted the green economy. The results mainly consist of companies -both large and SMEs- in the region working together and working out a renewed economic policy.
The companies of the Euskadi environmental industries cluster association (Aclima) had a turnover of 2,101 million euros in the Basque Country in 2020 in environmental areas. the Basque environmental sector has come to represent around 5% of the Basque Country's GDP, and is called upon to continue growing and become a lever for competitiveness for the rest of the sectors in the economic recovery after COVID-19. Within the sector there is a high representation of the value chain of waste management and secondary raw materials, which incorporates managers, equipment manufacturers and valorisers. The Basque Country has more than 200 companies dedicated to health and several pioneering centres in the Spanish State that work in collaboration with universities and hospitals. Of these, more than 94 entities carry out research in biotechnology, dedicating more than half of their internal spending to R&D. The business biotechnology sector of the Basque Country is made up mainly of small and medium-sized companies, intensive in qualified personnel and with a constant commitment and investment effort in research, which develop products and services mainly applied to health. Aclima Basque Environment Cluster and Basque Health Cluster have defined a new bio-health value chain based on the circular economy for the production and supply of essential health products, after the Coronavirus crisis has exposed external dependence on supplies. This project responds to the 2030 Agenda and the European Green Deal and is developed within the framework of aid to the Circular Economy of the Provincial Council of Gipuzkoa.[18]
Germany
The Federal Republic of Germany counts the sixteen federal states of which three city-states. They have their own constitutions, parliaments and governments. Unlike in non-federalist countries, the federal states in Germany have many local powers. With due observance of the above, the Kreisen, sometimes translated as districts, form the administrative layer under the federal state. There are two types, Kreis-free cities (Kreisfreie St?dte or Stadtkreise) and ordinary Kreisen (Kreise or Landkreise). Kreis-free cities are large cities (often with more than 100,000 inhabitants) and have not only the powers of a city, but also those of a Kreis. The administrative structure is the structure of a city, see below. The lowest administrative level is formed by the municipalities (Gemeinden), including the cities (St?dte). As well in Kreise as in Cities the structure and powers differ from state to state.
The city of Wuppertal with a population of approximately 355,000, the seventh-largest city in North Rhine-Westphalia as well as the 17th-largest city of Germany would like to develop a systematic climate protection strategy that is also an economic, investment and quality of life strategy. Wuppertal of all places is now . In the middle of the 19th century, one of the largest economic centres in Europe and one of the first German industrial regions was located here. The textile factories on the banks of the Wupper fueled the development of modern mass production - including mass waste. Now the region, which is considered to be the cradle of industrialization in Germany, is to become a model for a radical turnaround towards a sustainable economy. It still sounds like utopia: that a city is managed in such a way that no waste is generated and resources are used all over again. But in Wuppertal one doesn't want to wait any longer and get closer to a garbage-free future step by step. A "Circular Valley" is being created according to a design by the "Wuppertal Movement"[19] citizens' association. In the middle of the city, around the colossus of a gas boiler from the 50s, which towers 66 meters high into the sky. The cylinder was used in the past to store energy; today it houses a domed hall with a cinema screen. A place where the old is preserved and the new created - the symbol of circular thought. Selected start-ups and researchers from all over the world should settle here and develop new business ideas and technologies for the circular economy. Everything is closely interlinked with the Wuppertal Institute. [20]
Sweden
The counties of Sweden (Swedish: Sveriges l?n) are the top-level geographic subdivisions of Sweden. Sweden is today divided into 21 counties. The regional council is the elected regional political assembly that oversees the municipal affairs of the county, primarily in regard to public healthcare, public transport, and culture. The municipalities of Sweden (Swedish: Sveriges kommuner) are its lower-level local government entities. There are 290 municipalities which are responsible for a large proportion of local services, including schools, emergency services and physical planning.
V?xj? for example is a city and the seat of V?xj? Municipality, Kronoberg County. It had 66,275 inhabitants (2016) out of a municipal population of 90,721 (2017). The city claims to be the “greenest” city in Europe, so the local municipality plans to make its step towards the circular model as soon as possible. To make responsible consumption easier, the municipality plans to build an interactive re-use village ?terbruksby[21] in Norremark.
Bor?s on the other hand is a city and the seat of Bor?s Municipality, V?stra G?taland County. It had 66,273 inhabitants in 2010. In Bor?s, the local municipality, university, and regional authorities focus on the textile industry and its possibilities to become a part of the circular economy. Re:textile is a project within Science Park Bor?s which aims to develop new design principles, business models, and production systems that enable circular flows in the textile industry. By creating new garments developed to last a long time by being able to be repaired, reworked or updated, opportunities for completely new business areas in repair, redesign and other types of services are opened that extend the life of the garment and create economic growth. Alongside, it created Re: Design Factory – an innovation environment for prototype development and implementation of pilot projects with companies and innovators.
The Netherlands
There are twelve provinces of the Netherlands, representing the administrative layer between the national government and the local municipalities, with responsibility for matters of subnational or regional importance. To a large extent, the provinces of the Netherlands are financed by the national government.. As of January 2021, there are 352 municipalities and three special municipalities in the Netherlands. The latter is the status of three of the six island territories that make up the Dutch Caribbean. Municipalities are the second-level administrative division, or public bodies, in the Netherlands and are subdivisions of their respective provinces. The municipalities get most of their finances from the national government. The municipality is the lowest level of government, but this does not reflect the importance that the Amsterdam and Rotterdam governments play in Dutch political life. The economic big five – the regions of Amsterdam, Rotterdam, The Hague, Utrecht and Southeast Brabant (Eindhoven) – together make up about fifty percent of the Dutch economy. At the same time, this indicates that the Netherlands also has many regions with an economically modest size.
The south province of the Netherlands, Limburg, has?long eastern boundary that forms the international border with the state of North Rhine-Westphalia in Germany. To the west is the international border with the similarly named Belgian province of Limburg, part of which is delineated by the river Meuse. The province developed a large industrial zoning around the intersection of the A2 and the A76 dedicated to green chemistry, called Chemelot. Chemelot represents a chemically oriented site of no less than 800 hectares in South Limburg. The site is unique because of many elements: the central location in South Limburg, the good accessibility by rail, road, pipeline and airport, the presence of a large number of factories that complement each other, the umbrella permit, the unique collaboration between factories, research and development and pilot plants. The site also offers a number of central facilities such as utilities, fire brigade, maintenance, a company emergency organization, infrastructure and regulations. Chemelot is also the name of the organization that forms the central counter for the companies in the industrial complex and the campus, but also for potential residents of the site, the environment and the authorities. The organization is also very active in attracting new business, stimulating cooperation between companies and initiating contacts with the outside world.[22]
The most recent accessor on the zoning is Black Bear Carbon[23] . The team behind this group decided in 2010 to set up a company to stop the aimless burning of car tires. Their goal was (and still is) to achieve less CO2 emissions and to recover oil, gas and carbon black from old tire granulate. It works like this: to make tires wear-resistant and black and to provide them with a good structure, carbon black is added to the rubber of the car tire. Where “old” manufacturers produce carbon black by burning heavy petroleum fractions - that release a lot of CO2 and pollution - Black Bear Carbon has invented how carbon black can be extracted from old tires. And that in a clean and sustainable way. The company has now become an international player and the next phase has begun: Black Bear Carbon is going to build a factory at Chemelot Industrial park[24] in Limburg.
Belgium
The politics of Belgium take place in the framework of a federal, representative democratic, constitutional monarchy. The federation is made up of (language-based) communities and (territorial) regions. The regional and community parliaments and governments have jurisdiction over transportation, public works, water policy, cultural matters, education, public health, environment, housing, zoning, and economic and industrial policy. They rely on a system of revenue-sharing for funds. The two biggest regions, Flanders and Wallonia, are further subdivided into five provinces each. The Brussels-Capital Region is directly divided into 19 municipalities. In total, Belgium counts 581 municipalities. Belgium therefore has 1 more local level than traditional other democracies. Provincial and local government is an exclusive competency of the regions. On the other hand, it should also be said that the territory that is now Belgium has historically had strong local structures such as cities since the Middle Ages, which had acquired a fairly large right of self-determination vis-à-vis higher authorities. As a result, I still find very far-reaching and well-organized initiatives around circular economy and sustainability in provinces, cities and municipalities. Also the fact that there is a very well-developed and high-quality network of higher education institutions in both the North and the South of the country, that they are run from the federal states and are closely linked to the cities and provinces in which they are located , contributes to a well-functioning triple helix that makes Belgium one of the leaders of the circular economy.
Regions in Belgium also have powers to stimulate employment. In the southern state of Wallonia, there is a strong government involvement in the creation of employment for vulnerable individuals. There, the government quickly discovered that the circular economy can create employment, allowing them to link their own initiatives to start-ups in the circular economy.
The Belgian clothing brand Opte[25] has been created as an eco-responsible alternative to a textile industry. In big brand warehouses, fabric scraps are burned or thrown away. To avoid this waste, Opte recovers - via textile agents in textile companies or specialized companies - these fabric scraps to make new clothes. Requiring ready-to-wear know-how and cutting-edge technical skills to produce their pieces, the co-founders of Opte wanted to produce their ecological pieces in their own country. But: the clothing workshops can be counted on the fingers of one hand in Wallonia. They turned to the Adapted Work Company (=ETA) C.A.R.F.[26]
The Northern state Flanders is more liberal and business driven. Which does not mean there is no public intervention. Let us provide with the example of the port of Antwerp.
A new water factory will be established on the NextGen district[27] , the former site where the Opel cars were was produced, that is converted into a circular hub in the port of ?Antwerp. The factory will bring 20 billion litres of waste water from the households living in Antwerp, treated already by Aquafin[28] , to the much higher quality level of cooling water[29] . A new pipeline distribution network in the port will also ensure that industrial customers on both the left and right banks can use the circular cooling water. The new factory is a joint venture between Aquafin, a public water-treatment company, ?Ekopak[30] ,a private water treatment company, PMV[31] , a public investment fund and water-link[32] , the water company for the Antwerp region. ????
Portugal
Portugal is a unitary State: the central State has, in mainland Portugal, several regional directorates of ministries intervening in different areas.?The 1976 Constitution establishes that Portugal is divided only into autonomous regions (Azores and Madeira) and districts on the mainland. In turn, all these are divided into municipalities and the latter into parishes. There are nowadays also Coordination and Regional Development Commissions (CCDR) — North; Center; Lisbon and Tagus Valley; Alentejo; Algarve —. The recycling method in Portugal runs parallel to Spain: they have to deposit their separated waste in small coloured containers, called “Ecopontes” in Portuguese,?that are set up in places in the city. Since there is therefore no separate waste collection at the doorstep, this requires a lot more convincing effort from the local authorities. That is why the Portuguese press focuses on that, and much less on the efforts of local companies to put that waste back on the market as material. It is also clear that the cities and municipalities should make an effort in this regard, together with the waste management companies. Here is an example of cooperation between the city of Cascais and the waste processing company. It starts from the inconvenient truth that recycling is not always easy. The space at home to separate is not much and the recycling bin is not always next to the door. And for those who still don't know the best practices of colour recycling, it can be confusing: the butter and milk packets look dirty, can we recycle them or not?
Baring this in mind, Cascais City Council, with the support of Sociedade Ponto Verde, launched the "De Casa para o Ecoponto" initiative: the municipality distributes sets of waste separation bags, so that it is easier to separate garbage at home. They are sets of 3 ecobags that are offered to residents of Cascais, wrapped in a cardboard case with information on how to correctly separate the materials. The kit also includes a detachable guide with the materials that must be placed in each yellow, blue and green bag, and that must be placed in plain view in the citizens' kitchen. Thus, the packages follow “From Casa to Ecoponto”(From home to the waste container), without contamination. In this campaign, the municipality of Cascais intends to deliver 10,500 sets of waste separation bags.[33 ]
Denmark
Denmark is a constitutional monarchy and a parliamentary democracy. As a result of an administrative reform beginning of 2007, five regions replaced the counties and the number of municipalities was reduced to 98. Regions are not entitled to levy their own taxes, but rely on central state funding (around 70%) and funding from the municipalities (around 30%). 90% of the budgets of the regions is allocated to the national health service. The primary task of municipalities is local administration of welfare and social needs. This encompasses social services, primary schooling and childcare, infrastructure, transportation, and tasks defined as integration of refugees and immigrants. Other municipal areas include employment (such as running job centres), culture and leisure, setting up businesses, initiatives for children and young people, and city and rural fixtures and fittings.[34]
In Denmark, the use of resources in a sustainable, efficient, and responsible manner has been at the centre of Danish regulations and business models for decades. Denmark’s recycling targets aim to ensure 60 per cent of Danish household waste and 70 per cent of packaging waste are recycled by 2030. Denmark has a strong tradition for collaboration and partnerships between the public and the private sector, as well as cross-sectoral partnerships. In collaboration with the private sector in 2019, the Danish government established 13 climate partnerships. The partnerships were created to strengthen public and private sector collaboration in order to realise climate objectives by 2030. The partnerships span across all sectors and industries. The climate partnership on waste, water and circular economy presented recommendations regarding how Denmark could become a world leading circular economy by 2030, highlighting measures to be taken both politically and within industry. Several of the partnership’s recommendations on waste, have now been adopted into the latest political agreement on the area. Innovation and research are a key drivers in the future development of circular economy business models. The Danish Government promotes the development and use of new technologies and modes of production from research stages through demonstration and pilot experiments, to full-scale commercial plants as well as the transition to new circular business models.[35] This analysis has been made by a non-profit organisation -State of Green- that has been founded in 2008, as public-private partnership between the Danish Government and Denmark’s four leading business associations: Confederation of Danish Industry, the Danish Energy Association, the Danish Agriculture & Food Council and Wind Denmark.
It is clear that Denmark is quite centralised when it comes to environmental initiatives. However, a new proposal presented by the government gave local authorities the ability to designate zero-emissions zones in cities. The zones would only allow access to vehicles without combustion engines, such as electric cars.[36] Examples make it clear on the other hand, that committed municipalities start their own initiatives for introducing circular economy inside their borders.
The City of Aalborg in Denmark is home to around 207,000 inhabitants, making it the fourth largest city in Denmark. Aalborg has been committed to improving the sustainability of their municipality for over two decades, and for the past three years (2018-2021), Aalborg has been developing its use of procurement as a tool for developing innovative circular solutions which meet the city’s needs.
Two pilot public procurements conducted by the City of Aalborg have each challenged current working practices, and led to new understandings of how to meet workers’ and citizens’ needs, in ways which are both cost effective and sustainable in the long-term. The first explored options to create a service for buying back used ICT equipment from the Municipality (including, for example, mobiles, tablets, computers, laptops, wires, storage and servers). The ultimate goal is to prolong the lifetime of ICT equipment. The second pilot tender conducted in Circular Public Procurement was for a playground / outdoor learning area, which places emphasis on greater use of landscaping to achieve both circular and creative play goals.[37] ?
A very peculiar case in Denmark, a country that is an combination a peninsula that is part of the European continent, and islands, is the aspiration of one of the smaller islands to become fully circular. In 1997, the island of Sams? set the goal to be 100% self-sufficient in energy within 10 years and reached this ahead of time in 2004. After achieving full self-sufficiency in energy early on, the island is now aspiring to have not just circular energy flows, but be a ‘Bio-circular island’ including other natural material flows.[38]
The next goal is for the island to be free of fossil fuels and in balance on broader parameters than ‘just’ energy by 2030, i.e. towards a circular island economy. Although this is regarded as more complicated, it’s deemed highly relevant for inspiring the next generation of progress. An Island bio-resource plan will be prepared and politically discussed, defining the next steps towards circular agriculture, peak-shaving of power (smart energy systems, batteries), water consumption and production, waste recycling etc.
Finland
Finland is divided into 19 counties (Finnish: maakunta). The counties are governed by county councils, which serve as forums of cooperation for the municipalities of a region. The main tasks of the counties are regional planning and development of enterprise and education. In addition, the public health services are usually organized on the basis of counties.
The capital region of Helsinki is growing rapidly and expected to house an additional 490,000 people in the next 35 years. To boost new sustainable urban solutions, in 2013 Helsinki City Council decided to make one of the new neighbourhoods under construction, Kalasatama, a model of smart city development. A former harbour and industrial zone on the waterfront east of the city centre, will be home to 25,000 people, and the site of 10,000 jobs by 2035. Smart Kalasatama project is coordinated by Forum Virium Helsinki, the City of Helsinki innovation unit. It develops new digital services and urban innovations in cooperation with companies, universities, other public sector organizations and Helsinki residents.[39]
The Smart Kalasatama pilot procures prototype technologies for rapid testing in an urban environment, many of which adopt circular principles. Through the process of co-creation, solutions to urban challenges are trialled for up to 6 months in the Kalasatama development district, to learn by doing and help accelerate innovation.
Austria
Austria is a federal republic made up of nine states (mostly referred to as : Bundesl?nder)..Austrian states can pass laws that stay within the limits of the constitution, and each state has representatives in the main Austrian parliament. The states have authority about the following matters: planning and zoning codes, nature protection, hunting, fishing, farming, youth protection, certain issues of public health and welfare and the right to levy certain taxes. In the Republic of Austria, the municipality is the administrative division encompassing a single village, town, or city. Austria is currently (January 1, 2020) partitioned into 2,095 municipalities. Municipalities are in charge of public water supply, sewage disposal, garbage disposal, development planning, fire prevention, and general building code enforcement as well as public lighting, cemetery construction and maintenance.
In the circular economy context, Austria ranks as an international trailblazer. Austrian households generate approx. 4.3 million tons of waste each year, of which 90% is recycled. The Austrian Waste Consulting Association (VAB?) has worked together with its 365 municipal environmental and waste consultants to raise awareness of the need for resource-saving consumption. The company Altstoff Recycling Austria AG (ARA) also makes an important contribution, serving as a driving force in the Austrian circular economy. But the country has to expand its efforts towards a sustainable industrial production.
Closing remarks
Countries do not have the same needs everywhere. Rural and urban areas require different types of organizations to meet different needs. Cities and urban environments have a much higher density of population that purchases in a much more concentrated way in shops and via e-commerce and therefore collects much more packaging that necessarily will have to be recycled in the future. The countryside, especially in larger countries such as France, Spain, Germany and Italy, has many more economic activities related to agriculture. Due to extensive agriculture they are confronted less with packaging but more with CO2 emissions of animal origin and because of large-scale transport. On the other hand, they see their agricultural population becoming scarcer because of the unequal distribution of agricultural income between producers and distributors and therefore also need to attract employment. With all the resulting consequences for increased emissions from transport, energy and also from residents who do their purchases in department stores.
There are privileged regions and cities because of their location and/or because of their status. Port cities often attract investment and employment. If they have a dynamic political and administrative environment with considerable financial resources and that strives for cooperation between all stakeholders of the region, they can be a major attraction for employment, also for rural areas in the wider area. When they also encourage their companies to think and work with future-oriented perspectives, they can be much more efficient and influential than central governments.
Capital areas often gather both central administrations and headquarters of large companies who want to be present in the country. In centralized countries they then form a hydrocephalus, such as Paris, London, Randstad Holland (the Hague-Amsterdam axis) or Athens, where too large a part of the population is concentrated. With all the resulting consequences for waste mountains, CO2 emissions, crime and too much attention from national governments that do not know enough about their country's behaviour.
It is therefore clear that economy and ecology go hand in hand best and achieve the most far-reaching results in countries with highly decentralized governance, such as the German-speaking countries of Germany, Austria and Switzerland, Belgium, Italy, but also the Netherlands and Sweden.
Louis Delcart, member of the board European Academy of the Regions, www.ear-aer.eu
[1] Bart De bruyn, BlueChem verwelkomt nieuwe start-ups én extra geld (BlueChem welcomes new start-ups and extra money), in: Made in Antwerpen, 16-12-2021; https://www.nswcircular.org/key-sectors-that-will-catalyse-the-australian-circular-economy/ , article published on 1-2-2021, retrieved 15-01-2022
[2] Bart De bruyn, BlueChem verwelkomt nieuwe start-ups én extra geld,( BlueChem welcomes new start-ups and extra money), in: Made in Antwerpen, 16-12-2021, https://earaercircular.tumblr.com/post/671172409625378816/bluechem-welcomes-new-start-ups-and-extra-money
[3] ?Circular chemistry can save the world. Inopsys provides mobile & modular side stream on-site solutions for the chemical and pharmaceutical industry, to purify water or solvents and recover valuable components. https://inopsys.eu/en
[4] ?Peace Of Meat is a B2B supplier of cultured fat as a tasty and texturing ingredient. Adding 10-25% of its cultured fat to a plant based meat results in 100% meatiness. To accelerate R&D, the company collaborates with leading experts in cell culturing, upscaling and food tech. https://peace-of-meat.com/
[5] From start-up to scale-up, from established industrial value to newcomer, NextGen District offers space tailored to your needs. This multimodally accessible site, located near the largest integrated chemical cluster in Europe, is the new hub for the circular economy. https://www.portofantwerp.com/nl/nextgen-district .
[6] Frank Niedercorn, CO2, compost, mégots, capsules de café… A Bordeaux le recyclage est de plus en plus porteur pour les start-up,(CO2, compost, cigarette butts, coffee capsules… In Bordeaux, recycling is more and more promising for start-ups), in : Les Echos, 1-12-2021; https://earaercircular.tumblr.com/post/670841260684263424/co2-compost-cigarette-butts-coffee-capsules-in
[7] Global Hygiène reprend la Papèterie de Bègles pour produire de la ouate (Global Hygiène takes over the Bègles Paper Mill to produce cotton wool) in Les Echos, https://www.lesechos.fr/pme-regions/nouvelle-aquitaine/global-hygiene-reprend-la-papeterie-de-begles-pour-produire-de-la-ouate-1382072
[8] Carina Seeburg, Wohin mit dem Müll?,( What to do with garbage?) in: Süddeutsche Zeitung, 23-12-2021, https://earaercircular.tumblr.com/post/671806064425140224/what-to-do-with-the-garbage
[9] https://nordic.climate-kic.org/wp-content/uploads/sites/15/2018/05/Municipality-led-circular-economy-case-studies.pdf
[10] Rianne Lachmeijer, Econoom Kate Raworth over donutstad Amsterdam,( Economist Kate Raworth about donut city Amsterdam) in: Change Inc, 23-12-2021, https://www.change.inc/circulaire-economie/econoom-kate-raworth-over-donut-stad-amsterdam-37527
[11] Sibilla di Palma, Economia circolare, l'Italia è leader per 9 su 10 il clima è un'emergenza,(Circular economy, Italy is the leader for 9 out of 10 the climate is an emergency) in: La Repubblica, 1-11-2021, https://ricerca.repubblica.it/repubblica/archivio/repubblica/2021/11/01/economia-circolare-litalia-e-leader-per-unemergenzaAffari_e_Finanza38.html?ref=search
[12] The Triman logo is a mandatory, unified signage for end-of-life products created from the French Decree. This symbol was introduced to provide a more readily understandable symbol for citizens and consumers in France to ensure recyclable products are separated at end of life.
[13] Muryel Jacque: Plastique, vêtements, recyclage : tout ce qui change en 2022 pour lutter contre le gaspillage,?(Plastic, clothing, recycling: everything that will change in 2022 in France in the framework of the fight against waste), in: Les Echos, 30-12-2021, https://earaercircular.tumblr.com/post/672117412171218944/plastic-clothing-recycling-everything-that-will?is_related_post=1
[14] André Thomas: Le recyclage des plastiques progresse en France,(Plastic recycling is progressing in France), in: France-Ouest 27-01-2022, https://earaercircular.tumblr.com/post/674737700235034624/plastic-recycling-is-progressing-in-france
[15] Solucir brings together the structures of the territory that develop local solutions, gives voice to inspiring experts, and weaves the network of companies and entrepreneurs who want to build solutions for the Economy of Tomorrow. https://solucir.org/
[16] Annecy is the prefecture and largest city of the Haute-Savoie department in the Auvergne-Rh?ne-Alpes region of Southeastern France. It lies on the northern tip of Lake Annecy, 35 kilometres south of Geneva, Switzerland.. Due to a lack of available building land between the lake and the protected Semnoz mountain, its population has remained stagnant, around 50,000 inhabitants, since 1950. However, the 2017 merger with several ex-communes extended the city population to 126,924 inhabitants and 170,753 for its urban area.
[17] Gabrielle Serraz, A Annecy, le salon SoluCir veut développer l'économie circulaire,( In Annecy, the SoluCir trade fair wants to contribute to the development of the circular economy) in: Les Echos ,7-01-2022? https://earaercircular.tumblr.com/post/673160946542428160/in-annecy-the-solucir-trade-fair-wants-to
[18] Redacción: Gipuzkoa impulsa la Economía Circular como factor diferencial para las empresas del sector bio-sanitario,(Gipuzkoa promotes the Circular Economy as a differential factor for companies in the bio-sanitary sector) in Eco-circular, Actualidad, 12-10-2021?https://eco-circular.com/2021/10/12/gipuzkoa-impulsa-la-economia-circular-como-factor-diferencial-para-las-empresas-del-sector-bio-sanitario/
[19] The Wuppertal Movement e.V.( Wuppertal Bewegung e.V.) is a non-profit association founded on February 6, 2006 in Wuppertal, the purpose of which is private civic engagement for the urban development of Wuppertal. The association has almost 2000 members. https://wuppertalbewegung.de/Startseite
[20] Carina Seeburg, Wohin mit dem Müll?,(What to do with garbage?) in: Süddeutsche Zeitung, 23-12-2021, https://earaercircular.tumblr.com/post/671806064425140224/what-to-do-with-the-garbage
[21] ?terbruksby = Recycling village. Norremark is a district of V?xj? municipality.
[22] Willemijn van Benthem, Black Bear Carbon gaat fabriek bouwen op chemiecomplex Chemelot,( Black Bear Carbon plans to build factory at Chemelot chemical complex), in: Change Inc, 17-03-2021, https://earaercircular.tumblr.com/post/668310648430723073/black-bear-carbon-plans-to-build-factory-at
[23] Black Bear brings the circular economy to tires. It harvests and upcycles the carbon black from end-of-life tires to a quality level that exceeds the original product – in a way that preserves the planet..?https://blackbearcarbon.com/
[25] Valentine Van Vyve, Et si vous optiez pour le vêtement écoresponsable? “Le secteur textile rassemble ce qu'il y a de pire en termes de production dans la société capitaliste actuelle”,(What if you opted for eco-responsible clothing?) in : La Libre Belgique, 31-05-21, https://earaercircular.tumblr.com/post/655220563405586432/what-if-you-opted-for-eco-responsible-clothing
[26] The Adapted Work Company C.A.R.P., located in Philippeville, is one of the fifty-two ETAs identified in the Walloon region and employs 130 of the approximately 8,228 disabled workers active in production in a multitude of sectors in the south of the country. Adapted Work Enterprises (ETA) are social economy enterprises whose priority mission is the professional integration of people with disabilities. Their sector federation Eweta claims, on behalf of the ETAs it represents, funding resources from regional, federal and European public authorities in order to allow these companies to sustain and "subsidize the difference", that is to say , to compensate for the loss of productivity experienced by the workers of the company while offering them a personally adapted supervision, taking into account their particular situation.
[27] From start-up to scale-up, from established industrial value to newcomer, NextGen District offers space tailored to your needs. This multimodally accessible site, located near the largest integrated chemical cluster in Europe, is the new hub for the circular economy. https://www.portofantwerp.com/nl/nextgen-district .
[28] Aquafin is a Belgium company, based in Aartselaar. The company was established in 1990 by the Government of Flanders. Its mission is to design, pre-finance, build and operate all supra-municipal infrastructure needed to treat domestic wastewater. Nowadays, Aquafin manages 311 wastewater treatment plants, over 6.000 km of supra-municipal collectors and 1.390 pumping stations and detention basins. Aquafin also offers its services for the expansion and management of the local municipal system. A municipality may choose to have a long-term partnership by means of a concession or award contracts to Aquafin on an ad hoc basis. In addition, they can join the joint ventures that Aquafin has with the water companies water-link, De Watergroep (RioAct and Rio-P) and Vivaqua.
[29] Bart De bruyn, 20 miljard liter circulair koelwater per jaar voor Antwerpse havenbedrijven,( 20 billion litres of circular cooling water per year for Antwerp port companies), in: Made in Antwerpen, 28-01-2022; https://earaercircular.tumblr.com/post/674650906765164544/20-billion-litres-of-circular-cooling-water-per
[30] Ekopak is a fairly young company from Tielt that specializes in industrial water purification and ways to save water
[31] The Participatiemaatschappij Vlaanderen (PMV) Ltd. is an independent investment company established by the government of Flanders, the North region of Belgium.
[32] Water-link is the name of the water company for the Antwerp region. It supplies the city of Antwerp and some of the surrounding municipalities with drinking water. Water-link provides the water supply and wastewater treatment (rio-link) for approximately 500,000 people in the Belgian province of Antwerp. In 2018, it produced 139,778,974 m3 of water for 193,029 subscribers, over a pipeline network of 2,488 km, and also supplies water to industry through its subsidiary INDUSS.
[33] Se desconfia que sabe reciclar, nós damos uma ajuda, para ficar com a Certeza (If you suspect that you know how to recycle, we can help you, to be sure), in: Publico, 14-12-2022; https://www.publico.pt/2021/12/14/estudiop/noticia/desconfia-sabe-reciclar-damos-ajuda-ficar-certeza-1988174
[34] The Local: What’s the difference between a municipality and a region in Denmark? In: thelocaldenmark, 16-11-2022, https://www.thelocal.dk/20211116/whats-the-difference-between-a-municipality-and-a-region-in-denmark/
[35] Malene Bering Beitzel,: The business of a circular future, State of Green, Denmark, July 2021,
[36] Ritzau/The Local: Denmark signals support for zero-emissions zones in cities, in: thelocal.dk, 26-05-2021, https://www.thelocal.dk/20210526/denmark-signals-support-for-zero-emissions-zones-in-cities/
[37] Ashleigh McLennan and Birgitte Krebs Schleemann, The power of public procurement in the transition to a circular economy, in: The Journal of Field Actions, nr. 23, 2021;?https://journals.openedition.org/factsreports/6614