European Circular Economy Stakeholder Platform

The "No time to waste: unlocking the circular potential of the Baltic Sea Region" report, prepared by Politiyka Insight for the 10th annual forum of the EU Strategy for the Baltic Sea Region (BSR) attempts to review the state of circular economy in that region, while assessing the challenges and opportunities connected with a circular transition. The report also looks into the future by trying to identify key trends that will impact the BSR countries until 2030, and on that basis project the future development of the circular economy, along with alternative scenarios.
 

The report shows that as of 2019 only Finland and Germany have adopted a circular economy strategy, while Poland, Estonia and Sweden are drafting one. On the other hand, there are circular economy projects active or planned in all countries neighbouring the Baltic sea, except for Lithuania and Latvia. According to its baseline scenario, "the transition to a circular economy will only happen partially. Cooperation between the BSR countries will remain on a roughly the same level, with EU policy as the main unifying factor. The most significant changes will be visible in the production sector".

This preliminary study stimulates public debate on the circular economy in Germany and serves as a basis for discussion within the recently launched Circular Economy Initiative Deutschland. With a sizeable industry, there is substantial opportunity for Germany to adopt circular policies, but this paradigm shift would mean no less than a reinterpretation of the "Made in Germany" model.

In the past years, both the European Union and several Member States have adopted circular economy strategies to transition to a resource-efficient economy based on keeping resources in use for longer. While countries outside Europe also follow this guiding principle in their industrial and resource policies, e.g. China, Japan or Canada, such a plan is still missing in Germany.

This report discusses the preconditions for a successful implementation of a circular economy within the German context, before discussing the experiences of European countries, which have already initiated the transformation to a circular economy by developing roadmaps or comparable strategies. The learning experiences and best practices of these countries are examined with a view to transferring some of these to Germany.
 

The paper provides an overview of the literature on Circular Economy (CE) theoretical approaches, strategies and implementation cases. After analyzing different CE approaches and the underlying principles the paper then proceeds with the main goal of developing tools for CE implementation. Two tools are presented: a CE Strategies Database, which includes 45 CE strategies that are applicable to different parts of the value chain and secondly a CE Implementation Database, which includes over 100 case studies categorized by Scope, Parts of the Value Chain that are involved, as well as by the used Strategy andImplementation Level. An analysis of the state of the art in CE implementation is also included in the paper.

One of the observations from the analysis is that while Parts of the Value Chain (recovery/recycling, consumption/use) are prominently featured, others, including manufacturing and distribution, are rarely involved in CE. On the other hand, the Implementation Levels of the used Strategies indicate that many market-ready solutions already exist. The Scope of current CE implementation considers selected products, materials and sectors, while systemic changes to the economy are rarely suggested. Finally, the CE monitoring methods and suggestions for future development are also discussed in this paper. The analysis of the theoretical approaches can serve as an introduction to CE concept, while the developed tools can be instrumental for designing new CE cases.

Circular economy increasingly attracts the interest of business, policy makers and academia in the search for answers to sustainability challenges. While earlier studies have presented drivers that support the introduction of new business concepts for circular economy, as well as barriers that hinder the rate of innovation in the field, no systematic categorizations of such factors have been brought forward.

Drawing on current literature, a framework of drivers and barriers is introduced, including seven distinct areas: environmental, economic, social, political and institutional, technological and informational, supply chain, and organizational factors. The appearance and content of these areas in practice have been examined in four case organizations by conducting thirty-six qualitative, semi-structured interviews. Empirical illustrations of the potential barriers and drivers provide managerial implications for better execution of circular business.

The transition to a more circular economy is underway. But what can be done to speed it up? This report, authored by Institut Montaigne, recommends five principles that must drive circular economy policy:

• focus on innovation
• adopt a comprehensive, global approach
• take into account differences between sectors and enhance public / private cooperation
• measure progress
• reach out beyond developed countries.

The concept of circular economy is gaining traction. This has led to various policy actions throughout the life cycle of a product ranging from measures on eco-design to recycling targets. Despite the progressive incorporation of the circular economy in industrial and innovation policies, the EU and Member States policies have a strong focus on increasing recycling rates, reducing landfilling and creating markets for secondary raw materials. On their own these measures are insufficient to result in a paradigm shift in resource use and current targets inadequate to provide a clear direction of travel.

Within the framework of THINK 2030, an IEEP project to support a science-based agenda for European environmental policy beyond 2020, the authors set out what policy actions the EU and Member States can and should take in the coming decade to achieve a circular shift in Europe.

The Barriers & Drivers to a Circular Economy report provides a review of pre-Circular Economy Action Plan studies on green growth, and showed that "a Circular Economy demands a system change with parallel actions along the value chain rather than a purely sector and/or product focused approach".

While many strategies by national and regional governments have been launched since the report's publication in 2015, its succinct overview of the issues impeding a circular transition remains useful for policy researchers. Many barriers, especially with consumer acceptance or price incentives of recylced materials, persist till today.

The Challenges, Opportunities and Pathways for European Business in Circular Economy report is a EUROCHAMBRES initiative launched in order to better understand if and how the circular economy will benefit European businesses, and to delineate a successful transition. This will be the basis for a policy strategy to contribute to an enriching debate on future legislative proposals at European level.

This report is a comprehensive meta-analysis of the most up-to-date quantitative studies on the circular economy, and elaborates on nine industrial sectors (agriculture, construction, mobility, hospitality and food services, metal manufacturing, electronics, textile, food & drink manufacturing, and plastics) including case studies. Bearing in mind the future of European manufacturing industries and businesses, the paper focuses on European trends derived from available data regarding investment costs, cost savings, and investment opportunities.

To increase clarity in circular projects, France's standardisation body AFNOR developed a voluntary standard, XP X30-901, that proposes a common understanding, laying out the terms, principles, and practices for all actors to agree to work with on the subject.

XP X30-901 proposes a 3 x 7 matrix covering the three dimensions of sustainable development - environment, economy, society - and the seven areas of action of the circular economy: sustainable procurement, ecodesign, industrial symbiosis, functional economy, responsible consumption, extension of service life, and the effective management of materials and products at the end of their life cycle.

In this report, six members of the standardisation commission share their experiences on this voluntary standard.