European Circular Economy Stakeholder Platform

Society and businesses are becoming increasingly aware that the resources needed for products are not infinite. There is growing pressure on the availability of resources due to a variety of factors including the expected increase in global consumption of goods spurred by a growing global middle class.

The report aims to introduce the various business risks of common ‘linear economy’ business practices and start a dialogue with the financial and business community about their implications. Building on this report, there is an objective to explore further directions to better understand and model them. Hopefuly, these risks will one day become an integral part of investment decisions to ensure better investment decisions that achieve long-term stability and growth.

The present guidelines have been developed by ACR+ in the framework of its Circular Europe Network initiative (CEN: www.circular-europe-network.eu).

It aims at explaining the potential role of local and regional authorities, and at developing guidelines to help them draw up integrated and efficient circular economy plans. Even though acknowledging the broader concept, these guidelines focus mainly on materials, considering that it is difficult for local and regional authorities to encompass all topics at once and since material resources represent the core element of circular economy.

The guidelines clarify the circular economy concept from a local or regional authority's perspective (Part 1) and propose key steps and elements to include in a local or regional circular economy strategy (Part 2).

The present document should serve as a set of first guidelines in the subject, particularly for the members of the Circular Europe Network, and is intended to be completed with examples of best practices to set such strategies, as well as concrete cases of circular economy.

The document is also available in Catalan, Italian, Portuguese and Spanish. For more information, please click here.

This paper reviews the existing literature on modelling the macroeconomic consequences of the transition to a circular economy. It provides insights into the current state of the art on modelling policies to improve resource efficiency and the transition to a circular economy by examining 24 modelling-based assessments of a circular economy transition. Four key conclusions emerge from this literature. First, most models find that a transition to a more circular economy – with an associated reduction in resource extraction and waste generation – could have an insignificant or even positive impact on aggregate macroeconomic outcomes. Second, all models highlight the potential re-allocation effects – both between sectors and regions – that the introduction of circular economy enabling policies could have. Third, certain types of macroeconomic model are more appropriate for assessing the transition than others, notably due to their accounting of interactions between sectors and macroeconomic feedbacks. Fourth, of the assumptions that are fed into these models – those concerning future rates of productivity growth, the substitutability between different material types, and future consumption patterns – are key determinants of model outcomes. 

Achieving the 2030 UN Sustainable Development Goals and Paris Agreement climate targets will hinge upon the global transition to a low-carbon circular economy. Replacing finite and fossil-based materials with responsibly managed renewable materials could decrease carbon emissions whilst reducing dependency on finite resources.

However, the role that renewable materials can play in the circular economy is often under-rated, and, so far, most of the conversation has focussed on biodegradability, instead of the role they could play in reuse, remanufacturing, and recycling streams. The aim of the Collaborative Project was to start a conversation on the role of renewables in the circular economy, and in order to do this, set out the opportunities and challenges that companies face when using/shifting to renewable materials today and propose a shared vision for the future.

In order to support public purchasers to leverage support for a transition to a circular economy, in October 2017 the European Commission published 'Public Procurement for a Circular Economy'. This brochure contains a range of good practice case studies as well as guidance on integrating circular economy principles into procurement.

This report is the result of a collaborative project which was carried out by members of the Circular Economy 100, a program curated by the Ellen MacArthur Foundation. The participants aimed to: (1) understand the implications of a circular economy on the business and financing models of companies; (2) determine how a transition to a circular economy can be supported and accelerated by the financial system; and (3) co-develop and share communication strategies and tools to make the transition clear and tangible to our colleagues, clients, and academics.

To support the transition to the circular economy, governance, regulations and business models will play a crucial role. More importantly, circular business models (CBMs) would allow the retention of an asset at its highest value over time and support enhancement of natural capital. Different CBMs will be required at different stages of a lifecycle of an asset and may work independently or collaboratively. Successful implementation of these business models will require action from designers, suppliers, service providers, contractors and end-of-life companies by sharing materials, systems, energy, as well as information and services.

The circular economy offers a new way of looking at the relationships between markets, customers and our use of resources. It uses innovative new business models and designs, disruptive technologies and reverse logistics to transform the current ‘take, make, dispose’ economic model. Circular initiatives work to three principles of designing out waste and pollution, keeping products and materials in use and regenerating natural systems. 

Highlighting that many retailers are already tapping into circular economy thinking, this report is the output of a Collaborative Project carried out by Arizona State University, Cranfield University, eBay, Kingfisher, PA Consulting, Philips, Stuffstr and Wrap to identify new ways of working to generate value, discover new business opportunities and reduce resource costs - strategies which fundamentally change the relationship these retailers have with customers.

All societies produce waste, though its characteristics and what happens to it depend on cultural, economic and political factors at local, national and global scales. New business models, technological innovations and social enterprise have the potential to reduce waste. Policymakers have a key role to play in supporting these efforts by fostering better communication between stakeholders; through regulation that prioritises reuse and quality recycling; and by encouraging resource efficiency through education, research and manufacturing initiatives.

Waste nationally and globally is increasingly problematic and challenging to policymakers. It is a problem that is increasing in scale and scope. It matters to all of us for a series of reasons:

• There is simply so much waste. In a country with a small land area and a large population, the sheer bulk of waste is in and of itself a problem;
• As humans congregate in cities around the world, the production of waste has become highly concentrated and that creates particular challenges for its collection and disposal:
• Much waste is harmful. The scale of that harm has become global. It harms both humans and the other species with which we share the planet. That harm comes in many forms.