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Impacts of the circular economy policies on labour market

Impacts of circular economy policies on the labour market

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Author: 
ICF, Trinomics, Cambridge Econometrics
Publication Date: 
05/2018
Country: 
EU

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Scope:

Contact: 
Juan Perez Lorenzo

How does a transition to a more circular economy affect jobs and skills demand in Europe?

This report looked at trends of circular economy activities across different sectors and quantified these activities as modelling inputs to provide employment changes for different sectors. The analysis also provides estimates of the occupational shifts and skills requirements that a shift to a more circular economy could entail.

The aim of this report is to develop an understanding of how a transition towards a more circular and resource efficient economy in Europe will affect labour markets across the Member States. Our analysis is the most comprehensive quantification of the EU jobs impacts from the circular economy to date. By using a fully integrated energy-environment-economy model (E3ME), our analysis considers both direct job losses and job creations that result from a shift to a more circular economy. It also captures indirect, induced and rebound impacts from interactions between sectors, Member States, and between economic, environment, material, energy and labour market indicators.

Our findings suggest that the EU is on the right track by making the circular economy a policy priority as circular economy policies will contribute to reducing negative environmental impacts, while simultaneously contributing to higher employment levels. By moving towards a more circular economy, GDP in the EU increases by almost 0.5% by 2030 compared to the baseline case. The net increase in jobs is approximately 700,000 compared to the baseline through additional labour demand from recycling plants, repair services and rebounds in consumer demand from savings generated through collaborative actions Although the magnitude of job creation is driven by our assumption of the rate of circular economy uptake in the scenarios, our analysis confirms that it is possible to become more resource efficient and increase employment at the same time.

Die Oekonomischen auswirkungen einer Verbesserung des Deutschen Gewaehrleistungsrechts

Study on the economic impact of extending warranty rights in Europe

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Author: 
Kilian Bizer, Martin Fuehr, Till Proeger
Publication Date: 
09/2016
Country: 
Germany

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Contact: 
Otmar Lell

The study analysed the economic effects of the transposition of Directive 1999/44/EC concerning warranty rights, which had to be transposed into national law by January 2002. A number of publications had suggested that strengthening warranty rights for consumer goods as foreseen in the directive could increase the price level of these goods, possibly resulting in a reduced purchases. The study addressed both questions by analysing data from several EU countries. The first question was addressed by analysing inflation rates of general prices and of prices for the consumer goods affected by the directive in the time period 1998 until 2002. The second question was analysed by looking at the share of consumers who used online consumer-to-consumer markets, which were not covered by the warranty rights foreseen in the directive.

The comparison of inflation rates for consumer goods showed that inflation rates for consumer goods were below the general inflation rate between 1998 and 2004. Therefore, between 1998 and 2004 prices for the different groups of consumer goods covered by the directive did not increase but actually appear to have decreased slightly. This effect has been found for all countries analysed with no significant differences between countries transposing the minimum standards and those that went beyond. The second part of the analysis addressed the question if a developed market for online consumer-to-consumer selling of goods exists, for which the new seller's warranties weren't valid. In case of price increases for business-to-consumer markets – which have not been found in the first part of the analysis – part of the transactions could be transferred to these markets. The analysis showed that the vast majority of consumers in Western European countries used the internet regularly to purchase goods, including the online-platform Ebay. In case of increasing prices for consumer goods because of strengthened warranty rights, part of the transactions would move to online consumer-to-consumer markets rather than resulting in an overall decline of consumer goods purchases. The general conclusion was that over the analysed time period no negative impact of strengthened warranty rights on the price level of consumer goods could be found.

Financement de l’économie circulaire

FDEC title page

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Author: 
Service public fédéral Economie, P.M.E., Classes moyennes et Energie
Publication Date: 
06/2018
Country: 
Belgium

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Key Area:

Contact: 
Sophie Cheron

Ce document est une synthèse des échanges qui ont eu lieu lors du séminaire « Financement de l’économie circulaire » organisé par le SPF Economie le 6 juin 2017 et réunissant les différents intervenants du secteur public et bancaire ainsi que des entrepreneurs de l’économie circulaire.

Il présente brièvement le concept de l’économie circulaire avant de développer les solutions de financement public et privé. Il souligne également les difficultés de financement auxquelles les entreprises et les banques sont confrontées.

Enfin, en comparant les initiatives belges en matière d’économie circulaire avec celles des pays voisins, ce document montre le rôle que la Belgique joue en Europe dans l’émergence de ce nouveau système économique. Différents points d’attention sont repris sous une rubrique « recommandations » à la fin du document.

Ook verkrijgbaar in het Nederlands.

 

Cerrar el círculo: el business case de la economía circular

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Author: 
Elena Ruiz , Paula Ruiz
Publication Date: 
07/2018
Country: 
Spain

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Contact: 
Elena Ruiz
Paula Ruiz

"Cerrar el círculo: el business case de la economía circular" (Closing the loop: the business case for a circular economy) is a report authored in 2018 by Foretica, which shows the latest trends in circular economy, a practical roadmap to guide companies towards a circular mindset as well as best practices from 9 companies that are leading the transition towards a circular economy in Spain.

Forética is a multi-stakeholder non-profit organisation working to promoting ethical and socially responsible policies at the core of institutional and corporate values. In 2017, Foretica launched the Circular Economy Action Group with 9 leading companies: Ecoembes, Endesa, Naturgy, IKEA Ibérica, ING, LafargeHolcim, Nestlé, OHL and Unilever.

ESPON - Possible European Territorial Futures - Vol. D - Place Based Circular Economy

Cover page ESPON Futures Circular Economy

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Author: 
Kai Böhme, Frank Holstein, Nathalie Wergles (Spatial Foresight), Andreu Ulied, Oriol BIosca, Laura Nogera, Marite Guevara, Dubravka Kruljac (Mcrit)t, Klaus Spiekermann, Lina Kluge (Spiekermann & Wegener Urban and Regional Research), Carlo Sessa, Riccardo Enei, Stefano Faberi (Isinnova)
Publication Date: 
02/2018
Country: 
EU

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Scope:

Contact: 
Kai Böhme (Spatial Foresight)
Marjan van Herwijne (ESPON)

What would the European territory look like in 2030, if Europe had completed a transition to a place based circular economy?

The fourth volume of the ' Possible European Territorial Futures' Final report, Volume D, focuses on the impact that a place based circular economy will have on territorial development in EU and provides background information and nuanced considerations concerning the territorial foresight for a place based circular economy. It is part of a larger ESPON study on territorial foresight, aiming to better understand the implications of either development trends or ideas for a wanted or unwanted future. Europe’s territorial structure under a place based circular economy will differ from the one we know today. This economy will imply dramatic changes for all parts of Europe and will also affect urbanisation and territorial balance. At a European level, the differences between strong socio-economic areas and the lagging regions may reduce under a place based circular economy. The study illustrates the potential for small and medium-sized towns, as well as the challenges for sparsely populated areas and inner-peripheries. It also highlights the importance of networks in driving innovations in a circular economy and leading areas in the sharing economy. Furthermore, the study shows areas which could expect particular transition challenges in consumer behaviour (including tourists) and changing manufacturing structures.

 

Guia sobre Economia Circular i Verda al món local

Guide to Circular and Green Economy in the local world: How to get into action and tools for local entities

Guide to Circular and Green Economy in the local world: How to get into action and tools for local entities.

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Author: 
Xarxa de Ciutats i Pobles cap a la Sostenibilitat (Network for Cities and Towns towards Sustainability in Catalonia (Spain))
Publication Date: 
06/2018
Country: 
Spain

Language for original content:

The "Guide to Circular and Green Economy in the local world" was published as part of the 2016-2019 Business and Green Economy Economy Plan for Local authorities promoted by the Network of Cities and Peoples towards Sustainability. This guide is based on the experience of its authors as well as municipalities participating in the Workshops organised as part of the same Plan collaboration of the Generalitat of Catalonia. The respective contributions of the Business and Green Economy Plan working group channel important challenges and successes in promoting the circular economy by local authorites throughout this document.

The aim of the guide is to disseminate the circular economy concept and provide acitonable suggestions to local authorities (politicians, civil servants) in order to promote circular economy at different levels of governance, where the scope is both mainstreaming within public administration as well as private sector buy-in.

The guide first presents the concept of circular economy, strategies for implementation and the local authorities can play in this transition. The second part presents the steps a local entity can follow to define a strategy to boost the circular and green economy in its area. The guide also includes a workbook that with tools and materials to put into practice such a strategy and facilitate the transition to a circular economy.

Waste prevention in Europe - policies, status and trends in reuse in 2017

Waste prevention in Europe - policies, status and trends in reuse in 2017

Cover EEA report 4 2018

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Author: 
Henning Wilts, Bettina Bahn-Walkowiak, Ybele Hoogeveen
Publication Date: 
06/2018
Country: 
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, EU, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, United Kingdom

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Contact: 
Ybele Hoogeveen

This is the fourth EEA report in a series of annual reviews of waste prevention programmes in Europe as stipulated in the European Union (EU) Waste Framework Directive.

This review focuses on reuse and covers 33 national and regional waste prevention programmes that had been adopted by the end of 2017.

Article 11 of the Waste Framework Directive states that Member States should take appropriate measures to promote reuse and preparing for reuse such as encouraging the establishment and support of reuse and repair networks. The report describes how reuse is addressed in the waste prevention programmes and provides data on the status of and trends in reuse systems in Europe. Chapter 1 introduces the concept of waste prevention in a circular economy and describes the policy background. It explains the review's approach and defines key terms used. Chapter 2 investigates the existing waste prevention programmes, looking at their scope and reuse objectives, measures and indicators, as well as the sectors and stakeholders addressed. Chapter 3 examines the status of and potential for reuse for key product groups (i.e. textiles, electrical and electronic equipment, furniture, vehicles, and buildings and building components). Chapter 4 concludes with key findings and prospects for reuse in the context of the circular economy agenda.

Food packaging in the circular economy: Overview of chemical safety aspects for commonly used materials

Food packaging in the circular economy: Overview of chemical safety aspects for commonly used materials

graphical abstract
Author: 
Geueke, Birgit, Groh, Ksenia, Muncke, Jane
Publication Date: 
05/2018
Country: 
Switzerland

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Contact: 
Birgit Geueke

Food packaging facilitates storage, handling, transport, and preservation of food and is essential for preventing food waste. In the existing economic system, food packaging is generally designed for single-use and discarded after relatively short periods of time, a scheme that is no longer acceptable in the transition to a circular economy.

This paper offers a detailed analysis in food packaging materials with respect to properties, recycling, and contaminants. It also discusses different approaches such as weight reduction versus recyclability or deposit and reuse schemes for permanent material-based food packaging.

The circular economy – a powerful force for climate mitigation

The circular economy – a powerful force for climate mitigation

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Author: 
Material Economics
Publication Date: 
06/2018
Country: 
Finland

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Scope:

Contact: 
Sitra

This report investigates how a more circular economy can contribute to cutting CO2 emissions. It explores a broad range of opportunities for the four largest materials in terms of emissions (steel, plastics, aluminium, and cement) and two large use segments for these materials (passenger cars and buildings). The key conclusion is that a more circular economy can make deep cuts to emissions from heavy industry: in an ambitious scenario, as much as 296 million tons CO2 per year in the EU by 2050, out of 530 Mt in total – and some 3.6 billion tonnes per year globally. Making better use of the materials that already exist in the economy thus can take EU industry halfway towards net-zero emissions. Moreover, doing so often is economically attractive. Initiatives for a more circular economy therefore deserve a central place in EU climate and industrial policy.

Linear Risks

Linear Risks Report

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Author: 
Shyaam Ramkumar , Frido Kraanen, Rik Plomp , Brendan Edgerton , Arnoud Walrecht , Ines Baer, Peter Hirsch
Publication Date: 
05/2018
Country: 
Switzerland

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Contact: 
WBCSD

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.

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