Circular Economy Closing the loop – An EU Action Plan for the Circular Economy

What are the limitations of a Linear Economy?

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unstable supply of raw materials

scarcity of resources

volatile prices of resources

lost value of materials and products

waste generated environmental degradation & climate change

EU imports more materials and natural resources than it exports

European Union (EU-28) Rest of the world (ROW)

Total trade EU-28 to ROW

In 2004: 455 million tonnes In 2014: 640 million tonnes

Total trade ROW to EU-28

In 2004: 1664 million tonnes In 2014: 1534 million tonnes

159

237

434

181

195

1300

Biomass Manufactures Fuel/mining products

EU-28 exports (2014)

EU-28 imports (2014)

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From a Linear Economy…

DISPOSE MAKE TAKE NATURAL RESOURCES

WASTE WASTE WASTE

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…to a Circular Economy

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What are the benefits of a Circular Economy?

• the value of products, materials and resources is maintained in the economy for as long as possible

• waste generation is minimised

• boost to the economy and competitiveness by creating new business opportunities, and introducing innovative products and services

• brings economic, social and environmental gains

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Circular Economy: looking to the future

• growth & job creation/ up to +7% GDP

up to 600 billion in savings/8% of annual turnover for business in the EU

estimated 170 000 direct jobs in waste management sectors created by 2035

• boosting competitiveness and ensuring security of supply

• building economic and environmental resilience

• encouraging innovation

• reducing total annual Greenhouse Gas Emissions by 2-4%

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Circular Economy Package

Adopted by the Commission 2 December 2015

Action Plan Communication

List of Follow-up Initiatives (Annex)

4 Legislative proposals on waste

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In line with the Commission’s overall priorities

Protecting the environment and boosting competitiveness go hand-in-hand: both are about building a sustainable future.

Energy Union and Climate

Jobs, Growth

and Investment

Democratic Change, Better

Regulation

CIRCULAR ECONOMY

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Key action areas

Production

Waste Management

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Seco

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Innovation, Investment

& Monitoring

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Production phase

•Reparability, durability, and recyclability in eco-design

•Creation of economic incentives for better product design through EPR schemes

Product design

•Promotion of resource efficiency practices for various industrial sectors

•Support to the industrial symbiosis by clarifying the rules on by-products and end-of-waste criteria

• Improve the efficiency and uptake of EMAS

•Support to SMEs to integrate advance manufacturing technologies and to substitute substances of concern

Production Processes

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Consumption phase

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• Information on reparability and use of spare parts

• Encouragement of reuse activities

• Better enforcement of guarantees on products

• Fighting planned obsolescence

• Tackling false green claims

Businesses and Consumers

• EU ECOLABEL: 6 cleaning product categories http://ec.europa.eu/environment/ecolabel/products-groups-and-criteria.html

• Product Environmental Footprint (Pilot to measure and communicate environmental impact of products)

• Green Public Procurement: 3rd EC Handbook

Instruments

Waste management

•Awareness raising and exchange of best practices to promote prevention (eg: food waste or marine litter)

Waste prevention

•New targets (municipal waste, packaging waste and landfill)

•Better management of packaging waste in the commercial and industrial sectors

•Encouragement of economic incentives at national level to promote recycling

Recycling

•If prevention or recycling is not possible, recovering energy content from waste can be a suitable option.

•"Waste to Energy" Communication by the end of the year.

Energy recovery

•Only 10% of municipal waste could be landfilled.

Disposal

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Background

• review clauses in the waste legislation by 2014

• even with full implementation of existing legislation, valuable resources are being lost

• gap between existing targets and ambition level of the Resource Efficiency Roadmap and 7th EAP

• possibility to do more than existing targets – important benefits to capture

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Why is action needed?

42%

6% [VALUE]

4% 9%

36%

Deposit onto or into land

Land treatment and release into water bodies

Incineration/disposal

Incineration/energy recovery

Backfilling

Recycling

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• loss of valuable materials

• negative impacts on land, water and climate

• low levels of recycling-High levels of landfilling

• incineration of recyclable waste

• no long-term targets

Benefits

• More efficient waste management system: 30 billion euro savings (2015-2035)

• More employment: 170 000 direct jobs

• GHG emissions reduction: 600 mln tonnes (2015-2035)

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Secondary raw materials

• Encouragement of reuse of treated wastewater

• Smart design and proper sorting can increase the recycling of plastics and its injection back into the economy

• Promotion of non-toxic material cycles, reducing substances of concern

• Analysis of the interface between products, waste and chemicals

Recovering and recycling materials

• Development of quality standards, in particular for plastics

• Recent adoption of a proposal for a revised fertilisers

• Reduction of barriers to the cross border circulation of secondary raw materials.

Trading in secondary raw materials

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Priority sectors

Biomass & Bio-based Products

Plastics

Food Waste

Construction & Demolition

Critical Raw

Materials

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Priority sectors

Promotion of biobased

resources and support for

innovation on bioeconomy

Strategy on Plastics and reduction of Marine Litter

Common methodology to measure Food Waste

Promotion of the recovery of

Critical Raw Materials and exchange of

best practices

Recovery of valuable

resources from Construction and

Demolition Waste and better

assessment of environmental performance of

buildings

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Innovation & Investment

Innovation

• Horizon 2020 initiative launched on ‘Industry 2020 in the Circular Economy’ (EUR 650 million)

Regional Policy

• European Structural and Investment Funds

Investment

• new platform for financing Circular Economy with European Investment Bank and national promotional banks

Overcoming barriers

• pilot ‘innovation deals’ to address potential regulatory obstacles for innovators

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Circular Economy: an international dimension

EU's international commitments

2030 Sustainable Agenda, adopted by the United Nations in Sept 2015

COP21, historic agreement on 2°C global warming limit in Dec 2015

G7 Alliance for Resource Efficiency, building more sustainable supply chains and global markets for secondary raw materials

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Next Steps

• more than 50 key actions included in the EU Action Plan for the Circular Economy

timeline for implementation

progress report 5 years after adoption

actions to be developed in line with the Better Regulation principles

• European Parliament and Council to decide on the 4 legislative proposals on waste

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