Circular economy:setting the scene

Arturo de la FuenteEurostat

Joint UNECE/OECD Seminar implementation SEEA13-14 February 2020, Geneva

The world is 9% circular

of the minerals, fossil fuels, metals and

biomass that enter the world economy are

re-used

9%

Source:

https://www.circularity-gap.world/

circular economy vs. linear economy

Definitions of circular economy

• Several definitions of circular economy exist Example: “A circular economy, maintains the value of products, materials and resources in the economy for as long as possible, and the generation of waste minimized.” (EU action plan)

• The circular economy means different things to different peoplePolicy makers love it!

The circular economy is not only about recycling

1. Waste • More waste recycled, reduce

waste shipments, reduce food waste

• Batteries, end-of-life vehicles, hazardous chemicals

3. Value chains and sectors• Plastics, textiles, construction,

consumer electronics, transport• Material and energy use,

effects on climate emissions• Effects on biodiversity (land

management, food value chain, chemicals, water scarcity)

• Industrial symbiosis

2. Production and consumption• Reducing material consumption

and material footprint• Resource efficiency• Contribution to climate

neutrality• Eco-design, packaging• Consumers information and

rights (‘ecolabeling’, ‘right to repair’)

4. Economics• ‘Good’ growth and jobs,

investments, green public procurement

• Innovation driver

National policies and strategies

• Policymakers give shape to their interests related to the ‘circular economy’ in national strategies or in action plansE.g. focus on sustainable products, waste, health aspects, informing consumers, trade policies, climate change, energy, digitalisation, investment and finance,…

• National strategies spell out scope, priorities, indicators, targets,…

Circular economy is a cross-cuttingissue

Dashboards of indicatorsSEEA based indicators and non-SEEA based

Circular economy and SEEA? (1/3)

• Circular economy has economic & environmentaldimensions

• Exploit strenghts of accounting approach

1. provides cohesion to several thematicaccounts

2. basis to derive keyindicators

3. basis forcommunication of complex interrelations

Circular economy and SEEA? (2/3)

• Circular economy is a policy application for SEEA• There is not SEEA account on circular economy• Several relevant SEEA thematic accounts

• Material flow accounts• Waste accounts• Energy accounts (link with climate change)• Air emissions accounts (link with climate change)• Forest accounts (link with biodiversity)• Land accounts (link with bioeconomy)• Water accounts• Monetary environmental accounts (for CE sector)

Circular economy and SEEA?(3/3)

SEEA sound for measurement of:

• Footprints (material, energy, CO2,…)• Resource productivity and resource efficiency• Materials vs waste• Materials vs climate action (emissions, energy)• Materials vs taxation• Growth and jobs of the ‘circular sector’• Investment and financing in the ‘circular sector’• …

Examples aspects not well covered with SEEA

• Waste prevention• Reparability of products• Environmental footprint of individual products• Innovation, patents, eco-design• Chemicals and pesticides• Green public procurement• Local aspects (e.g. city mobility)• …

We need new SEEA–based indicators and communication tools

• Example of new indicator: circular material use rateshare of secondary raw materials out of all materials used (11.7% in the EU in 2017)

• Example of communication tool: Sankey diagram of material flows

Programme for today’s session

Part I: policies, concepts, definitions and information needs

Presentations

(lunch break)

Part II: how to measure transition towards a circular economy. Role of SEEA

Presentations Panel discussion

(coffee break)

Part III: integration, indicators and communication

Panel discussion