Transcript Circular Economy

NINA GOODRICH
Director, GreenBlue & Sustainable Packaging Coalition
Circular Economy 101
AMERIPEN/June 1, 2017/ Washington D.C.
What is SPC’s/
GreenBlue’s Role?
• Influence the Debate
• Provide Education
• Enhance Supply Chain Collaboration
• Create Action
Working together to broaden the understanding of packaging
sustainability, develop meaningful improvements
Reports
Packaging
design tools
Educational
courses
Conferences
Consulting
How might we break the link between
economic growth and environmental
decay?
How might we create sustainable and
regenerative growth engines for the
future?
What is a Circular Economy?
A circular economy is an industrial system that is restorative or
regenerative by intention and design. Ellen MacArthur Foundation
McKinsey and Accenture
have estimated this to be a
trillion-dollar opportunity
“In a circular economy the value of products and materials is
maintained for as long as possible;
waste and resources are minimized and resources are kept
within the economy … to create further value”
EU Circular Economy Package December 2, 2015
Why Circular?
•
•
•
•
Economic Opportunity
Resource Preservation
Regenerative Business Models
Because We Must
take
make
waste
Planetary Boundaries
E/MSY =
extinctions per million species- years
Biodiversity Intactness Index (BII)
Steffen, W., Richardson, K.(2015). Planetary boundaries: Guiding human development on a changing planet
Science, 347(6223).
What is Changing the Conservation:
• Recognition that sustainability is good for business
• Understanding that being less bad is not good enough
• The easy wins where sustainability is aligned with cost
savings are more challenging to find.
• The recognition that sustainability needs to be
embedded into the business strategy not tacked on.
• Desire for transparency
• Big Data
• EU Circular Economy Package
New Evidence that Sustainability is
Good for Business
“The Green Giants bring the debate into the
present tense; it’s not just that it could be done
but that it has been and is being done—here
and now.”
Green Giants:
Freya Williams
CEO, Futerra North
America
• Make it better, not just greener (built in not
bolted on)
• Disruptive innovation
• A higher purpose
• Mainstream appeal
• Transparency (action not advertising)
Chipotle - Unilever - Whole Foods Market - Natura - Tesla IKEA(sustainable life at home) - GE(Ecomagination) Nike(Flyknit) Toyota(Prius)
Economy as a three-layered cake (with icing)
private sector
public sector
monetized
nonmonetized
Informal &
unpaid, caring,
sharing, etc.
natural capital,
clean air, clean
water, resource
base inc., soils,
fisheries,
biodiversity
Webster, Ken. Circular Economy a Wealth of Flows. 2015. P 113.
Henderson, Hazel. Paradigms in progress. 1991.
Resource Consumption & GDP
“For every 1% increase in
GDP, resource use has risen
0.4%”
(“The Circular Advantage.” Accenture analysis based on data from
SERI and Dittrich M. 2014.Global Material Flow Database. World
Bank GDP data, www.data.worldbank.org/)
Commodity prices have
historically been inversely
related to growth, but this
relationship changed in
2000.
(World Bank commodity price data)
http://circulareconomytoolkit.org/Workshops.html
1
The smaller the loop (activity-wise and geographically) the more
profitable and resource efficient it is.
2
Loops have no beginning and no end.
3
The speed of the circular flows is crucial: the efficiency of managing stock in the circular
economy increases with a decreasing flow speed.
44
Continued ownership is cost efficient: reuse, repair and remanufacture without a
change of ownership saves double transaction costs.
54
A circular economy needs functioning markets.
Webster, Ken. The Circular Economy A Wealth of Flows. 2015. Page 95
Puma’s InCycle
www.sustainablebrands.com/news_and_views/waste_not/puma-introduces-c2c-certified-recyclable-trackjacket-backpack-part-incycle
Title goes
Circular
economy
here
in a page
• worldviews matter – how we think and learn
• science sees a world of dynamic systems (complexity)
• economics reflects science
• waste = food (two cycles – technical and biological ±)
• shift to renewables
• shift from selling goods to services/performance
• rebuild/maintain capital to increase useful flows
• celebrate diversity* – look for effectiveness
• prices as messages to reflect full costs to assist markets
• money and finance? See *diversity and ± productive economy
www.ellenmacarthurfoundation.org
How Do We Get There?
Sustainable Materials Management
+New Business Models
+Technology Enablers
+Policy Frameworks
+Financial Incentives
Circular Economy Enabling Technologies
Digital
• Mobile, Cloud
• Track and Trace
• Big Data
Bio-Based (Carbohydrate Economy)
• Renewable
• Carbon Capture
Life and Material Science
• Recovery Technologies
Circular Economy Policy Frameworks
EU Smart Regulation
• Incentives: Waste Reduction, Separation and Collection
• Modernizing Waste Policy
• Incentives for Design for Reuse and Remanufacture
• Chemicals Policy (Free of hazardous and problematic)
Increase Recycling Rates/Targets
• Harmonizing Categories of Materials and Metrics
• Understanding and Measuring Access
Finance and Risk Management Tools
• Design incentives for longer lasting products
• Strong Policy Creates a Predictable Environment for
Investment
Circular Economy Financial Frameworks
• Finance and Risk Management tools and
Flexible Incentives
• Green Bonds
• Impact Investors (Returns and Impact)
• Public-Private Partnerships
• Eliminate Environmentally Harmful
Subsidies
• Feed-in-Tariffs
• Creating Markets for Secondary Raw
Materials
Thank you!
Nina Goodrich
[email protected]