There is growing awareness that the Circular Economy is a missing link in the Paris agenda and that it is urgent to strengthen the link between Circular Economy and the Climate Change Agenda. A circular economy aims to decouple economic growth from the use of natural resources and ecosystems by using those resources more effectively. During the COP24 climate summit in Katowice in December 2018, a coalition of European circular hotspots presented evidence and best practices of the circular economy as a means to bridge the gap in the climate agenda and identified where there is potential for scaling up.
Circular Hotspot COP24 Side-Event: Circular Economy - The missing link in the Climate discussion
1. A Circular Economy
Transition as a catalyst for
combatting global Climate
Challenges
Best practices and insights from
the business and science
community
COP24 Circular Hotspots Side Event
Katowice, December 7, 2018
3. SHARING INNOVATION
PROGRAMME
11.30 – 11. 35 Welcome by Mr. Freek van Eijk (Holland Circular Hotspot)
11.35 – 11. 49 Insights from Research Institutes
Moderated by: Mr. Andre Weidenhaupt, Luxembourg Ministry of Sustainable
development and Infrastructure
With guest speakers: Eva Gladek (Metabolic), Kari Herlevi (Sitra)
12.03 – 12.56 Best Businesses Practices
Moderated by: Mrs. Tjitske IJpma, Dutch Ministry of Infrastructure & Water Management
With guest speakers: Harald Tepper (Philips), Jakub Wójcik (Izodom Company),
Arve Ulriksen (Mo Industripark), Callum Blackburn (Zero Waste Scotland)
12.56 – 13.00 Wrap up by Freek van Eijk (Holland Circular Hotspot)
4. SHARING INNOVATION
INSIGHTS FROM RESEARCH INSTITUTES
Moderator: Dr. André Weidenhaupt
Director General Luxemburg Ministry of
Sustainable Development and Infrastructure
5. SHARING INNOVATION
Resources - the missing link in the Climate Debate
Could a rare metals shortage disrupt the energy transition?
Eva Globek
CEO Metabolic
8. The basics
Circular economy
“Based on detailed product level
modelling, the report estimates that
the circular economy represents a net
material cost saving opportunity of
USD 340 to 380 billion p.a. at EU level
for a ‘transition scenario’ and USD 520
to 630 billion p.a. for an ‘advanced
scenario’”
11. A prerequisite for a low-carbon future
Circular economy
UP TO 70% EMISSIONS
REDUCTION
IN MANUFACTURING
ELIMINATING “BURDEN-
SHIFTING” FROM ONE PROBLEM
AREA TO ANOTHER
PRESERVATION OF ESSENTIAL
RESOURCES FOR THE ENERGY
TRANSITION
12. The building blocks of the energy transition
Rare Earth metals
Image source: Wikipedia
17. Tarrifs and market manipulations can lead to bottlenecks
Uncertainties
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2009 2010 2011 2012 2013 2014 2015 2016 2017
Prijsneodymiumperton
18. For some of these
metals, the NL requires
a few % points of global
production capacity
Note:
Only includes wind turbines and solar
PV, not other applications.
Dutch metal demand
19. Based on the latest
IPCC models for
remaining within 2˚C,
production will have
to increase
enormously.
Note:
Only includes wind turbines and
solar PV, not other applications.
Global metal demand: present – 2050
23. …to a resilient supply chain
Possible solutions
• Development of EU (and regional)
mining industries
• Adoption of circular design
principles
• Research into alternatives • Design for disassembly
• New recycling technologies
24. We need to ensure that our transition
to a renewable energy future is a
genuinely sustainable transition.
26. SHARING INNOVATION
The Circular Economy a Powerful Force for Climate Mitigation
Transformative innovation for prosperous and low-carbon industry
Kari Herlevi
Project Director Circular Economy
27. The Circular Economy a Powerful Force for
Climate Mitigation
Transformative innovation for prosperous and low-carbon industry
Kari Herlevi, Project Director, Sitra
28. 5 key facts about Sitra
1. A gift from Parliament to the 50-year-old
Finland.
2. An independent foresight agency:
futurologist, researcher, visionary,
developer, experimentalist, partner, trainer,
networker.
3. Funded by returns on endowment capital
and capital investments.
4. Envisages Finland as a successful pioneer in
sustainable well-being.
5. Its vision is supported by three themes, six
focus areas and dozens of projects.
+1
Building our future
together
29. On average, materials are
used only once in Europe.
(Ellen MacArthur Foundation 2015)
Cars are not used 92-98 % of time.
(Several sources, e.g. EEA 2015; Material Economics 2018)
1/3 of produced food goes
to waste in value chain.
(UN FAO)
The World is full of inefficiencies, loss and waste
Only 9,1 % of the global
economy’s materials
remain in circulation.
(Circle Economy 2018)
Offices are empty 60 % of time.
(GSA Office of Governmentwide Policy 2011)
67 % of global greenhouse gas emissions
are related to material management.
(UNDP 2017)
12 billion tons of plastics waste
will be in landfills or natural
environment by 2050.
(Geyer et al. 2017)
30.
31. Materials production alone risks exceeding the total
remaining carbon budget for a 2oC scenario
Gt tonnes CO2
800
918
649
CARBON BUDGET TO 2100 CO2 EMISSIONS FROM MATERIALS PRODUCTION
300
Even with 100 %
low-carbon
energy by 2050,
emissions far
exceed the
available carbon
budget.
32. Three Circular Economy strategies make better
use of materials to reduce CO2 emissions
More high-value
recycling & less primary
material production
Less material input
needed for improved
production process
Reuse of components
Designing products with
less materials
Fewer products required
to achieve the same
benefits of service
Higher utilisation &
intensive use of products
Longer lifetime of
products
MATERIAL
RECIRCULATION
OPPORTUNITIES
PRODUCT
MATERIALS
EFFICIENCY
NEW CIRCULAR
BUSINESS MODELS
33. CO2 emission reduction potential in the EU
by 2050 compared to baseline scenario
for steel, plastics, aluminium and cement
178 Mt of CO2/a or 34 %
by recirculating what has
already been produced:
• 75 % of steel
• 50 % of aluminium
• 56 % of plastics.
MATERIAL
RECIRCULATION
OPPORTUNITIES
PRODUCT
MATERIALS
EFFICIENCY
NEW CIRCULAR
BUSINESS MODELS
56 Mt of CO2/a or 11 %
by reducing the amount of
materials that are lost in
production.
Solutions:
• Material & product design
• Production and construction
techniques
• Digitalisation.
62 Mt of CO2/a or 12 %
by making greater use of resources
in mobility and building sector.
Sharing enables
• more intensive use
• better maintenance
• improved reuse, recycling,
remanufacturing.
34. The measures identified could contribute
3,6 Gt CO2 per year to global efforts
to cut greenhouse gas emissions by 2050.
The claim on the carbon budget
could be reduced by 333 Gt by 2100.
35. Circularity of materials is inevitable to
meet the targets of the Paris agreement
Production and use of only
four materials - steel, cement,
aluminium and plastics -
fill the remaining
carbon budget by 2100.
Circularity can reduce
the CO2 emissions by
56 % by 2050 in the EU.
“The priority now should be to firmly embed circular
economy measures in the low-carbon agenda.”
37. SHARING INNOVATION
TABLE DISCUSSION:
INSIGHTS FROM RESEARCH INSTITUTES
Moderator: Dr. André Weidenhaupt
• Recources, the missing link in the Climate Debate
Eva Gladek, CEO Metablic
• The Circular Economy a Powerful Force for Climate Mitigation
Kari Herlevi, Project Director Circular Economy, Sitra
38. SHARING INNOVATION
BEST PRACTICES FROM BUSINESS
Moderator: Tjitske IJpma
Program leader International Circular Economy,
Department for International Affairs,
Dutch Ministry of Infrastructure & Watermanagement
39. SHARING INNOVATION
BEST CIRCULAR PRACTICES FROM PHILIPS
Harald Tepper
Group Sustainability and Program lead
Circular Economy, Royal Dutch Philips
40. Harald Tepper
Global program lead Circular Economy, Philips
COP24 side event, Dec 7th 2018
Driving the transition to
the circular economy
41. We strive to make the world
healthier and more sustainable
through innovation
Our goal is to improve
the lives of 3 billion people
per year by 2025
2.214 billion Lives Improved per year in Q2 2018
42. Healthy people, sustainable planet
Health and well-being for all (=SDG 3)
Sustainable consumption and production (= SDG 12)
Climate action (=SDG 13)
Sustainable materials
Carbon-neutral
in our operations
Financially
sustainable care
Access to care for
underserved
• Value-based care
• Prevention
• Move to digital
• From products to
solutions
• Locally relevant
innovations
• CLC roll-out
• Prove impact to local
governments
Make the world healthier and more sustainable through innovation
Improve the lives of 3 billion people a year by 2025
• Green Portfolio
• Circular product and
service design
• Close loops
• No landfill
• Reduce emissions
(logistics and travel)
• Energy efficiency
• Green electricity
• Carbon offsetting
Our plan of action directly supports the SDGs
43. Our ambitious circular economy objectives for 2020
15%
of turnover coming
from circular economy
solutions
Close the loop
on large medical systems
+
extend circular
practices to all medical
equipment by 2025
90%
of operational waste
recycled
zerowaste to landfill
44. We offer a variety of circular products and services
Lumify is a flexible
subscription service
providing access to
transducers, app and
online ecosystem. The
subscription service
reduces upfront costs
and improves patient
access to innovative
care.
The Diamond Select
program offers
refurbished healthcare
systems where
customers can benefit
from state-of-the-art
technology at a more
affordable price.
RAPID** program
reuses 50-70% parts /
materials from
returned X-ray tubes.
Philips SmartPath is an
economical way to
enhance existing
Philips systems to
current technology or
increased capacities.
Key components are
upgraded so that the
system is like new.
Performer Ultimate
vacuum cleaner
contains 36% recycled
plastics***
*Includes reconditioned and remanufactured; **RAPID stands for Returns, Analysis, Parts harvesting, Improvement and Data collection; ***Compared to total plastics content
Performance and
access-based models
Refurbished*
products and systems
Refurbished*
components
On-site or
remote upgrades
Products with recycled
plastics content
47. Capital Equipment coalition
Joining forces: PACE Capital Equipment Coalition
• Capital equipment: Assets with capital
value > 5 k€ and user lifetime > 1 yr
• Its manufacture uses 20-50% of total
metal ores extracted annually and drives
long-term energy demand
• Circular economy strategies provide
opportunity to optimize equipment
stocks and usage to create value.
48. EXAMPLES FROM THE BUILDING SECTOR
Jakub Wójcik
Vice-Chairman Izodom Company
Poland
57. MO INDUSTRIAL PARK
• One of the largest industrial parks in
Norway
• 108 different companies within process-
and mineral industry, marine sector,
datacentres, service sector and many more
• Roughly 70% of products exported to
global markets
• 2700 jobs
59. Becoming a world-class industrial park
creating value through focusing on
environmentally friendly and energy-efficient
circular services and solutions.
60. Innenfor prosessindustri, verkstedindustri og
servicebedrifter
Det industrielle tyngdepunktet i nord
EMISSION
REDUCTIONS
CIRCULAR
ECONOMY
ENERGY-
EFFICIENCY
MIP SUSTAINABILITY
61. MIP SUSTAINABILITY
• 30+ RnD projects within the aforementioned pillars
• Industrial businesscases, in the intersection between different
industries and sectors, predominantly based on circular economy
principles
• Has already yielded new businessareas, new jobs and improved
competitiveness
• Has resulted in a stronger link between industry and RnD
• We are aiming at linking artificial intelligence and blockchain
technology in several processes in the future
62.
63.
64. We are exploring CCU opportunities in our region and are
looking into a range of possible businesscases linked to
captured CO2:
• Replace fossil fuels in combustion processes
• Producing hydrogen
• Producing methanol
• Produce proteins for fish feed, replacing soy
BOOSTING CIRCULAR ECONOMY
– CROSS SECTORAL APPROACH
65. CITIES, THE PLACE FOR CIRCULAR CLIMATE
ACTION
Callum Blackburn
CEO Zero Waste Scotland
66. Callum Blackburn
Head of Policy, Research and Evalaution
zerowastescotland.org.uk
@zerowastescot
Cities, the place for circular
climate action
December 2018
67. The Carbon Metric
The Carbon Impacts of the Circular Economy
The Carbon Impacts of the Circular Economy (Zero Waste Scotland, 2015)
By doing more with less, a circular Scottish Economy can deliver steady growth AND improve
sustainability.
68. Scotland’s Carbon Metric - Key
Findings
• In 2016, Scotland generated 10.79
Mt of waste, with an associated
carbon impact of 10.97 MtCO2e
69. Key Findings - Weight v Carbon
• To maximize the climate change benefits of waste management,
there should be a focus on carbon intensive waste materials
70. The Carbon Metric
Burning waste: not low-carbon
Defra 2013, 2014
While no Scottish dataset exists, studies indicate EfW has a carbon intensity of >300gCO2e/kwh
-
50
100
150
200
250
300
350
400
2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
gCO2e/kwh
Carbon Intensity of Scottish Grid vs. EfW
Scottish Grid EfW
71. Opportunities for North East
Scotland
The North East Scotland region is one of the top five most
economically productive areas in the UK – 25% of
Scotland’s food and drink exports are from this area.
Predicted economic benefits in Aberdeen and Aberdeenshire
from adopting a circular economy are approximately £625
million:
• Construction and built environment sector – £286 million
• Energy infrastructure sector – £250 million
• Food and drink sector, and the wider bio-economy – £52
million
• Manufacturing sector – £37 million
72. Opportunities for Tayside, Scotland
Tayside has a population of more than 490,000 people and is home
to over 15,500 businesses.
In 2014, the Tay Cities economic region generated around 8% of
Scotland’s gross value added (GVA) worth just over £9 billion.
Predicted economic benefits in Tayside from adopting a circular
economy are around £404 million:
• Construction and the built environment sector – £185 million
• Energy infrastructure sector – £186 million
• Manufacturing sector – £19 million
• Food and drink sector, and the wider bioeconomy – £14 million
73. Conclusions for Cities and Regions
• “Inner loops” of CE and waste prevention is the
best way to reduce carbon emissions –
however you need a mechanism to identify and
unlock opportunities.
• To maximize the climate change benefits of
waste management, there should be a focus on
carbon intensive waste materials, such as food
waste in particular
74. SHARING INNOVATION
PANEL DISCUSSION AROUND BEST BUSINESS PRACTICES
Moderator: Tjitske IJpma
• Best Circular Practices from Philips
Harald Tepper, Group Sustainability and Program lead Circular
Economy at Philips, Royal Dutch Philips
• Examples from the Building sector
Mr Jakub Wójcik, Vice-Chairman of Izodom Company, Poland
• Industrial Symbiosis
Arve Ulriksen, CEO Mo Industripark, Norway
• Cities, the place for circular climate action
Callum Blackburn, Head of Policy and Research Zero Waste Scotland