KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT

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KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT
KOLDING
                                         MARINA CITY

          KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA
          DEVELOPMENT
TURNTOO
KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT
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    Images by Cobe for
KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT
KOLDING MARINA CITY

                       TABLE OF CONTENT

                       EXECUTIVE SUMMARY							5

                       ASSIGNMENT - BACKGROUND AND 0BJECTIVES 				                                            8

                       1.1 The objective of the assignment 						     8
                       1.2 The Kolding Marina City project  						    8
                       1.3 Partners of the assignment 	 						        8
                       1.4 General approach and methodology  						9
                       1.5 Structure and content of the report 						 9

                       CIRCULAR ECONOMY IN THE BUILT ENVIRONMENT &
                       RECOMMENDATIONS FOR MARINA CITY		   			10

                       2.1 Circular economy: a short introduction 					10
                       2.2 The circular framework for Marina City				                                		12
                       2.3 Key process steps and enablers for the implementation of a circular  municipality		 14
                       2.4 Key partners for Kolding municipality to implement a circular marina city 		        17
                       2.5 Risks and opportunities assiciated to the project					                               18

                       SYSTEM CARDS AND BEST PRACTISE EXAMPLES 		                              		              20
                       L 1.1| Buildings / Circular Design							21
                       L 1.2| Buildings / Materials							25
                       L 1.3| Buildings / Energy							27
                       L 1.4| Buildings / Water							31
                       L 1.5| Buildings/ Waste							33
                       L 1.6| Buildings / Financial & Legal						      35
                       L 1.7| Buildings / Data (1)							37
                       L 1.8| Buildings / Data (2)							38
                       L 1.9| Buildings/ Data (3)							40
                       L 1.10| Buildings/ Health & Biodiversity						 42
                       L 1.11| Buildings/ Products as a service						 44

                       L 2.1| Infrastructure, Landscape & Public space / Circular design				                  48
                       L 2.2| Infrastructure, Landscape & Public space / Materials				                         50
                       L 2.3| Infrastructure, Landscape & Public space / Energy				                           51
                       L 2.4| Infrastructure, Landscape & Public space / Water					                            52
                       L 2.5| Infrastructure, Landscape & Public space / Waste					                           55
                       L 2.6| Infrastructure, Landscape & Public space / Data					                            56
                       L 2.7| Infrastructure, Landscape & Public space / Biodiversity and Health			            57
                       L 2.8| Infrastructure, Landscape & Public space / Mobility				                         58

                       L 3.1| Community / Materials							59
                       L 3.2| Community / Energy							61
                       L 3.3| Community / Waste							63
                       L 3.4| Community / Financial & Legal						 65
                       L 3.5| Community / Shared economy						    66

                       L 4.1 | Marina / Energy								67
                       L 4.2 | Marina / Waste								67
                       L 4.3 | Marina / Black waste water							        68
                       L 4.4 | Marina / Winter water boat storage						 68

                       APPENDIX I - RESULTS WORKSHOP 2					                                       72
                       APPENDIX II - LIST OF ADDITIONAL SOURCES (for CE in the built environment) 73

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Kolding Municipality
KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT
INTRODUCTION

                                                             MARINA CITY, KOLDING, DENMARK

                        "EVERY RIGHT IMPLIES A RESPONSIBILITY,
                          EVERY OPPORTUNITY AN OBLIGATION,
                              EVERY POSSESSION A DUTY."
                                                              John D. Rockefeller

     This report has been written by Turntoo, commissioned by the European Investment Advisory Hub to support
     Kolding municipality in their mission to develop a new urban area, a circular Marina City in Kolding. The objective
     of this report is to support and inspire Kolding Municipality and all stakeholders in the development of the
     Marina City as an exemplary project for circular area development. “The authors take full responsibility for the
     contents of this report. The opinions expressed do not necessarily reflect the view of the Advisory Hub, nor the
     European Investment Bank, nor the European Commission”.

               Vision Turntoo:
               Looking at earth from a distance, it becomes clear that man is a temporary guest in a closed system: earth. In this
               system, everything is equally important to ensure a stable balance with a future. Within earth’s boundaries our
               only possible unlimited growth is a mental one.

               The highest aim is to facilitate the continuity of life. In this respect, economy is the organized alliance between
               man and nature. We facilitate this relationship with a new system architecture. This results in, among others,
               innovative concepts, products, and services. Our basic principle remains to facilitate our temporary presence.

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KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT
EXECUTIVE SUMMARY
1 ASSIGNMENT BACKGROUND AND OBJECTIVES:

1A) PROJECT CONTEXT
The city council of Kolding decided that Kolding municipality should be a first mover and one of the country's leading
municipalities in developing the circular economy. In this context, Kolding is planning to develop a new urban district
called Marina City as a showcase for the circular economy in the field of urban development and construction. Marina
City is a mixed use development blending residential, commercial and recreational areas with a 5-star marina, which is to
become one of the largest and best of its kind in Denmark (1000 berths). The aim of the current report is to support the
municipality of Kolding in its ambition to develop the Kolding Marina City into a circular light-house project and serve as
inspiration for other circular developments in Kolding and beyond.

1B) PROJECT STAKEHOLDERS
The report has been written by Turntoo, commissioned by the European Investment Advisory Hub in its mission to
support Kolding municipality in its circular ambitions.
The European Investment Advisory Hub (“EIAH”), is a joint initiative of the European Investment Bank and the European
Commission offering technical assistance for project structuring, support for the use of innovative financial instruments
and advice on the use of public-private partnerships, as well as capacity building and horizontal matters.
The Danish municipality of Kolding is located in Southern Denmark and is the country's seventh largest city. It is has
a very long tradition of environmental and sustainable city management and planning; a strategy to develop Kolding
as a circular municipality is a natural continuation of this tradition. Turntoo is a Dutch advisory firm associated with
the architecture firm RAU Architects, both pioneering companies in the field of circular economy. The companies
have developed and implemented a number of innovative projects and business models in the area of circular urban
development and construction, for both private and public clients.

1C) PROJECT APPROACH
This report has been compiled by a team of experts of Turntoo and RAU Architects led by Thomas Rau and including
Sabine Oberhuber and Rachel Louiws, based on the terms of reference for the assignment agreed with the EIB and
Kolding Municipality. The contents of the report reflect the extensive experience of the expert team in the fields of circular
urban development and construction. In addition, two workshops that were held with the participation of selected
management and operational staff of Kolding Municipality and selected external stakeholders also provided valuable
inputs to this report. For additional information on best practice and case studies for implementing the circular economy
in the built environment a list of selected sources are provided in Appendix II.

1D) STRUCUTURE AND CONTENT OF THE REPORT
Section two of the report explains the concept of a circular economy, its relevance for an area development, provides a
framework of principles and values for a circular area development, and recommends a number of key implementation
steps which will help the city of Kolding to steer the process of developing the Marina City into a circular light house
project.
Section 3 of the report showcases a set of best practices which can serve as a source of inspiration for the development of
individual components of the Marina City project. The catalogue of best practices include both own projects developed
and implemented by Turntoo and RAU Architects over the last years, as well as projects executed by others, which were
selected and compiled based on an extensive desktop research.

2) CIRCULAR ECONOMY IN THE BUILT ENVIRONMENT – RECOMMENDATIONS FOR KOLDING MARINA CITY

2A) CIRCULAR ECONOMY AND AREA DEVELOPMENT
Our current economic system is organised in a linear way, which implies that we are taking resources, putting them into
use (for a relatively short time) and then discarding them as waste. The Ellen Macarthur Foundation has proposed the
following definition for CE: A circular economy is “one that is restorative and regenerative by design, which aims to keep
products, components and materials at their highest utility and value at all times, distinguishing between technical
and biological cycles.” A circular economy is based on a fundamental transformation of the economic system, reaching
from different business models, different design- and production-models to radically different consumption patterns
and culture. Due to their impact, cities have to play a vital role in the realisation of this new economic paradigm: Cities
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KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT
2B) A CIRCULAR VISION FOR KOLDING MARINA CITY
    In order to turn Marina City into a circular economy lighthouse project, the development has to be based on a strong
    vision grounded in a sound set of values and clear ambitions. The vision for Marina City as a circular urban development
    must be based on a strong future-proof relationship between its inhabitants and the (natural) environment in which they
    live and the planet at large.

    Based upon this vision the report recommends using the following set of values for the project:
    •   Regenerative: all activities in Marina City and its development should be based on processes, which restore, renew or
        revitalise its own sources. This is true for the purely physical dimension of materials, energy, water or soil, but can also
        be applied to the social dimension.
    •   Resilient: When developing a future-proof area it is very important to create adaptable systems, which are capable to
        respond to changes.
    •   Caring: A community which adopts a caring attitude towards its environment, the planet and future generations, but
        also its next door neighbours is much more mentally capable of realising a circular environment.

    Drawing upon these values the following ambitions have been formulated in the report for Kolding Marina City:
    •  Technical materials – are kept in continuous cycles at the highest possible value, waste is to be avoided. Organic
       materials can only be used if they are not competing with food production and extraction is in line with the recovery
       of the natural system.
    •  The CO2 footprint is minimised through efficient use of resources.
    •  Energy is exclusively drawn from renewable sources and the site is energy positive.
    •  Biodiversity is an integral part of the design and operation of the area.
    •  Water is used in several cycles.
    •  Social cohesion is supported via the infrastructure and the area design.
    •  Health of the environment and inhabitants of Marina City is an important factor for the design and material choices
       of the development.

    The values and ambitions affect the design, operation and end of life of the structural elements of the Marina City area
    development: buildings, infrastructure, the Marina and services for the community:
    •   All built elements will be designed, built and operated with the long-term preservation of materials in mind. This
        implies design for disassembly and adaptability to the changing needs of the inhabitants of Marina City.
    •   The infrastructure will be designed as a metabolism, which provides energy, water and food. In addition it must
        provide space and facilities for sustainable mobility. The landscape design must cater for recreation and provide a
        biodiversity rich public space.
    •   Waste management will allow nutrients to be returned to the soil in an appropriate manner, while generating value
        and minimising food waste. The energy management system of Marina City is resilient and based on renewable
        sources, preferably using locally produced energy. The water system is designed to minimise water use while at the
        same time maximising the reuse of water through local purification and cascades.
    •   The Marina aims to attract and inspire visitors as an example for a sustainable harbor respecting the circular values
        mentioned above and teaching visitors to be conscious of of the resources they use and the waste they produce.
    •   Marina City will create a vibrant community, which embraces the idea of a circular urban area. This will be facilitated
        by developing the built environment based on circular economy values and principles and providing community
        services based on circular economy business models (such as product-to-service models, sharing platforms and
        others arising from community initiatives) that support the creation of "local value loops".
    •
    2C) RECOMMENDATIONS FOR IMPLEMENTATION
    The realisation of a circular Marina City needs different instruments which are summarised in the next section:
    •   The strategy for land tendering will need to include a long-term ambition / incentive for all parties involved. This
        requires a procurement framework to be developed in which all involved parties have the same shared ambition and
        long term objectives including Kolding Municipality.
    •   Circular procurement and business models can help to realize a circular urban infrastructure, however, circular
        procurement needs to be complemented with circular operations in order to realise material preservation and
        efficiency.
    •   An important first step in realising the circular ambition is to understand the current ecosystem of the Marina City
        area and use that knowledge to set the right long term incentives for all stakeholders involved

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KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT
•   Prior to the tendering process market consultations with different interested parties are advisable in order to clearly
    communicate the ambition of the Kolding municipality for Marina City and develop a clear understanding of
    solutions the market can provide.
•   In terms of the approach for the tender process it is very important to set a clear framework of what needs to
    be achieved, in order to realise an ambitious circular project. An example of such a framework is presented in "A
    roadmap for circular land tendering" developed for the City of Amsterdam.
•   An important aspect of area development is to create incentives or obligations for market parties for a long-term
    responsibility for the buildings realised.
•   A means, which enables the municipality to keep the strategic ownership of the area could be realised through a
    hereditary leasehold model, we would advise Kolding municipality to experiment at least with one of the two large
    plots with such a model.
•   To successfully deliver a Circular Marina City the involvement of the local community is essential. Relevant
    stakeholders that can support and accelerate the circular transition are education institutions like the local design
    school, local businesses and the local community. The proposed framework described in this report can give the
    right direction and the example catalogue can be used as inspiration for local stakeholders to develop new or similar
    circular solutions.
•   A project wide communication strategy will need to be developed in order to disseminate the circular ambition of
    Marina City to the community, and increase and intensify the involvement and commitment of all stakeholders and
    the local community.

2D) RISKS AND OPPORTUNITIES
 The project also features particular issues that could be seen as running counter to its circular ambitions. These issues
require proper examination and management in order to mitigate the risk of a negative publicity.

A recent decision by Kolding Municipality to set a 25 year horizon for the definitive closure of the adjacent commercial
Port of Kolding can be seen as an opportunity for Marina City, as it will not only enhance its attractiveness for private
investors and potential future inhabitants, but also reinforce its function as an experimentation lab for circular economy
solutions that can be later replicated in other urban development projects to be implemented along the waterfront on
the site of the current Port installations.

3) EXAMPLE CATALOGUE
The example catalogue covers the main areas of development of the Marina City. It is structured in four different chapters
covering the main areas of development of Marina City:
1. Buildings
2. Infrastructure
3. Community
4. Marina
Every chapter is then divided into different relevant themes like materials, design principles, energy or waste. In addition
to concrete examples per area it gives a brief summary of the main issues of circular development, such as circular design,
material passports, energy, water and waste. There are few examples of circular area development and all of them are
still in the planning phase. Still many good working examples can be found on the different aspects, which need to be
covered in the development of Kolding Marina City. Additional sources featuring examples of best practice and case
studies for circular construction and urban development can be found in Appendix II

                                          THOMAS RAU, SABINE OBERHUBER, RACHEL LOUIWS

                                                                Turntoo

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KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT
CHAPTER 1

       ASSIGNMENT - BACKGROUND AND OBJECTIVES

       THE OBJECTIVE OF THIS REPORT IS TO SUPPORT AND INSPIRE-
       KOLDING MUNICIPALITY AND ALL OTHER STAKEHOLDERS WITH
       THE DEVELOPMENT OF THE MARINA CITY AS A SHOW CASE FOR
       THE CIRCULAR ECONOMY IN URBAN DEVELOPMENT

       1.1 THE OBJECTIVE OF THE ASSIGNMENT                                (EIAH) for the identification and assessment of best practice
                                                                          solutions for circular buildings and urban developments.
       The aim of the assignment is to develop Marina City                The Dutch advisory company Turntoo, authors of this
       as a light-house project for the circular transformation           report, were hired by the EIAH for delivering the requested
       of Kolding and serve as inspiration for other circular             advisory services to Kolding Municipality.
       developments in Denmark and beyond.
                                                                          1.3.1 EUROPEAN INVESTMENT BANK
       1.2 THE KOLDING MARINA CITY PROJECT                                The European Investment Bank (EIB) is the financing
                                                                          institution of the European Union, its shareholders are
       The city council of Kolding decided that Kolding                   the Member States. The mission of the EIB is to con-
       municipality should be a first mover and one of the                tribute, by financing sound investment, to the policy
       country's leading municipalities in transition to a circular       objectives of the European Union, as laid down in its
       economy. The declared objective is to develop the                  statutes and in decisions of the European Council. The
       potential of the circular economy for the benefit of its           Bank contributes towards the integration, balanced
       citizens, its economy and the environment, based on the            development and economic and social cohesion of the
       motto "Kolding - We design for life"                               Members of the European Union.

       In this context, Kolding is planning to develop a new urban        1.3.2 EUROPEAN INVESTMENT ADVISORY HUB
       district, Marina City, as a showcase for the circular economy      The European Investment Advisory Hub (“EIAH”) , is a joint
       in the field of urban development and construction.                initiative of the European Investment Bank and the Europe-
                                                                          an Commission, set up as an integral part of the Investment
       The future site of Marina City is located on the southern          Plan for Europe (“IPE”). The EIAH offers technical assistance
       side of the Kolding Fjord, adjacent to the city's commercial       for project structuring, support for the use of innovative fi-
       port and in close vicinity to the city centre, Marina City is a    nancial instruments and advice on the use of public-private
       mixed use development blending residential, commercial,            partnerships, as well as capacity building and horizontal
       cultural and recreational areas with a 5-star marina with          matters, which are currently not covered, or not sufficiently
       top-class ancillary maritime service facilities. The residential   covered, by the existing programmes.
       buildings shall encompass a total of 400 individual
       apartments to be built based on a private-public-                  The main objective is to strengthen and accelerate
       partnership model. With total capacity for 1000 boats, the         investment by the provision of a comprehensive range
       Kolding Marina shall become one of the largest and best of         of independent advisory services: (i) to prepare and
       its kind in Denmark.                                               develop quality projects and investments, and (ii) to
                                                                          enhance the effective use and potential leverage of
       The Marina City is developed by the Municipality of                other EU funds, in particular through reinforced use
       Kolding in partnership with the Port of Kolding and the            of financial instruments, and (iii) to improve access to
       Kolding Marina, both of which are publicly owned or                other public and private finance.
       managed entities.
                                                                          1.3.3 KOLDING MUNICIPALITY
       1.3 PARTNERS OF THE ASSIGNMENT
       During the planning phase of the project, Kolding                  Kolding has a very long tradition of environmental and
       Municipality requested advisory support from the URBIS             sustainable city management and planning; a strategy
       initiative under the European Investment Advisory Hub              to develop Kolding as a circular municipality is a natural
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KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT
continuation of this tradition. Already in the 1970s,          and other circular business models). The second workshop
Kolding was the province's leader in rehabilitation and        was focussed on inspirational examples and inviting the
urban renewal, where major city centers were slowly            participants to come up with own proposals on how to
refurbished and recycled. In the 1980s, an exemplary           implement circular economy principles in the Marina City
energy cooperation was established. At the same time,          project. A list of such proposals is presented in Appendix I
waste sorting and incineration developed combined with         of this report.
district heating. In the 1990s, Kolding was an international
model in urban ecology, green urban renewal and                The report has been compiled drawing on the vast
introduction of solar cell technology, strategic initiatives   experience and know-how of experts of Turntoo and RAU
were developed within sustainable construction, planning       Architects, developed over many years in numerous urban
and green procurement. In the 2010's, these initiatives        development and construction projects as well as advisory
were supplemented with sustainable construction,               assignments for both private and public sector clients.
comprehensive climate adaptation measures, design
thinking and Circular Economy.                                 1.5 STRUCTURE AND CONTENT OF THE REPORT

1.3.4 TURNTOO                                                  Section 2 of the report explains the concept of
Turntoo assists companies and institutions in the              a circular economy, its relevance for an area development,
development and implementation of circular business            provides a framework of principles and values for a
models and management strategies and facilitates the           circular area development, and describes a number of key
transition to a circular economy. Turntoo is known for         implementation steps which will help the city of Kolding
breakthrough innovations such as the Light-as-a-Ser-           to steer the process of developing the Marina City into a
vice (Circular Lighting) model developed with Philips          circular light house project. Furthermore it addresses a
Lighting, or washing machines on performances basis            number of risks and opportunities for the development
with Bosch, which have become iconic projects for the          and recommendations to address them.
circular economy.
                                                               Section 3 and main part of the report will provide a set
Turntoo regards products as a materials depot –                of best practices, which can serve as a knowledge base
returning to the manufacturer at the end of use. This          and a source of inspiration for specific projects in the
way, components and materials remain available                 development of Marina city. It is structured in four different
for future products, and automatically incentivize             chapters covering the main areas of development of
manufacturers to opt for better design and material            Marina city:
choices.                                                       •   Buildings
                                                               •   Infrastructure
1.4 GENERAL APPROACH AND METHODOLOGY                           •   The community
                                                               •   The Marina
This report has been compiled by a team of experts of
Turntoo and RAU Architects led by Thomas Rau and               Every chapter is then divided into different themes like
including Sabine Oberhuber and Rachel Louiws, based on         materials, design principles, energy, waste, etc. which
the terms of reference for the assignment agreed with the      demonstrates how the resources necessary for realising the
EIB and Kolding Municipality. The contents of the report       project can be used in a circular way.
reflect the extensive experience of the expert team in the
fields of circular urban development and construction.
The report seeks to provide Kolding Municipality with a
framework based on values and a specific set of circular
ambitions which support the Marina city project team and
Kolding municipality to design, develop and monitor the
circular ambition for Marina city.

In preparation of this report two workshops and multiple
consultations have been carried out to provide the
necessary alignment and input of local stakeholders and
the Marina city project team for the report. The workshops
have been kicked off by an inspirational session by Thomas
Rau a well known industry expert on the circular economy.
The focus of the first workshop has been on familarising
the participants with the circular economy concept and
its application in urban development and construction          Image by Cobe for Kolding Municipality

(circular buildings, material passport. product-as-a-service
                                                                                                                                9
KOLDING MARINA CITY - KOLDING MARINA CITY AS A SHOW CASE FOR CIRCULAR AREA DEVELOPMENT
CHAPTER 2

       CIRCULAR ECONOMY IN THE BUILT ENVIRONMENT AND
       RECOMMENDATIONS FOR MARINA CITY

        'The Copernican Revolution beginning in the sixteenth century eventually paved the way toward a new, scientific
        worldview and enhanced human prosperity. Today, the global economy needs a similar paradigm shift. But this time it is
        the prevailing economic model that must be transformed’ Frans van Houten, CEO Philips

        2.1 CIRCULAR ECONOMY :                                                                          etc. need to be designed as temporary structures, thereby
        A SHORT INTRODUCTION                                                                            preserving the material quality at the highest level of
                                                                                                        quality, in order to ensure their usability in the future.
        2.1.1 THE NEED FOR A CIRCULAR ECONOMY                                                           Circularity in this context means to facilitate current needs
                                                                                                        in a way, which is not compromising future needs by using
        Our current economic system is organised in a linear way,                                       resources in a way that they remain available for future use.
        which implies that we are taking resources, putting them                                        This aspect of avoiding lasting consequences is not limited
        into use (for a relatively short time) and then discard them                                    to the preservation of materials; it is also comprising
        as waste. This linear use of resources, called the “take-                                       energy resources, water and biodiversity.
        make-waste” economy is not limited to materials alone, but
        also entails other resources such as energy, fresh-water,                                       Another aspect covered by the concept of circularity
        biomass or fertile soil.                                                                        is that of resource efficiency. Population growth and
                                                                                                        the rise of the global middle class, demand for a
        In this context, the words finite and temporary are of                                          radical decoupling of economic growth from resource
        great importance. Because of the fact that every human                                          consumption. Next to the preservation of resources, a
        activity draws upon the finite resources of the planet, we                                      radical shift to a much more resource efficient system
        need to keep in mind that the needs, fulfilled with those                                       is necessary. Design and material choices, business
        finite resources are only temporary. The fulfilment of these                                    models, consumption patterns and habits all have
        temporary present needs is currently realised by severely                                       significant influence on resource efficiency.
        compromising the needs of future generations and other
        living organisms, leading to ecological degradation,                                            Increasingly circular economy concepts also comprise
        biodiversity loss, climate change and thereby endangering                                       a social dimension based on the notion of an inclusive
        the future of humanity itself.                                                                  economy, which also caters for“improved wellbeing and
        Changing the current linear take-make-waste model                                               evident impacts on equity within and among generations
        into a circular model, in which resources are reused in                                         in terms of both resource use and access.”2
        endless cycles, is an indispensible step for making our
        economy and society future-proof.                                                               2.1.2 SCHOOL OF THOUGHT CIRCULAR ECONOMY

        A circular economy is based on a fundamental transfor-                                          Over the recent years a plethora of different definitions of
        mation of the economic system, reaching from differ-                                            circular economy has developed, it is far beyond the scope
        ent business models, different design- and produc-                                              of this document to discuss these different definitions.
        tion-models to radically different consumption patterns                                         Yet we esteem it valuable to briefly mention the most
        and culture.                                                                                    important schools of thought as a basis and reference for a
        The most commonly used definition of a circular                                                 common understanding of the circular economy.
        economy and the description on which many other
        definitions are based is that of the Ellen MacArthur                                            Today’s products must become tomorrow’s resources, for
        Foundation:                                                                                     yesterday’s prices,” is a prominent sentence from Swiss
        ‘A circular economy is one that is restorative and                                              Architect and thought-leader in the circular economy
        regenerative by design, and which aims to keep                                                  Walter Stahel, although he prefers to refer to it as the
        products, components and materials at their highest                                             „performance economy“. In 1976 he published a report
        utility and value at all times, distinguishing between                                          for the European Commission, in which he showed the
        technical and biological cycles.’1                                                              potential to replace energy with labour. In this report
        This implies that everything: products, buildings, roads,                                       he demonstrated how through a system of product-life-
       1.   Ellen MacArthur Foundation (2012). Towards a circular economy (Vol.1): economic and business rationale for an accelerated transition. Cowes, Isle of wight, United Kingdom

       2.   Patrizia Ghisellini et al, a review on circular economy: the expected transition to a balanced interplay of environmental and economic systems, Journal of Cleaner Production 114 (2016)

            11e32

       3.   http://www.un.org/en/ecosoc/integration/pdf/fact_sheet.pdf

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extensions, reparations and the sale of products as a                                            In 2015 all member states of the United Nations adopted
service, jobs could be created and economic and material                                         the Development agenda 2030 with the 17 Sustainable
values preserved.                                                                                Development Goals (SDGs) as its core. These SDGs, which
                                                                                                 are also described as the Global Goals, recognise “that end-
Another important school of thought is Cradle to Cradle                                          ing poverty and other deprivations must go hand-in-hand
(C2C), which was developed by chemist Michael Braungart                                          with strategies that improve health and education, reduce
and architect William McDonough. C2C distinguishes                                               inequality, and spur economic growth – all while tackling
between two cycles: a biological cycle, in which materials                                       climate change and working to preserve our oceans and
should circulate, that are derived from the biosphere and                                        forests.”11
can safely return back to it. The other cycle is the technical                                   The SDGs are becoming an increasingly important agenda
cycle in which non-renewable resources such as metals or                                         for business and government. Circular economy is therein
plastics, should be kept in continuous cycles. According to                                      seen as an important driver for the realisation of a number
the C2C school of thought products should be designed                                            of the goals. The strongest interrelation between circular
taking into account these two metabolisms, whereby                                               economy practices and the global goals exists between
materials for consumables should be derived from the                                             SDG6: Clean Water and Sanitation, SDG 7: Affordable and
biosphere. An important aspect of C2C thinking is the                                            Clean Energy, SDG 8: Decent Work and Economic Growth,
safety of the materials for humans and the biosphere. It                                         SDG 9: Industry Innovation and Infrastructure, SDG 11:
is a major concern to Michael Braungart that the circular                                        Sustainable Cities and Communities, SDG 12: Responsible
economy could lead to keeping toxins in the material loops                                       Consumption and Production, SDG 13: Climate Action
created by a circular economic system.                                                           and SDG 15 Life on Land. However the goals are strongly
                                                                                                 interrelated and a broader definition of circularity would
Based on the thinking of Stahel and Braungart the                                                touch more goals and even in the narrow definition a goal
EllenMac Arhtur Foundation developed a diagram, which                                            like Peace and Justice (SDG 16) is strongly affected by the
has become an iconic symbol of the circular economy. It                                          way resources are accessed and distributed within a global
visualises the different loops in which materials can be kept                                    economy.
in a circular economy. It shows how the value of products                                        In a presentation given in June 2018 at the 12th anual
from the biosphere can be maximised through a systems                                            meeting at the Unesco Creative Cities Network, Jørn
of different cascades. And how products from the so-called                                       Pedersen mayor of Kolding formulated a strong
technological sphere can be looped in a series of cycles                                         commitment to circular economy and the SDGs.
form reuse over repair and refurbishment to ultimately                                           And Thomas Boe, municipal director of the municipality
recycling. These different Rs have become a synonym for                                          of Kolding formulated in an interview: "In the municipality
the circular economy in the form of the slogan: "reduce,                                         of Kolding, the UN's global goals will be one of the
reuse, recycle". They have been described by many                                                cornerstones that draw the vision, and all new policy areas
different scholars , whereby the number of Rs increases                                          will involve the SDGs. In the municipal work, the SDGs
since the discussion around circular economy has taken                                           actually embrace all our areas of action - from circular
flight. However, they provide a tool from the design phase                                       economy and climate to social and health, urban renewal
until the end of life phase to maximise material efficiency                                      and education".10
and preservation. The current list of Rs known to authors
reads as follows: Refuse, Reduce, Reuse, Repair, Refurbish,
Remanufacture, Regift, Recover, Recycle, Repurpose
(Reinvent), Redesign and Rethink. On the basis of an
analysis of the potential for resource efficiency within the
wider system the Ellen McArhtur Foundation developed
the so-called RESOLVE framework. This framework can
be applied to identify and provide tools for making more
efficient use from the resources within the system. For
further reading on the circular economy we recommend:                                            2.1.4 THE NECESSITY FOR CIRCULAR CITIES
What is circular Economy from Emanuele Bompan & Ilaria                                           Due to their impact, cities have to play a vital role in the
Nicoletta Brambilla, Tascabili Dellámbiente 2018.                                                realisation of this new economic paradigm:
                                                                                                 54% of the world’s population live in urban areas and by
2.1.3 CIRCULAR ECONOMY AND THE SDGS                                                              2050, about 70% of the world’s population is expected

4. Ellen Mac Arthur Foundation: Cities in the Circular Economy, an initial exploration

5. https://unhabitat.org/urban-themes/energy

6. https://comptroller.texas.gov/specialrpt/water/96-1746.pdf

7. https://www.waternet.nl/ons-water/leren-over-water/waternet-op-school/waterfanaten/weetjes/

8. https://www.unenvironment.org/news-and-stories/story/right-breathe-clean-air

9. Biodiversity in cities, a biodiversity exhibition project among leader cities, https://www.cbd.int/authorities/doc%5CPresentationsBonnMeeting%5CBernal.pd

                                                                                                                                                                11
to live in urban areas3. Cities account for 85% of global                                           change. Biodiversity and ecosystems need to be valued
     GDP generation. Cities are also aggregators of materials                                            and managed as part of cities’ infrastructure and integrated
     and nutrients, accounting for 75% of natural resource                                               into all aspects of local governance."9
     consumption, 50% of global waste production, 80% of
     global energy supply and consumption and 60- 80% of                                                 2.2 THE CIRCULAR FRAMEWORK FOR MARINA
     greenhouse gas emissions. The share in green house gas                                              CITY
     emission rises even to approximately 80 per cent when
     the indirect emissions generated by urban inhabitants are                                           2.2.1 THE NEED FOR A COMMON UNDERSTANDING
     included.4, This implies that the contributions of cities to                                        OF CIRCULARITY
     resource depletion and climate change are significant.                                              In order to realise a circular Marina City in Kolding it is
                                                                                                         important to have a common understanding of the defi-
     Cities are above all characterised by the density of the built                                      nition of circularity used. As scientific literature formulates
     environment, buildings in turn account for approximately                                            quite rightly, there is no generally accepted definition of
     50% of global resource consumption and consume vast                                                 what circularity is.12 In fact the definitions range from a
     amounts of energy at all stages of their existence. Not                                             pure focus on resource preservation and a narrow focus
     only the daily operational needs require energy such as                                             on waste management to a much broader concept, which
     lighting, air conditioning, cleaning and maintenance,                                               comprises economic benefits through resource efficiency,
     but raw materials extraction and transportation and the                                             environmental benefits, through reduced impact and social
     construction process as such.5                                                                      benefits through job creation. We suggest to adopt an
                                                                                                         even broader concept of circularity for the development of
     Urban sprawl, increasing distances between destinations,                                            Kolding Marina City as the human needs to be fulfilled, the
     and inefficient public transport systems prompt overall                                             resources necessary and the intervention necessary for an
     reliance on private motorized transport, such as cars, which                                        area development are manifold.
     have a high energy consumption, mostly of petroleum
     products. 5                                                                                         The physical human needs, which have to be catered for
                                                                                                         by an urban area development, comprise the basic human
     The United Nations (UN) estimate that, of 1.4 billion cubic                                         needs of shelter, food, mobility and jobs. But equally
     kilometres (1 quadrillion acre-feet) of water on Earth,                                             important for a well functioning, liveable environment
     just 200,000 cubic (0,014 %) kilometres represent fresh                                             is the qualitative dimension of wellbeing, which touches
     water available for human consumption.6 In economicly                                               upon themes such as health, security, human interaction,
     developed countries, clean drinking water is readily                                                etc. Resources used in order to create the necessary
     available while more than 2 billion people do not have                                              buildings and infrastructure, are materials, water, energy
     access to clean water.7 However, hotter summers and                                                 and biodiversity.
     longer periods of drought must be a concern for city
     planning also in the economicly developed countries.                                                Circularity as such is not a means in itself; it is about
                                                                                                         rebalancing the needs of a growing world population with
     Clean air is an important part of our and the planets'                                              the integrity of the Earth's ecosystem. In addition cities
     health. Even in Europe, air pollution continues to take a                                           are subject to continuous adaptation made necessary by
     heavy toll on health, causing around 400,000 early deaths                                           a changing societal reality. As the Amsterdam Institute
     annually. With air quality failing to meet legal standards                                          for Advanced Metropolitan Solutions points out: “The
     in the majority of European Union countries, people and                                             impact on how cities are conceived, materialised and
     environmental organizations are increasingly going to                                               operationalised in a circular framework can hardly be
     court to demand action.8                                                                            overstated. Some impacts can be imagined, based on
                                                                                                         current knowledge, but others can at best be anticipated.”13
     The expansion of cities is putting pressure on biodiversity                                         Rather then providing only a set of circular definitions and
     and fertile soil due to the conversion of habitat to land uses                                      principles we therefore propose to adopt an overarching
     that are at the core of city development: transportation                                            set of values, for which circular principles should serve as
     infrastructure, municipal services, commercial and                                                  enablers.
     residential development. At the same time “local                                                    2.2.3 CIRCULAR FOCUS AREAS FOR MARINA CITY
     authorities have a profound potential to affect positive
     10. https://www.researchgate.net/publication/323156948_The_Relevance_of_Circular_Economy_Practices_to_the_Sustainable_Development_Goals_Circular_Economy_and_SDGs[accessed Dec 04

     2018].

     11. https://sustainabledevelopment.un.org/?menu=1300]

     12. Geisendorf S, Pietrulla F. The circular economy and circular economic concepts - a literature analysis and redefinition. Thunderbird International Business Review. 2017; 1-12. https://doi.

     org/10.1002/tie.21924

     12. Amsterdam Institue for advanced Metropolitan Solutions; Accelerating circular city development: https://www.ams-institute.org/circular-city-research-programme/

     13. These guidelines build on recommedations and findings published in the following reports and papers: Amsterdam Institute for Advanced Metropolitan Solutions; Accelerating ciruclar city

     development & Ellen Mac Arhtur Foundation: Cities in the Circular Economy, an initial exploration

12
2.2.2 THE CIRCULAR FRAMEWORK FOR MARINA CITY

      DRAWING UPON CONCEPTS OF LEADING THINKERS IN THE
      CIRCULAR ECONOMY WALTER STAHEL AND THE ELLEN
      MACARTHUR FOUNDATION, WE PROPOSE TO ADOPT THE
      FOLLOWING FRAMEWORK FOR MARINA CITY :

      1.        Regenerative                                 3.        Caring
      The idea of regenerative design, regenerative          According to Walter Stahel the circular
      cities or economies is based on the notion that        economy is about caring. This can be applied
      human activity should be based on processes,           to the treatment of resources as well as social
      which restore, renew or revitalize their own           interaction. A community which adopts a caring
      sources. This is true for the purely physical          attitude towards its environment, the planet
      dimension of materials, energy of water, but           and future generation but also to its next-door
      can also be applied to the social dimension.           neighbours is much more mentally capable of
      Regenerative processes are about creating              realising a circular environment.
      sustainable systems that integrate the needs of
      society with the integrity of the planet.              Based on these values we propose the
                                                             following principles for the development of
      2.        Resilient                                    Marina City:
      New technologies, changing social patterns,
      aging societies but also global challenges such        1.   Materials are kept in continuous cycles at
      as migration, climate change, rapidly arising               the highest possible value, waste is to be
      and complex geopolitical shifts have great                  avoided
      impact on our societies. It is therefore very          2.   The CO2 footprint is minimised through
      important to create adaptable sytems, which                 efficient use of resources
      are able to respond to those changes. For the          3.   Energy is exclusively drawn from renewable
      building environment flexibility is becoming                sources
      a very important prerequisite for a resilient,         4.   Biodiversity is an integral part of the design
      thus futureproof area development. In the                   and operation of the area
      social domain cohesion is making a community           5.   Water is used in several cycles
      resilient to changes.                                  6.   Social cohesion is supported via the
                                                                  infrastructure and the area design
                                                             7.   Health of the environment and inhabitants
                                                                  of the Marina is facilitated.

For the different areas of development of the Marina          disassembly, and reassembly while mapping and
City the report recommends the following guidelines.          managing storage and circulation of materials with the
These guidelines establish an optimal aspiration for the      help of data management systems. It is resilient by being
project, their technical/economical feasibility will need     adaptable to changing needs trough modular and flexible
to be assessed under consideration of local conditions/       design and construction principles and will be built using
circumstances. Practical examples for these guidelines can    efficient construction techniques. Components of buildings
be found in section 3 of this report.                         will be maintained and renewed when needed, while
                                                              buildings will be used to generate, rather than consume,
Built Environment:                                            energy.
The built environment of the Marina City is restorative       Buildings will be highly utilised thanks to shared, flexible
and regenerative because it is designed as a temporarily      and modular (office) spaces and housing. Materials are
storage of material, using principles of design for           being selected that are healthy and improve the life quality
                                                                                                                             13
of the residents. In this respect they provide and enable a       agriculture of the area.
     caring environment.                                               Preferably, the different streams will be designed in
                                                                       an integrated manner, whereby water can be used for
     Infrastructure, Landscape and Public Space:                       energy transportation and storage, wastewater and
     The infrastructure of the Marina City is designed as a            organic waste can be used for biogas production, etc.
     metabolism, which provides energy, water and food for the         Such a system could also provide a resilient, diversified
     residents of the area, the visitors to the area and the sailors   and cost-effective energy system in the area.
     of the marina.
     In addition, it must provide space and facilities for             Community
     mobility such as roads, parking and transportation                Marina City will create a vibrant community, which
     services. The landscape design must cater for areas of            embraces the idea of a circular area. This at the same
     urban farming while providing a pleasant biodiversity             time benefits social cohesion and accelerates the
     rich public space to all stakeholders.                            actual implementation of the circular economy. This will
                                                                       be achieved, by creating and communicating a strong
     With biodiversity, the Marina City will be able to supply         vision around the development of Marina City, which
     some of its own food possibly in coloberation with farmers        attracts residents looking for a sustainable and healthy
     nearby, reusing food waste and sewage in closed and local         life-style.
     loops to produce vegetables, fruit, and fish. These will offer    This vision will be facilitated, not only by a circular built
     additional revenue streams to the city, capitalising on the       environment, but by developing community services
     utilisation of material and nutrients that are already in use.    based on product as a service principles with shared access
                                                                       to facilities, such as a laundromates or cars and shared
     An urban mobility as a service system could provide an            ownership such as an energy cooperation or a common
     affordable, and effective multi-modal mobility structure          urban farming initiative for example.
     that incorporates public transportation, shared bikes             In addition, the creation of ‘local value loops’ will be
     and cars. This mobility is emission free based on                 enabled by maker-labs, a repair café or collective
     e-mobility or hydro-oxygen.                                       tool sharing to encourage local production and
                                                                       repair, which very well fits the needs of residents and
     Energy & Water                                                    members of the marina alike.
     The energy system of Marina City is resilient and based
     on renewable sources, preferably using locally produced           Collective resource banks (to reduce consumption
     energy. The design of energy positive buildings in                of materials) and digital applications (to facilitate the
     combination with a smart grid allows effective energy use,        exchange of goods, materials, and services) will also be
     reducing total costs of ownership and having a positive           enablers of a circular community.
     impact on the environment. It is important to note that
     the investment of energy producing buildings does not             2.3 KEY PROCESS STEPS / ENABLERS FOR
     need to be higher, provided that an integral designproces         THE IMPLEMENTATION OF A CIRCULAR
     is applied, which allows all necessary measures to be taken              MUNICIPALITY
     into consideration from the beginning. (See example               2.3.1    CIRCULAR LAND TENDERING
     catalogue page 28) Although waterstress is currently not
     an issue in Western Denmark, it is very likely that it will       Due to the fact that land tendering has a long-lasting
     become a topic due to climate change. In order to develop         impact in the community, the process of land tendering
     Marina City into a resilient climate adaptive area, the water     needs a very thoroughly prepared process and well-
     system is designed to minimise water use while at the             designed agreements between the municipality and
     same time maximising the reuse of water through local             the contracting parties, to ensure that the long-term
     purification and cascades. Rainwater is collected purified        quality of the plot of land is being guaranteed. Opposite
     and used as a source for potable or grey-water usage. Water       to the procurement of goods and services, in which
     cycles are separated into drinking-, grey- and blackwater         contracts are renewed on a regular basis, land tendering
     in order to allow multiple use and nutrient capture from          has consequences for several generations to come.
     the wastewater streams. The size of the local loop should         Therefore the aspect of temporality leaving room for future
     be determined on the basis of economic feasibility. It could      development has not only to be reflected in the buildings,
     be confined to Marina City but could also encompass other         but also in the stewardship of the land itself.
     parts of Kolding or even the region.
     Waste management will allow nutrients to be returned              Approaches to the tendering process in a circular
     to the soil in an appropriate manner, while generating            development
     value and minimising food waste. Nutrients will be                The tendering process can be done with two different
     captured within the organic fraction of municipal solid           approaches. One being a very rigid checklist and
     waste and processed to be returned to the soil in                 framework which applicants have to adhere to. The other
     forms such as organic fertiliser – used for the urban             approach is to formulate a vision and a set of ambitions
14
or performance indicators and let the applicants come up
with their own solutions.                                                                         Integrated development
                                                                                                  The process of the actual tendering of the different plots
On the municipality side, the first approach will demand                                          and eventually services of the Marina City should be
a very thorough preparation of the tendering process and                                          done as a coherent process, allowing for an integrated
profound knowledge on what needs to be achieved by the                                            development of the area based on the values and
applicants. On the applicants’ side, substantial experience                                       principles elaborated in chapter 2.2 of this document.
is required and an investment time and resources to proof
that their designs are coherent with the parameters, which                                        Although the plot is going to be developed by different
have been set.                                                                                    parties it should stimulate the formation of consortia
                                                                                                  to come up with integrated solutions such as waste
From the experience gained with the development                                                   treatment, energy production and the closing of water-
of circular projects at RAU/Turntoo the first approach                                            and nutrient loops.
is strongly recommend. The second, purely vision                                                  Prior to the tendering process market consultations with
based approach is suitable for testing very new                                                   different interested parties are advisable in order to clearly
innovative concepts, where there is little knowledge on                                           communicate the ambition of the Kolding municipality for
implementation available, which was the case in circular                                          Marina City and develop a clear understanding of solutions
development a few years ago. The concept of circular                                              the market can provide.
building and area development has been elaborated so
far, that is it very important to set a very clear framework                                      Long-term involvement
of what needs to be achieved, in order to realise an                                              An important aspect of area development is to create
ambitious circular project. A circular development requires                                       incentives or obligations for market parties for a long-term
a multidimensional approach and answers, which can only                                           responsibility for the buildings realised. In the classic model
be addressed if all the criteria are clearly listed in the tender                                 very often, there is the dilemma of the “split incentive”:
document. In fact, such a list of requirements can serve                                          a plot of land is being developed by party A which then
as an instrument to educate the market to develop and                                             sells off the realised project to company B, who will be
provide circular solutions. Yet it is also advisable be open                                      in charge of the exploitation of the building. Very often
or even invite participants to propose additional criteria in                                     the initial investment bears little concern for the long-
order to further develop the concept.                                                             term performance of the building in terms of energy use,
                                                                                                  maintenance or material reuse.
The advantage of a very stringent framework with clearly                                          This dilemma can be prevented by demanding a long-
defined performance criteria is that it generates a fairly                                        term involvement of the developing party or guarantees
predictable result and presumably answers, which are                                              for the realisation of a certain performance. These areas
easier to compare. Yet the preparation of the tendering                                           of performance contracts can be in the area of energy
process itself will require more time than an open process,                                       generation or even materials. In the case of the Alliander/
merely based on a vision and potentially also external                                            Duiven project designed by RAU architects the developing
expertise.                                                                                        consortium has to guarantee a net energy positive building
                                                                                                  for the term of 15 years.
Amsterdam Experience
A roadmap for circular land tendering developed for the                                           Models of land-ownership
city of Amsterdam14 has been applied to different projects                                        In a circular economy the fact needs to be considered that
in the city of Amsterdam and we would advise to consult                                           land is also a limited edition, which is put into a temporary
the city for a peer-to-peer exchange about the benefits and                                       use and must remain available to serve the needs of
potential learnings of this approach.                                                             future generations. This needs a different approach to area
                                                                                                  development and demands the municipality to act as a
Main steps from the document “A roadmap for circular                                              custodian of the plot of land, which is to be developed.
land tendering”:
Step 1: Frame the tender in the context of the existing                                           Use and ownership of land has to be steered thoroughly in
situation, taking into account both the characteristics of                                        order to keep control of the quality and determined use of
the area concerned and the features of the specific plot.                                         an area. In the current model the municipality has mostly
Step 2: Clearly enunciate and develop the ambitions for the                                       no means to steer in the development and use of a given
plot.                                                                                             area in the long term once the land is sold to a developer.
Step 3: Determine the most appropriate tender procedure
and the level of detail required in the request for tender.                                       Therefore municipalities should ask themselves if the
Step 4: Devise an integrated and systematic method for                                            sale of land fits into the concept of a circular economy or
making a final selection of criteria.                                                             demands for new models of ownership and stewardship.
14. Gemeente Amsterdam, Metabolic, SGS Search: Roadmap circular land tendering, an introduction to circular building projects.

(https://assets.amsterdam.nl/publish/pages/887420/roadmap_circular_land_tendering_v09_fht.pdf )

                                                                                                                                                                    15
A model, which enables the municipality to keep the               Circular supplies are defined as renewable, recyclable
     strategic ownership of the area could be realised through a       or biodegradable resource inputs that underpin circular
     hereditary leasehold model. The advantages of this model          production and consumption systems. Through it
     are manifold :                                                    companies replace linear resource approaches and
     •    the municipality has a lasting control on the plot of        phase out the use of scarce resources while cutting
          land and the way it is put to use in the community           waste and removing inefficiencies.
     •    the revenues generated by the land are also for the
          benefit of future generations of citizens eliminating        Buy and sell back / resource recovery
          the reproach of selling off “the family silver”              Procurement of a product on the basis that it will be sold
     •    because the investment for developers are lowered            back after a period of time against a guaranteed residual
          due to such a model, the rents or acquisition costs          value. Economic and legal ownership remains with the
          for apartments can be lower as well, making the              user, however responsibility on performance is shared
          development attractive also for less wealthy citizens        with supplier. E.g.: Deposits on hardware to be returned
                                                                       after use. This business model recovers embedded value
     As the Marina City projects will consist of two large plots       at the end of a product life cycle to feed into another one.
     of land and several smaller ones to be made available for         This business model promotes return flows and transforms
     development, we would advise Kolding municipality to              waste into value through innovative recycling and
     experiment at least with one of the two large plots with          upcycling services.
     such a model.
                                                                       Product life extention
     2.3.2.       CIRCULAR PROCUREMENT OF PRODUCTS AND                 Extending the service life of products, components
                  SERVICES                                             and systems through engineering solutions and
                                                                       services, such as easy disassembly and reassembly,
     Circular procurement is a strategy adopted by many                repair, maintenance and/or upgrade. Economic and
     public institutions in order to stimulate the circular            legal ownership remains with the user, including full
     economy from the demand side. However a common                    responsibility on performance. E.g.: Refurbished
     misconception is that organisations can realise circular          furniture.
     operations simply through circular procurement, which
     then is defined as purchasing new, circular products.             Product as a service
     Circularity concerns a wider form of operations, in               Delivery of performance rather than products. Varieties
     which responsibility is assumed for what is already               with Pay for Performance; Pay for Uptime;
     available, and for proper use of newly purchased                  Pay for Availability, etc. Economic and legal ownership
     products. Not only the supplier, but also the buyer               remains with supplier, including full responsibility on
     must take responsibility in their own sphere of                   performance. E.g.: Philips Light as a Service.
     influence on achieving optimal subsequent cycles.                 With a ‘product as a service’ business model, product
     This requires other roles, activities and contracts than          longevity, reusability and sharing are no longer seen
     currently available.                                              as cannibalisation risks, but instead drivers of revenues
                                                                       and costs reduction.
     In addition to the technical requirements imposed on
     products, such as the possibility to make repairs or              Sharing platforms
     modifications, it requires structures and processes that          This business model promotes a platform for
     guarantee product life-extending activities and optimal           collaboration among product users, either individuals
     use. These range from maintenance to logistics and asset          or organisations. These facilitate the sharing of
     management. This has consequences for budget allocation           overcapacity or underutilisation, increasing productivity
     between investment and operational expenditure, but               and user value creation.
     also needs very close alignment and eventual reallocation
     of activities between departments, e.g. procurement               2.3.3 CIRCULAR INNOVATION AND ACCELERATION
     and facility management. Also the question needs to               Marina City could act as a try out zone for CE concepts
     be answered, which activities will be out-sourced to the          within Kolding municipality, where innovative concepts
     supplier and what will remain in-house. Setting the right         can be tested and evaluated; a circular innovation hub,
     incentives for all parties is a crucial element of an effective   which acts as a city incubator and accelerator for the
     circular procurement.                                             circular development of the municipality and the region.
                                                                       A collaboration with the local design schools, university as
     The following business models, as defined by Accenture15,         well as with local companies/businesses would increase
     can be part of a circular procurement strategy:                   the acceleration.

     Circular supplies                                                 2.3.4. STAKEHOLDER INVOLVEMENT AND
     15 Accenture, circular advantage (2014, page 12-14

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