THE CIRCULAR ECONOMY FOR A QUALITY GROWTH - Arpae Emilia-Romagna
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Magazine of Arpae
Regional agency
SUSTAINABILITY & ENVIRONMENTAL CONTROL
for prevention, environment and energy
of Emilia-Romagna
Supplement to No. 2 – April 2017
Special issue for
G7 Environment, Bologna, 11-12 June 2017
Sustainable development
is development that
meets the needs of
the present without
compromising the ability
of future generations to
meet their own needs.
Gro Harlem Brundtland
In caso di mancato recapito restituire all’ufficio Bologna CMP
THE CIRCULAR ECONOMY
FOR A QUALITY GROWTH
CLOSING THE LOOP: THE ROLE OF BUSINESSES
TRANSITION PHASE AND AND OF PUBLIC AUTHORITIES.
Supplement to No. 2 2017
NEW BUSINESS MODELS, THE EVOLUTION OF CONTROL.
ECOINNOVATION, WASTE MANAGEMENT,
Spedizione Postatarget -
INDUSTRIAL SYMBIOSIS, THE ITALIAN AND EUROPEAN
GREEN PUBLIC PROCUREMENT. FRAMEWORK
www.arpae.it/ecoscienza
Arpae Emilia-Romagna is the Agency of Emilia-Romagna Region dealing with environment and energy.
The goal of the Agency is to promote the sustainability of human activities that affect the environment, health, and territorial security, both through
controls, assessments and regulatory approvals, and through projects, prevention activities, environmental communication and education to sustainability.
Arpae also develops forecasting systems and models to improve the quality of environmental systems, facing climate change and new forms of pollution
and degradation of ecosystems.
The Agency operates through a network organization. Nine Provincial deparments grant widespread monitoring and control. Nine Authorization and
concession structures deal with environmental authorisations and water use concessions. Thematic centers and laboratories carry out operational activities
and research projects. Two special structures deal with sea environment and with meteorology and climate.
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ASBESTOS
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AIR
HEALTH-ENVIRONMENT
HYDROLOGY
METEOROLOGY ENERGY
CLIMATE SUSTAINABILITY
NOISE POLLUTION
SEA
POLLEN WATER
ELECTROMAGNETIC FIELDS ENVIRONMENTAL CARCINOGENESIS
UV RADIATION BIODIVERSITY
Our main activities
› Environmental assessment and authorisations
WASTE
› Environmental monitoring and control on the territory and on human activities TOXICOLOGY
› Management of monitoring networks on environmental status
› Study, research and control on the environment
› Water use concessions and public concessions
› Hydrological, meteorological and climatic forecast and studies
› Environmental emergency management
› Civil protection functional centre
› Sampling and lab analysis
› Environmental information
› Environmental management systems
Arpae Emilia-Romagna
General Direction: Via Po 5, 40139 Bologna – Tel. +39 051 6223811 – email: urp@arpae.it www.arpae.it
ECOSCIENZA 2 • 2017
INDEX
ISSN 2039-0424
4 Editorial
G7 Environment 36 Paper packaging
and our common future to fight waste
Gian Luca Galletti Eliana Farotto
37 Compost and biomethane
5 Beyond linear economic patterns from food waste
Gianni Silvestrini
Massimo Centemero
8 Circular economy 38 Nature and technology
for quality growth for bio-composting
Danilo Bonato
Gabriele Alitto, Vincenzo Barone, Antonino Demasi,
Saverio Curcio, Orsola Reillo
10 The Dame who sank
the linear economy 40 Recovery of electrical
Interview with Ellen MacArthur
by Emanuele Bompan
and electronic waste
Magazine of Arpae Supplement to No. 2 edited by Centro di coordinamento Raee
Regional agency for Year VIII 14 A treasure waiting
(Weee Coordination Centre)
prevention, environment and May 2017
energy of Emilia-Romagna to be discovered 42 Efficiency and zero waste
Emanuele Bompan
with industrial symbiosis
Erika Mancuso, Grazia Barberio,
16 Special waste Silvia Sbaffoni, Antonella Luciano, Laura Cutaia
in Europe and in Italy
Rosanna Laraia 44 Industrial symbiosis
in Emilia-Romagna
Contacts Editorial coordinator 20 Circularity and challenges Ugo Mencherini, Sara Picone, Manuela Ratta
Ecoscienza of this supplement: for environment agencies
Via Po, 5 40139 - Bologna Stefano Folli Giuseppe Bortone 46 Rare earths, recovery is the future
Tel. +39 051 6223887 Translation of the articles: Pier Luigi Franceschini, Floriana La Marca,
ecoscienza@arpae.it Maura Radicioni 21 The evolution of control Giorgio Recine
Director Stefano Folli (article on p. 4) by environment agencies
Angelo Robotto, Renzo Barberis 48 Italy is a leader in bioeconomy
Giuseppe Bortone Editors Edoardo Croci, Denis Grasso
Daniela Raffaelli (coordinator)
Editor-in-chief 22 Waste recovery plants
Giancarlo Naldi Rita Michelon
and odour control 51 Europe and Africa together
Editorial assistant Luca Marchesi, Stefania Del Frate, Sara Petrillo for the recovery of secondary raw
EDITORIAL BOARD Claudia Pizzirani materials and precious metals
Coordinator Graphic project 23 Public sector as guarantor Isabella Capurso
Franco Zinoni Miguel Sal & C. of proper management
Raffaella Angelini Stefano Leoni 52 Gpp, an incentive to eco-innovation
Layout and graphics Emanuela Venturini
Giuseppe Battarino Mauro Cremonini (Odoya srl)
Vito Belladonna 24 Free market and need
Francesco Bertolini Cover of guidance by public sector 54 Emilia-Romagna promotes
Gianfranco Bologna Cristina Lovadina Gianluca Rusconi the circularity of resources
Mauro Bompani Paola Gazzolo
Printer
Giuseppe Bortone Premiato stabilimento 26 Re-use of inorganic
Mario Cirillo tipografico dei comuni industrial waste 56 “Close the loop”,
Roberto Coizet Santa Sofia (FC) Fernanda Andreola, Luisa Barbieri, let’s open the discussion
Nicola Dall’Olio Isabella Lancellotti, Cristina Leonelli Cristina Govoni
Printed on IGLOO Offset paper
Paolo Ferrecchi
Luca Marchesi Annual subscription 28 A new economic 58 Circular economy for small
Matteo Mascia 6 paper issues and social paradigm and medium-sized enterprises
Giancarlo Naldi Euro 40,00 Alessandra Vaccari, Mauro Bigi, Daniela Luise Enrico Cancila, Irene Sabbadini, Federica Focaccia
Marisa Parmigiani payment to the bank account - IBAN
Giorgio Pineschi IT25N0200802435000003175646 30 Reusable textiles 60 From waste to by-products,
Attilio Raimondi headed to Arpae - Unicredit seeking a new life the trend of soil and stones
Karl Ludwig Schibel Via Ugo Bassi, 1 - Bologna Alessandra Vaccari, Patrizia Ferri Cecilia CavazzutI, Giacomo Zaccanti, Nicola Negri
Andrea Segré
Marco Talluri Reg. Tribunale di Bologna 34 Packaging recycling 61 Heavy metal mapping to support
Stefano Tibaldi n. 7988 del 27-08-2009 in the transition phase the management of soil and stones
Alessandra Vaccari Walter Facciotto Nazaria Marchi, Cecilia Cavazzuti, Giacomo Zaccanti
All articles, unless otherwise specified,
are licensed under the Creative Commons license CC BY-NC-SA 4.0
http://creativecommons.org/licenses/by-nc-sa/4.0/
Closing date: 15 may 2017
3
ECOSCIENZA 2 • 2017
G7 ENVIRONMENT
AND OUR COMMON FUTURE
Gian Luca Galletti • Italian Minister of the Environment
T
he implementation of the Paris common consciousness can grow we must lay today. Italy is doing so
Agreement, sustainable finance, around great green development goals. through three Strategies: the Sustainable
efficient use of resources, fighting Development Strategy, the Strategy
waste, struggle against marine pollution, In recent months, the Italian Ministry on Adaptation to Climate Change and
environmental policies for employment of the Environment held some the National Energy Strategy we have
and cooperation, in particular with preparatory meetings, such as the presented to the italian Parliament in
Africa: these are some of the main topics G7 Workshop on Marine Litter, which recent days. Integrating these three
to be discussed at the G7 Environment’s took place in April in Rome. We are documents consistently and with
Ministers Meeting in Bologna on furthermore preparing several events, consequent actions, we will draw much
11-12 June, an important event to together with the City of Bologna, more than an environmental plan: we
internationally set the centrality of the the University, the world of research are setting a long-lasting industrial
EDITORIAL
environment in the world’s sustainable and civic, cultural, university and future for our country, built on
development strategies, as indicated in environmental associations. The aim completely different foundations and
Agenda 2030 signed in 2015 from 193 is to make Bologna not only the city premises compared to the past.
UN member states. of an historic event, but the capital The agreement we will reach at the
The 17 goals and 169 targets of the of the environment for more than a G7, which I hope will be strong
United Nations have never been so week and potentially for a much longer and ambitious, will not have any
concrete, relevant and deeply tied to time, if the city will be able to address significance, unless a great boost will
the global environmental challenge. its great expertise on research and big come from the civil society. We will not
Because it is now clear to everyone that data towards environmental issues and only do it for economic reasons, but for
the paradigm has come to a shift: the opportunities. ethical and moral ones, today as never
respect of the environment is no longer before. It’s not a rethoric goal: choosing
to be seen as a constraint, as a burden Among the goals of the G7 a new development model means
on governments and businesses, but it Environment, there is the outline of making a clear choice of fairness,
is increasingly becoming a key element a roadmap for a more efficient use of respect for rights, rapprochement
for growth. resources. This is a crucial point, if we between peoples.
The G7 Environment is thus a key aim at realising a circular economy, our
turn, another moment in which a future economy, whose foundations
4
ECOSCIENZA 2 • 2017
BEYOND LINEAR
ECONOMIC PATTERNS
Gianni Silvestrini • President, Green Building Council Italia; Scientific Director, Kyoto Club and QualEnergia
O
ver the next few decades, is possible to slow down the entropic Chinese economy. Thus, at a global
two major factors are growth process through more efficient level there is a relative decoupling
going to change national usage of both fuels and other resources. between economic growth and the use
strategies, industrial organizations, However, as regards energy, renewable of materials. Some areas also registered
and behavioural models, i.e. the fight sources are a powerful weapon to go an absolute decoupling, i.e. a decrease
against climate change and the shifts in towards the decarbonization of the in the materials used, which can
linear economic patterns. economy. nonetheless be explained considering
Whereas there are strong ties among As concerns the other resources, the the role played by importation of
the policies designed to reduce trend towards degradation cannot be finished products. For instance, in
environmental degradation, some avoided but only delayed. 1990-2012 Germany registered a
differences should be pointed out as In a circular economy, there are more decrease of 40% in the use of materials.
EDITORIAL
they may favour the commitment to or less sophisticated ways to slow It is reasonable to think that the
abandon the use of fossil fuels, which down this irreversible process, from specific consumption of raw materials
lies at the core of the efforts against product design in order to guarantee in various applications can be
global warming. greater durability of goods to their reduced, but not the absolute values of
First, let us consider risk assessment. re-manufacturing, from the sharing consumption on account of population
The CO2 produced as a result of economy to waste recycling. growth and the fact that a considerable
energy metabolism is now being However, there is no factor equivalent part of the world population has yet to
perceived as an irreversible threat and, to solar energy, which is capable of reach levels of well-being.
for this reason, consensus was reached reversing resource degradation, other The virtuous policies that are spreading
with the Paris Agreement to reduce it than biomaterial production, an in many countries will help reducing
drastically. important albeit limited industry. anthropic pressure. After a very
As regards the use of other resources, fast growth in the course of the last
e.g. land, minerals, and water, different Let us now consider the results century, the current stage appears to
countries are following divergent obtained in the areas of both emissions be more positively oriented towards
directions. Lacking in raw materials and resource usage. dematerialization, and this is favoured
and highly anthropized, Europe and The climate-related efforts have made by choices that are stimulating an
Japan have defined their own policies. it possible to generate a decoupling increasingly circular economy.
Similarly, China, under the pressure between economic growth and CO2
of a strong environmental impact, has production. In fact, over the last three In order to achieve a U-turn in the
put forward a conversion according to years emissions have remained stable global use of resources it will be
the paradigms of circular economy. In despite a 3% yearly growth of the nonetheless necessary to question the
other parts of the world, including the world economy. In the coming decades current economic model. This shift is
Usa, this issue is not deemed equally the future scenario will see a total not to be taken for granted, but it may
important. decarbonization, largely due to the be necessary to meet the challenge
It is worth highlighting that, contrary spread of renewable sources. of climate change. The commitment
to the commitments on CO2, there is to reduce emissions, which has been
no target set to limiting the use of raw As regards energy usage, the growing little understood as a radical move,
materials, though in some countries, as awareness of how irrational it is to will inevitably lead to reflecting upon
is the case in Europe, target values have overexploit our planet is also triggering lifestyles and on the very functioning
been introduced and should be reached a cultural change, and measures are of modern societies. Its consequences
in recycling waste along with a zero being implemented to favour the may involve not only energy options
land consumption objective by 2050. progressive dematerialization of but also, more generally, the use of our
Another difference concerns the economies. Between 1990 and 2012, planet’s resources.
available tools to reach the targets. the world GDP more than tripled
The Earth is a kind of “closed” while the use of materials only
thermodynamic system, in which increased by 66%, although between
matter is not exchanged externally, but 2003 and 2013 the growth rate doubled
it receives a considerable and constant compared to the previous two decades
flow of solar radiation. Therefore, it mostly due to the performance of the
5
G7 Bologna Environment Ministers’ Meeting Agenda SUNDAY 11 JUNE 8.45 Opening of the Dialogue 9.00-13.00 Session 1: SDG and Climate Change general discussion 13.00-14.30 Working Lunch: Green Finance and Green Policies for growth and employment 14.30-18.00 Session 2: SDG and Climate Change focus on Africa and role of MDBs 18.00 G7 Environment and Invited Ministers Group Picture 20.00 Official dinner MONDAY 12 JUNE 9.00 Reports from the side events (Universities, Firms) 9.30-11.00 Session 3: Marine Litter 11.30-13.00 Session 4: Resource Efficiency, 3Rs & Circular Economy 13.30-14.30 Working lunch: Removing Environmentally Perverse Subsidies and Ecologic Taxation Reform 14.30-15.00 Final Session 15.00 Joint Press Conference
CIRCULAR ECONOMY
IS OUR FUTURE
The paradigm shift to relaunch
the economy and save the environment
“C
losing the loop” has established as central in the new
become a keyword in paradigm, e.g. industrial symbiosis,
the construction of a remanufacturing, and sharing
resilient society which is efficient economy.
in using resources and with low What is new here is rethinking
carbon emissions. This is the (and trying to construct) the
way to go for a relaunch of the entire system on the part of all
European economy while making stakeholders. Businesses play a
it sustainable and competitive, prominent role, but also institutions,
and it is a challenge for the entire associations and all the citizens with
world, which cannot afford an their lifestyles are called upon to
inconsiderate use of resources along play their part and be part of this
with an unsustainable production change.
and consumption system.
Thus the concept of “circular Europe wants to lead this revolution
economy” is about to become the to regain competitiveness through
cornerstone of an epoch-making innovation that may bring economic
transition capable of breaking growth and increase employment
the linear pattern based on the while respecting environmental
take-make-dispose model: the sustainability.
challenge lies in thinking about how Italy, which has always been used
circularity, renewability and sharing to dealing with shortage of raw
can be integrated in each and every materials, can play a protagonist
process since the very beginning. role and has great growth potential.
The objectives are clear, it is now
Some concepts are not totally high time to take the correct
new: eco-design, cradle to cradle, direction and build the roads to
re-use and recycling have been reach them.
under the spotlight for years now.
Other concepts are becoming more (SF)
ECOSCIENZA 2 • 2017
CIRCULAR ECONOMY
FOR QUALITY GROWTH
CIRCULAR ECONOMY REFERS TO AN ECONOMIC AND CULTURAL MODEL
DESIGNED TO CREATE GROWTH AND QUALIFIED EMPLOYMENT, ALONG
WITH THE PROTECTION OF NATURAL RESOURCES. RELAUNCHING THE
INDUSTRIAL SYSTEM GOES HAND IN HAND WITH THE DEVELOPMENT
OF EFFECTIVE STRATEGIES TO INNOVATE PROCESSES AND PRODUCTS.
CIRCULAR ECONOMY
A
circular economy can be However, where should one start off to manufactured and designed to provide
defined as an economy that is achieve these objectives? It is necessary the market with a high value of material
“regenerative by design, and aims to to identify the most effective strategies, renewability, including the recovery of
keep products, components, and materials at capable of maximizing economic and post-consumer recycled matter, used
their highest utility and value at all times. social benefits in the short run while, at within “closed” and controlled cycles.
The concept distinguishes between technical the same time, accelerating the adoption The advent of smart cities, the evolution
and biological cycles” (source: Ellen and spread of the circular economy. of reverse logistics networks, modern
MacArthur Foundation). recycling technologies and cultural
In more advanced settings, what the The following priorities should be change among consumers can favour the
states and the citizens see in a circular addressed: establishment of products manufactured
economy is a developmental model a) developing business models that with the use of renewable material also
capable of generating wide-ranging and are founded on the access to added obtained from post-consumer recycling
structural benefits, particularly in society. value services: in the whole of Europe, processes.
This economic and cultural model is consumers’ preferences are undergoing a
designed to create growth and qualified shift towards disownership with respect
The identification of some broad and
employment, along with the protection of to service access, as an alternative to
systemic issues can be helpful in focusing
natural resources. ownership of goods.
public and private investments, while it
From the point of view of enterprises, the This favours an increase in business
circular economy is considered a business can also help avoiding micro-sectorial
productivity of the assets and their
strategy to achieve economic advantages, quality. In this setting, the technologies fragmentation of the initiatives that will
such as cost reduction or entering new behind the Internet of things, be undertaken.
markets that can offer appealing profit 3D printing, and traceability are The broad issues indicated above are
margins. An extensive application of extraordinary accelerators of change important not only in environmental
the circular economy’s principles by b) producing durable goods with high terms, but they are also an effective
European businesses could lead to € 400 and medium-high technological content stimulus to the creation of economic and
billion annual savings in the materials through remanufacturing processes: occupational value, in that they make it
used for durable goods production; on this industrial strategy allows for high possible to extend production and service
the other hand, just in Italy the number levels of remuneration to be paid to supply chains, create new ones, develop
of new jobs created as a result of the highly qualified professionals along with ties between heterogeneous stakeholders
circular economy-based models and considerable savings in raw materials belonging to different settings.
services could be 140,000 over the next c) giving incentives to marketing
five years. and purchasing of products that are
8
ECOSCIENZA 2 • 2017
Business strategies
for the circular economy
The main European industrial concerns
have long been taking actions to improve
the efficiency of the resources used in
product manufacturing and production FIG. 1
processes. While resource efficiency aims RESOURCE
to “do the same things better” and is based EFFICIENCY AND Resource efficiency Circular economy
CIRCULAR ECONOMY
on largely technological skills, the circular
economy is concerned with “doing the Vision Do things better Do the right things
Main differences between
right things” through integrated and an approach based on Multidisciplinary
multidisciplinary skills (figure 1). It is resource efficiency and Skills Technological (social and economic science)
therefore necessary to start systemic a model based on the
eco-innovation programmes, designed to principles of the circular Decoupling goal Relative Absolute
transform the enterprises’ business models economy.
from linear into circular ones.
transition from ownership to access
The leading enterprises that have
implemented comprehensive transition business model
programmes towards the circular innovation
economy are working simultaneously and
in a coordinated way on three areas:
1) business model innovation. The GOAL:
product maximizing process
leading enterprises transform their value FIG. 2 innovation economic value per innovation
proposition from offering goods to be STRATEGIC AREAS unit of resource
sold to clients into offering access to a Design for disassembly Efficiency
Eco-design Reduction/ re-use
service Strategic areas under Co-creation Remanufacturing
2) product innovation. The main product consideration by Closed loop recycling Enabling technologies
innovation strategies adopted by the businesses investing in Biomimetics Renewable resources
leading enterprises within the circular the circular economy.
economy framework are:
- design for disassembly: optimizing than the original and with a guarantee protection of its natural systems, the job
products in terms of separation of their equivalent to new products prospects for the new generations are
parts, therefore in terms of re-use/ - adopting enabling technologies: using bold and incisive issues, which affect
recycling technologies, such as the Internet of emotionally a large number of people and
- eco-design: designing products free of things, Rfid traceability, 3D printing, in families. Creating consensus on medium
toxic components, with optimal use of business processes to long-term targets is fundamental to
materials - using renewable resources as a source of move rapidly and efficiently towards the
- co-creation: designing products energy for the production of goods. green economy and, in particular, circular
collaboratively, involving the clients and The diagram in figure 2 briefly illustrates economy.
the partners in the supply chain since the the industrial strategies adopted by Moreover, the circular economy can help
very beginning enterprises following circular economy enterprises improve their capacity for
- closed loop recycling: designing models. regenerating the resources they “borrow”
products (and processes) with the aim from the biosphere to generate the goods
to use materials from post-consumer and services proposed on the market. In
recycling and recovery treatments Italy: in search of a quality recovery parallel, citizens/consumers would have
- biomimetics: replacing traditional the opportunity to better appreciate
materials (which potentially generate As people become increasingly aware which products do not cause hidden
waste) with environmentally friendly of the fundamental role played by environmental costs that are then faced
organic matter growth in our society, industrial policies by the community.
3) process innovation. The main actions designed to decouple economic growth There is a need for organizations and
include: from the use of resources by production people capable of making pervasive
- resource efficiency: designing more systems should be favoured. From this innovations in business models,
efficient production processes, which perspective, the paradigm of a circular production processes and products
optimize the use of both direct and economy can stimulate businesses, according to the circular economy, thus
indirect resources institutions, and citizens to trigger a creating long-lasting value and constantly
- reduction/re-use: studying processes quality and balanced growth, with low reducing the costs and consumption of
that reduce waste material, scrap, and impact on natural systems, which must be natural resources.
explore the possibility of concretely safeguarded for future generations.
reusing them in the processes themselves A “circular” view of the economy could
- re-manufacturing: manufacturing thus contribute to focus civil society Danilo Bonato
processes performed on end-of-life on shared ideals, in which the process General Director, Consorzio Remedia;
parts or products in order to renovate of changing our economic system may European Commission, High Level Steering
them, with equal or higher performance be rooted. Our country’s resources, the Group Raw Materials member
9
ECOSCIENZA 2 • 2017
THE DAME WHO SANK
THE LINEAR ECONOMY
HOW AND WHY AN EXPERIENCED YACHTSWOMAN HAS BECOME THE ICON OF THE CIRCULAR
ECONOMY. THE STORY OF ELLEN MACARTHUR AND HER FOUNDATION, A TRUE GLOBAL FORCE
TO HELP THE OLD ECONOMY’S TRANSITION. INTERVIEW BY “RENAWABLE MATTER” MAGAZINE.
E
nergetic, discrete, influential,
PHOTO: BRYAN LEDGARD - CC-BY-2.0 - WIKIMEDIA
CIRCULAR ECONOMY
outspoken, complex, Ellen
MacArthur is the Dame of the
circular economy. She convinced Google
and the World Economic Forum that the
linear model is over and that the way we
produce and consume across the world
can actually be changed.
Ellen McArthur was born 40 years ago
in England. At the time, she didn’t know
that her fate would be influenced by
the most perfect geometrical shape: the
circle. In the small Derbyshire village
of Whatstandwell, far from the sea, she
saved every penny to buy a boat. Her
goal? Circle the globe, crossing the
oceans as a yachtswoman. And that’s
exactly what she did and better than
anyone else. On 7 February 2005 she
broke the world record for the fastest
solo circumnavigation of the globe, a feat oceans, nothing can stop you. So, she we have to take into account raw
which gained her international fame. It decided to do something even braver, to materials, biological cycles, technology,
took 71 days, 14 hours, 18 minutes, 33 sail the Earth-ship out of the traditional, the service industry and banking, it
seconds to sail for for the 27,354 nautical linear, petro-capitalist, economic model. encompasses everything. Furthermore, it
miles (50,660 km). And she might set a record too. is fundamental to understand that a grasp
In 2010, she decided to focus on another Renewable Matter reached her in the of the circular economy is systemic. Once
circle. She retired from her sailing career Foundation’s HQ in Cowes – Isle of defined what the circular economy was we
on September 2nd. She had something Wight – to discuss the exciting future of needed to take the idea out there.
unique in mind: creating a foundation the circular economy and her endeavor to So, over the years, we have introduced
(today globally-known as the Ellen achieve something no-one has ever been eight reports and three books on the
MacArthur Foundation) to work with able to do and to understand how sailing circular economy. The first report,
business and education to accelerate the solo can change the world. launched at the World Economic Forum
transition to a new type of economy. in 2012, was looking at medium-complex
Designing a new model, where everything Dame MacArthur, 6 years ago you started circularity to more than one year and to
is regenerative and restorative at the the EllenMcArthur Foundation, one of the less than ten. The top line figure was US$
very core. A system where no output is most successful initiatives to establish a new 600 billion dollars worth of economic
wasted, no material is worthless, where industrial model, inspired by thinkers as opportunity in 2005. The numbers were
products enter a circle of reincarnation Amory Lovins, Gunter Pauli and William big, even if they were only looking at
and transformation, using sustainable McDonough. How has this journey been and recycling 25% of products’ components
energy sources and impacting positively what is the aim of the Foundation? per year. But the report was an epiphany
the economy. An economy shaped like a and an eye opener, people really began
circle, a circular economy. The aim is to extend the idea of a circular to realize that it was indeed a real
economy to the global economy. Our opportunity.
Ellen and her foundation worked together first step to success was to work on the We then went on a second report, which
to give this new model prominence, circular economy and define it, trying to was January 2013, looking the Fmch
involving the World Economic Forum, understand the circular economy as best (Fast-Moving Consumer Goods). We
big corporations like Google, Ikea as we could. It’s continuously evolving discovered an economic potential of
and Banca Intesa. She partnered with and we still only understand a very small US$700 billion in the global market,
consulting firms such as McKinsey and percentage of what it really is. not much harder not to achieve because
inspired thinkers and researchers. Waves But to understand the circular economy’s the Fmcg is much faster. We looked at
never stopped her. Once you tame the systemic nature and systemic mutation, the biological elements of food waste
10ECOSCIENZA 2 • 2017
and plastic packaging as material with global at a breathtaking speed I could Do you think we need more ambitious
high potential. With the second report, not even imagine only three years ago. policies than these?
we were invited to the World Economic Just bringing those five things to a global
Forum (Wef ) in Davos. By year three, we level, in the way that we know it worked It’s part of a process. We still know so
had a partnership with the Wef. The third at the World Economic Forum, will entail little about the circular economy. As
report, which was looking at how the a great deal of work ahead of us. It’s so with policies, trying to do the right
global and economic value supply chains complex that it’s impossible to say where thing is actually incredibly challenging
can become circular, was co-branded with we will be in ten years’ time. because the last thing you want to do is
the Wef. We had an impact on the global to put something in place, with the right
economy. Yours is the most sophisticated and global intentions only to find out it generates
observatory on the topic. Where is the circular the opposite effect. The circular economy
And how did you evolve from there? economy establishing solid roots? is policy-relevant not policy-prescriptive.
Revolutionizing the global economy, I must So policies can help, but they don’t
say, is no small task. I would say it’s definitely more advanced necessarily have to define exactly what
in Europe. There are elements that occur needs to be done. It will be trial and error,
When we launched the Foundation we in many countries, but an understanding I’m sure, but what has been incredibly
set out to work in three key areas. of the systemic nature of this change, positive about the process with the
First: working directly with businesses, I would say it is more of a European European Commission is that it has
looking at how they could become more phenomenon. Overseas, the market is shifted from being focused on simply
circular. At the beginning we knew very beginning to kick off: we have a team in waste to a real circular economy package,
little about that journey, we just had a the US and we have incredibly positive with systemic change and the launch of
vague idea of what success looked like. conversations, we have global partners a public consultation last summer, which
Another area we wanted to work on in the US. Emerging markets have also made a difference.
was analysis insight: understanding the a huge potential in the circular economy. I think the Package has been a very
economic rationality. In the Western World, we have built the successful start. Look at the feedback
The third area was looking at the linear system, we have a linear production, from businesses, cities, regions that have
opportunity through education for the a linear thinking, a linear design, it’s hard worked on this for many years, going back
circular economy. I stress this aspect in to get out of it. In emerging markets, you to the Commission after the first package,
particular, as we do executive education. can escape the linear system. It would saying we need the circular economy to
It is beyond just publishing economic make much more sense to start from happen, not just waste management. I
papers: we show the value of the scratch and embrace the circular economy think we have a real opportunity to create
education of the circular economy. We straight away. an innovative legislation: both parties
do this education project to create real want to create the circular economy.
circular business leaders but also to How are you pushing circular economy’s
provide an inspirational perspective, so ideas in developing economies? Has the Which EU country is the leader in the field?
that people can see there is a different Foundation tried to lobby cooperation and
way in which our economy can function, development agencies, to have them bridging There’s a lot of work happening in
especially for young people, who are these models? Holland, for sure. Over the past 10
still in the phase of life where ideas are years they have been working with the
being imprinted. We receive fantastic We had many conversations with government and the general public. In the
feedback from them because suddenly organizations such as the World Bank, Netherlands they have a slightly different
there’s so much to be done, the more the Asian Development Bank, and of and open attitude. Some of the challenges
we do, the faster, the better we can get course the World Economic Forum; they had with the geography and the
to a restorative, regenerative, powerful we organized informal gatherings with limited territory are indeed the reason
economy. We hope that in the future the world’s economic leaders. We are why the circular thinking has gained
there will be a circular generation. targeting specifically Africa and the momentum. There are some astonishing
potential for its development, there are examples of industrial processes. But there
What direction will your work take in the many conversations going on about are pockets in unlikely places. We worked
future? circular economic benefits and there is for example with the city of Phoenix, or
a massive opportunity there. Once you with Barcelona, places really forward-
In the future, I see the Foundation realize how great an opportunity is, thinking.
continuing to work on education, with suddenly you are building an economic
businesses, cities and governments, model which is restorative, which How can a city or a region become a circular
on communication and publications, manages to keep products and materials economy leader?
accelerating ideas, and promoting with the highest recorded value. It’s not
systemic initiatives. Our view is that just containing the damage on a yearly You need to involve all the stakeholders.
we will continue to focus on those five basis, it’s like rebuilding a different model When you are creating a systemic change,
areas and push, as hard as we can, as we with massive economic potential. It’s it’s not easy because you can’t do it
always have, as a team. Now we work in going to be challenging, there are many alone, you have to do it with many other
many areas: we have people in Brazil, the barriers along the way. partners, you need to bring everybody to
States, here in the UK, across Europe. the table in order to create that systemic
We have a team in Brussels, India and The EU has just approved a Circular change.
China, looking at economic studies Economy Package, with a set of policies
and building initiatives. Our work is allocating incentives to the industry in order Many fear that the circular model might
expanding very quickly, it’s becoming to develop circular economy business models. impact jobs. What does your research show?
11ECOSCIENZA 2 • 2017
When we carried out the study on huge big development of where value Now when you leave, that’s it. Your link
Europe, at the beginning of the changes and who owns value. with the land stop, and you prepare to
public consultation [for the Circular Having the finance sector understanding be at sea for the full duration, if you run
Package], we worked specifically with the difference between linear and circular out of something, that’s it, you can’t stop
the German Employment Economic is key. and buy more, in the deep ocean you are
Group, and we were specifically looking 2,500 miles from the nearest town, five
at what influence the circular economy The Foundation carries out extensive days away from everything, so you really
would have on employment. Would research. Does it work with specific research are isolated and you really do develop a
employment rise or fall? Results showed centres? different way of thinking. You get used
that most probably it would have a to it and you go into a different mode.
positive impact. Actually there would We have 14 university partnerships, And suddenly it dawned on me with the
be less employment in the raw material to support teaching and research in second round-the-world tour that our
industry but there would be more the circular economy, from London economy is no different than my boat.
employment in the remanufacturing University to Bocconi University in We have a world with finite resources:
and service industries. Take Airbnb as Milan. it’s absolutely no different from the boat.
CIRCULAR ECONOMY
an example of the circular economy: you We are seeing growing interests in the When I finish my journey, I go back
have huge hotels being built all over the research partnerships. Professors want and I restock and I set off again. But
world – it is a clear linear model and then to get involved, they see the opportunity, we cannot do that, we don’t have more
suddenly Airbnb pops up, showing there they want to understand the circular resources, and it just suddenly hit me,
is a lot of unused space in buildings that economy more deeply. We need to and I knew nothing about the circular
can be utilized otherwise. And through fathom the consequences of the adoption economy, I never heard the word, never
the IT digital revolution it unlocks spaces of such models, take Uber or Airbnb as came across the idea, I knew absolutely
which were previously unavailable, almost an example. We are going to do things nothing. It’s what brought me to try to
impossible to find. Suddenly we have differently, we are going to find spare understand the global economy. I started
this visibility into spare space within vehicles, we are going to find spare reading every book I could, I met experts,
the global economy. It could be spare buildings, to remanufacture everything, scientist, economists, educators, tried to
materials, spare equipment, anything: and we need to find a way to utilize understand. If this current model that we
suddenly everything has the ability to be them, to benefit from these processes. We use doesn’t work, what does? And initially
connected. And this creates jobs. This is are building a picture of what the circular you point to “we need to use less, we need
the time for the circular economy because economy is, and the more we have of to travel less”. But then you realize that
we have the information technology that that picture, the more straightforward all of that is essential, we absolutely need
can help this. Five years ago we couldn’t it would be for new companies, cities, to be incredibly careful with what we use
predict what the digital revolution would regions to step in the circular space. now because we have finite resources. It’s
have done for employment, suddenly not that we are going to educate every
the informal economy, the sharing, the How come that a record-breaking young person in the world, “we just need
circular are showing opportunities. yachtswoman has become the icon of the to use everything a little bit less”. You
circular economy? know it doesn’t work, because we have
How will trade change with the circular desires. And then you start thinking
economy? It was very unexpected; I never thought “So what does work?” And suddenly
I would do this. All I wanted to do from you see that if we change the system,
If you look at small businesses trying the age of 4 was to sail a boat, and I spent we can recover all the materials, we use
to become more circular, providing a all my free time thinking about sailing. biomimicry design, sharing economy
product-as-a-service, they might buy the For years, I saved my school money for models – which brings the utilization of
product upfront from larger manufacture a boat, I left school at 17 to become a products to the highest level – and the
company, of course, but then they sailing instructor, at 18 I set out for my performance economy where they were
need a constant relationship with the solo round-the-world tour. Everything able to do the same with bigger products.
manufacturer and the customers, as they was about sailing, everything was about Suddenly you see that systemic thinking
might offer life extension services, or they being at sea, everything was about can change everything. And it was the
might be able to remanufacture those finding a sponsor, everything was about personal journey I went on that made me
products locally. Now in the traditional getting out there and being on the water realize that the system doesn’t work, the
enterprise you buy the product and you and I absolutely loved it. I still love it as linear economy doesn’t work in the long
sell it and then re-sell it. End of story. much today as I ever did, it’s a massive term. That is how I started to think, alone
That would change because customers magnet for me being on the sea. There in my boat, about a new economy, which
will not own the materials, they will only was absolutely no reason to step out of is able to be restorative and regenerative,
use it for some time. For the company, that, I should still be doing it now. But to rebuild natural capital, which has
that piece of equipment will be “in then suddenly the penny dropped. You basically degraded since the beginning of
someone else’s house” for a while. Indeed know, it’s incredibly difficult when you the industrial revolution. And now the
for the financial sector this will be a go to sea. Imagine to be about to go off race is on!
huge change. Financial firms are trying today from Italy to sail around the world,
to understand how a business that has nonstop, you would take everything Interview by Emanuele Bompan, published
adopted a circular model will unlock you need for your survival. Everything. on Renewable Matter, No. 12/2016
more economic potential and will set its You have a boat, your little world, and www.renewablematter.eu
revenue model. Just having the banking you put everything on that, for your
sector understanding whether companies survival for the next 3 months, or 4 or
are trying to get to its key, you have this 5, depending on how fast your boat is.
12ECOSCIENZA 2 • 2017
CIRCULAR ECONOMY PACKAGE
THE EUROPEAN PARLIAMENT SETS MORE AMBITIOUS TARGETS
FOR WASTE MANAGEMENT AND SUSTAINABLE GROWTH
On Tuesday 14 March 2017, the European Parliament adopted
the “waste package”, including a series of resolutions designed
to favour recycling and re-use of waste, limit landfilling, and
reduce food waste. This is a step forward in the promotion
of a circular economy. It follows the adoption of the Circular
Economy Action Plan by the European Commission and the
relevant public consultation.
MEPs set even higher targets in comparison with the
Commission’s proposal, so as to moving on more decisively Circular
towards the transition to a circular economy. Economy
The situation of waste management in Europe has been
improving over the last few years: in 2014, 44% of all municipal
waste was recycled or composted. It was 31% a decade before,
in 2004. Following this trend, the European Union should be
able to reach its target of recycling or composting more than
50% of waste by 2020.
However, this is not considered the end: the EU bodies
decided to go even further to make Europe a leader in the
construction of an economic, productive, and consumption
system in which waste is considered a new raw material.
Improving waste management could bring benefits to the
Targets
environment, climate, human health, and the economy. These are the targets approved by the European Parliament in
“The EP by a very large majority has showed that it believes the circular economy package:
in the transition towards a circular economy. We decided to
restore the ambitious recycling and landfill targets in line with Waste and packaging
what the Commission had originally proposed in 2014” said By 2030, at least 70% by weight of so-called municipal waste
lead MEP Simona Bonafè. (from households and small businesses) should be recycled
or prepared for re-use, i.e. checked, cleaned or repaired. The
The Parliament will now have to negotiate the text of the European Commission’s proposal was 65%.
approved resolutions with the Council of EU ministers. For packaging materials, such as paper and cardboard,
“The revised legislation sets very high targets, and we believe plastics, glass, metal and wood, the proposed target for 2030
it cannot avoid confronting a problem we have been working is 80%, with interim 2025 targets for each material.
on since day one at the EU Council: the harmonization of
rules, which implies equal efforts by all Member States to Landfilling
make real performance comparisons possible. Negotiations The bill limits the share of municipal waste to be landfilled
won’t be easy, but it’s crucial to achieve the approval of a to 10% by 2030. The proposal tightens this to 5%, albeit
really ambitious text, if we want Europe to take a sustainable with a possible five-year extension, under certain conditions,
growth direction”, commented Italian Minister for the for member states which landfilled more than 65% of their
Environment Gian Luca Galletti. municipal waste in 2013.
As part of a change in EU policies towards a circular economy,
the European Commission put forward four bills, which Food waste
introduce new targets in waste management with respect to Food waste in the EU is estimated at some 89 million tonnes,
re-use, recycling and landfilling. or 180 kg per capita per year. MEPs advocate an EU food
These proposals also strengthen EU provisions on waste waste reduction target of 30% by 2025 and 50% by 2030,
prevention and extended producer responsibility, streamlining compared to 2014. They also propose a similar target for
the definitions, the obligations in terms of communication, and marine litter.
the calculation methods for the targets. (SF)
13ECOSCIENZA 2 • 2017
A TREASURE WAITING
TO BE DISCOVERED
THE ECONOMY NEEDS TO BE TOTALLY TRANSFORMED, FROM LINEAR TO CIRCULAR, TO
RESPOND TO THE SHORTAGE OF RAW MATERIALS AND RECOVER THE HUGE CAPITALS
AFFORDED BY WASTE. THIS NEW MODEL COULD HAVE A POSITIVE IMPACT ON THE GDP
AND EMPLOYMENT. ITALY CAN ASPIRE TO PLAY A LEADING ROLE.
T
CIRCULAR ECONOMY
he inflow of material into the
system is immense: only in 2010,
more than 65 billion tonnes of
new material have entered the economy.
In 2020, in a business-as-usual scenario,
this is estimated to peak to 82 billion.
Obviously, the resources are not evenly
distributed among the different countries,
thus they are in contention given the
growing demand for material as a result
of the global demographic growth (9
billion in 2050) and the increasingly
large number of people who become
part of the consumer middle class
(more than 5 billion by the end of the
decade). Will there be enough material
for all? At school, some years ago, the
teachers used to illustrate the dilemma
behind the shortage of material in the
world by means of a classic Malthusian
explanation: what would happen if all
Chinese people used toilet paper? In
one year’s time there would be no forests to the International Solid Waste The second principle is linked to ending
left. The assumption is theoretically Association (Iswa), in fact, statistics are the unused value of products, even
correct, still this is the way we are going not accurate. “We do not know exactly how before their disposal: warehouses full
through. Fifteen years ago a new stage much available waste exists in the world”, of machinery waiting to be discarded,
of the Anthropocene epoch started, an Iswa source declared. It is a sea of boxes of clothes with low emotional value
with renewed scarcity of raw materials. potential material, more than 7,000 times stacked in one’s garage, objects bought
It is therefore necessary to address the the volume of the Empire State Building, and used just once a year. It is a useless
following question: which processes with inestimable and unknown monetary amortization of assets whose value is not
should be transformed to create a world value. There is simply no real metric yet put to work. Look around with new eyes
where everybody can take advantage of to estimate this immense capital. And it and you will see inert matter, as in the
the well-being afforded by technology is not just waste. case of a teddy bear left in the armchair
and knowledge, overcoming the of one’s childhood memories.
limitations imposed by a linear economy? The third principle is stopping the
The principles of a circular economy premature death of matter: although
It is calculated that every year 1.3 bn recycling and re-use are fundamental
tonnes of municipal solid waste (Msw) A total transformation of the linear strategies of material recovery, often we
are generated, i.e. 1.2 kg waste per economy is thus necessary and it should sentence to death, i.e. dispose of, perfectly
capita per day on average. According to comply with the following principles in healthy material. It does not matter
estimates by the World Bank, from the order to make waste and unused material whether it will be recycled. Often just
report What a Waste. A global review an economic, social and environmental part of an object breaks down or fails
of MSW, in 2025 these figures could advantage. while the remaining parts remain fully
go up to 1.42 kg waste per capita, with First, waste fields should be reconsidered functioning. It would be like burying a
more than 2.2 billion per year. Italy as a source of material, limiting person with a broken arm. What if the
alone would generate more than 65 m processing as much as possible: waste wi-fi system of a (out of warranty) mobile
tonnes of Msw every year. Today we collection, recycling, production output phone fail? Everything is thrown away,
are at about 55 m (of which 13 m are management, functioning objects it would cost too much to fix it. Yet, the
collected separately). But waste could discarded due to bad stock management device includes a functioning processor,
be much more than this. According (including households). a touchscreen, sensors, an Led light. No
14ECOSCIENZA 2 • 2017
way, that is the sentence. In the best-case by 2030 (7 percentage points more in time has come. All around the world, people
scenario, it will end up in an e-waste comparison with the growth registered are tired of the traditional ‘take, make, use,
management programme (WEEE, Waste in the linear model), 48% reduction of waste’ model. Yesterday’s economic model
electrical and electronic equipment); emissions (which could increase to 84% brought enormous wealth. But it also leaves
in the worst-case scenario, it will be by 2050) and 18% increase of household a legacy we cannot ignore. Our planet is
dumped in the sea (a common practice in income. If it grew in a scalar way over warming, species are disappearing, and the
many countries that consider oceans to the next five years, the circular economy resources we depend on are becoming ever
be a big landfill). could generate € 450 million savings more scarce”.
These three principles lie at the basis of over the cost of materials, 100,000 new
a new economy, i.e. the circular economy. jobs and prevent 100 million tonnes of The Commission’s proposals are the
A treasure waiting to be discovered. The waste from being landfilled at a global basics of a circular economy: maintaining
rationale is as simple as this: take the level, provided that within these five years the materials and the value circulating
straight line of capitalist economy and businesses should focus on promoting within the economic system as long as
bend it to the point it becomes a circle. the creation of “circular” supply chains to possible, so as to constantly minimizing
At this stage, the negative output, scrap, increase the rate of recycling, re-use, and losses. There is no specific reference to
waste, debris, unused material become regeneration of raw materials. maximizing usage, renewable energies,
the starting point of a new, exciting world and human resources. However, the bill
of production and economic growth. The European Commission has is a good starting point, albeit at times
presented an ambitious package of not so much informed on the models
measures to boost the transition of of circular economy that are rising.
Europe towards a circular economy, with And chances are that enlightened civil
Growth, employment the aim of strengthening competitiveness society and business people will take the
and emissions reduction at world level and stimulating sustainable steps that are so hard to be taken in the
economic growth and the creation of political world.
According to the first studies available, new jobs. “Reduce, reuse, recycle” are the For once, we can say that Italy’s position
this development model may have a keywords of a comprehensive proposal in on circular economy is more advanced
twofold positive impact on Gdp and favour of competitiveness and innovation. than that of the Usa and Germany. We
employment, albeit caution is in order as A lot still needs to be done to carry out must become undisputed leaders.
the economic model is still in its infancy this package of measures, but at least part
and the relevant data are far from perfect. of the Parliament seems to be willing to
Emanuele Bompan
The latest report, drafted in collaboration support this line of action.
with McKinsey Center for Business and According to Karmenu Vella, European Journalist and geographer
Environment, is entitled Growth Within: Commissioner for the Environment,
a circular economy vision for a competitive consensus around the idea of a transition
Europe. It shows that moving from a towards a circular economy has overcome
linear to a circular model would lead every political barrier: “It is as if there were
to 11% growth of the European Gdp something in the air, a common idea whose
RESOURCE EFFICIENCY
THE ROAD MAP FOR A CIRCULAR ECONOMY
AT THE BOLOGNA G7 ENVIRONMENT
The G7 Environment for involving citizens and raising the awareness of public opinion,
sustainable development food waste, plastics and green tenders, product policies for
in Bologna shall launch durability.
a “road map” of energy The minister restated how imperative it is to take action
efficiency, so as to outlining for greater resource efficiency, a much-needed approach
a five-year working plan on to respond to the pressure put on natural resources by the
some priority issues. Italy’s world population increase and economic growth. “Resource
Minister for the Environment efficiency is one of the cornerstones of the transition from
Gian Luca Galletti reveals in a linear to a circular economy, it is essential for sustainable
advance one of the objectives development and to fulfil the Paris Agreement. If the
of this international summit economic and the political worlds are able to work together,
focusing on environmental great results will be achieved. Today businesses are ahead of
issues to be held in Bologna governments in some cases, as they understood long ago that
on 10 and 11 June 2017. the future lies in the circular economy and they are moving
During the International independently in that direction” explained the minister.
Workshop on Resource Efficiency, organized by Confindustria Then Mr Galletti focused on the issue of process governance,
and Global Business Coalition in Rome, the minister giving the example of Italy. “In Italy we are working on
highlighted some commonly shared points in the debate the National Energy Strategy, a strategy for sustainable
and all of them revolve around resource efficiency: indicators development, and the Climate Change Adaptation Strategy.
to measure it, the link with climate change, international These three strategies together will determine the industrial
recycling of resources and materials, economic analysis of an plan, not just the environmental one, of the country for the
efficient use of resources, along with the social dimension, next few decades” he added.
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