User:Mathildegrs/Circular economy

Circular development in Europe

5.1. Overview

Already since 2006, the European Union has been concerned about environmental transition issues by translating this into directives and regulations. Three important laws can be mentioned in this regard :

●       The Ecodesign Framework Directive

●       The Waste Framework Directive

●       The Registration, Evaluation, Authorisation and Restriction of Chemicals Regulation

The European research budget related to the circular economy has increased in the last few years. For instance, it has reached 964 million euros between 2018 and 2020.

5.2. EU-Programs

From July 2014, a zero waste programme for Europe has been put in place aiming at the circular economy. Since then, several documents on this subject have been published. The following table summarizes the various European works that have been enacted between 2014 and 2018.

Circular Economy Stakeholder Conference

To discuss and agree on public policies to be adopted at the European level, annual conferences (of the name of: Circular Economy Stakeholder Conference) were held since 2015. Since 2015, several conferences have been held, including the 2020 conference, which took place on 20 and 21 February in Brussels and was particularly important for the circular economy in Europe.

           5.2.1. Closing the loop

The Action Plan consisted of 54 measures to strengthen Europe's global competitiveness, promote sustainable economic growth and create more jobs. Among these 54 measures, for example, is the importance of optimizing the use of raw materials, products and waste in order to create energy savings and reduce greenhouse gas emissions. The main goal being in this respect to lead to the development of a framework conducive to the circular economy. In addition, the development of this Action Plan was also intended to enable the development of a new market for secondary raw materials. Concretely, here are the principal areas concerned by the Action Plan  :

• Production
• Consumption
• Waste Management
• Boosting markets for secondary materials
• Innovation, investment an 'horizontal' measures
• Monitoring progress

The Action plan was also a way to integrate a policy framework, an integration of existing policies and legal instruments. It includes notably some amendments. As a matter of fact, the implementation of this new plan was supported by the European Economic and Social Committee (EESC). This support included in-depth consultation.

           5.2.2. Circular Economy Action Plan of 2020

This new action was adopted by the European Commission in March 2020 (European Commission, Press Release, March 11, 2020). A total of 574 out of 751 MEPs voted in favour of the action plan. It focuses on better management of resource-intensive industries, waste reduction, zero-carbonization and standardization of sustainable products in Europe. Prior to the development of this new action plan, we can also mention the Green Deal of 2019 (wikilink: https://en.wikipedia.org/wiki/European_Green_Deal), which integrated ecological and environmental ambitions to make Europe a carbon neutral continent. On the 10th of February 2021, the European Parliament submitted its proposals to the Circular Economic Action Plan (CEAP) of the Commission, highlighting 5 major areas in particular. Those are the following:

• Batteries
• Consruction and Buildings
• ICT
• Plastics
• Textils

Two additional sectors on which the CEAP focuses could be added: packaging & food and water.

Batteries

As this is also an objective of the Green Deal, the idea of having sustainable batteries is one of the first objectives set by the CEAP. In further legislative work, a new regulatory framework for batteries will be drawn up. The following scheme made by Cambre associates highlights the main resolutions that have been taken:

Construction and building

There are three main topics: renovation, materials recovery, carbon footprint and the material footprint of buildings.

5.2.2 BE-Programs

           5.2.2.1 « Ensemble faisons tourner l’économie en développant l’économie circulaire en Belgique » of 2016

In October 2016, one year after the implementation of the Action Plan consisting of 54 measures established by the Commission, the Deputy Prime Minister and Minister of the Economy, Kris Peeters, and the Minister of the Environment and Sustainable Development, Marie-Christine Marghem announced: "Making Belgium a pioneer of the circular economy (Biebel, V., 2016). Therefore, the same year, the Belgian federal government implemented 21 measures relating to the development of the circul ar economy concept in Belgium. In going through the first four measures, Belgium has firstly decided to "support the development of innovative business models through intelligent product design" (Unenvironment, 2020) and supports the importance of partnerships between companies to increase the rate of resource recovery through the implementation of the economy of functionality. The objective is also to better control the marketing of products that produce microplastics and to define a good strategy for their management. More especially, measures 3 and 4 focus on highlighting products made of recycled materials in the markets through a "recycled content" claim and to include it in public procurement assessments. These first four measures are in line with the standardization of the eco-design of European products. Measures 5 and 6 aim to better identify possible collaborations between market players, so to better define the potential for industrial synergy, followed by measures 7 and 8 which have a common objective: to enable consumers to rely on environmental claims on products and to make information on product performance more easily accessible. Again, this is a continuation of EU action on environmental and ecological claims on products.Then, measures 9 to 13 aim to improve product sustainability. Firstly, measure 9 aims to better implement the principle of guaranteed purchase. One the one hand, Measures 10 and 11 provide a better framework for the notion of product obsolescence and create a point of contact. On the other hand, measures 12 and 13 are intended to support product repair, in particular through the development of standards for reparability and the development of a strategy for better dissemination of the concept of reparability among consumers. These measures allow better application of the circular economy concepts within Belgian businesses. More specifically, in 2017, Belgium, in partnership with RDV environment, has put in place a policy and measures against programmed obsolescence. In addition, these measures aim to improve design with a view to increasing the lifespan, to increase the use of repairs, to improve consumer knowledges and behaviours and finally to modify the Business Model. In order to achieve this, Belgium has put in place several means, notably normative ones via an extension and clarification of the guarantee period, the development of compatibility standards (e.g. chargers and batteries), an assurance of software updates that do not limit the functionality of the devices, an increase in the use of repairs and also a guarantee of availability of spare parts, product plans and tools needed for repairs for a longer period. Demonstrative means are also present, through the integration of sustainability into public procurement criteria. Informative means are also provided, such as displaying the service life and repairability of products as well as the availability of spare parts. Finally, economic and fiscal means are put in place through a reduction of charges on repair activities (VAT, social charges) and an encouragement for innovative business models inspired by the economy of functionality and collaboration.

It is followed by measures 14 and 15 related the concept of product recycling and its criteria. Measure 14 is used to define the criteria for recyclability, in particular through the application of the 3Rs (Reduction, Reuse, Recycling). Through this measure, the federal government therefore undertakes to contribute to the development of standards to assess the potential for reuse, recycling and recovery. For its part, measure 15 allows three things: further reflection on the eco-design of products, identifying the technical and economic obstacles to recycling and highlighting the potential for reuse to consumers. To follow, the federal government has grouped together measures 16 to 19 with the common aim of promoting healthy recycling. This includes collaboration on the Green Deal "North Sea Resources Roundahout", support for the integration of green chemistry principles and decontamination techniques, and information on the substitution of chemicals of concern. Finally, while measure 20, which aims to create a center to bring together all the knowledge that the government has on the sustainable and circular economy, measure 21 aims to develop macro-economic indicators to enable a better assessment of the efficiency of the use of resources in Belgium. The federal government is therefore committed to accompanying and informing Belgian companies about the sustainable economy.

           5.2.2.2 Regional Programme in Circular Economy of 2016

Moreover, at a more regional level, there is also a desire to move towards a circular economy with support programmes such as the PREC (Regional Programme in Circular Economy) coordinated by be.circular.be.brussels for the period 2016-2020. The Regional Circular Economy Programme has 3 general objectives: - Transforming environmental challenges into economic opportunities. - Relocate the economy in Brussels in order to produce locally when possible, reduce travel, optimize the use of the territory and create added value for the people of Brussels. - Contribute to the creation of employment. This programme characterises the Brussels-Capital Region as a forerunner in terms of public policy to support the circular economy in Europe and comprises 111 measures divided into 4 strategic parts: cross-cutting, sectoral, territorial and governance measures.

           5.2.2.3 Circular Wallonia programme of 2020

Finally, a more regional and more recent programme for the Walloon Region is the Circular Wallonia programme validated in 1st reading during the month of July 2020. They think it’s necessary that at the level of the Walloon Region, there is a real strategy in circular economy (Walloon Region, 2020). The programme is composed of four axes: - production and supply of circular goods and services - demand and consumption of circular goods and services - mobilization of all actors - waste management resources - priority value chain

5.2.3 BE-Bourses

           5.2.3.1 Next program of 2015

In 2015, Wallonia made available a budget of 330 million in the Next program, a project aimed at framing research within the framework of the circular economy (RTBF, 2015). This program comes in the wake of the Marshall Plan 4.0. The Walloon Region also makes it possible to grant subsidies of up to €10,000 thanks to the Agency for Enterprise and Innovation (AEI).

           5.2.3.2 PREC bourse of 2016

In Brussels, one year after the Action Plan, on 10 March 2016, the Government of the Brussels-Capital Region launched the PREC with a budget of €12.8 million. The projects set up via this programme have been or are still being financed by the ERDF (European Regional Development Fund). To this, we can also mention the call for projects "be circular, be brussels" granting financial support to companies with projects concerned by the circular economy (Rebaud, A-L).

           5.2.3.2 PF4EE and LIFE Programs of 2016

Still in 2016, the European Investment Bank and Belfius have concluded two key agreements to stimulate business investment to improve energy efficiency in Belgium. These agreements also aim to help cities and municipalities realize their smart and sustainable projects in the fields of energy, mobility, urban development, water, waste and E-Goverment, with specific focus on the circular economy and climate change. Pim van Ballekom, Vice-President of the EIB and Dirk Gyselinck, member of the Management Committee of Belfius Bank & Insurance, signed an agreement in the framework of the new instrument Private Finance f,or Energy Efficiency (PF4EE), jointly set up by the EIB and the European Commission (LIFE Program) to address the lack of access to finance in this sector. This instrument combines three elements: an EIB loan for the financing of eligible energy efficiency projects, a coverage of potential losses that may be incurred by partner banks in the framework of energy efficiency loans and finally a reinforcement of the implementation of the PF4EE instrument by transferring the technical and financial experience gained in the framework of other similar projects. Through this agreement, Belfius will be able to grant companies 75 million euros in loans on advantageous terms to boost corporate investment in energy efficiency in Belgium. In addition to this new instrument, Belfius and the EIB have also renewed their partnership to support the development of Smart Cities in Belgium, a program launched as a European premiere in June 2014. Together, they have thus released an additional 400 million euros to finance intelligent, inclusive and sustainable projects carried out by local authorities, intercommunal organizations and non-commercial organizations in the social sector.

5.3. Countries ranking

The European leaders in terms of circular economy are designated mostly by their current efforts for a shift towards circular economy but also by their objectives and the means implemented in this shift. It remains difficult to precisely rank how countries score in terms of circular economy, given the many principles and aspects of it and how differently one single country can score in each of these principles but some tendencies do appear in the average score, when combining the principles.

• The Netherlands: the government aims to reuse 50% of all materials as far as possible by 2030 and to convert waste into reusable materials anywhere it is possible. The next goal is then to make the country shift towards a 100% waste-free economy by 2050. These objectives were all set from 2016 to 2019 in a series of programmes for a governmental circular economy, raw materials agreements and transition agendas focussing on the five most important sectors for waste: biomass and food, plastics, manufacturing industry, construction and consumer goods.
• Germany: Germany is a leader in some aspects of circular economy, like waste management and recycling.
• France is also adding several texts and measures for a better circular economy in the country such as the roadmap for circular economy in 2018, consisting of 50 measures for a successful transition to circular economy.
• Belgium is also an consequent actor in the field. It scored second in the circular material use rate, before France but after the Netherlands. In the other principles of circular economy, it usually scores in the top 5.

Other notable countries are Italy, the United Kingdom, Austria, Slovenia, and Denmark.

Even if Europe as a whole is a good actor in the field, some european countries are still struggling to make the shift faster. These countries are mostly the eastern european countries (Romania, Hungary, Bulgaria, Slovakia, etc.) but also in some fields Portugal, Greece, Croatia and even Germany.

In 2018, the newspaper Politico made a ranking of the (by then) 28 European countries by making an aggregation of the 7 key metrics of the Commission for each country. The advantage here is that it gives a general view of how countries work towards circular development and how they compare to each other but the main drawback is that the 7 metrics all have equal weight and importance in Politico’s calculations, which isn’t the case in real life. Indeed, it is said in the same article that the countries that score the highest in CE are not necessarily the greenest according to the Environmental Performance Index. For example, Germany, which scores 1st in the Politico ranking, only scores 13th worldwide in the EPI and is behind 10 European countries.

Europe:

The European leaders in terms of circular economy are designated by the current state of their circular development and their efforts for a shift towards circular economy but also by their objectives and the means implemented in this shift. Here can you find some figures interesting in terms of circular development:

• The Netherlands: the government aims to reuse 50% of all materials as far as possible by 2030 and to convert waste into reusable materials anywhere it is possible. The next goal is then to make the country shift towards a 100% waste-free economy by 2050.
• Germany: Germany is a leader in some aspects of circular economy, like waste management and recycling.
• France is also adding several texts and measures for a circular economy in the country such as the roadmap for circular economy (2018), consisting of 50 measures for a successful transition to circular economy.
• Belgium is also one of the best actors in the field. It scored second in the circular material use rate, before France but after the Netherlands. In the other principles of circular economy, it usually scores in the top 5.
• Other notable countries are Italy, the United Kingdom, Austria, Slovenia and Denmark.

However, since the concept of circular economy is new, there is not many data available to analyze the efficiency of the States in terms of circular development. Nevertheless, the European institutions like the European Commission already analyzed and published some circular factors, like the use of circular materials presented hereunder.

[Image]

As we can see on this graph, the Netherlands are leading, followed by France, Belgium, Italy and Germany. Globally, The Netherlands are the leader in terms of circular development, not only at the European level but worldwide. Inversely, some European countries are still struggling to make the shift. These countries are mostly the eastern European countries (Romania, Hungary, Bulgaria, Slovakia, etc.) but also some others like Portugal, Greece or Croatia.

Worldwide:

Outside the EU, circular economy is not very spread but some countries such as Brasil, China, Canada and especially Japan are working on the shift towards it. In fact, most countries leading in the field of circular economy are European, meaning that Europe is globally the leader in this shift. The reasons behind this are numerous. First of all, circular economy is an economic science that is currently mostly present and developed in advanced countries, thanks to, between others, technology. The efforts of the European Commission are also non negligible, with documents such as the Commission staff working document “Leading the way to a global circular economy: state of play and outlook” or the new European Action Plan for circular economy in Europe , being one of the main blocs of the green deal.

5.4. Calendar/agenda

Europe

Since 2015, there has been a plan concerning the circular economy adopted by the European Commission. This first plan includes 54 actions. There are also 4 legislative proposals with the objective of legal change.

• the framework directive on waste
• the directive on the landfill of waste
• the directive on packaging and packaging waste
• the directive on batteries and accumulators and their waste. (European Parliament 2020)

During the 2018 negotiations between the Parliament and the Council, different elements will be adopted in four directives. These are mainly:

• Minimum 65% of municipal waste to be recycled by 2035
• Minimum 70% of all packaging waste to be recycled by 2030
• Maximum 10% of municipal waste to be landfilled by 2035
• Certain types of single use plastic will be prohibited to place on market as of July 2021
• Minimum 32% of the Union’s gross final consumption of energy to originate from renewable sources by 2030.

The main objectives are the following in the European framework. (“Circular economy opportunities in Belgium”, n.d.)

Since 2020, Europe's new green deal plan focuses on "design and production from the perspective of the circular economy" (Commission européenne 2020), its main objective is to ensure that the European economy keeps these resources as long as possible. The action plan of this circular development is mainly based on different objectives. They are:

• “To make sustainable products the norm in the EU.
• To empower consumers to choose.
• Focusing on the most resource-intensive sectors with a high potential to contribute to the circular economy.
• Ensure less waste.” (Commission européenne 2020)

Europe's green deal, which came into being in 2019, aims at a climate-neutral circular economy. For this, a distinct difference between economic growth and resources will be found. "A circular economy reduces the pressure on natural resources and is an indispensable prerequisite for achieving the goal of climate neutrality by 2050 and halting biodiversity loss." (Commission européenne 2020)

5.5. Circular economy in Belgium

In October 2016, one year after the implementation of the Action Plan consisting of 54 measures established by the Commission, the Deputy Prime Minister and Minister of the Economy, Kris Peeters, and the Minister of the Environment and Sustainable Development, Marie-Christine Marghem announced: "Making Belgium a pioneer of the circular economy"[2] (Biebel, V., 2016). Therefore, the same year, the Belgian federal government implemented 21 measures relating to the development of the circular economy concept in Belgium.

In going through the first four measures, Belgium has firstly decided to "support the development of innovative business models through intelligent product design" (Unenvironment, 2020) and supports the importance of partnerships between companies to increase the rate of resource recovery through the implementation of the economy of functionality. The objective is also to better control the marketing of products that produce microplastics and to define a good strategy for their management. More especially, measures 3 and 4 focus on highlighting products made of recycled materials in the markets through a "recycled content" claim and to include it in public procurement assessments. These first four measures are in line with the standardization of the eco-design of European products. Measures 5 and 6 aim to better identify possible collaborations between market players, so to better define the potential for industrial synergy, followed by measures 7 and 8 which have a common objective: to enable consumers to rely on environmental claims on products and to make information on product performance more easily accessible. Again, this is a continuation of EU action on environmental and ecological claims on products.

Then, measures 9 to 13 aim to improve product sustainability. Firstly, measure 9 aims to better implement the principle of guaranteed purchase. One the one hand, Measures 10 and 11 provide a better framework for the notion of product obsolescence and create a point of contact. On the other hand, measures 12 and 13 are intended to support product repair, in particular through the development of standards for reparability and the development of a strategy for better dissemination of the concept of reparability among consumers. These measures allow better application of the circular economy concepts within Belgian businesses. More specifically, in 2017, Belgium, in partnership with RDV environment[3], has put in place a policy and measures against programmed obsolescence. In addition, these measures aim to improve design with a view to increasing the lifespan, to increase the use of repairs, to improve consumer knowledges and behaviours and finally to modify the Business Model. In order to achieve this, Belgium has put in place several means, notably normative ones via an extension and clarification of the guarantee period, the development of compatibility standards (e.g. chargers and batteries), an assurance of software updates that do not limit the functionality of the devices, an increase in the use of repairs and also a guarantee of availability of spare parts, product plans and tools needed for repairs for a longer period. Demonstrative means are also present, through the integration of sustainability into public procurement criteria. Informative means are also provided, such as displaying the service life and repairability of products as well as the availability of spare parts. Finally, economic and fiscal means are put in place through a reduction of charges on repair activities (VAT, social charges) and an encouragement for innovative business models inspired by the economy of functionality and collaboration.

It is followed by measures 14 and 15 related the concept of product recycling and its criteria. Measure 14 is used to define the criteria for recyclability, in particular through the application of the 3Rs (Reduction, Reuse, Recycling). Through this measure, the federal government therefore undertakes to contribute to the development of standards to assess the potential for reuse, recycling and recovery. For its part, measure 15 allows three things: further reflection on the eco-design of products, identifying the technical and economic obstacles to recycling and highlighting the potential for reuse to consumers.

To follow, the federal government has grouped together measures 16 to 19 with the common aim of promoting healthy recycling. This includes collaboration on the Green Deal "North Sea Resources Roundahout", support for the integration of green chemistry principles and decontamination techniques, and information on the substitution of chemicals of concern. Finally, while measure 20, which aims to create a center to bring together all the knowledge that the government has on the sustainable and circular economy, measure 21 aims to develop macro-economic indicators to enable a better assessment of the efficiency of the use of resources in Belgium. The federal government is therefore committed to accompanying and informing Belgian companies about the sustainable economy.

5.4.1. Programs

Regional Programme in Circular Economy[4] (10/03/2016)

Moreover, at a more regional level, there is also a desire to move towards a circular economy with support programmes such as the PREC (Regional Programme in Circular Economy) coordinated by be.circular.be.brussels for the period 2016-2020. The Regional Circular Economy Programme has 3 general objectives: - Transforming environmental challenges into economic opportunities. - Relocate the economy in Brussels in order to produce locally when possible, reduce travel, optimize the use of the territory and create added value for the people of Brussels. - Contribute to the creation of employment. This programme characterises the Brussels-Capital Region as a forerunner in terms of public policy to support the circular economy in Europe and comprises 111 measures divided into 4 strategic parts: cross-cutting, sectoral, territorial and governance measures.

Circular Wallonia programme[5] (2020)

Finally, a more regional and more recent programme for the Walloon Region is the Circular Wallonia programme validated in 1st reading during the month of July 2020. They think it’s necessary that at the level of the Walloon Region, there is a real strategy in circular economy (Walloon Region, 2020). The programme is composed of four axes: - production and supply of circular goods and services - demand and consumption of circular goods and services - mobilization of all actors - waste management resources - priority value chain

5.4.2. Fundings

Next[6] (2015)

In 2015, Wallonia made available a budget of 330 million in the Next program, a project aimed at framing research within the framework of the circular economy (RTBF, 2015). This program comes in the wake of the Marshall Plan 4.0. The Walloon Region also makes it possible to grant subsidies of up to €10,000 thanks to the Agency for Enterprise and Innovation (AEI).

PREC:[7] (2016)

In Brussels, one year after the Action Plan, on 10 March 2016, the Government of the Brussels-Capital Region launched the PREC with a budget of €12.8 million. The projects set up via this programme have been or are still being financed by the ERDF (European Regional Development Fund). To this, we can also mention the call for projects "be circular, be brussels" granting financial support to companies with projects concerned by the circular economy (Rebaud, A-L).

PF4EE and LIFE Programs[8]: (2016)

Still in 2016, the European Investment Bank and Belfius have concluded two key agreements[9] to stimulate business investment to improve energy efficiency in Belgium. These agreements also aim to help cities and municipalities realize their smart and sustainable projects in the fields of energy, mobility, urban development, water, waste and E-Goverment, with specific focus on the circular economy and climate change. Pim van Ballekom, Vice-President of the EIB and Dirk Gyselinck, member of the Management Committee of Belfius Bank & Insurance, signed an agreement in the framework of the new instrument Private Finance for Energy Efficiency (PF4EE), jointly set up by the EIB and the European Commission (LIFE Program) to address the lack of access to finance in this sector. This instrument combines three elements: an EIB loan for the financing of eligible energy efficiency projects, a coverage of potential losses that may be incurred by partner banks in the framework of energy efficiency loans and finally a reinforcement of the implementation of the PF4EE instrument by transferring the technical and financial experience gained in the framework of other similar projects. Through this agreement, Belfius will be able to grant companies 75 million euros in loans on advantageous terms to boost corporate investment in energy efficiency in Belgium. In addition to this new instrument, Belfius and the EIB have also renewed their partnership to support the development of Smart Cities in Belgium, a program launched as a European premiere in June 2014. Together, they have thus released an additional 400 million euros to finance intelligent, inclusive and sustainable projects carried out by local authorities, intercommunal organizations and non-commercial organizations in the social sector.

5.4.3. Agenda

Since 2014, Belgium has adopted a circular strategy. This is marked by 21 measures to be followed. In Belgium, the 3 Belgian regions (Flanders, Brussels and Wallonia) have different personal objectives. For Flanders, a strategy called vision 2050 has been put in place. For Wallonia, there is a plan following the declaration of the regional policy for Wallonia from 2019 to 2024. Since 23 January 2020, Wallonia has adopted a new strategy including three governance bodies: a steering committee, an intra-administration platform and a steering committee. (SPW 2020) For Brussels, a plan was adopted in 2016 to develop the circular economy in its region. This plan will be in place for a period of 10 years. (“Circular economy opportunities in Belgium”, n.d.)