Circular Economy
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Circular Economy - Sustainable Materials Management A compendium by the International Institute for Industrial Environmental Economics (IIIEE) at Lund University Peck, Philip; Richter, Jessika Luth; Delaney, Kelly; Peck, Philip; Richter, Jessika Luth; Dalhammar, Carl; Peck, David; Orlov, Dmytro; Machacek, Erika; Gillabel, Jeroen; Nußholz, Julia L.K.; Wrancken, Karl; Whalen, Katherine; Modis, Konstantinos; Milios, Leonidas; Messing, Maria; Bocken, Nancy; Tojo, Naoko; Davris, Panos; Manshoven, Saskia; Sfez, Saskia; Lindhqvist, Thomas; Voytenko Palgan, Yuliya 2020 Document Version: Publisher's PDF, also known as Version of record Link to publication Citation for published version (APA): Peck, P. (Ed.), Richter, J. L. (Ed.), Delaney, K. (Ed.), Peck, P., Richter, J. L., Dalhammar, C., Peck, D., Orlov, D., Machacek, E., Gillabel, J., Nußholz, J. L. K., Wrancken, K., Whalen, K., Modis, K., Milios, L., Messing, M., Bocken, N., Tojo, N., Davris, P., ... Voytenko Palgan, Y. (2020). Circular Economy - Sustainable Materials Management: A compendium by the International Institute for Industrial Environmental Economics (IIIEE) at Lund University. (2021 ed.) The International Institute for Industrial Environmental Economics. 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LUND UNIVERSITY PO Box 117 221 00 Lund +46 46-222 00 00 Download date: 04. Oct. 2021 Circular Economy – Sustainable Materials Management A COMPENDIUM BY THE INTERNATIONAL INSTITUTE FOR INDUSTRIAL ENVIRONMENTAL ECONOMICS (IIIEE) AT LUND UNIVERSITY EDITORS Philip Peck Jessika Luth Richter Kelly Delaney CONTRIBUTING AUTHORS Carl Dalhammar David Peck Dmytro Orlov Erika Machacek Faigan Jeroen Gillabel Jessika Luth Richter Julia Nußholz Karl Vrancken Katherine Whalen Konstantinos Modis Leonidas Milios Maria Messing Nancy Bocken Naoko Tojo Panos Davris Philip Peck Saskia Manshoven Sophie Sfez Thomas Lindhqvist Yuliya Voytenko Palgan A PUBLICATION BY: The International Institute for Industrial Environmental Economics (IIIEE) at Lund University. PROJECT PARTNERS IIIEE at Lund University; Delft University of Technology; GEUS the Geological Survey of Denmark and Greenland; Ghent University, NTUA the National Technical University of Athens, and VITO – with Höganäs AB and Swerea IVF. This activity has received funding from European Institute of Innovation and Technology (EIT), a body of the European Union, under the Horizon 2020, the EU Framework Programme for Research and Innovation. © You may use the contents of the IIIEE publications for informational purposes only. You may not copy, lend, hire, transmit or redistribute these materials for commercial purposes or for compensation of any kind without written permission from IIIEE. When using IIIEE material you must include the following copyright notice: ‘Copyright ©author’s name, IIIEE, Lund University. All rights reserved’ in any copy that you make in a clearly visible position. You may not modify the materials without the permission of the author. Published in 2020 by IIIEE, Lund University, P.O. Box 196, S-221 00 LUND, Sweden, Tel: +46 46 222 02 00, Fax: +46 46 222 02 10, e-mail: [email protected]. Printed by Media-Tryck, Lund 2020 NORDIC SWAN ECOLABEL 3041 0903 | Design: Frida Nilsson, Media-Tryck Preface SOME PEOPLE work with the circular economy every day ... but many of us still have questions! A simple question that we often hear is what is the circular economy? These and other important questions will be addressed throughout this compendium, which complements the Massive Open Online Course, Circular Economy: Sustainable Materials Management. You can access the course at www.coursera.org/learn/circular-economy. As a starting point, consider the following related to the “what” question above. • Have you ever wondered why so many people believe the circular economy is important? • How is it linked to the function of natural resource production systems? • Why is the circular economy so important for developing countries? • How will it benefit society? Other questions we think are important are related to how do we go about it? • How can business, industry and society move the circular economy forward? • What are the technologies involved? • What issues and incentives motivate businesses? • How do companies make money in the circular economy? • Can policy and politicians help the circular economy? • Does society have to change? Please read on to find out more! We have structured this compendium to closely follow the MOOC, and intend that this will serve as an aid to your understanding of the course and as a ready reference source describing many aspects of the circular economy and sustainable management of materials. IV Circular Economy | scope for circular economy: sustainable materials management Scope for Circular Economy: Sustainable Materials Management This compendium document describes the first steps of a journey towards circularity. The journey will be different for all countries of the world, but this text is intended to share knowledge so that many more of us can create a path forward. The scope of the compendium covers many parts of the emerging circular economy. We choose to place considerable • Key challenges arising as a result of the excessively high material and energy consumption – and the way focus on some of the substances that we extract from the we eject large proportions of material as waste to ground – in particular raw materials and critical materials. the environment – demand that we pursue a circular We focus on circularity in these areas, because presently economy. we use too much, too fast, and we are not re-using nearly • Damage to natural systems and shortages of key re- enough. In turn, this approach demands that we look at sources – both renewable and non-renewable – will the technologies that rely on such materials, and how negatively affect the development of less wealthy businesses are innovating to make circularity of materials countries unless we achieve a circular economy. a reality. • The creation of a circular economy is about much more This document provides many concrete examples of what than resource flows. It is also about circular product we mean by sustainable materials management. We present design, business models, and policy formulation. These must be interlinked with social changes to evolve a cutting edge insights on a range of topics. circular society. • Why raw material supply chains are important to society? • How circularity can benefit us? Why do we need a circular economy and how do we • Where changes in our economies are required? pursue it? • Who needs to be involved? Governments and businesses are becoming increasingly concerned about the growing pressures on our global • What businesses are doing to make the circular economy resources due to human activities. Our economies, and a reality? our systems of production and consumption, are stressing • How governments and regulators can support the circular and damaging Earth’s natural systems. We use enormous economy? amounts of raw material and energy to create the billions of At the start of every subsection in this compendium we products that sustain our lives. At the same time, we send provide a brief Highlights summary. Here we synthesize the huge volumes of waste into the very atmosphere, waters, take home messages of each lesson presented throughout land and ecosystems that are vital to our existence. The richer the MOOC. we are, generally, the more we pollute. For this introductory section, our highlights appear as An overarching challenge is that billions of people in less follows: developed countries have the same right to live long and comfortable lives as people in developed countries. This scope for circular economy: sustainable materials management | Circular Economy V is directly linked to becoming wealthier. But if everyone new technologies and processes, and new forms of govern- consumes resources, and emits wastes, at the level that ance. Such changes offer the potential to generate value developed countries do at present, then our planet will simply to society; for example, via stimulation of employment and be unable to meet the demands placed upon it. an increased demand for educated and skilled workers. This The underlying problem lies with our linear economies evolution also needs new thinking, new social systems, new – these have excessively high material and energy con- forms of engagement, and new institutions. This demands sumption, and eject large proportions of material as waste. an evolved society. Something has to change! One