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Transitioning the Water Industry with the Circular Economy

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Transitioning the Water Industry with the Circular Economy TRANSITIONING THE WATER INDUSTRY WITH THE CIRCULAR EcONOMY Institute for Sustainable Futures Research Team Acknowledgements Prof Pierre Mukheibir This publication was co-ordinated by the Water Services Dr Melita Jazbec Association of Australia and supported by: Andrea Turner • City West Water About the authors • Coliban Water • Hunter Water The Institute for Sustainable Futures (ISF) is an interdisciplinary research and consulting organisation at the • Icon Water University of Technology Sydney. ISF has been setting global benchmarks since 1997 in helping governments, organisations, businesses and communities achieve change towards sustainable futures. • Melbourne Water We utilise a unique combination of skills and perspectives to offer long term sustainable solutions that protect and • SA Water enhance the environment, human wellbeing and social equity. • South East Water For further information visit: www.isf.uts.edu.au • Sydney Water • Urban Utilities Citation • Water Corporation Jazbec M, Mukheibir P and Turner A, 2020 Transitioning the Water Industry with the Circular Economy, prepared • Yarra Valley Water for the Water Services Association of Australia, Institute for Sustainable Futures, University of Technology Sydney, September 2020 ISBN: 978 0 6489 242 3 4 Institute for Sustainable Futures Disclaimer University of Technology Sydney The authors have used all due care and skill to ensure the material is accurate as at the date of this report. ISF and the authors do not accept any responsibility for any loss that may arise by anyone relying upon its contents. PO Box 123 Broadway, © UTS September 2020 NSW, 2007 www.isf.uts.edu.au Contents Foreword 1 The circular economy 2 Circular economy and integrated water servicing 6 Circular economy opportunities in the water industry 10 Transitioning to a circular economy approach 26 Evaluation and measurement 34 Supporting the transition to a circular economy 40 Taking action in the water sector to transition to a circular economy 43 References 44 Abbreviations 46 Many utilities are now considering the benefits of unlocking the circular economy to better manage resources, make and use products and to regenerate natural systems. Foreword It’s hard to find a more circular business than water. All water on Earth is used and reused in an endless cycle. Urban water utilities manage an essential part of the water cycle that creates healthy, liveable communities and simultaneously manage a significant proportion of the liquid and solid waste created by those urban communities. In our urban cities and regions, the essential services to transform the way these nutrients and waste The Sustainable Development Goals (SDGs) set of water, energy and waste have traditionally products are used and used again. out challenging and ambitious outcomes that been managed in a linear way. With water utilities The transformation to a circular economy approach encapsulate the circular economy. Many urban providing essential drinking water for use by brings many challenges and the shift requires water businesses have committed to the SDGs and communities and taking away and treating a multi-pronged and widespread cross-sector envisage the future as very different to the past. The wastewater to return safely to the environment, and collaborative approach. COVID-19 pandemic is a critical juncture for us to valuable and renewable waste and energy sources establish that new normal. I’m urging all water utilities This paper seeks to outline the key building blocks used and disposed of in a similar linear way. to research, plan and invest in a new circular future. required for a utility to transition to a circular It’s fair to say that the traditional linear approach will economy as well as discussing the value proposition The paper is intended for use by water utilities and be a relic of history. The technologies, some yet to be and the many benefits to customers and the the broader water sector to better understand invented, the enthusiasm, the investment potential, broader community, the environment and to utilities the challenges and transformation required to the long term sustainability outcomes are all there to themselves. It collates existing knowledge on the implement a circular economy approach. It is create a new future of circularity rather than linearity. contribution of the urban water industry (with supported by 15 international and Australian case Many utilities are now considering the benefits leading international examples) in a circular economy studies showcasing the future possibilities for the of unlocking the circular economy to better and recommends the next steps to help utilities urban water industry. manage resources, make and use products and to pivot to begin or further advance their approach. regenerate natural systems. Nitrogen, phosphorus, The paper recommends we need to move beyond hydrogen, cellulose, heat, plastic, organic waste and ‘sustaining’ to ‘restoring’ the material balance and biosolids are some of the fundamentals of urban then actively go further with ‘regenerative’ actions living. Many of these pass ‘through the hands’ of that will ensure the planets health, resilience and Adam Lovell skilled urban water managers who have the ability ability to adapt. EXECUTIVE DIRECTOR 1 The circular economy The concept of the circular economy has been gaining traction globally over the past decade. This is in response to the serious impacts caused by the prevailing linear economy practice of take-make-use-dispose which has pushed the demands of our society beyond the limits of our planet. As the Planetary Boundary analysis from 2015 approach would design out waste and pollution, makes clear1, we are witnessing a significant keep products and materials in use for as long reduction in genetic diversity, phosphorus and as practicably possible, and regenerate natural nitrogen stocks have been seriously depleted and systems3. That is, we need to move to a circular other earth systems are rapidly moving in the same economy approach in its broadest sense. direction. Over the past 50 years alone, human use The circular economy is not new. It is based on of synthetic nitrogen fertilizers has increased more diverse, but related, ground-breaking ideas that than 9-fold globally, while phosphorous use has have been emerging since the 1970s. These include tripled. At the same time, the efficiency of nutrient for example: Regenerative Design4, Performance use for food production is poor, with over 80% of Economy5, Industrial Ecology6, Cradle to Cradle7, nitrogen and 25-75% of phosphorus ending up lost Natural Capitalism8, Biomimicry9, Blue Economy10 2 to the environment (rivers and oceans). and Doughnut Economics11. Several interpretations If we are to have any chance of reversing these and definitions of circular economy abound.12,13 impacts and returning the planet to a state that The Ellen Macarthur Foundation is a globally can continue to support our societies, with current leading, influential advocate for the circular growth projections, the way in which we manage economy.3,14 The Foundation uses the following resources, make and use products, and dispose definition, which includes three key principles: of materials needs to be transformed. Such an 2 PLANETARY BOUNDARY ANALYSIS Looking beyond the current take-make-dispose extractive industrial model, a circular economy aims to redefine growth, focusing on positive society-wide E CLIMATE ER benefits. It entails gradually decoupling economic H Y HANGE P IT C S R tic O G ne y I E e sit N B T G er E O activity from the consumption of finite resources and IN iv N V l d T E a IT L n IE io y t it S designing waste out of the system. Underpinned by c rs n e u v F i d a transition to renewable energy sources, the circular O ? S Z T O R M ? N A model builds economic, natural, and social capital. E T E T E O S D G Y S E N S P P It is based on three principles: design out waste and - A H L D H E E N C T R I A I O pollution; keep products and materials in use; and C L N regenerate natural systems. G F C R I N I E R ? D S E A H H U W P O In line with this definition circular economy actions so far have predominantly S S L A E O L T O E M focused on circularising material flow, which intrinsically includes socio-economic R T S A O R E benefits. However, in the future as our understanding and practice of the circular P A ho B sp economy deepens, we expect the focus will expand to feature socio-economic IO ho C rus HE N principles more strongly, and the definition and practice to shift accordingly. M itrog AN ICA en CE L FL O OWS The shift from a linear to a circular economy has multiple economic, social and environmental benefits. It allows companies to create more value while reducing their dependence on scarce and costly resources. A circular industrial system that is Beyond zone of uncertainty (high risk) regenerative by design, which restores material, energy, and labour inputs, can only In zone of uncertainty (increasing risk) 15 Below boundary (safe) be good for both society and business. Boundary not yet quantified Image adapted from Steffen et al (2015)1 3 Faced with declining resources globally, together require new business models. Moving towards the THE REGENERATIVE DESIGN FRAMEWORK with rising demand due to population growth and regenerative state where actions are designed REGENERATING urbanisation, ecosystem functions will continue to in line with nature, solutions seek to integrate SYSTEM be eroded through our current take-make-use- a wider influence on social and environmental dispose economy and lifestyles. Simply doing less systems, with the aim of doing more good, damage to the environment will only slow this rate not just doing less harm.
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