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Home , Industrial ecology

Circular as an ecodesign framework: ECO III model Economía circular como marco para el ecodiseño: el modelo ECO - 3

Received: 21 - 11 - 2013 Accepted: 25-05-2014 Abstract

The current status of ecodesign and its relationship with are analyzed and an inter– relational philosophical model, ECO III, is proposed. This model takes on a new approach, proposing a response to current global environmental problems in view of the lack of resources and production models with increasing energy costs. The model catalina Hermida Balboa1 also serves to introduce a new organizational and Manuel Domínguez Somonte2 research culture as part of a for industrial and technical-scientific . The proposed model interconnects all system components and establishes connections and synergies between circular economy, ecodesign, , and citizens’ hopes, dreams, and practical needs.

Key words:ECO–III model, circular economy, ecodesign, , EzioManzini, cradle to cradle, C2C, regenerative design, performance economy, industrial , blue economy, biomimicry, , eco–innovation, eco– efficiency, eco–intelligence, triple–E system, 1 Spanish, Industrial Design Engineer. M.Sc. student in Design , College of , sustainable Industrial Engineering, National Distance Education University (UNED, its Spanish acronym). 2 Spanish.Ph.D. in Industrial Engineering. Professor, Graduate Program in Design Engineering, College of Industrial Introduction Engineering,UNED. Theconcept of sustainable development was defined at the 1992Earth Summit in Rio, being ratified by 180 countries and serving as milestone for economic and business sectors to begin to address environmental variables in their studies.

“Circulareconomy” has been referred to as “cradle-to-cradle economy”, “C2C economy”, and “closed-loop economy”. It mainproponentsinsist thatit should not be consideredas an ecologicalmovement, but rather asadifferent way of thinking, a philosophy of design (Ellen Macarthur, 2013) (el original es del

82 Balboa; Circular economy as an ecodesign framework: ECO III model año 2013, está correcto). One ofits main advocates, Industrial ecology (IE) EzioManzini, presentssustainable designas a philosophicalapproach to a more social design, Given the non-sustainability of production taking into considerationfactors suchas environment, processes, Robert Frosch and Nicholas Gallopoulos culture, production processes, and materials (uses and developed the Industrial Ecology (IE) model in 1989, aspects related to useful life).For Manzini, the role of which aims to help achieve sustainable development a designernot only involves the creation of products, The concept was used as the production modelof but also the building of everyday scenariosand natural , where industry is an interacting newideasof social wellbeing (ManziniandBigues, entity, establishing relationships, 2000). products and services,aswellas connections (similar Ecodesign serves to manufacture products to thefood network in ecology) among the different and servicesthat are efficient, sustainable,socially operatorsofthe industrial used as basis responsible,and competitivelydifferentiated. This to studymaterial and . This framework study analyzes the inter-relationship between is also known as the “science ofsustainability” conceptsand tools, using circular economyas because of itsinterdisciplinary natureandbecause its framework to developecodesignasa comprehensive principlescan also be appliedin the services sector. circularmodelwherean array of philosophies Industrial ecology grew rapidlyas a discipline and its converge—from the rudimentaryphilosophiesof the positioning within the industrial andscientific sectors 70ssuch as “permaculture”to the more recentones was strengthenedwith new developments, such such as “blue economy”. as the launching of the Journal of Industrial Ecology in 1997; the creation of the International Society forIndustrialEcology—an interdisciplinary forumof natural andsocial scientists, engineers, policy makers, Inspiration: Schools of Thought behind and practitioners—in 2001; and the launching of the Circular Economy journalProgress inIndustrialEcology in2004.

Permaculture

In the late70s, Australian ecologists Bill The natural step (TNS) Mollison and David Holmgren defined the permaculture model as the consciousdesign In view of the reality that humans are destabilizing andmaintainerof productiveagricultural ecosystems their , in 1989 cancer scientist that havethe diversity, stability, and resilience of Karl-Henrik Robèrt proposed fundamental principles naturalecosystems,mimicking the patterns and to reverse the situation and created the Natural Step relationshipsfoundin nature, which provide for their (TNS), an organization with offices in 13 countries own needs, without exploiting or contaminating that gathers scientists, experts, and corporations resourcesand are therefore sustainable in the dedicated to research, education, and advisory work longterm (Mollison and Holmgren, 1978). in sustainable development. TNS provides integrated analysis tools, design criteria, and planning and Permaculture is a design discipline that management methods to build, step-by-step, a better applies and integrates ideas andconcepts ofmodern future. The model proposes several socio-ecological ( theory, biocybernetics, principles for achieving sustainable development agroforestry systems, and so forth), conservation based on the laws of , the elimination agriculture(lack and compaction of soils, of man’s contribution to the systematic increase permanentsoilcover),(nutrient of concentrations of substances extracted from the ), andtraditional agriculture(rainwater lithosphere as well as that of substances produced infiltration) to improve soil performance andquality, by society, and the efficient use of resources to meet reduce of external elements,and protect human needs. (Bell, 2005).

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Regenerative design dimension of human creation. They advocate that industrial design, construction, and production can This philosophy was envisioned by Professor be maintained within nature’s processes by using John T. Lyle of the Cal Poly Pomona University in safe, more efficient materials and by producing California after conducting studies that postulated goods without generating or toxic elements that all systems, beyond agriculture, can be that degrade the environment (McDonough and arrangedin are generative way, emulating ecosystem Braungart, 2007). functioning, where products are created and interact without producing waste (Lyle, 1994). Sustainable Figure1 presents the Hannover Principles development aims for continued growth (without Design for Sustainability. causing damage to the environment),where as regenerative design aims to create human systems that do not have to be discarded.

Cradle to Cradle (also called C2C)

In the nineties, an American architect, William McDonough, and a German chemist, Michael Braungart, proposed a design philosophy that considered all material involved in industrial and commercial processes to be nutrients, classifying them into technical and biological. This model focuses on designing for effectiveness in terms of Figure 1. The Hannover Principles Design for Sustainability. products with positive impact, unlike traditional approaches that focus on reducing negative impacts. Natural capitalism The underlying concept of this philosophy was inspired by transformation as model for This model, proposed by environmentalist Paul transforming the flow of industrial processes in the Hawken, physicist Amory Lovins, and sociologist techno sphere. For certain products, durability is Hunter Lovins, is a critique of traditional industrial not the optimal strategy because they end up in the capitalism, which primarily recognizes the value of or they are difficult to recover by recycling. money andgoods as capital. Natural capitalism, on Therefore it is preferable to design goods the other hand, extends recognition to so that the purity of the material is maintained and and human capital. In other words, a shift is made their components are readily regenerated or returned from consumer economy to and to the (McDonough, 2007). the profits obtained are reinvested to ensure conservation, constituting a guideline The C2C design model represents the application and action frameworks future endeavors can be of circular economy to the world of industrial design environmentally and socially accountable. The and production, and proposes the bases of a new transition towards natural capitalism involves four paradigm of intelligent design based on the closing of basic changes in business practices (Hawkenet al., products’ life cycles, as occurs in nature(McDonough 2000): and Braungart, 2005). • Dramatically increase the Commissioned by the city of Hannover, of natural resources by making changes in both Germany, venue of the World’s Fair EXPO2000, production design and to better harness McDonough and Braun art prepared the “Hannover natural resources. These resource savings often yield Principles Design for Sustainability” to ensure that higher profits, pay for themselves over time, and, in the design and construction related to the fair would many cases, reduce initial capital investment. represent sustainable development for the city, region, and world. These principles are valid for any • Shift to biologically inspired production models. Natural capitalism seeks not to merely reduce

84 Balboa; Circular economy as an ecodesign framework: ECO III model waste, but to eliminate the very concept of waste. In and innovative. The approach emphasizes solutions closed-loop production systems each output is either determined by the local environment and physical- returned to the ecosystem as nutrient or becomes an ecological characteristics. Blue economy defends not input for another product. pursuing a sole benefit and seeks innovative ways of taking advantage of benefits arising from the • Move toward a solutions-based business production process and sources of income existing model. The model of traditional manufacturing rests throughout the production process (no specialization on the sale of goods. The new model is based, instead, or of scale) (Pauli, 2010). is therefore on the flow of services, leading to a new perception diversified and the costs related to byproducts of the value of goods as the continuous satisfaction or waste disposal decrease, opening business of changing expectations for quality, utility, and opportunities for entrepreneurs. performance.

• Reinvest in natural capital. Business must restore, sustain, and expand the planet’s ecosystems Biomimicry so they can produce vital services and biological resources even more abundantly. In 2012 Janine Benyus, president of the Biomimicry Institute defined the biomimicry model as the studyof nature’s best ideas and subsequent emulation of these designs and processes to solve human Performance economy problems, using artificial mechanisms to synthesize similar products. Biomimicry is innovation inspired Walter Stahel, Swiss architect and industrial by nature(animals and plants) in a biomimetic world. analyst, sketched the vision of an economy Fully biodegradable fibers, ceramics, , and inloops andits impact on job creation, economic chemical products can be manufactured using solar competitiveness, resource savings, and waste energy and simple compounds. prevention (Stahel, 2010). The model is based on three key principles: In 2013,Stahel founded the Product-Life Institute in Geneva, Switzerland, considered one of the main • Nature as model: study nature’s models forums dedicated to sustainability worldwide.Its and emulate these forms, processes, systems, and main objectives are to extend product life, remarket strategies as examples of how to solve problems. goods, conduct remanufacturing and technological upgrading activities, and prevent waste production. • Nature as measure: use an ecological standard The Institute also impacts the service economy to judge the sustainability of innovations. by highlighting the importance of selling services instead of goods. • Nature as mentor: view and value nature based on what can be learned from it (Benyus, 2002).

Blue economy Circular Economy In 2012, Belgian economist Gunter Paulila unched the Blue Economy model, whose paradigm Circular economy is aphilosophyof systems was inspired by the natural world, holding organization inspired by and seeks similarities with the cradle-to-cradle and biomimicry the change of linear economy (take, make, dispose)— models (Pauli, 2011). This model rejects the elitist increasingly difficult to implement because of attitude of that offers environmental- —towards a circular and friendly green products, but these are only accessible regenerative model, asoccurs in nature, while also to an elite group with high purchasing power and posing a huge opportunity for business innovation. have proven to be unsustainable. On the contrary, Its practical applications in both economic systems entrepreneurs and consumers have sustainable access and industrial processes have stead ilyincreased in to blue economy, being competitive, sustainable, recent years.Figure 2compares linear and circular economy.

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Figure 2. Comparison between lineal and circular economy Source: Ellen MacArthur Foundation (2013) Circular economy is applied not only to the designingof productsthat do not produce waste (ecodesign)and that are easily disassembled and refurbished, but also to the definition of socially intelligentbusiness modelsthat allow manufacturers toeconomicallycollectproducts for remanufacturing and redistribution (Goleman, 1999).

To achieve its goal, themodel divides material componentsinto two types:

• Biological nutrients, which are biodegradable and re-introduced into natureaftertheir use valueis no longerprofitable.

• Technical nutrients, which are designedtobe assembledand disassembledmanytimes Figure 3. Circular economy model. andpromotethe reusing of materialsand energy Source: Ellen MacArthur Foundation ( 2013) saving(EllenMacArthurFoundation,2013b). principles: • The cradle-to-cradle design philosophy represents the implementation of circular economy to the world • Waste versus food. The concept of debris of ecodesign and industrial production. Figure 3 or waste disappears. Products are removed from illustrates the circular economy model. the market once they cease to be useful, and their biological components became part of natural The concept of circular economy draws from or industrial (technical) cycles, with minimum several sources that refer to eco-intelligence, which energy consumption. Biological nutrients of fully is the ability to live causing as little damage as biodegradable materials easily return to nature and possible to nature, understanding the impact on the form part of natural processes. Technical nutrients environment and everyday decision-making and, if (mainly polymers or alloys) can be easily and possible, make decisions that benefit Earth’s health inexpensively reused in energy terms. the most (Ramírez and Galán, 2012). • Natural systems more resistant and resilient Circular economy is based on the following due to enhanced diversity. These ecosystems are

86 Balboa; Circular economy as an ecodesign framework: ECO III model characterized by having a greater diversity of accordingly offers new business opportunities. On the organisms and increased interactions between them. regional level, an example of this could be integrated A similar economic philosophy is applied to improve flow management between urban, suburban, and the response to economic and productive crises. rural recovery systems such as biorefineries (using discarded from rural and urban sources) • System interrelationships. System elements are that could convert these resources into bioenergy and highly interrelated, showing nonlinear relationships. biomaterials. The Eco-Industrial Park in Kalundborg, Both internal and external relationships of system Denmark, is another good example (Ehrenfeld and elements are taken into account during the designing Gertler, 1997). of the system.

• Reconceptualization of ownership model. Circular economy opts for a new model in which Ecodesign the production company leases the technology to the user. The manufacturer/producer upgrades the The evolution of the global market together with product from time to time, refurbishing/reusing the increasingly challenging customer demand have obsolete equipment components. created the need to implement policies and regulations toachieve the goal of sustainable development. • as energy source. Occurring in nature, this energy came from sources that are Ecodesign is a methodology to design industrial renewed over time. Circular economy opts for products that takes into account the environment substituting fossil and nuclear fuels with renewable during product development as an additional factor energy. to those traditionally used for decision-making. When referring to ecodesign, Martin Charter, director of The • Realistic prices. Prices reflect the actual cost of Centre for Sustainable Design (CfSD), highlighted the product to promote a rational use. that international trends are demonstrating that concepts and tools such as , life cycle analysis, and extended producer responsibility are here to stay and are quickly becoming key tools There are three basic levels of action in circular for proactive organizations. Moreover, a growing economy: body of evidence suggests that such approaches are • Level 1. The organization seeks greater exceptionally cutting edge, offering a range of benefits efficiency through the 3Rs: reduce resource above and beyond just environmental benefits and consumption and waste emissions, resources, simple compliance (Tukkeret al., 2008). and recycle components. Ecodesign not only opens commercial • Level 2. Resources are reused and recycled opportunities, but also helps address external within eco-industrial parks and interlinked industries threats. Production costs and product and resource so they fully circulate within the local production consumption are reduced, product quality is system. optimized, product is lengthened, more sustainable and less energy - consuming resources are • Level 3. Different local production and selected, cleaner are sought and used, consumption systems are integrated, and resources and waste/residue management costs are minimized, circulate among industries and urban systems. This while complying with government regulations and level requires the development of collection, storage, satisfying consumer needs. Ecodesign can therefore processing, and distributionsystems for each product help decrease the different environmental impacts of at the local level. a given product or service throughout its lifecycle.

The 3-level endeavor has an impact on resource Life cycle analysis (LCA) models have been recovery, “cleaner” production companies, and public used for some time to study the flow of energy facilities, increasing economic development through and materials of products or processes, leading to the investment in new businesses. Circular economy the preparation and proliferation of graphs and

87 Informador Técnico (Colombia) 78(1) enero - junio 2014: 82-91 pie charts needed to assess environmental impact on an existing one. within a given system. LCA effectively identifies opportunities for environmental improvement for • Level 3. New product in terms of concept and the entire system(company, suppliers, distributors, definition: radical product innovation. users), and is a basic decision-making tool for Eco • Level 4. Definition of a new system: radical designing, selection of best available techniques, system innovation. sustainable design, and so forth. Most enterprises have already given their The life cycle of a product is understood as environmental policies a global approach(based on the series of stages of its useful life from generation circular economy), addressing the flow of energy through to end-of-life management or disposal. A and materials between the productive system and product is not its end use, but rather a temporary its environment and perceiving the environment state of matter and energy that provides a service. variable as a strategic opportunity for competitive There are two types of LCA, depending on the advantage (Ramirez, 2012). methodology used: The international standard ISO 1. Qualitative LCA. Inexpensive, easy to 14006,“Guidelinesfor incorporating ecodesign”, apply, and does not require much understanding of was published in July 2011 and constitutes the ecodesign but providing ambiguous results. Provides first international standard for environmental an overview of the product’s environmental impacts management that integrates aspects related to the and indicates important that design, the evaluation of environmental impacts should be addressed and pertinent actions taken. The of designed products, and environmental impact MET (Materials, Energy, and Toxicity) matrix is a management and treatment within an organization. It commonly used tool. aims to assist organizations in their use of ecodesign as part of an environmental management system 2. Quantitative LCA. Standardized by the (EMS). International Organization for Standardization (ISO) (ISO 14040: 2006), this method is excellent to apply to products, processes, or activities, but expensive Ecodesign has been broadly accepted at the and complex. LCA addresses the environmental entrepreneurial level as a key tool to recycle aspects and potential environmental impacts of the materials, increase product durability, use recyclable product throughout its life cycle and helps identify materials, lower energy consumption, redesign/ the most critical phases and main problems, which refurbish products, decrease waste generated during then serve as basis to identify solutions with the the production process, increase the use of clean lowest environmental impact. Selected eco-indicators production technologies, decrease product weight are used to obtain numerical results that can be easily and/or volume, promote the use of cleaner or reusable interpreted to assess environmental requirements, materials or , and decrease packaging. As a as compared with complex analyses that require result, the eco-design approach to qualitative results. has increasingly attracted more interest. Although ecodesign serves to innovate both systems and products, simpler solutions with short- term results are being proposed. Depending on what ECO-III Model: An inter-relational system the enterprise wants to achieve, ecodesign can be implemented at four different levels, each with a According to the report “Towards the Circular different outcome. Economy” published by the Ellen MacArthur Foundation (2013?), several business and governments • Level 1. Product enhancement: gradual and have actively explored opportunities to increase eco- incremental enhancement. efficiency as well as new forms of energy, paying • Level 2. Product redesign: new product based less attention to the systematic design of reusable products—this clearly evidences the influence of

88 Balboa; Circular economy as an ecodesign framework: ECO III model circular economy. The report also quantifies the to create value by preserving the costs of labor, energy, economic benefits for businesses shifting towards and materials used to manufacture finished goods. In circular models, and states that a subset of Europe´s mobile phones, for example, 50% of the input costs manufacturing sector could save some 650,000 million of materials could be saved by the effective use of Euros by 2025 if production systems are redesigned remanufacturing. The implementation of circular according the circular economy model. economy mechanisms has important environmental impacts. For instance, the UK economy could save up A second report of the Ellen MacArthur to US$1.1 billion a year and reduce greenhouse gas Foundation, launched in Davos in early 2013, emissions by up to 7.4 million tons just by keeping contained impacting figures: each citizen buys for food waste out of . consumption annually 800 kg of food and beverages, 120 kg of packaging, and 20 kg of new clothing and • The Three E´s. Based on the C2C model, the shoes, which, for the most part, are not returned from Three E´s refer to ecology, equity, and economy any further economic use. In the current “take-make- as the three pillars of sustainability and pose an dispose” system, around 80% of these materials will alternative to the currently unsustainable model. end their useful life cycle as a . The report Projects are designed taking into consideration their indicates that, even in the near term and without complete life cycle. The architecture of products and even taking excessively radical measures, using the associated systems is integrated with the flows of circular economy system could increase the value materials, substances, and energy of both natural and recovered by 50% (Ellen MacArthur Foundation, technical ecosystems, achieving welfare 2013?). that minimizes and solves environmental problems occurring since the beginning of the industrial • Shifting towards the circular process. revolution. Linear processes of the “take-make-dispose” type are characterized by the current production of • Inter-relating processes. Ecodesign is goods, food, and energy, which has causednot understood as a methodology/tool to implement only environmental problems such as climate environmental improvements throughout the entire change and , but also social and economic life cycle of the planned process, according to circular problemssuch as resource scarcity. The essence of economy criteria, starting with the design, selection circular economy resides in designingproducts with of materials, manufacturing, transportation, end use, no waste, thus facilitating disassembly and reuse, and adoption of a strategic role. Ecodesign becomes as well as defining business models that provide the engine of innovation and a key step towards manufacturers with an economic incentive to collect, sustainability and responsible consumption. This remanufacture, or redistribute products. Until now, tool, linked to the circular economy model and C2C the role of technology has focused on improving the principles, offers an alternative to the scheduled efficiency of linear production processes, for example obsolescence that focuses on long-term sustainability improving the internal combustion engine. The real strategies. A formula to efficiently use energy goal is to shift from a linear economy to a circular resources and materials, which are increasingly economy, in which are reintroduced into expensive and scarce, should be designed to achieve the production chain, largely limiting the need for added value versus outsourced, low-cost production. resources and reducing environmental impact. If a circular economy model is applied, the • Creating value. Potential strategies for creating stages of a product’s life cycle can be sustainable, value through effective environmental management for example by creating biodegradable or eco- should be studied. Cleaner production, ecodesign of friendly materials, using materials/byproducts of products, and circular economy are processes that other industries, maximizing product reusability, can enable organizations to meet their obligations designing removable or reusable components, regarding environmental management, while minimizing waste at the end of the product’s useful generating competitive advantages. Organizations life, and using as much waste as possible as raw must incorporate these aspects in strategic (long material for new processes. term) and operational (short term) decision-making processes. All cases show There is always opportunity The C2C design model represents the application

89 Informador Técnico (Colombia) 78(1) enero - junio 2014: 82-91 of circular economy to the world of industrial design of the mid-70sto more recent philosophies such as and production, establishing the foundations of a circular economyandC2C—these two being the main new paradigm of intelligent design based on closing references of the proposal. product life cycles, as occurs in nature. Circular economy is the framework on which Both practices are common in actions such as ecodesign is developed as an integral circular model. self-regulation. Visionary companies create their own Ecodesign is used as the main tool to manufacture systems for validating and measuring sustainable products and services that meet the criteria of development goals, service economy (providing efficiency, sustainability, social responsibility, and customers with a service and not necessarily a competitive differentiation. product), and dematerialization (the practice of replacing a product with a substitute that satisfies the TheECO-IIImodel proposes solutions to the same need). growing need for resources while minimizing their environmental impact such as reintroducing wastes Both disciplines (circular economy and C2C into the supply chain. It also assists organizations design model) coexist, are highly interrelated, with environmental management, creating value and and multidisciplinary in the implementation of competitiveness that in turn yield both economic and sustainable production—the goal of any industry. energy benefits (savings). Figure 4: Presents the ECO-III Model: the inter- relationships between circular economy, ecodesign, This ECO-III model assumes a new C2C, and the triple E’s system. organizational, operational, and research culture in a system of industrial and technical-scientific innovation, which is beginning to be referred to as R+D+i+E, E standing for Ethics: Accountability.

References

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