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AMPLIFYING ACTION on RESOURCE Efficiencyk EU EDITION LEADERS FOR A SUSTAINABLE ECONOMY AMPLIFYING ACTION ON RESOURCE EFFICIENCYk EU EDITION CONTENTS JANUARY 2017 EXECUTIVE SUMMARY 6 ONEkThe business case for greater resource efficiency in the EU 8 TWOkDesigning out waste 12 THREEkBuilding traction in the market for innovation 15 FOURkStimulating market demand though public procurement 20 FIVEkUsing fiscal incentives to boost the circular economy 23 SIXkEnsuring only ‘waste’ is waste 25 SEVENkProviding businesses with the information they need 30 AUTHORS JEMMA MAE DE LEON kCommunications Manager, Aldersgate Group DR STEVE WALLACE kDirector, Aldersgate Group NICK MOLHOkExecutive Director, Aldersgate Group Amplifying action on resource efficiency kEU edition 3 ALDERSGATE GROUP The Aldersgate Group is an alliance of leaders from business, politics and civil society that drives action for a sustainable economy in the UK and EU. Our members include some of the largest sustainable use of resources, good Our policy proposals are formed businesses in the UK, leading NGOs, key environmental performance at the collaboratively and benefit from the expertise professional institutes and politicians of all organisational level, growth, jobs and of our members who span a wide range parties. We believe that economic success, competitive advantage in rapidly growing of industry sectors and public interests. both now and in the future, depends environmental sectors. Our breadth and collegiate approach allows upon a political and economic framework us to formulate progressive policy positions to that delivers a healthy environment and benefit all organisations and individuals. INDIVIDUAL MEMBERS Peter Ainsworth Professor Paul Ekins OBE Jason McCartney MP Lord Teverson Former Shadow Secretary Energy and Environment Policy, Conservative Liberal Democrat, Spokesman of State for Defra UCL for Energy and Climate Change Dinah Nichols CB Peter Aldous MP Dr Jonathan Frost OBE Former Director General, Defra Roy Tindle Conservative, Member of Former Director, Chair, London Thames Environmental Audit Committee Johnson Matthey Lord Oxburgh Gateway Forum Non-Executive Chairman, former Wendy Alexander Sir John Harman Shell Transport and Trading Chris Tuppen Former Opposition Leader and Former Chair, Environment Founder and Senior Partner, Member of Scottish Parliament Agency Jonathon Porritt CBE Advancing Sustainability LLP Founder, Forum for the Future Rt Hon the Lord Barker Emma Howard Boyd Peter Unwin of Battle Chair, ShareAction Lord Prescott Former Director General Chair, London Sustainable Labour, Former Deputy Prime of Environment and Rural Development Commission Tim Jackson Minister Group, Defra Professor of Sustainable Professor Ian Bateman Development, University of Nick Robins Lord Whitty Director of the Centre for Social Surrey; Director, Centre for Co-director, United Nations Labour, Former General and Economic Research on the the Understanding of Environment Programme Secretary of the Labour Party Global Environment (CSERGE), Sustainable Prosperity University of Exeter Antoinette Sandbach MP Adrian Wilkes Peter Jones OBE Conservative Director, Environmental Policy Pamela Castle OBE Former Director, BIFFA Consultants and former Chair, Former Chair of Environmental Barry Sheerman MP Aldersgate Group Law Foundation Professor Paul Leinster CBE Labour, Co-Chair of Policy Former Chief Executive, Connect Philip Wolfe MBE John Cox CBE Environment Agency Former Director General, Former Chairman, UK CEED Graham Stuart MP Renewable Energy Association Ian Liddell-Grainger MP Conservative Tom Delay Conservative Peter Young Chief Executive, Carbon Trust Kerry ten Kate Trustee, The Wildlife Trusts Caroline Lucas MP Director, Business and John Edmonds Green Party Biodiversity Offsets Programme, Former President, TUC Forest Trends While members support this publication and provided extensive input, individual recommendations cannot be attributed to any single member and the Aldersgate Group takes full responsibility for the views expressed. 4 www.aldersgategroup.org.uk ORGANISATION MEMBERS Amplifying action on resource efficiency kEU edition 5 EXECUTIVE SUMMARY To be resilient and competitive in the long term, European businesses need a smart regulatory regime that will help them create more with less and deliver greater value with less input. The EU has seen its resource productivity The EU Commission has confirmed its This report contains a range of case studies increase by more than 35% between commitment to the circular economy through alongside its policy recommendations to 2000 and 20151, a positive trend that has several initiatives. The Europe 2020 growth highlight the need for the Circular Economy started to reduce its resource scarcity risks. strategy highlights a ‘resource efficient Package to deliver change that makes a However, there is still room for improvement, Europe’ as one of its flagship initiatives practical difference on the ground. The particularly given that the region’s imports through which a Roadmap has been studies are taken from several pioneering outweigh its exports threefold 2. Circular developed to set out a framework for action. businesses amongst the Aldersgate Group economy is a viable (and proven) strategy The Circular Economy Package, published in membership and those taking part in the for the EU to increase its resource December 2015, has the potential to reduce EU LIFE+ funded REBus project, of which productivity further, boost employment and not only the volume of natural resources we are a partner. Pilots taking part in the competitiveness as well as curb resource consumed but also the waste and emissions project have already seen a total of €5.62m dependence and waste. produced across the EU. in financial benefit, secured 62,619 tonnes in material savings and reduced greenhouse gas However, the Package’s success will very emissions by 1,953 tonnes3 (see Chapter 1). much depend on the detail to be provided for the Commission’s important but high- level proposals. The Commission must now prioritise action to follow through with the detail and work with progressive businesses to make this package a success. Recent announcements have shown positive momentum. This includes the new ecodesign working plan, which will apply resource efficiency principles to product design for the first time but even here more work must be done (see Chapter 2). 1 > Eurostat (June 2016) Material flow accounts and resource productivity. 3 > These figures are correct as of 2 > Eurostat (June 2016) Physical imports 30th November 2016. The gains from the and exports. pilot projects continue to be monitored. 6 www.aldersgategroup.org.uk In recognition of the much-needed detail Encourage and support Member States Several Aldersgate Group corporate still outstanding from the Package to further k to introduce fiscal incentives, such members and the businesses involved in the increase the EU’s resource productivity, as variable VAT rates, so that circular REBus project have already applied circular the Commission, with the support of the products and services are promoted principles to their operations, reducing Parliament and businesses, should: over their counterparts (Chapter 5) their environmental impact whilst improving material savings and seeing enhanced Use its 2016 –2018 ecodesign Finalise changes to definitions of financial returns. Despite these successes, k working plan to extend the scope of k ‘waste’ in a way that facilitates the European businesses cannot make rapid its ecodesign policy and incorporate re-use and transportation of secondary progress in isolation and require an ambitious resource efficient design in product materials and treats disposal as a last and comprehensive Circular Economy standards across a gradually increasing resort (Chapter 6) Package that will enable the transition to range of products (Chapter 2) happen at scale. Strengthen the availability of Strengthen its innovation framework to k data needed to inform and drive k ensure businesses have access to both opportunities in resource management funding and expertise (Chapter 3) (Chapter 7) Lead by example through its own Nick Molho k procurement practices to boost Executive Director, Aldersgate Group demand for circular goods and services, and encourage Member States to do the same (Chapter 4) Dr Steve Wallace Director, Aldersgate Group Amplifying action on resource efficiency kEU edition 7 ONE: THE BUSINESS CASE FOR GREATER RESOURCE EFFICIENCY IN THE EU An ambitious Circular Economy Package is a key part of building a productive and globally competitive European economy in the 21st century. Why pursue the circular economy? The EU’s resource productivity has increased What is the business case for taking The circular economy is a practical response by 35.4% between 2000 and 20155. Yet action? to apparent resource constraints and the according to McKinsey, Europe lost 95% of In 2013, the Aldersgate Group partnered linear ‘take-make-dispose’ economic model its material and energy value whilst recovering on the REBus project (see Box 1.1), which that will eventually exhaust finite stocks. only 5% of original raw material value through has been working directly with businesses It offers developed economies a pathway its material recycling and waste-based across the UK and the Netherlands in a range to resilient and environmentally sustainable energy recovery activities in 20126,7. Despite of market sectors (including electrical and growth, a systemic answer to reducing improving its resource productivity, the EU
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