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Circular Economy in Europe — Developing the Knowledge Base

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Circular Economy in Europe — Developing the Knowledge Base EEA Report No 2/2016 Circular economy in Europe Developing the knowledge base ISSN 1977-8449 UTE, REFU RIB RB T IS IS H D , E R E R , M R I A A N P U E F R A , C E T S U U R E E R EEA Report No 2/2016 Circular economy in Europe Developing the knowledge base Cover design: EEA Cover photo: © AdShooter/www.istockphoto.com Left photo: © RapidEye/www.istockphoto.com Right illustration: © EEA Layout: Pia Schmidt Legal notice The contents of this publication do not necessarily reflect the official opinions of the European Commission or other institutions of the European Union. Neither the European Environment Agency nor any person or company acting on behalf of the Agency is responsible for the use that may be made of the information contained in this report. Copyright notice © European Environment Agency, 2016 Reproduction is authorised provided the source is acknowledged. More information on the European Union is available on the Internet (http://europa.eu). Luxembourg: Publications Office of the European Union, 2016 ISBN 978-92-9213-719-9 ISSN 1977-8449 doi:10.2800/51444 European Environment Agency Kongens Nytorv 6 1050 Copenhagen K Denmark Tel.: +45 33 36 71 00 Web: eea.europa.eu Enquiries: eea.europa.eu/enquiries Contents Contents Authors and acknowledgements .............................................................................................. 4 Foreword ...................................................................................................................................... 5 Summary: a circular economy — essential for Europe .......................................................... 6 1 The circular economy and its benefits ............................................................................... 8 1.1 The need for action ................................................................................................................. 8 1.2 What is a circular economy? .................................................................................................. 9 1.3 What are the benefits? ..........................................................................................................12 1.4 Challenges ..............................................................................................................................14 2 Enabling factors ................................................................................................................... 15 2.1 Introduction ...........................................................................................................................15 2.2 Innovative business models .................................................................................................15 2.3 Eco-design ..............................................................................................................................18 2.4 Extending the lifetime of products through reuse and repair.........................................18 2.5 Waste prevention programmes ..........................................................................................20 3 Monitoring progress towards a circular economy .......................................................... 22 3.1 Policy questions related to the material aspects of a circular economy ........................22 3.2 Material input ........................................................................................................................24 3.3 Eco-design ..............................................................................................................................26 3.4 Production ..............................................................................................................................27 3.5 Consumption .........................................................................................................................28 3.6 Waste recycling ......................................................................................................................29 3.7 Conclusion ..............................................................................................................................30 4 Circular economy in a wider context ................................................................................ 31 4.1 Circular and green economy ................................................................................................31 4.2 Global aspects........................................................................................................................32 4.3 Ecosystem considerations ....................................................................................................33 4.4 Risks to human health and well-being ................................................................................33 4.5 Socio-economic issues ..........................................................................................................33 References ................................................................................................................................. 34 Circular economy in Europe 3 Authors and acknowledgements Authors and acknowledgements Lead authors Acknowledgements Almut Reichel, Mieke De Schoenmakere (both EEA) and • Support from the European Topic Centre on Waste Jeroen Gillabel (VITO) and Materials in a Green Economy (ETC/WMGE), Henning Wilts (Wuppertal Institute), Roberto Zoboli (SEEDS), Mona Arnold (VTT), Nora Brüggemann and Support to framing and analysis Francesca Grossi (both CSCP) Jock Martin, Ybele Hoogeveen (EEA) • Feedback from the European Environment Information and Observation Network (Eionet) through national focal points in 33 EEA member Editorial support countries and six EEA cooperating countries; comments received from Austria, Belgium Bart Ullstein, Peter Saunders and Helen de Mattos (Flanders), Denmark, France, Netherlands, Poland, (Banson/World Spotlight) Sweden, Switzerland and Turkey • Feedback from the European Commission (DG ENV, EEA production support DG GROW, DG ESTAT) Antti Kaartinen, Brendan Killeen, Carsten Iversen, • Support from EEA colleagues including Ana Jakil, Marco Veneziani and Pia Schmidt Jasmina Bogdanovic, Pawel Kazmierczyk and Mike Asquith 4 Circular economy in Europe Foreword Foreword The European Environment Agency (EEA)'s publication with the transitions perspective in the new strategy on The European environment — State and outlook 2015 the circular economy, recognising that what lies ahead highlights 'stimulating resource-efficient, low-carbon of us is no less than a fundamental systemic change. economic and social development' as essential to The EEA is prepared to support this transition through achieving the 2050 vision of 'living well within the limits analysis and assessments, in cooperation with the of the planet' as set out in the European Union (EU)'s European Commission, the European Environment 7th Environment Action Programme. Information and Observation Network (Eionet) and other stakeholders. This requires Europe and the rest of the world to move away from the current linear economic model But what are the benefits of a more circular economy of take-make-consume-dispose, which relies on large and how can these, as well as potential negative effects, quantities of easily accessible resources and energy, be assessed? What needs to be done to turn theory into to a circular model in which planetary boundaries practice, and what hurdles need to be overcome? And are respected through resource conservation and by how can current policies, alongside business and civil maximising the use of resources already available society initiatives, contribute to the transition? Answers within the economy. to such questions can help policymakers, investors, businesses, consumers and civil society to find the The concept of a circular economy has recently gained most promising transition pathways. traction in European policymaking as a positive, solutions-based perspective for achieving economic The current knowledge base, however, is rather development within increasing environmental fragmented. Better insight is needed into various constraints. This is reflected in the 7th Environment aspects of system dynamics, such as production Action Programme, which identifies the 'need for a structures and functions, consumption dynamics, framework that gives appropriate signals to producers finance and fiscal mechanisms, and triggers and and consumers to promote resource efficiency and pathways for technological and social innovations. the circular economy'. It is also increasingly seen as a business opportunity, for example through the efforts Through this new series of circular economy reports, of the Ellen McArthur Foundation. Moreover, European the EEA aims to provide answers to some of these countries increasingly indicate the circular economy as questions and bridge knowledge gaps. The series a political priority. mainly targets policymakers at the EU and national levels, but it also targets businesses and civil society. In December 2015, the European Commission published Closing the loop — An EU action plan for the This report draws on a wide range of knowledge circular economy, a new strategy that aims to support sources, both internal and external to the EEA. Through the transition to a circular economy in the EU. The compiling and interpreting the available information, action plan sets out a large number of initiatives that it touches on four dimensions of a circular economy: address all stages of the life cycle, combined with
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