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Cooperation Fostering Industrial Symbiosis: Market Potential, Good Practice and Policy Actions

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Cooperation Fostering Industrial Symbiosis: Market Potential, Good Practice and Policy Actions Cooperation fostering industrial symbiosis: market potential, good practice and policy actions EUROPEAN COMMISSION Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Directorate C – Industrial Transformation and Advanced Value Chains Unit C1 – Clean Technologies and products Contact: Anestis Filopoulos E-mail: [email protected] European Commission B-1049 Brussels 2 EUROPEAN COMMISSION Cooperation fostering industrial symbiosis market potential, good practice and policy actions Final report Main authors: Teresa Domenech – University College London Asel Doranova, Laura Roman – Technopolis Group Matthew Smith, Irati Artola – Trinomics Further contributors to data collection through interviews, data analysis, case studies or literature review: Elmer Rietveld, Roald Suurs - TNO Ruslan Zhechkov, Nathan Kably – Technopolis Group Peter Laybourn, Rachel Lombardi – International Synergies Nino Jordan, Dimitrios Panayotopoulos-Tsiros – University College London We would like to also acknowledge the engagement of over 60 stakeholders in interviews, the targeted survey and the three focus groups, as well as over 60 stakeholders participating in the final workshop organised within the context of the study. 3 Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). LEGAL NOTICE This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2018 ISBN number 978-92-79-74679-6 doi:number 10.2873/346873 © European Union, 2018 Reproduction is authorised provided the source is acknowledged. Printed in Belgium 4 Table of Contents Executive summary .................................................................................... 9 1. Introduction ....................................................................................... 20 1.1. Definition of Industrial Symbiosis (IS) ............................................................. 20 1.2. Difference between IS and recycling ............................................................... 21 1.3. Typologies of IS Networks .............................................................................. 22 1.4. Patterns of emergence and evolution ............................................................. 24 1.5. Structure of coordination models of facilitation .............................................. 24 2. MAPPING OF FACILITATORS OF IS COOPERATION IN EU ................. 27 3. ASSESSMENT FRAMEWORK FOR INDUSTRIAL SYMBIOSIS ............... 34 3.1. Existing assessment frameworks for industrial symbiosis ................................ 34 3.2. Key issues to consider in the design of evaluation frameworks ........................ 38 3.3. Conclusions on assessment frameworks for IS ................................................ 40 4. ASSESSMENT OF IS FACILITATION IN EUROPE ................................ 42 4.1. Costs and funding structure of facilitated industrial symbiosis initiatives ......... 42 4.2. Assessment of functions of facilitation ........................................................... 45 4.3. Assessing impact of facilitation....................................................................... 46 4.4. Network performance: self-organised vs managed IS ...................................... 54 4.5. Conclusions on assessing IS facilitation ........................................................... 56 5. THE MARKET POTENTIAL FOR INDUSTRIAL SYMBIOSIS................... 58 5.1. Aims of the market analysis and limitations .................................................... 58 5.2. Current state of IS market and research on IS market potential ....................... 58 5.3. Market analysis methodology ........................................................................ 61 5.4. Market potential: waste stream potential approach ....................................... 63 5.5. Market potential: landfill diversion opportunities ........................................... 70 5.5.1. Introduction ................................................................................................... 70 5.5.2. Main assumptions .......................................................................................... 70 5.5.3. Analysis of IS market potential from landfill diversion opportunities ........... 72 5.5.4. Best performing benchmarks for recycling .................................................... 74 5.5.5. Market analysis based on landfill costs avoided............................................ 75 5.5.6. Aggregated market potential for IS based on landfill cost avoidance ........... 77 5.5.7. Analysis of individual potential for countries ................................................ 78 5.6. Is there correlation between landfill costs and landfill diversion? .................... 80 5.7. Summary analysis of market potential ........................................................... 81 6. BARRIERS AND DRIVERS FOR IS ....................................................... 84 6.1. Market and system failures in IS ..................................................................... 84 6.2. Drivers for companies to engage in IS ............................................................. 85 6.3. Barriers to IS synergies ................................................................................... 86 6.4. Challenges to economic viability of IS facilitation ............................................ 89 6.5. System and market failures – assessment by stakeholders .............................. 91 7. POLICY OPTIONS TO ADDRESSING BARRIERS TO IS ........................ 93 7.1. Direct support to facilitation of industrial symbiosis ....................................... 96 7.1.1. Support to regional or national networks ..................................................... 97 7.1.2. Investments supporting IS synergies’ implementation ............................... 100 7.1.3. Regional and urban planning in support of IS .............................................. 104 7.1.4. Summary assessment on direct support to IS ............................................. 106 5 Cooperation for Industrial Symbiosis – Final Report 7.2. Indirect support measures for industrial symbiosis ....................................... 107 7.2.1. Regulatory instruments ............................................................................... 109 7.2.2. Economic instruments ................................................................................. 115 7.2.3. Supply chain approaches ............................................................................. 116 7.2.4. Green public procurement (GPP) and building rating schemes .................. 116 7.3. The creation of an EU platform to support industrial symbiosis ..................... 117 7.3.1. Needs assessment for the creation of an EU platform for IS coordination . 118 7.3.2. Options assessment for an EU platform ...................................................... 121 8. Lessons learned and Recommendations.......................................... 125 9. Appendix A – Mapping Of IS Networks’ Results .............................. 132 10. Appendix B Detailed overview of market potential estimates per sector 142 11. Appendix C Detailed calculations of waste streams .................... 154 12. Appendix D Correlation analyses ................................................. 166 13. Appendix E Opportunities for IS by type of waste stream ........... 169 14. Appendix F Bibliography .............................................................. 175 Table of Figures Figure 1 Illustration of an IS network 21 Figure 2 Differences between networks for IS (left) and the refurbishment/ upgrade (centre), and recyclyng (right) treatment 22 Figure 3 Map of IS initiatives in EU 27 Figure 4 Types of resources transacted by area 31 Figure 5 Assessment framework for IS coordination mechanisms 42 Figure 6 Types of organisations facilitating IS 43 Figure 7 Funding sources for IS facilitators 44 Figure 8 Effectiveness of the services offered by IS facilitators to companies 46 Figure 9 Results achieved by IS facilitators surveyed 47 Figure 10 Types of transactions/activities in facilitated IS networks 48 Figure 11 Impacts of the existence of an organisation facilitating IS 49 Figure 12 Benchmarks for costs of reducing 1 tonne of CO2 and potential savings (from tax avoidance) 52 Figure 13 Benchmarks for costs of diversion of 1 tonne from landfill and potential savings (tax avoidance) 53 Figure 14 Illustration of market analysis methodology 61 Figure 15 Estimated potential volume and worth of IS activities by industry 66 Figure 16 Mean recycling percentages and standard deviation by waste streams (classified according waste codes) 73 Figure 17 Total landfill costs for different waste streams 74 Figure 18 Potential savings for each waste stream across countries 76 Figure 19 Potential savings for each waste stream across countries for group categories 77 Figure 20 Landfill costs vs (potential) savings for all waste streams 78 Figure 21 Sweden’s share of global iron production 80 Figure 22 Market potential
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