CIRCULAR SYNERGIES CHALLENGES FOR PORTUGAL TECHNICAL INFORMATION: Authorship and production BCSD Portugal – Business Council for Sustainable Development 3DRIVERS – Engineering, Innovation and Environment Technical consultancy 3DRIVERS – Engineering, Innovation and Environment Coordination Circular Economy and Industrial Symbiosis Work Group of the BCSD Portugal: Altice Portugal, Altri, Amorim, ANA Aeroportos de Portugal, Cimpor, Cortadoria Nacional de Pêlo, Deloitte, EDP, Eurest, EY, Galp, Hovione, Jerónimo Martins, Lipor, Prio Biocombustíveis, PwC, Secil, Sonae, The Navigator Company and Vieira de Almeida & Associados. Contributions The BCSD Portugal wishes to thank the Agência Portuguesa do Ambiente (Portuguese Environmental Agency), the Associação Smart Waste Portugal (Smart Waste Association Portugal), Ambimed Sterycicle PT, Euro Separadora, Ferrovial, Hidurbe and Tratolixo for their contributions. Photographs courtesy of: Altri, Cimpor, EDP, Galp, Jerónimo Martins, Lipor and Secil. Translation of the Circular Synergies report to English sponsored by: ISBN: 978-989-98060-9-2 Design and art Real True Design Illustration Mariana Malhão JUNE 2018 INDEX 04 EDITORIAL 06 PREFACE 07 INTRODUCTION 09 EXECUTIVE SUMMARY 11 THE STUDY 12 Circular Synergies 12 Starting point 13 Waste generation mapping 15 Waste reception mapping 16 Sub-products mapping 17 Industrial symbiosis opportunities 18 Impact of industrial symbiosis 20 ACTIONS TO ACCELERATE THE TRANSITION IN PORTUGAL 21 1. Regulatory changes to facilitate waste trading 22 2. Encouraging environmentally friendly procurement 23 3. Increasing knowledge in companies 24 4. Facilitating tax conditions and financing 25 5. Promoting collective platforms for resource management 25 6. Communicating results 27 IN CONVERSATION WITH 28 Brendan Edgerton 30 Carlos Gomes da Silva 32 Pedro Soares dos Santos 34 Peter Laybourn 36 Raul Fangueiro 38 Rui Teixeira 40 CASE STUDIES 41 AVE 42 Celbi 43 CIMPOR – Souselas 44 EDP 45 Galp 46 Jerónimo Martins 47 LIPOR 40 Secil 49 4 STEPS TOWARDS A MORE CIRCULAR ECONOMY EDITORIAL SOFIA SANTOS Secretary General of the BCSD Portugal The concept of circular economy is a huge challenge that involves technology, innovation, new business models and imagination In December 2015, the European Commission launched life cycle analysis of products. Consequently, many a circular economy package entitled “Closing the companies have carried out in depth work on the reuse loop – an EU action plan for the circular economy”, of materials and waste. The current agenda for the which sets out guidelines for the transition towards circular economy thus heralds a greater ambition by a circular economy in Europe and for the revision of companies to really find solutions that can lead to the various European Directives on waste and product total elimination of waste to landfill and encourage the policy. In the last two years, the World Business Council effective and efficient use of natural resources. This is for Sustainable Development has introduced a number a huge challenge that involves technology, innovation, of tools to support the implementation of the circular new business models and imagination. Moving from economy in business. The Ellen McArthur Foundation a linear economy to a circular one implies aspiring to regularly provides studies, books and videos on the state zero waste generation from economic activities and of the art of the circular economy and, in particular, the being sufficiently creative to identify profitable and truly role of companies in this model. In December 2017, the circular business models. To achieve this, major changes “Action Plan for the Circular Economy in Portugal” was will have to take place. These will include: launched, which sets out the country’s level of ambition CIRCULAR SYNERGIES - CHALLENGES FOR PORTUGAL in relation to improving the use of resources and | • The ability to design products ecologically, in order implementing a circular economy. to use fewer natural resources and to ensure a future use for these same products using other equipment; BCSD Portugal The concept of the circular economy is not new, and 04 is very much linked to industrial ecology and the • The promotion of industrial symbiosis, a process in Among the 32 companies, around 57% of the waste which waste from one byproduct can be transformed generated goes for disposal and 43% for recovery. It is and become part of the production process of another necessary and urgent to find a useful destination for the product, thus avoiding landfill and at the same time 57% of waste that is still not recovered in any way and encouraging waste recovery; which constitutes a financial cost for companies and • The initiative to identify new businesses that rent an environmental cost for the country. Nonetheless, this rather than purchase equipment, repair, refurbish, study shows that the maximum potential for recovery via and collect surpluses, among others; industrial symbiosis is in excess of 1.1 million tons. • The knowledge to understand these new business models in financial terms, so that investors and By ceasing to be waste and by being recovered, banks can invest and provide loans for these intermediate consumption of other raw materials would activities, which have levels of profitability and be avoided to an estimated value of 165 million euros. share structures that are different from those usually This sum could then be invested in hiring more staff or considered as good business opportunities; in increasing capacity (gross fixed capital formation), which might result in the creation of 1,300 new jobs • A system of incentives and stimuli that encourage and generate 32 million euros of additional gross value economic agents to act in harmony, so that we can added (GVA) in the economy. These figures are estimates actually move from a linear to a circular economy. based on input-output matrices, which summarize the commercial exchanges and flows between the various In view of the fact that the subject of industrial symbiosis economic agents in the country, and clearly point to the is so crucial for companies that are members of the BCSD potential of this commitment to industrial symbiosis. and for the Portuguese economy, and that there is still a huge lack of knowledge about the real economic, social For this potential to be grasped, action has to be take on and environmental potential of industrial symbiosis in various fronts. Consequently, this study also puts forward Portugal, the BCSD Circular Economy and Industrial six recommendations for public policy makers, which we Symbiosis Work Group thought that it would be useful to believe can accelerate the transition towards a circular get the answers to the following questions: What kinds economy. of waste are generated, what kinds of by-products are received, in which areas of the country and in what We would like this study to be seen as an aid towards quantities? With a mapping of this kind, it would then identifying the potential advantages that result be possible to analyze the potential for establishing from industrial symbiosis, so that we can together – symbiosis between companies and the respective impact companies, researchers and public bodies – specify in economic, environmental and social terms. the steps necessary to create a national market in the exchange of by-products. It is against this background that the “Circular Synergies” study has been undertaken. Based on data collected The BCSD Portugal, as an association of companies from 32 companies, which generate 8.3 million tons and that creates value today for a sustainable future and 267 types of waste, the study aims to demonstrate the which brings together companies that play an active role economic, environmental and social impact that might in implementing measures that promote sustainable occur in Portugal if it were possible to increase the level of development, intends to continue to promote the symbiosis between companies. issue of industrial symbiosis in partnership with other associations, companies, universities and public entities. The potential is huge, but there is still a long road to Only by working together will it be possible to create a travel. national market for the exchange of by-products that can CIRCULAR SYNERGIES - CHALLENGES FOR PORTUGAL | be successfully implemented in the marketplace. BCSD Portugal 05 PREFACE JOÃO PEDRO MATOS FERNANDES Minister for the Environment 38 distinct economic activities, and 21 different kinds of waste (water and energy included), totaling 60,225 tons and an average transportation distance of less than 20km, were identified in the Lezíria region. How many tons of Greenhouse Gases did these synergies help to avoid? What consumption of raw materials was avoided as a result? What were the savings made in euros? The circular economy is a key issue for European policy makers and for some European countries, of which Portugal is And it is here that we come up against the main barrier: our one. It is crucial not only because it is an essential factor in business culture. In spite of the bureaucracy, legislation does ensuring the 1.5ºC climate change trajectory to which Portugal not prevent the existence of symbiosis. But many producers committed itself in Paris, but also because, in order to ensure are ignorant of or resist taking advantage of this potential, in the future the level of comfort and access to goods that we because they do not have confidence in the subject matter, have today, we will have to manage materials (and waste is a or because they have difficulty in sharing information to take kind of material) in a very different way than we currently do. advantage of the added value. Regardless of whether we talk of “circular”, “green” or If we look to find the meaning of the word “synergy” in the “sustainable”, there is no doubt that the current model of dictionary, we find the following:“1. Simultaneous action economic development has some serious problems: climate or effort by various organs or muscles; 2. Collective action change, pollution and limited resources. More than sufficient or effort = cooperation”.