Linda Godfrey - Circular Economy NCPC-SA

CREATING A CIRCULAR ECONOMY….
(WAIT YOU WANT US TO DO WHAT NOW?)
Prof Linda Godfrey
NCPC-SA Industrial Efficiency Conference - Industrial Symbiosis & Waste
Thursday, 14 September 2017, Cape Town

2
“Sustainability is the innovation challenge
of our lifetime”
“Our ambition: Double our business, with half the impact.
This audacious goal will fuel our creative design process,
drive innovation to disrupt our business model and transform
the industry. It’s more than a concept. It’s our vision
“We believe it is not enough to adapt to what the future
may bring – we’re creating the future we want to see
through sustainable innovation”
© CSIR 2017 www.csir.co.za
https://www.youtube.com/watch?v=zxn-X5GCA3M
http://about.nike.com/pages/sustainable-innovation?linkId=24352801 ~ Nike

3
So what is the Circular Economy?
It’s NOT about doing this
just more sustainably…..
Circular Economy ≠ Recycling

4
“A Circular Economy aims to decouple economic
growth from the use of natural resources and
ecosystems by using those resources more effectively”
Creating an economy that is restorative and
regenerative by design – it’s a system change

6
Why are Governments and Businesses taking the
Circular Economy seriously now?

7
WHY ARE COUNTRIES ADOPTING CE?
• Introducing the Circular Economy in developed
and developing countries
• With a focus on maintaining the value of products,
materials and resources
• Would result in –
- Savings for businesses (for EU equivalent to 8%
of their annual turnover)
- Bring national economies greater economic
benefits than current path (for India US$ 624
billion in 2050)
- Create jobs
- Reduce total annual greenhouse gas emissions
by 2-4%https://ec.europa.eu/commission/sites/beta-
political/files/circular-economy-factsheet-general_en.pdf
https://www.ellenmacarthurfoundation.org/publications/i
ndia

8
WHY ARE BUSINESSES ADOPTING CE?
• The drivers for Business/Industry to adopt a Circular
Economy include –
- Brand image (green washing?)
- Legislative pressure and the cost of compliance
- Cost savings – increasing costs (raw material and waste)
- Corporate responsibility
- Risk management – a future of resource scarcity
• Ultimately it makes good business sense…

9
• But, the Circular Economy is more than just business
adopting resource efficiency and zero waste strategies
(i.e. risk management and cost savings)
• The Circular Economy will be disruptive for business –
but this can create new business opportunities …
The new kid on the block – The “Sharing Economy”
WHY ARE BUSINESSES ADOPTING CE?

10 © CSIR 2017 www.csir.co.za
A SHARING / COLLABORATIVE ECONOMY

11
How do I shift to a Circular Economy Business?

12
SHIFTING TO A CE BUSINESS
• “Business must think of the resources in their products as assets
rather than inputs and their customers as users rather than
buyers.”
• The question then becomes –
- How can we design our products with asset recovery in mind to take
into account the true cost of materials?
- How can we develop product lines to meet demand without wasting
assets?
- How can we source material from within regenerative loops rather
than linear flows?
- How can we develop a revenue model that generates value at all
parts of the value chain, and
- How can we get our customers to change their consumption and
ownership patterns?

13
SHIFTING TO A CE BUSINESS
• In other words, a Circular Economy company no longer sells
a “once-off item” (designed for obsolescence to ensure
repurchase), but sells a “service”
• It moves from a “Consumptive model” to a “Service- and
function-based business model”
• When a business does this, it ensures best product design
for longevity thereby increasing material productivity
• For example, a CE Business, no longer –
- Sells “car tyres”, but sells “driving miles” for their customers
- Sells “cars”, but sells “mobility services”
- Sells “washing machines”, but sells “pay-per-wash”

14
Stop and think about that?
How would a future service-
based business model
(Circular Economy) affect what
your business does?

15
What are the opportunities for South Africa?

16
• Opportunities in CE exist for SA
• Prevention –
- Significant opportunity for businesses to reduce
their waste generation
• Reuse
• Recycling –
- where most of our activity is currently focussed,
but opportunity for greater local beneficiation
• Recovery
THE “OPPORTUNITY” FOR SA
• Maintain, remanufacture, refurbish
• Sharing or Collaborative Economy
Prevent
Reuse
Recycle
Recover
Dispose
Opportunities for
WISP and NISP
Opportunities for
Cleaner Production

17
Focus to date largely on
recycling of paper and packaging
- developed “organically” in
response to large informal sector
(collecting) and voluntary EPR
(market)
Some “refurbishment and reuse”
happening, but often informally
(behind the scenes),
60% of revenue of WEEE SMMEs
generated through refurbishment.
Some remanufacturing of parts in
local automotive industry
Collection remains one of (if
not the) biggest challenges in
SA – especially for organics
(big country/logistics)
Single largest general waste stream
produced in SA (but diffuse source,
large country). Surprisingly little
happening on organic waste
beneficiation despite GHG risk
Only now starting to see
some commercial activity
in AD (slow, considering
the opportunity),- can be a
sensitive technology
Variable success with
composting –
seasonal, geographic
markets, risk of
household hazardous
(MSW)
No high temperature WtE.
Seen by some as threat to
materials recovery –
opportunity to leapfrog?
Highlights of current SA activities
aligned with the Circular Economy ±54% Paper & Packaging
(2016)
±55% PET bottles (2016)
±11% WEEE (2011)
± 16% C&D (2011)
Biomass use for
energy generation (in-
plant)
Local initiatives emerging to
support improved product
design, e.g. packaging
But what % of consumption is
imported:locally produced?
Remains largely at the R&D
stage (biorefinery). Emerging
discussion on bioplastics
±90% (2011)

18
THE CHALLENGES/CONSTRAINTS
- The drivers of the CE for Europe, i.e. lack of access to primary
resources; lack of space; access to end-use markets (specialist
manufacturing), are not the same as for South Africa
- Retaining material at highest value requires getting resources
back into the value chain – needs effective collection systems
(SA does not have separation-at-source)
- We haven’t yet gotten the basics of solid waste management
right (city cleansing, sanitary landfilling) – foundation for
implementing IWM and CE
- We need to correct the “economics of waste” – landfilling is too
cheap in SA to drive the CE

Uncontrolled dumping, waste picking – Municipal dumpsite, South Africa
© Linda Godfrey

20
QUESTIONS TO BE ANSWERED
- In domesticating CESA, we need a better understanding of –
- What the constraints are of future resource scarcity on the SA
economy, i.e. what resources would SA need in a post-mining
landscape, to structure our CE around?
- What control SA has on product design, i.e. how much control
do we have in designing waste out of the system? What % of
products consumed in SA are imported (limited control) versus
locally manufactured (control)?
- What the impact of reduced (or changing) consumption is on
SA’s economy (and reduced primary resource consumption)
- How we integrate a large informal sector (already active) into a
circular economy

21
CONCLUSIONS
• Some of the key drivers for SA to
implement the circular economy –
- Unemployment – greater job
creation as one moves up the
waste hierarchy (away from
landfilling)
- Strengthening SA’s
manufacturing economy (local
beneficiation)
- Cost savings for business
- Positioning SA for a post-mining
economy
Type of Operation Jobs per
1000 T
Product Reuse
- Computer reuse 296
- Textile reclamation 85
- Misc. durables reuse 62
- Wooden pallet repair 28
Recycling-based manufacturers (average) 25
- Plastic product manufacturers 93
- Glass product manufacturers 26
- Paper mills 18
Conventional Materials Recovery Facility 10
Composting 4
Landfilling and incineration 1
Source: (CASCADIA, 2009) citing (Seldman, 2006)
Table: Job creation for reuse, recycling and conventional
disposal of waste in the USA

• No doubt the Circular Economy creates social,
economic and environmental opportunities
• But, we need to carefully define the unique
value proposition that the CE provides for
South Africa
• Need to ensure that we bring all on the journey
so that we don’t create further disparity in
resource management, i.e. need to implement
CE on a stable foundation of good city
cleansing and waste management (eliminate
uncontrolled dumping)
• We must get the economics of waste
management right!
CONCLUSIONS
Circular EconomySA

23
QUESTIONS
Thank you
Prof Linda Godfrey
Manager | Waste RDI Roadmap Implementation Unit |
DST Principal Scientist | Waste for Development | CSIR
Extraordinary Associate Professor | North-West University
Email: LGodfrey@csir.co.za
Web: www.csir.co.za and www.wasteroadmap.co.za

WASTE RESEARCH
&
INCENTIVE PROGRAMMES
TRANSITIONING TO A LOW CARBON, RESOURCE
EFFICIENT ECONOMY
SEPTEMBER 2017
INDUSTRIAL EFFICIENCY CONFERENCE 2017

BUREAU FINANCIAL ALLOCATIONS
“Symbiotic relationships mean creative partnerships.
The earth is to be seen neither as an ecosystem to be preserved unchanged
nor as a quarry to be exploited for selfish and short-range economic reasons,
but as a garden to be cultivated for the development of its potentialities
of the human adventure. The goal of this relationship is not
the maintenance of the status quo, but the emergence of
new phenomena and new values.”
– René Jules Dubos (1901 – 1982)

PRESENTATION OUTLINE
• Current Outlook
• Our Commitments
• SMME Perspectives
• Sound Waste Management Practices
• Incentives vs. Disincentives
• Recycling Enterprises Support Programme
• Conclusion

CURRENT OUTLOOK
0.62% contribution
to GDP1
111 Mt of waste
generated per annum
75% of waste
disposed in
landfill2
60,000 – 90,000
informal waste pickers
~110,000 formal jobs
in chemical sector
~10% annual job growth
in the private waste
economy
~35,000 formal jobs
in the waste economy

OUR COMMITMENTS
Transition to a low carbon economy in a manner that enhances economic growth, job
creation, sector competitiveness and business profitability.
National Development Plan
• Government’s long-term development plan
outlining its vision for 2030 to eliminate
poverty and reduce inequality
• Most relevant objectives for the Waste
sector:
 Economy & employment
 Environmental sustainability &
resilience
 Transforming human settlements
 Improving education, training &
innovation
Sustainable Development Goals
• SDG 12 clearly speaks to the
ensuring sustainable consumption
and production patterns.
• Targets include:
 By 2030, achieve the sustainable
management and efficient use of
natural resources
 By 2030, halve per capita global
food waste
 By 2030, substantially reduce waste
generation through prevention,
reduction, recycling and reuse

OUR COMMITMENTS
New Growth Path (NGP)
• Government’s vision for jobs and decent
work at the centre of economic policy
• The main target is to create five million new
jobs by 2020
• Most relevant job drivers for the Waste
sectors:
• Job driver 2: Targeting more labour-
absorbing activities across the
economy
• Job driver 3: Taking advantage of new
opportunities in the knowledge and
green economies.
Mid Term Strategic Framework
• Government’s medium-term strategic
plan for the 2014-19 term.
• Overall goals are to stimulate GDP
growth, create decent work
opportunities and attract investment
• Relevant outcomes for the Waste
sectors:
• Outcome 4: Decent
employment through inclusive
economic growth
• Outcome 8: Sustainable human
settlements & improved quality
of household life

SMME PERSPECTIVES
• SMMEs are extrinsically motivated to participate in or adhere to sustainable
manufacturing practices.
• SMMEs view sustainable practices as potentially forming part of a long-term strategy,
it is something they perceive to only be attainable should their businesses enjoy
greater financial stability.
• Finally, SMMEs indicated that they don’t as yet see sustainable practices as a
competitive advantage, except in the instances where it is imposed upon them by
valued clients or customers.
1 SMMEs and the Green Economy: Muddy waters and murky futures (GIBS, JP Morgan, Feb 2017)

SOUND WASTE MANAGEMENT PRACTICES
Waste Minimisation
Significant opportunities exists for enterprises to contribute towards resources efficiency by reducing
the environmental footprint of waste while promoting SA economy and creating jobs
Input &
Design
Production Distribution Use
How can we
improve product
design to save costs
and minimize non-
recyclable waste?
How can we
minimize production
and processing
inefficiencies to
reduce costs and
minimize non-
recyclable waste?
How can we
minimize waste
generated through
distribution of
products?
How can we reduce
demand for
unnecessary
products and extend
the lifetime of
products?

INCENTIVES VS. DISINCENTIVES
An incentive is anything (monetary or nonmonetary) that motivates a person/organisation
to undertake a particular action or choose one alternative instead of another. e.g.
reduced tariffs for sorted waste.
DISINCENTIVES
• Environmental Taxes (plastic bag levy,
waste tyre levy)
• Disposal Taxes (curb waste disposal,
increase recycling e.g. landfill tax)
INCENTIVES
• Deposit Refund Schemes
(incentive to return recyclable or
reusable items)
• Volumetric Tariffs (pricing on unit of
waste collected)
• Material Input Taxes (Increase
relative prices of virgin materials)
• Recycled Products (Subsidies for
the use of recycled content)

RECYCLING ENTERPRISE SUPPORT PROGRAMME
• At the Waste Summit, the Minister, Honourable Edna
Molewa said “I have called this Summit today, to
ensure that for the next two days the collective
gathered here deliberate on the theme ‘war on waste:
driving the recycling economy in South Africa’. We
must answer the following questions; What is it that
as government, industry, academia, private sector
and general public, we can do to accelerate the
recycling economy.”
• It is against this background that the Department, through
the Waste Bureau is working on the establishment of
recycling companies in South Africa.
• The Programme is intended to take forward the resolution
of the MinMEC meeting that took place on the 22nd
August 2015, regarding the establishment of the two
recycling companies per province leading to 18 recycling
companies in total.

RESP APPROVED PROJECTS
Reduce & Reuse Recycle Recover
22 Waste Collection, Sorting Baling Centres & Awareness Campaigns
1 C&D Waste Recycling Project
2 Waste Recovery Parks
2 Waste to Energy Plants
1 Laminated Glass Recycling
Facility
2 Material Recovery Facilities
1 Recycled Schoolbag facility
1 OTR Processing Plant
1 Waste Composting Facility
2 Hygiene & Health Care Facilities

CONCLUSION
• The DEA welcomes collaboration with the NCPC and supports Industry’s
commitment to realise a low carbon, resource efficient economy. As such
we encourage:
 Research, Development and Innovation
 Industry feedback regarding the impact of policy interventions
 Support and investment in recycling and energy recovery
programmes

37
Thabo Magomola
Research & Incentive Programmes
(+27 12 399 9303 | (|+27 82 611 6839
+ tmagomola@environment.gov.za

www.ncpc.co.za
NATIONAL CLEANER PRODUCTION CENTRE
SOUTH AFRICA
Industrial Symbiosis Programme & Progress
in South Africa
An Introduction
14th Sept 2017
Henry Nuwarinda & Sarah O’Carroll
Programme Team Leaders

www.ncpc.co.za
• Introduction to industrial symbiosis
o Definitions, examples and models
• Industrial symbiosis in South Africa
o History and motivations
o WISP, GISP and KISP
o Impact
• Future of industrial symbiosis in South Africa
Presentation Outline

www.ncpc.co.za
In biology:
‘An interaction between two
different organisms living in close
physical association to the
advantage of both’.
Concise Oxford Dictionary, 8th Edition
What is Industrial Symbiosis?

www.ncpc.co.za
What is Industrial Symbiosis? (Cont.)
Extended to industry:
Industrial symbiosis is
a resource efficiency approach
where unused or residual resources of
one company are used by another.
Materials – wood, plastics, food waste,
WEEE, metals.
Expertise – ISO 9000, ISO 14000,
OSHAS 18001, best practice.
Capacity – under-utilised equipment, lab
facilities.
Logistics – transport, warehouse
facilities, land.
Water and Energy – waste heat, steam,
borehole, process.

www.ncpc.co.za
What is Industrial Symbiosis? (Cont.)
LandfillRotten tomatoes
Compost
Fabric offcuts
Underfelt for
carpets
Core principle:
Industrial symbiosis aims to find
reuse and recycling solutions for
waste materials to divert waste from
landfill, while at the same time
creating real businesses benefits for
members.

www.ncpc.co.za
Industrial Symbiosis Advances Sustainability
• Promotes development of circular systems within the industrial sector.
• Uses the principles of the waste hierarchy.
• Creates mutual economic, environmental and social benefits for companies
involved.
Economic benefits
Increase profits.
Increase sales.
Reduce waste disposal costs.
Create enterprise development
opportunities.
Reduce raw material costs.
Environmental benefits
Reduce CO2 emissions.
Divert material from landfill.
Reduce use of virgin
resources.
Reduce hazardous waste
disposal.
Social benefits
Create jobs.
Create opportunities for
knowledge transfer and
learning.

www.ncpc.co.za
Two Models Exist
Co-location Model Wider Network Model
Companies do not have to be within the
same location for resource exchanges
to be viable.
Two forms:
(i) self-organised
(ii) facilitated

www.ncpc.co.za
Industrial Symbiosis in South Africa
Pilot2010

www.ncpc.co.za
46
2013
WISP
Pilot

www.ncpc.co.za
2014
Key objectives:
Economic development.
Landfill diversion.
WISP
GISP
KISP

www.ncpc.co.za
GISP, KISP and WISP are free services that connect companies so that they can identify
and realise the business opportunities enabled by using unused or residual resources
(materials, energy, water, assets, logistics, expertise).
Connecting industry – Creating opportunity
South Africa’s Facilitated Industrial Symbiosis Programmes

www.ncpc.co.za
South Africa’s Facilitated Industrial Symbiosis Programmes
1. Build an industrial symbiosis network.
2. Facilitate the exchange of information through Business Opportunity Workshops and
one – one site visits.
3. Record and upload resources onto SYNERGieTM, an online resource management
system.
4. Support the implementation of resource matches, facilitating negotiations and
providing technical expertise.
5. Develop summary reports and case studies for implemented synergies.
6. Measuring the impact of Industrial Symbiosis.

www.ncpc.co.za
GISP and KISP
Funded by Delivered through
in collaboration with
50

www.ncpc.co.za
WISP
Funded by Delivered
through
in collaboration with

www.ncpc.co.za
Impact of SA’s IS Programmes
105,000
Tonnes of waste
diverted
R28 million
Additional
revenue
R24 million
Cost
savings
>150
Jobs
created

www.ncpc.co.za
Impact of SA’s IS Programmes
For every R1 government invests in us we return R3 to our
network in economic benefits.
It costs us about R200 to divert a tonne of waste from landfill.

www.ncpc.co.za
Future of Industrial Symbiosis in South Africa
• Embedding industrial symbiosis in industry.
• Expanding industrial symbiosis activities in South Africa and beyond.
• Analysing the SYNERGieTM database to identify enterprise development
opportunities.
• Working with incubators (SAREBI and Innovation Hub) to develop new enterprises.
Some key opportunities: ash, e-waste, paper sludge, contaminated sands.

www.ncpc.co.za
NATIONAL CLEANER PRODUCTION CENTRE
SOUTH AFRICA
THANK YOU
EMAIL
ncpc@csir.co.za
EBSITE
www.ncpc.co.za

Linda Godfrey - Circular Economy NCPC-SA

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