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Circular Hotspot COP24 Side-Event: Circular Economy - The missing link in the Climate discussion


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There is growing awareness that the Circular Economy is a missing link in the Paris agenda and that it is urgent to strengthen the link between Circular Economy and the Climate Change Agenda. A circular economy aims to decouple economic growth from the use of natural resources and ecosystems by using those resources more effectively. During the COP24 climate summit in Katowice in December 2018, a coalition of European circular hotspots presented evidence and best practices of the circular economy as a means to bridge the gap in the climate agenda and identified where there is potential for scaling up.

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Circular Hotspot COP24 Side-Event: Circular Economy - The missing link in the Climate discussion

  1. 1. A Circular Economy Transition as a catalyst for combatting global Climate Challenges Best practices and insights from the business and science community COP24 Circular Hotspots Side Event Katowice, December 7, 2018
  2. 2. SHARING INNOVATION WELCOME & INTRODUCTION Freek van Eijk CEO Holland Circular Hotspot
  3. 3. SHARING INNOVATION PROGRAMME 11.30 – 11. 35 Welcome by Mr. Freek van Eijk (Holland Circular Hotspot) 11.35 – 11. 49 Insights from Research Institutes Moderated by: Mr. Andre Weidenhaupt, Luxembourg Ministry of Sustainable development and Infrastructure With guest speakers: Eva Gladek (Metabolic), Kari Herlevi (Sitra) 12.03 – 12.56 Best Businesses Practices Moderated by: Mrs. Tjitske IJpma, Dutch Ministry of Infrastructure & Water Management With guest speakers: Harald Tepper (Philips), Jakub Wójcik (Izodom Company), Arve Ulriksen (Mo Industripark), Callum Blackburn (Zero Waste Scotland) 12.56 – 13.00 Wrap up by Freek van Eijk (Holland Circular Hotspot)
  4. 4. SHARING INNOVATION INSIGHTS FROM RESEARCH INSTITUTES Moderator: Dr. André Weidenhaupt Director General Luxemburg Ministry of Sustainable Development and Infrastructure
  5. 5. SHARING INNOVATION Resources - the missing link in the Climate Debate Could a rare metals shortage disrupt the energy transition? Eva Globek CEO Metabolic
  6. 6. Eva Gladek CEO, Metabolic 2018.12.06 METAL REQUIREMENTS FOR THE DUTCH ENERGY TRANSITION Managing a complex supply chain
  7. 7. Metabolic: building a sustainable, circular economy Introduction
  8. 8. The basics Circular economy “Based on detailed product level modelling, the report estimates that the circular economy represents a net material cost saving opportunity of USD 340 to 380 billion p.a. at EU level for a ‘transition scenario’ and USD 520 to 630 billion p.a. for an ‘advanced scenario’”
  9. 9. Is this circular? Circular economy
  10. 10. Circular economy
  12. 12. The building blocks of the energy transition Rare Earth metals Image source: Wikipedia
  13. 13. From smartphones to electric cars Rare Earth metals
  14. 14. Metal demand per technology Rare Earth metals
  15. 15. What amount of rare earth metals do we need to scale up renewable energy production the necessary levels?
  16. 16. Supply China is dominant in metals supply
  17. 17. Tarrifs and market manipulations can lead to bottlenecks Uncertainties $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 Prijsneodymiumperton
  18. 18. For some of these metals, the NL requires a few % points of global production capacity Note: Only includes wind turbines and solar PV, not other applications. Dutch metal demand
  19. 19. Based on the latest IPCC models for remaining within 2˚C, production will have to increase enormously. Note: Only includes wind turbines and solar PV, not other applications. Global metal demand: present – 2050
  20. 20. Opening a new mine takes 10 – 20 years
  21. 21. Recycling rates are very low
  22. 22. From a brittle supply chain... Insights
  23. 23. …to a resilient supply chain Possible solutions • Development of EU (and regional) mining industries • Adoption of circular design principles • Research into alternatives • Design for disassembly • New recycling technologies
  24. 24. We need to ensure that our transition to a renewable energy future is a genuinely sustainable transition.
  25. 25. +31 (0) 20 369 09 77 Meteorenweg 280 1035 RN Amsterdam The Netherlands
  26. 26. SHARING INNOVATION The Circular Economy a Powerful Force for Climate Mitigation Transformative innovation for prosperous and low-carbon industry Kari Herlevi Project Director Circular Economy
  27. 27. The Circular Economy a Powerful Force for Climate Mitigation Transformative innovation for prosperous and low-carbon industry Kari Herlevi, Project Director, Sitra
  28. 28. 5 key facts about Sitra 1. A gift from Parliament to the 50-year-old Finland. 2. An independent foresight agency: futurologist, researcher, visionary, developer, experimentalist, partner, trainer, networker. 3. Funded by returns on endowment capital and capital investments. 4. Envisages Finland as a successful pioneer in sustainable well-being. 5. Its vision is supported by three themes, six focus areas and dozens of projects. +1 Building our future together
  29. 29. On average, materials are used only once in Europe. (Ellen MacArthur Foundation 2015) Cars are not used 92-98 % of time. (Several sources, e.g. EEA 2015; Material Economics 2018) 1/3 of produced food goes to waste in value chain. (UN FAO) The World is full of inefficiencies, loss and waste Only 9,1 % of the global economy’s materials remain in circulation. (Circle Economy 2018) Offices are empty 60 % of time. (GSA Office of Governmentwide Policy 2011) 67 % of global greenhouse gas emissions are related to material management. (UNDP 2017) 12 billion tons of plastics waste will be in landfills or natural environment by 2050. (Geyer et al. 2017)
  30. 30. Materials production alone risks exceeding the total remaining carbon budget for a 2oC scenario Gt tonnes CO2 800 918 649 CARBON BUDGET TO 2100 CO2 EMISSIONS FROM MATERIALS PRODUCTION 300 Even with 100 % low-carbon energy by 2050, emissions far exceed the available carbon budget.
  31. 31. Three Circular Economy strategies make better use of materials to reduce CO2 emissions More high-value recycling & less primary material production Less material input needed for improved production process Reuse of components Designing products with less materials Fewer products required to achieve the same benefits of service Higher utilisation & intensive use of products Longer lifetime of products MATERIAL RECIRCULATION OPPORTUNITIES PRODUCT MATERIALS EFFICIENCY NEW CIRCULAR BUSINESS MODELS
  32. 32. CO2 emission reduction potential in the EU by 2050 compared to baseline scenario for steel, plastics, aluminium and cement 178 Mt of CO2/a or 34 % by recirculating what has already been produced: • 75 % of steel • 50 % of aluminium • 56 % of plastics. MATERIAL RECIRCULATION OPPORTUNITIES PRODUCT MATERIALS EFFICIENCY NEW CIRCULAR BUSINESS MODELS 56 Mt of CO2/a or 11 % by reducing the amount of materials that are lost in production. Solutions: • Material & product design • Production and construction techniques • Digitalisation. 62 Mt of CO2/a or 12 % by making greater use of resources in mobility and building sector. Sharing enables • more intensive use • better maintenance • improved reuse, recycling, remanufacturing.
  33. 33. The measures identified could contribute 3,6 Gt CO2 per year to global efforts to cut greenhouse gas emissions by 2050. The claim on the carbon budget could be reduced by 333 Gt by 2100.
  34. 34. Circularity of materials is inevitable to meet the targets of the Paris agreement Production and use of only four materials - steel, cement, aluminium and plastics - fill the remaining carbon budget by 2100. Circularity can reduce the CO2 emissions by 56 % by 2050 in the EU. “The priority now should be to firmly embed circular economy measures in the low-carbon agenda.”
  35. 35. | seuraavaerä.fi @sitrafund
  36. 36. SHARING INNOVATION TABLE DISCUSSION: INSIGHTS FROM RESEARCH INSTITUTES Moderator: Dr. André Weidenhaupt • Recources, the missing link in the Climate Debate Eva Gladek, CEO Metablic • The Circular Economy a Powerful Force for Climate Mitigation Kari Herlevi, Project Director Circular Economy, Sitra
  37. 37. SHARING INNOVATION BEST PRACTICES FROM BUSINESS Moderator: Tjitske IJpma Program leader International Circular Economy, Department for International Affairs, Dutch Ministry of Infrastructure & Watermanagement
  38. 38. SHARING INNOVATION BEST CIRCULAR PRACTICES FROM PHILIPS Harald Tepper Group Sustainability and Program lead Circular Economy, Royal Dutch Philips
  39. 39. Harald Tepper Global program lead Circular Economy, Philips COP24 side event, Dec 7th 2018 Driving the transition to the circular economy
  40. 40. We strive to make the world healthier and more sustainable through innovation Our goal is to improve the lives of 3 billion people per year by 2025 2.214 billion Lives Improved per year in Q2 2018
  41. 41. Healthy people, sustainable planet Health and well-being for all (=SDG 3) Sustainable consumption and production (= SDG 12) Climate action (=SDG 13) Sustainable materials Carbon-neutral in our operations Financially sustainable care Access to care for underserved • Value-based care • Prevention • Move to digital • From products to solutions • Locally relevant innovations • CLC roll-out • Prove impact to local governments Make the world healthier and more sustainable through innovation Improve the lives of 3 billion people a year by 2025 • Green Portfolio • Circular product and service design • Close loops • No landfill • Reduce emissions (logistics and travel) • Energy efficiency • Green electricity • Carbon offsetting Our plan of action directly supports the SDGs
  42. 42. Our ambitious circular economy objectives for 2020 15% of turnover coming from circular economy solutions Close the loop on large medical systems + extend circular practices to all medical equipment by 2025 90% of operational waste recycled zerowaste to landfill
  43. 43. We offer a variety of circular products and services Lumify is a flexible subscription service providing access to transducers, app and online ecosystem. The subscription service reduces upfront costs and improves patient access to innovative care. The Diamond Select program offers refurbished healthcare systems where customers can benefit from state-of-the-art technology at a more affordable price. RAPID** program reuses 50-70% parts / materials from returned X-ray tubes. Philips SmartPath is an economical way to enhance existing Philips systems to current technology or increased capacities. Key components are upgraded so that the system is like new. Performer Ultimate vacuum cleaner contains 36% recycled plastics*** *Includes reconditioned and remanufactured; **RAPID stands for Returns, Analysis, Parts harvesting, Improvement and Data collection; ***Compared to total plastics content Performance and access-based models Refurbished* products and systems Refurbished* components On-site or remote upgrades Products with recycled plastics content
  44. 44. Environmental Profit & Loss account shows large impact of materials & components
  45. 45. Capital Equipment coalition Joining forces: PACE Capital Equipment Coalition • Capital equipment: Assets with capital value > 5 k€ and user lifetime > 1 yr • Its manufacture uses 20-50% of total metal ores extracted annually and drives long-term energy demand • Circular economy strategies provide opportunity to optimize equipment stocks and usage to create value.
  46. 46. EXAMPLES FROM THE BUILDING SECTOR Jakub Wójcik Vice-Chairman Izodom Company Poland
  47. 47. INDUSTRIAL SYMBIOSIS Arve Ulriksen CEO Mo Industripark Norway
  48. 48. MO INDUSTRIAL PARK - G O G R EEN, G O A RC T IC ! Arve Ulriksen, CEO
  49. 49. MO INDUSTRIAL PARK • One of the largest industrial parks in Norway • 108 different companies within process- and mineral industry, marine sector, datacentres, service sector and many more • Roughly 70% of products exported to global markets • 2700 jobs
  51. 51. Becoming a world-class industrial park creating value through focusing on environmentally friendly and energy-efficient circular services and solutions.
  52. 52. Innenfor prosessindustri, verkstedindustri og servicebedrifter Det industrielle tyngdepunktet i nord EMISSION REDUCTIONS CIRCULAR ECONOMY ENERGY- EFFICIENCY MIP SUSTAINABILITY
  53. 53. MIP SUSTAINABILITY • 30+ RnD projects within the aforementioned pillars • Industrial businesscases, in the intersection between different industries and sectors, predominantly based on circular economy principles • Has already yielded new businessareas, new jobs and improved competitiveness • Has resulted in a stronger link between industry and RnD • We are aiming at linking artificial intelligence and blockchain technology in several processes in the future
  54. 54. We are exploring CCU opportunities in our region and are looking into a range of possible businesscases linked to captured CO2: • Replace fossil fuels in combustion processes • Producing hydrogen • Producing methanol • Produce proteins for fish feed, replacing soy BOOSTING CIRCULAR ECONOMY – CROSS SECTORAL APPROACH
  55. 55. CITIES, THE PLACE FOR CIRCULAR CLIMATE ACTION Callum Blackburn CEO Zero Waste Scotland
  56. 56. Callum Blackburn Head of Policy, Research and Evalaution @zerowastescot Cities, the place for circular climate action December 2018
  57. 57. The Carbon Metric The Carbon Impacts of the Circular Economy The Carbon Impacts of the Circular Economy (Zero Waste Scotland, 2015) By doing more with less, a circular Scottish Economy can deliver steady growth AND improve sustainability.
  58. 58. Scotland’s Carbon Metric - Key Findings • In 2016, Scotland generated 10.79 Mt of waste, with an associated carbon impact of 10.97 MtCO2e
  59. 59. Key Findings - Weight v Carbon • To maximize the climate change benefits of waste management, there should be a focus on carbon intensive waste materials
  60. 60. The Carbon Metric Burning waste: not low-carbon Defra 2013, 2014 While no Scottish dataset exists, studies indicate EfW has a carbon intensity of >300gCO2e/kwh - 50 100 150 200 250 300 350 400 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 gCO2e/kwh Carbon Intensity of Scottish Grid vs. EfW Scottish Grid EfW
  61. 61. Opportunities for North East Scotland The North East Scotland region is one of the top five most economically productive areas in the UK – 25% of Scotland’s food and drink exports are from this area. Predicted economic benefits in Aberdeen and Aberdeenshire from adopting a circular economy are approximately £625 million: • Construction and built environment sector – £286 million • Energy infrastructure sector – £250 million • Food and drink sector, and the wider bio-economy – £52 million • Manufacturing sector – £37 million
  62. 62. Opportunities for Tayside, Scotland Tayside has a population of more than 490,000 people and is home to over 15,500 businesses. In 2014, the Tay Cities economic region generated around 8% of Scotland’s gross value added (GVA) worth just over £9 billion. Predicted economic benefits in Tayside from adopting a circular economy are around £404 million: • Construction and the built environment sector – £185 million • Energy infrastructure sector – £186 million • Manufacturing sector – £19 million • Food and drink sector, and the wider bioeconomy – £14 million
  63. 63. Conclusions for Cities and Regions • “Inner loops” of CE and waste prevention is the best way to reduce carbon emissions – however you need a mechanism to identify and unlock opportunities. • To maximize the climate change benefits of waste management, there should be a focus on carbon intensive waste materials, such as food waste in particular
  64. 64. SHARING INNOVATION PANEL DISCUSSION AROUND BEST BUSINESS PRACTICES Moderator: Tjitske IJpma • Best Circular Practices from Philips Harald Tepper, Group Sustainability and Program lead Circular Economy at Philips, Royal Dutch Philips • Examples from the Building sector Mr Jakub Wójcik, Vice-Chairman of Izodom Company, Poland • Industrial Symbiosis Arve Ulriksen, CEO Mo Industripark, Norway • Cities, the place for circular climate action Callum Blackburn, Head of Policy and Research Zero Waste Scotland
  65. 65. WRAP-UP & CLOSURE Freek van Eijk CEO Holland Circular Hotspot