Presentació de Walter Stahel, Founder-director of The Product-Life Institute Geneva, en el marc de la jornada ‘The role of ecodesign in the circular economy’ que va tenir lloc a Brusel·les el 16 de juny de 2015

1. 1
1
05/03/2015 Walter R. Stahel at Catalan EU Brussels
The Circular Economy: fundamentals and
new developments; The Role of
Ecodesign in the Circular Economy.
Catalan Delegation to the EU,
Brussels, 16 June 2015
Prof Dr h.c. Walter R. Stahel
Visiting Professor University of Surrey
www.product-life.org wrstahel2014@gmail.com

2. 05/03/2015 Walter R. Stahel at Catalan EU Brussels 2
THE TOPICS
The Circular Economy (CE) –
setting the scene, its hidden potential
EcoDesign (ED) – the pioneers of ED and of
life-cycle design (PE)
Designing sustainable systems solutions
Silos, the heritage from the industrial process
A question of value preservation –
to reuse or to recycle?
The Performance Economy (PE) integrates ED

3. 05/03/2015 Walter R. Stahel at Catalan EU Brussels 3
In 2015, The Club of Rome published an I/O study on the
impact of a CE and PE on the Swedish economy (five
scenarios).
The findings are intriguing:
Carbon emissions would go down an estimated 70%;
employment would increase by more than hundred
thousand jobs (3% of the work force).
A second study analysing the impact on the Dutch and
Spanish economy will become available in Summer 2015.
The hidden potential of the C.E.:
GHG gas reductions and job creation

4. 4
mio t GHG emissions p.a.
Performance
Economy UK
Lifetime
optimisation
Circular
Economy UK
Source: WRAP
(2009)
Other options to reduce national GHG, UK, p.a.
830 mio t
550 mio t
05/03/2015 Walter R. Stahel at RESOURCE London
Reducing
food waste
Dietary
changes
Public sector
procurement

5. The range of C.E. opportunities
• Water cycles: atmosphere, steam engines,
closed loop water cooling systems (car engine),
• Energy cycles (heat/cold): atmospheric clocks,
IT server farms in the north, geothermal, process
heat recovery for buildings and agriculture,
• Bio-economy cycles: nature, carbon- instead of
petro-chemistry, enzymes reducing trees to
fibres for low carbon papermaking,
• Physical capital cycles: reuse, repair, remanu-
facture, technologic/fashion upgrade of goods;
recycling; molecules and goods as services.
05/03/2015 Walter R. Stahel at Catalan EU Brussels 5
THIS TALK

6. A Circular Economy is managing
manufactured stock (physical capital) and
preserving its embodied resources (e,m,H2O)
Infrastructure, buildings, equipment, (durable) goods,
catalytic goods (lub oils, solvents) through
• Reuse and remarketing
e.g. 2nd hand markets, eBay, rent-a-wreck,
• Repair, remanufacturing and re-refining
e.g. NASA’S space shuttle, catalytic goods,
• Technologic and fashion upgrading,
• and finally recycling atoms and molecules.
The C.E. complements the industrial economy, which still
contributes with producing quantum leap innovation, in
e.g. information-, bio- and nano-technologies. 605/03/2015 Walter R. Stahel at Catalan EU Brussels

7. Copyright:
Walter R. Stahel 2011
RESOURCE SECURITY
JOB
CREATION
GHG EMISSION REDUCTION
SUSTAINABLE
TAXATION
C.
E.
712/2/2014 Walter R. Stahel at AAAS 2014 Chicago
The role of
policy:
Sustainable
taxation is a
booster to
increase
- resource
security,
- job creation
reduce
- GHG
emissions
through a CE.

8. Drivers of the C.E. in the 21st century
in industrialised countries
• Saturated markets for most goods,
(n° of goods sold equals n° scrapped),
• Components outlive goods – reuse options
(electric motors, microchips, VIP panels, LED),
• Ageing populations and its silver workers,
• Ageing infrastructure need repair R&D,
• Fears of resource scarcities /price jumps,
• Intelligent decentralisation (3D print, repair cafés,
energy autonomous buildings),
• Science and innovation, see next slide.
05/03/2015 Walter R. Stahel at Catalan EU Brussels 8

9. The role of ED and Science in closing loops
In a modern car, you have up to twelve different steels.
The ISDA 1992 Eco-Design principles state:
• use recycled materials.
• use commonly recyclable materials.
No modern cars? nor solar p.v. panels? nor offshore
windmills? nor IT?
• make it simple to separate the recyclable compo-
nents of a product from the non-recyclable ones.
No metal alloys? No nanomaterials in clothing?
Or learn to de-alloy metals, de-polymerise polymers,
turn plastic waste into granulate?
05/03/2015 Walter R. Stahel at Catalan EU Brussels 9

10. 05/03/2015 Walter R. Stahel at Catalan EU Brussels 10
THE TOPICS
The Circular Economy (CE) –
setting the scene, its hidden potential
EcoDesign (ED) – the pioneers of ED and of
life-cycle design (such as PE)
Designing sustainable systems solutions
Silos, the heritage from the industrial process
A question of value preservation –
to reuse or to recycle?
The Performance Economy (PE) integrates ED

11. 11
Bialetti 1930s
Engineering is the art of
eliminating parts, 1900
Charles Brown, founder
and CEO of BrownBoveri Co
Good design has always
been ecodesign, 1990
Günther Horntrich,
designer, Yellow, Cologne
The fathers of ECODESIGN
05/03/2015 Walter R. Stahel at Catalan EU Brussels

12. And last but not least: anonymous design
fulfilling real needs (utility, function)
05/03/2015 Walter R. Stahel at Catalan EU Brussels 12

13. 13
The rules are the same for all actors, the better system will win.
05/03/2015 Walter R. Stahel at Catalan EU Brussels
Pioneer manufacturer: modular furniture
strategy 1963 – buy-back of furniture.
USM Haller

14. 14
Pioneers: The 12 Eco-Design Principles,
IDSA, 1992• Make it durable.
• Make it easy to repair.
• Design it so it can be remanufactured.
• Design it so it can be reused.
• Use recycled materials.
• Use commonly recyclable materials.
• Make it simple to separate the recyclable components of a
product from the non-recyclable components.
• Eliminate the toxic/problematic components of a product or
make them easy to replace or remove before disposal.
• Make products more energy/resource efficient.
• Use product design to educate on the environment.
• Work toward designing source reduction-inducing products
(i.e. products that eliminate the need for subsequent waste).
• Adjust product design to reduce packaging.
05/03/2015 Walter R. Stahel at Catalan EU Brussels

15. 1995
05/03/2015 Walter R. Stahel at Catalan EU Brussels 15
Pioneer design to sell performance, goods as service

16. 16
Pioneer politics: 2008 EU waste direct. 2008/98/EC
Prevention: measures taken before a substance, material or product
: has become waste, that reduce the quantity of waste, including
through the re-use of products or the extension of the life span
of products (including waste oils).
Re-use means any operation by which products or components
that are not waste are used again for the same purpose for
which they were conceived.
Preparing for re-use means checking, cleaning or repairing
recovery operations, by which products or components of
products that have become waste are prepared so that they
can be re-used without any other pre-processing.
Re-use and repair networks, Member States shall take
measures to promote the re-use of products and preparing
for re-use activities, notably by encouraging … re-use and
repair networks, …(art. 11).
05/03/2015 Walter R. Stahel at Catalan EU Brussels

17. 05/03/2015 Walter R. Stahel at Catalan EU Brussels 17
THE TOPICS
The Circular Economy (CE) –
setting the scene, its hidden potential
EcoDesign (ED) – the pioneers of ED and of
life-cycle design (PE)
Designing sustainable systems solutions
Silos, the heritage from the industrial process
A question of value preservation –
to reuse or to recycle?
The Performance Economy (PE) integrates ED

18. 18
Systems innovation
instead of product
innovation, combined
with intelligent
decentralisation!
Lighthouses have done
more for the safety of
shipping than any
improvement to ships.
05/03/2015 Walter R. Stahel at Catalan EU Brussels

19. Pioneer
systems
design
DOING
THE RIGHT
THING
ICE1 – an electric steam train
ICE4 – decentralised traction
05/03/2015 Walter R. Stahel at Catalan EU Brussels 19

20. The system design issue:
PTS plane transport system
vs. aircraft tractor (factor 10)
05/03/2015 Walter R. Stahel at Catalan EU Brussels 20

21. Private Finance
Initiatives (PFI)
Le Viaduc de Millau,
selling performance
a 2001 78-year
contract to
design, finance,
build and operate
the bridge till
2079, with a
maintenance
contract until
2121
Le pont de Millau, France2105/03/2015 Walter R. Stahel at Catalan EU Brussels

22. 05/03/2015 Walter R. Stahel at Catalan EU Brussels 22
THE TOPICS
The Circular Economy (CE) –
setting the scene, its hidden potential
EcoDesign (ED) – the pioneers of ED and of
life-cycle design (PE)
Designing sustainable systems solutions
Silos, the heritage from the industrial process
A question of value preservation –
to reuse or to recycle?
The Performance Economy (PE) integrates ED

23. Drivers of today’s linear industrial economy:
growth means more throughput
resources materials manufacturing distrib. P.O.S. use waste
micro-economic profit optimisation P.O.S. depreciation zero
The manufacturer’s liability for industrial goods
concerns the manufacturing quality.
Property and liability are transferred at P.O.S. to
the CONSUMER (risk) and the State (waste)
zero-life products
05/03/2015 Walter R. Stahel at Catalan EU Brussels 23
waste
managersmanufacturersresource
managers
series of steps of value added

24. Can Ecodesign reach “the other side”?
The divide of an industrial and a circular economy
corporate strategy (IPR, technology, capital, RoI)
marketing, legislation consumer-owner user
Konstrukteur DESIGNER waste collectors
procure (material cost) waste managers
manufacture (labour cost) waste recyclers
05/03/2015 Walter R. Stahel at Catalan EU Brussels 24
PoS

25. 05/03/2015 Walter R. Stahel at Catalan EU Brussels 25
THE TOPICS
The Circular Economy (CE) –
setting the scene, its hidden potential
EcoDesign (ED) – the pioneers of ED and of
life-cycle design (PE)
Designing sustainable systems solutions
Silos, the heritage from the industrial process
A question of highest value preservation –
to reuse or to recycle?
The Performance Economy (PE) integrates ED

26. 26
Managing performance over time - The Circular Economy:
reusing goods, remanufacturing goods and components (loop 1)
and reusing molecules (2)
reuse
remarketing
Reusing
molecules
Remanufacturing
goods
Source Stahel/Reday, 197605/03/2015 Walter R. Stahel at Catalan EU Brussels
Thegreatprofitdivide
Recycling

27. Business opportunities for Waste Managers:
reuse or recycling? a question of value!
05/03/2015 Walter R. Stahel at Catalan EU Brussels 27
“WASTE” “WASTE” MANAGERS
HIGH VALUE PRESERVED EQUAL PROFIT LOW
C.E. reuse repair remanufacture upgrade recycle
e.g. garments, bottles, EEE, furniture, aircraft seats
to reuse or
to recycle?
sorted intact solid waste
Also: unsorted solid waste (food, packaging, paper, plastics, oils),
liquid waste, sewage (detergents, urea, Phosphorus, Nitrates)
non-destructive collection

28. 05/03/2015 Walter R. Stahel at Catalan EU Brussels 28
De-constructing buildings: labour intensive!
The ANA Intercontinental Hotel in Tokyo
LABOUR
Also power stations, windmills, oil platforms

29. 05/03/2015 Walter R. Stahel at Catalan EU Brussels 29
THE TOPICS
The Circular Economy (CE) –
setting the scene, its hidden potential
EcoDesign (ED) – the pioneers of ED and of
life-cycle design (PE)
Designing sustainable systems solutions
Silos, the heritage from the industrial process
A question of value preservation –
to reuse or to recycle?
The Performance Economy (PE) integrates ED

30. Circular Economy: 1 driven by economics,
2 counterintuitive to most economists;
3 the PE is its most profitable business model
A CE has it own rules:
• the smaller the loops the more profitable and
resource efficient they are (e.g. local reuse),
• loops have no beginning and no end
(but one objective: value preservation),
• the low speed of the circular flow is crucial, the
law of reverse compound interests applies,
• It substitutes manpower for energy and
material resources,
• It manages (manufactured) stocks, not flows.
3005/03/2015 Walter R. Stahel at Catalan EU Brussels

31. Integrated Ecodesign and sufficiency
The divide of an industrial and a circular economy
corporate strategy (IPR, technology, capital, RoI)
marketing, legislation consumer-owner user
Konstrukteur DESIGNER waste collectors
procure (material cost) waste managers
manufacture (labour cost) waste recyclers
Design, an integrated function in performance eco
Whole systems design for lowest life-cycle costs
marketing, DESIGN, take-back logistics & reuse,
in-house repair-remanufacturing-recycling skills
05/03/2015 Walter R. Stahel at Catalan EU Brussels 31
PoS

32. Outside the realm of Ecodesign?
The Business Models of the
Performance Economy:
a guarantee for quality and value
05/03/2015 Walter R. Stahel at Catalan EU Brussels 32
Retained
ownership
OEM
skills
O&M
skills
Fleet managers
selling goods as
services:
transport, hotels,
rental goods,
real estate
OEMs
selling performance:
Michelin, RR, textile leasing
Xerox, PFI, Space X,
OEMs selling
molecules as
services:
rent a molecule,
chemical leasing,
licence to mine
Performance guarantees: commercial
freezers, lifts with service contract,
lifelong product guarantees Copyright Stahel 2015

33. Three options: drivers, objectives, tools
1 IDSA 1992 2 Xerox selling 3 innovative
in an I.E./C.E. performance solutions
Drivers
• legislation? competitiveness different think
• cost minimis. stock (asset) m. innovation
Objectives
• waste prev. preserved value better solutions
• closing loops modular/stand. sufficiency
Tools
• ED by law? life cycle optim. systems design
integrates ED ignores ED?
05/03/2015 Walter R. Stahel at Catalan EU Brussels 33

34. 34
34
Dr h.c. Walter R. Stahel, Visiting Professor, University of Surrey
Founder-Director, The Product-Life Institute, Geneva
www.product-life.org, wrstahel2014@gmail.com
05/03/2015 Walter R. Stahel at Catalan EU Brussels