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More prosperity, new jobs:
A business perspective on the
Circular Economy Package
Arthur ten Wolde
Expert Circular Economy
Ecopreneur.eu
Brussels, 2 December 2015
Translated
from: OPAi
and MVO
Nederland,
Enter-
preneurship
in the
Circular
Economy,201
4
(in Ducth)
View on Circular Economy
2
Supportedby
Business Manifesto
3
Huge opportunities
• 3 million jobs by 2030
• Up to € 600 billion per year
in the EU (€ 4 trillion globally)
• Resource resilience
• Waste reduction and reduced environmental
impact (e.g. 70% cut in carbon emissions)
4
Circular business models
• Short cycle: Pay per use, repair, waste reduction,
sharing platforms
• Long cycle: Performance based contracting, take back
management, next life sales, refurbish & resell
• Recycling, cascading, upcycling, collaborative
production
• Pure circles: Cradle to cradle, circular sourcing
• From physical to virtual: Digitisation
• Produce on demand: Produce on order, 3D printing
Source: K. van Renswoude, D.J. Joustra and A. ten Wolde, 2015
5
Just 2 examples (De Groene Zaak)
6
The need for government policies
• Government policies are needed
accelerate and mainstream the
circular economy
• Remove existing obstacles
• Improve the ‘rules of the game’
of our economy in a systems
approach
7
8
www.govsgocircular.com
Governments are going circular
What we ask: (1)
Strong government policies
• Extend binding targets to cover the full
chain (reuse, repair etc.)
• Use EU-wide legislation, harmonisation,
national action plans, Green Deals and
guidelines for member states
9
What we ask: (2)
Financial incentives
Introduce financial incentives for companies
and consumers to favour circular business
models:
• Implement Circular Public Procurement
• Taxation:
- Allow for VAT differentiation
- Tax shift from labour to resources
(Green Deal)
• Extended Producer Responsibility 2.0
10
What we ask: (3) Adapt and exploit
existing measures, including:
• Extend Ecodesign Directive to Circular
Design
• Horizon 2020 and the Eco-Innovation
Programme, including calls for change of
the system (economic mechanism design),
an EU Institute for Circular Economy and
programmes for frontrunners, sectors and
cross sectoral
11
Response to leaked draft Package:
Overall impression
• Positive: Procurement, Extended Producer
Responsibility, Ecodesign directive, Quality
standards for secondary resource
materials, European Resource Efficiency
Excellence Centre, link with GAP for SMEs,
developing Monitoring KPIs 
• Concerns: All depends on implementation
of concrete measures. Risk of being
ineffective like the EU-ETS 
12
Response to leaked draft Package:
Main comments
• No targets, no milestones, little enforcement:
risk of being ineffective
• Serious flaw: No economic incentives for
consumers. No VAT directive amendment, no
Ex’Tax Tax shift; and we consider “Eco” labels
ineffective
• Research: fundamental lack of access and
attractiveness for SMEs, lack of systemic policy
research
• Still EU funding for incineration plants
13
Response to leaked draft Package:
Specific comments (1)
• Create an overall strong policy, with clear price
signals to consumers and producers,
and enforcement of regulations, and solving
these shortcomings
• Ecodesign: Differentiation down to product
and company level is needed to incentivise
companies to become frontrunners. Beware of
red tape
14
Response to leaked draft Package:
Specific comments (2)
• Also quality criteria for other secondary raw
materials besides plastics
• Extend European Resource Efficiency Centre to
cover research on circular economy, system
change, business models, policy and
“precycling1”
• Keep monitoring the resource efficiency as an
overarching Key Performance Indicator
1 See www.govsgocircular.com
15
Arthur Ten Wolde - Ecopreneur - More prosperity, new jobs: A business perspective on the Circular Economy Package

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Arthur Ten Wolde - Ecopreneur - More prosperity, new jobs: A business perspective on the Circular Economy Package

  • 1. More prosperity, new jobs: A business perspective on the Circular Economy Package Arthur ten Wolde Expert Circular Economy Ecopreneur.eu Brussels, 2 December 2015
  • 2. Translated from: OPAi and MVO Nederland, Enter- preneurship in the Circular Economy,201 4 (in Ducth) View on Circular Economy 2
  • 4. Huge opportunities • 3 million jobs by 2030 • Up to € 600 billion per year in the EU (€ 4 trillion globally) • Resource resilience • Waste reduction and reduced environmental impact (e.g. 70% cut in carbon emissions) 4
  • 5. Circular business models • Short cycle: Pay per use, repair, waste reduction, sharing platforms • Long cycle: Performance based contracting, take back management, next life sales, refurbish & resell • Recycling, cascading, upcycling, collaborative production • Pure circles: Cradle to cradle, circular sourcing • From physical to virtual: Digitisation • Produce on demand: Produce on order, 3D printing Source: K. van Renswoude, D.J. Joustra and A. ten Wolde, 2015 5
  • 6. Just 2 examples (De Groene Zaak) 6
  • 7. The need for government policies • Government policies are needed accelerate and mainstream the circular economy • Remove existing obstacles • Improve the ‘rules of the game’ of our economy in a systems approach 7
  • 9. What we ask: (1) Strong government policies • Extend binding targets to cover the full chain (reuse, repair etc.) • Use EU-wide legislation, harmonisation, national action plans, Green Deals and guidelines for member states 9
  • 10. What we ask: (2) Financial incentives Introduce financial incentives for companies and consumers to favour circular business models: • Implement Circular Public Procurement • Taxation: - Allow for VAT differentiation - Tax shift from labour to resources (Green Deal) • Extended Producer Responsibility 2.0 10
  • 11. What we ask: (3) Adapt and exploit existing measures, including: • Extend Ecodesign Directive to Circular Design • Horizon 2020 and the Eco-Innovation Programme, including calls for change of the system (economic mechanism design), an EU Institute for Circular Economy and programmes for frontrunners, sectors and cross sectoral 11
  • 12. Response to leaked draft Package: Overall impression • Positive: Procurement, Extended Producer Responsibility, Ecodesign directive, Quality standards for secondary resource materials, European Resource Efficiency Excellence Centre, link with GAP for SMEs, developing Monitoring KPIs  • Concerns: All depends on implementation of concrete measures. Risk of being ineffective like the EU-ETS  12
  • 13. Response to leaked draft Package: Main comments • No targets, no milestones, little enforcement: risk of being ineffective • Serious flaw: No economic incentives for consumers. No VAT directive amendment, no Ex’Tax Tax shift; and we consider “Eco” labels ineffective • Research: fundamental lack of access and attractiveness for SMEs, lack of systemic policy research • Still EU funding for incineration plants 13
  • 14. Response to leaked draft Package: Specific comments (1) • Create an overall strong policy, with clear price signals to consumers and producers, and enforcement of regulations, and solving these shortcomings • Ecodesign: Differentiation down to product and company level is needed to incentivise companies to become frontrunners. Beware of red tape 14
  • 15. Response to leaked draft Package: Specific comments (2) • Also quality criteria for other secondary raw materials besides plastics • Extend European Resource Efficiency Centre to cover research on circular economy, system change, business models, policy and “precycling1” • Keep monitoring the resource efficiency as an overarching Key Performance Indicator 1 See www.govsgocircular.com 15