Mr. Janez Potočnik, Former European Commissioner for Environment 3rd OECD Roundtable on Circular Economy in Cities and Regions 18-19 May 2021 More information: https://www.oecd.org/regional/roundtable-circular-economy.htm

1. Circular Economy:
Where we stand and
how we account for
progress?
Pictures of Barcelona, for illustration only (BCN’s footprints is still above the sustainable)
3rd OECD Roundtable on the Circular Economy in
Cities and Regions, 18-19 May 2021

2. Cities and regions are important part of the solution
• High relative autonomy of the governance
• Many transitional problems and opportunities are
concentrated in the cities
Source: pngkey.com

3. Importance of Natural Resources:
Fossil fuels (coal, gas
and oil)
Biomass (wood, crops,
including food, fuel,
feedstock and plant-
based materials)
Metals (such as iron,
aluminum and
cooper…)
Non-metallic minerals
(including sand, gravel
and limestone)
Provide the foundation for the goods, services and
infrastructure that make up our current socio-economic systems
Water and Land
Materials

4. The challenge: Resource extraction and processing
cause massive environmental and health problems
50% of global climate change impacts
1/3 of air pollution health impacts
90% of global biodiversity loss and water stress

5. • Global resource use has more
than tripled since 1970
• Global material demand per
capita grew from 7.4 tons in
1970 to 12.2 tons per capita
in 2017
• Material productivity started
to decline around 2000 and
has stagnated in the recent
years
Biomass
Fossil fuels
Metals
Non-metallic minerals
The problem: If current trends would continue, global
material consumption is predicted to double by 2060

6. Decoupling
The goal: Fundamental improvements in material
productivity  wellbeing within planetary boundaries

7. The pathway: A fundamental shift from Product Maximisation to
Providing Human Needs and Productivity Improvements at scale
We do not need cars … We need mobility
We do not need light bulbs … We need light
We do not need chairs … We need to sit
We do not need refrigerators … We need chilled and healthy food
We do not need CDs … We want to listen to the music
We do not need pesticides … We want healthy plants
Dematerialisation, Rethinking Ownership,
From Efficiency to Sufficiency  “Circular Economy 2.0”

8. Circular economy “2.0”: For staying within planetary boundaries must
go beyond repair and recycling - and so must its measurement
Example G7 housing: While repair, reuse and recycling are important to reduce life-cycle GHG
emissions, reducing floor space through ‘more intensive use’ has by far the most potential
-7
-5
-3
-1
Product lifetime
extension and reuse
Enhanced end-of-life
recovery and
fabrication yield
improvments
More intensive use
Material substitution
Using less material by
design
• Using less material by design
• Material substitution
• More intensive use
• Enhanced end-of-life recovery
and fabrication yield
improvements
• Product lifetime extension and
reuse
GHG
Emissions
(Gt
CO
2
equ)
Potential GHG savings from material efficiency strategies for homes in G7 (2016-2060), compared to an “energy transition only” reference scenario
More intensive use reduces materials
and heating/cooling need most
potential for reducing lifecycle GHG
Source: adapted from “Resource Efficiency and Climate Change” (IRP 2020)

9. Measurement: Circular economy is a tool, circular metrics
must feed into and improve the bigger picture – consistency!
The goal: Wellbeing within Planetary Boundaries The pathway: Circular Economy
Wellbeing metrics, e.g. health, education, safety,
community/non-loneliness, income, equality…
Planetary boundary metrics: GHG footprints,
biodiversity footprints, pollution footprints, rare
materials footprints, water footprints…
Potential metrics
Utilization and “wastefulness” metrics: e.g.
utilization of key assets such as housing, mobility
Material (re)-use metrics: e.g. lifetime of products,
repair rates, reuse rates, recycling and waste
Source: adapted from report “A System Change Compass”, Julia Okatz
Design and demand balance metrics: e.g.
demand/need for mobility based on the urban
design, demand for new houses per person…

10. Two crucial reports show the circular way forward in Cities: Time to ‘graduate’ from limited
recycling perspectives to pursuing systemic resource productivity and wellbeing improvements
Important key findings of the report:
• Lack of an agreed definition of the circular economy
• There is no harmonised measurement framework
• Incomplete information
• There is a strong focus on waste but little on closing
loops
• Available indicators are mostly data-driven rather
than objective-driven
 There is a lack of a systemic approach of the circular
economy indicators
4 level framework to achieve Factor 10 res. productivity
• Compact urban form (=smart non-fragmentation, ≠
very high density)
• Liveable, functionally and socially mixed
neighbourhoods (small, mixed blocks create
accessibility and conditions for walking and cycling
over motorised transport)
• Energy-efficient buildings and urban systems,
including smarter, space-efficient multi-unit houses
• Resource-efficient consumption, incl. better recycling,
repair and less energy use
 Success Measure: Integrated Resource Productivity

11. THANK YOU
Source: pngkey.com