Social benefits of moving towards a circular economy

1. ”Social benefits of moving towards a
circular economy”
comments by Anders Wijkman, Chair Climate-KIC,
honorary President the Club of Rome
at the 1st OECD Round Table on the Circular Economy
in Cities and Regions in Paris on July 4th, 2019

2. Main motives for moving towards a Circular
Economy
are primarily linked to the risks for resource
constraints, increased pressure on ecosystems and
biodiversity, pollution and carbon emissions.
Linear material flows represent a major waste of
resources; huge values are lost when most materials
are only used once
Social apects and benefits are of equally great
importance and ought to be well defined and pursued.

3. Social challenges to address
- Jobs – (major uncertainties about AI, automation)
- Widening gaps – Poverty
- Cities vs Rural
Increased social tensions risk to long term stability and
trust level in society
Transition perceived as threat by many
Circular Economy will bring a host of social benefits

4. Improved standard of living
- Wealth creation in general likely to increase
- Local economy would get a boost by lower expenses
for waste and residues, reduced pollution, health etc
- Disposable income likely to increase as a
consequence of shifting the tax burden from labour to
resource use
- Employment opportunities

5. Social cohesion
The circular economy is likely to give a boost to social
cohesion through its focus on:
- moving from ”selling stuff” to offering HQ-services
- the sharing economy
- leasing centres, repair cafés, tools for reuse, bikes for
rent, mobility services etc
- improved quality of air and water through less
pollution, nature solutions etc
- poorer households benefitting from new types of
low-cost services

6. Jobs
- A 2017 report by the Club of Rome for seven
European countries showed carbon emissions would
be reduced by 2/3 and many new jobs created by
shifting to a Circular Economy.
- The jobs will be local and decentralised, where
objects in use and their owner-users are situated, not
in some distant countries.
- Studies by Ellen Mac Arthur Foundation, WRAP, EU
Commission confirm the same results – and, as well,
ILO Green Jobs Report
- Studies done by cities like London, Amsterdam etc
arrive at the same results

7. Jobs II
- The main reason for the positive effect on jobs is
that an economy focused on reuse, refurbishment,
repair and maintenance, recycling and
remanufacturing - and by HQ-services – is more
labour-intensive than increasingly automated
manufacturing.
- The potential exists for re-industrialisation of regions
by giving prio to managing existing stocks and
molecules

8. Jobs III
- The quality of jobs will be a major challenge
- While many of the new jobs will be of a service
nature some will be in relation to waste management
- The working conditions of waste collection can be
tough; low-skilled and low-paid jobs
- The infomal sector – ”informal recyclers” – ought not
be forgotten

9. Jobs IV
- Human Capital in the form of jobs is unique. It is
renewable and its quality is enhanced through
education
- Robotisation and automation is happening but if
done without recognising the qualitative dimension of
Human Capital it will not be optimal.
- Instead of looking at inputs – i e AI and automation –
we should aim for outcome
- Then the contributions of humans is crucial, i e a
combination of AI and human intelligence