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GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 1
The EU Strategy for transforming the future
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 2
The
European
Green Deal
EU Circular
Economy
Action Plan
Sustainable
Products
Policy
Framework
Electronics
& ICT
Designing Sustainable Products
Reduce EU greenhouse gas emissions by at least
55% by 2030, compared to 1990 levels; climate-
neutrality by 2050
Boost the efficient
use of resources by
moving to a clean,
circular economy Empowering Consumers & Public Buyers
Circularity in production processes
- Decoupling economic growth from resource use;
- Keeping resource consumption within planetary
boundaries
- Reduce consumption footprint
Batteries &
Vehicles
Packaging Plastics
Construction
& Buildings
Food, Water
& Nutrients
EU Product Policy Framework
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 3
Source: European Commission (2019): Sustainable Products in a Circular Economy -Towards an
EU Product Policy Framework contributing to the Circular Economy, Commission Staff Working
Document, SWD (2019) 92 final, Brussels; adapted by the author of this presentation
EU Sustainable Products Initiative
The Sustainable Product Policy Initiative aims at correcting the following market and
regulatory failures:
● Product-related externalities are not fully internalized
● EU initiatives and legislation only partially address sustainability aspects of products, either
on a mandatory or voluntary basis
● The lack of reliable information on sustainability along value chains
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 4
Source: European Commission (2020): Sustainable Products Initiative –
Inception Impact Assessment, Available: https://ec.europa.eu/info/law/better-
regulation/have-your-say/initiatives/12567-Sustainable-Products-Initiative;
Accessed: 12.10.2020
“…..reducing the overall life-cycle climate and environmental footprint of the
products placed on the EU market, achieving longer product lifetimes for
example through more durable and reparable products, increasing circular
material use rate, reducing waste and achieving higher recycling rates.”
EU Sustainable Products Initiative
The initiative will work on introducing mandatory measures, e.g:
● Revise the Ecodesign Directive and propose additional legislative measures, and if
feasible, widen the scope beyond energy related products, i.e. textiles, furniture, complex
digital services, cement etc.
● Establishing EU rules to make producers responsible for providing more circular
products
● Establishing EU rules for setting requirements on mandatory sustainability labelling
and/or disclosure of information to market actors along value chains in the form of a digital
product passport
● Establishing EU rules for setting mandatory minimum sustainability requirements on
public procurement of products
● Measures to facilitate recycled content or remanufacturing and to track the use of
hazardous substances in such processes.
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 5
Source: European Commission (2020): Sustainable Products Initiative –
Inception Impact Assessment, Available: https://ec.europa.eu/info/law/better-
regulation/have-your-say/initiatives/12567-Sustainable-Products-Initiative;
Accessed: 12.10.2020
Circular Procurement – An example from the EU
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 6
Source for GPP spending: European Commission: Public Procurement,
https://ec.europa.eu/growth/single-market/public-procurement_en; Source for Circular Procurement:
ICLEI (2018): Circular Procurement
Keeping products &
materials in the loop
Life-time extension
Reuse and recovery
Recycling-friendly design
Circular economy Circular procurement
Procured products are
• designed for durability,
• easy to repair,
• easy to recycle,
• avoid waste generation in first place
Effects: less raw material extraction, lower costs in the long-term, strengthening local repair-economy
€2 trillion
is spent by EU public authorities each year
(14% of EU GDP)
1% efficiency gain, could save €20 billion per year!
Nexus: Circular Economy – Cost Savings – Climate Mitigation
Example: Extended life-span of notebooks in public administration
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021
GWP100
(kg
CO
2
e)
/
10
years
Workplace with Notebooks
(Use time notebooks: 3 years)
Workplace with Notebooks
(Use time notebooks: 6 years)
1,394 kg CO2e
1,003 kg CO2e
Production Use Disposal
Distribution
Source: Oeko-Institut (2016)
Ecological comparative calculation of two computer workplaces with notebooks
(Observation period 10 years)
In public authorities at the federal level in Germany, 71,000 tonnes
of greenhouse gas emissions can be saved if usage time of
notebooks is increased to 6 years
* Assumption: 1/3 of all workplaces in federal authorities equipped with notebooks
=
Savings of
95 Million €
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021
Nexus: Circular Economy – Cost Savings – Climate Mitigation
Example: Promoting Reuse, Discouraging single-use packaging
• High waste volumes
• High costs for municipalities
• Unpleasant appearance
• Low waste volumes
• New business for service providers
• Low costs for municipalities
Local government policies coupled with business initiatives can have
much positive impact
Source of Pictures:
Left: pixabay.com
Right: https://www.cupconcept.com/de-de/
Single Use PET bottle
139 kg CO2e /m³
Reusable PET bottle
(in a Deposit Return Scheme)
69 kg CO2e /m³
Source Reusable vs single-use PET Bottle:
DUH (2020): Mehrweg-und Einweggetränkeverpackungen.
Fakten zu Ökobilanzergebnissen. Hg. v. Deutsche Umwelthilfe/
Climate Change Act (KSG)
● Chapter 5: Role model public
administration (Public Procurement,
climate neutrality of federal public
administration until 2030)
● § 13 KSG
● Public procurers must contribute to
the objective and the targets of the
Climate Change Act
● Obligation to prefer climate friendly
products
● Obligation applies to all phases of
procurement
● Consideration of life-cycle costs and
economic costs of climate change
Circular Economy Act (KrWG)
● Reform of § 45 KrWG (public
procurement)
‒ OLD: obligation to check if resource
efficient products can be considered
‒ NEW: obligation to prefer resource
efficient products
● Legal basis to oblige manufacturers
& retailers of disposable plastic
products to share cleaning costs of
public spaces
● Legal basis for banning the
destruction of unsold durable goods
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021
Germany: GPP in Climate Change Act & Circular Economy Act
9
Presentation Anja Mager (BMU): Legal developmentsin GPP in Germany,
EU GPP Advisory Group, Webmeeting, 12 March 2020, Available:
https://ec.europa.eu/environment/gpp/expert_meeting_en.htm; Accessed:
12.10.2020
Ecolabels in GPP
• Ecolabels can reduce the amount of work involved in defining and
verifying circular economy criteria of tenders
Example EU:
• Ecolabels can be referred to in specifications, award criteria, means of proof
• Procurers may only refer to ecolabels that meet a number of requirements (e.g. the Type
I or ISO 14024 ecolabels)
• The preamble of the Directive specifically refers to the use of eco-labels (EU-Ecolabel,
national ecolabels etc.)
• Example South Korea: Act on Encouragement of Purchase of Green Products →
state agencies should purchase green products and services for which the eco-
label criteria exist (Korea Ecolabel, Good Recycled Mark)
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 10
GPP and the SDGs
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 11
Source: National Economic and Development Authority, Philippines, NEDA (2020):
https://development.asia/case-study/developing-action-plan-sustainable-consumption-and-
production-philippines; adaped by the author of this presentation
SDG 12
Target 12.7
Target 12.8
Responsible Consumption
and Production
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021
Conclusions
● Standards for circular products and services are expected to
be developed and enforced in the EU and other regions
● Circularity is increasingly been seen as a decisive competitive
factor in a global economy in the future
12
● Countries in Asia are advised to include GPP within high-level
policy goals (e.g. green growth strategy, 5-year plan, socio-
economic development plan, circular economy strategy etc.)
● Public authorities require capacity building and technical
support for applying Circular Economy principles (including
usage of Ecolabel criteria) in procurement process
● Additionally, we recommend start developing legal framework
for mandatory minimum environmental product standards for
Circular Economy
Thank you for your attention!
GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 13
Siddharth Prakash
Öko-Institut e.V.
Sustainable Products & Material Flows
E-Mail: s.prakash@oeko.de
Web: https://www.oeko.de/en/
Contact

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Policy instruments for upstream Circular Economy

  • 1. GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 1
  • 2. The EU Strategy for transforming the future GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 2 The European Green Deal EU Circular Economy Action Plan Sustainable Products Policy Framework Electronics & ICT Designing Sustainable Products Reduce EU greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels; climate- neutrality by 2050 Boost the efficient use of resources by moving to a clean, circular economy Empowering Consumers & Public Buyers Circularity in production processes - Decoupling economic growth from resource use; - Keeping resource consumption within planetary boundaries - Reduce consumption footprint Batteries & Vehicles Packaging Plastics Construction & Buildings Food, Water & Nutrients
  • 3. EU Product Policy Framework GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 3 Source: European Commission (2019): Sustainable Products in a Circular Economy -Towards an EU Product Policy Framework contributing to the Circular Economy, Commission Staff Working Document, SWD (2019) 92 final, Brussels; adapted by the author of this presentation
  • 4. EU Sustainable Products Initiative The Sustainable Product Policy Initiative aims at correcting the following market and regulatory failures: ● Product-related externalities are not fully internalized ● EU initiatives and legislation only partially address sustainability aspects of products, either on a mandatory or voluntary basis ● The lack of reliable information on sustainability along value chains GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 4 Source: European Commission (2020): Sustainable Products Initiative – Inception Impact Assessment, Available: https://ec.europa.eu/info/law/better- regulation/have-your-say/initiatives/12567-Sustainable-Products-Initiative; Accessed: 12.10.2020 “…..reducing the overall life-cycle climate and environmental footprint of the products placed on the EU market, achieving longer product lifetimes for example through more durable and reparable products, increasing circular material use rate, reducing waste and achieving higher recycling rates.”
  • 5. EU Sustainable Products Initiative The initiative will work on introducing mandatory measures, e.g: ● Revise the Ecodesign Directive and propose additional legislative measures, and if feasible, widen the scope beyond energy related products, i.e. textiles, furniture, complex digital services, cement etc. ● Establishing EU rules to make producers responsible for providing more circular products ● Establishing EU rules for setting requirements on mandatory sustainability labelling and/or disclosure of information to market actors along value chains in the form of a digital product passport ● Establishing EU rules for setting mandatory minimum sustainability requirements on public procurement of products ● Measures to facilitate recycled content or remanufacturing and to track the use of hazardous substances in such processes. GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 5 Source: European Commission (2020): Sustainable Products Initiative – Inception Impact Assessment, Available: https://ec.europa.eu/info/law/better- regulation/have-your-say/initiatives/12567-Sustainable-Products-Initiative; Accessed: 12.10.2020
  • 6. Circular Procurement – An example from the EU GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 6 Source for GPP spending: European Commission: Public Procurement, https://ec.europa.eu/growth/single-market/public-procurement_en; Source for Circular Procurement: ICLEI (2018): Circular Procurement Keeping products & materials in the loop Life-time extension Reuse and recovery Recycling-friendly design Circular economy Circular procurement Procured products are • designed for durability, • easy to repair, • easy to recycle, • avoid waste generation in first place Effects: less raw material extraction, lower costs in the long-term, strengthening local repair-economy €2 trillion is spent by EU public authorities each year (14% of EU GDP) 1% efficiency gain, could save €20 billion per year!
  • 7. Nexus: Circular Economy – Cost Savings – Climate Mitigation Example: Extended life-span of notebooks in public administration GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 GWP100 (kg CO 2 e) / 10 years Workplace with Notebooks (Use time notebooks: 3 years) Workplace with Notebooks (Use time notebooks: 6 years) 1,394 kg CO2e 1,003 kg CO2e Production Use Disposal Distribution Source: Oeko-Institut (2016) Ecological comparative calculation of two computer workplaces with notebooks (Observation period 10 years) In public authorities at the federal level in Germany, 71,000 tonnes of greenhouse gas emissions can be saved if usage time of notebooks is increased to 6 years * Assumption: 1/3 of all workplaces in federal authorities equipped with notebooks = Savings of 95 Million €
  • 8. GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 Nexus: Circular Economy – Cost Savings – Climate Mitigation Example: Promoting Reuse, Discouraging single-use packaging • High waste volumes • High costs for municipalities • Unpleasant appearance • Low waste volumes • New business for service providers • Low costs for municipalities Local government policies coupled with business initiatives can have much positive impact Source of Pictures: Left: pixabay.com Right: https://www.cupconcept.com/de-de/ Single Use PET bottle 139 kg CO2e /m³ Reusable PET bottle (in a Deposit Return Scheme) 69 kg CO2e /m³ Source Reusable vs single-use PET Bottle: DUH (2020): Mehrweg-und Einweggetränkeverpackungen. Fakten zu Ökobilanzergebnissen. Hg. v. Deutsche Umwelthilfe/
  • 9. Climate Change Act (KSG) ● Chapter 5: Role model public administration (Public Procurement, climate neutrality of federal public administration until 2030) ● § 13 KSG ● Public procurers must contribute to the objective and the targets of the Climate Change Act ● Obligation to prefer climate friendly products ● Obligation applies to all phases of procurement ● Consideration of life-cycle costs and economic costs of climate change Circular Economy Act (KrWG) ● Reform of § 45 KrWG (public procurement) ‒ OLD: obligation to check if resource efficient products can be considered ‒ NEW: obligation to prefer resource efficient products ● Legal basis to oblige manufacturers & retailers of disposable plastic products to share cleaning costs of public spaces ● Legal basis for banning the destruction of unsold durable goods GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 Germany: GPP in Climate Change Act & Circular Economy Act 9 Presentation Anja Mager (BMU): Legal developmentsin GPP in Germany, EU GPP Advisory Group, Webmeeting, 12 March 2020, Available: https://ec.europa.eu/environment/gpp/expert_meeting_en.htm; Accessed: 12.10.2020
  • 10. Ecolabels in GPP • Ecolabels can reduce the amount of work involved in defining and verifying circular economy criteria of tenders Example EU: • Ecolabels can be referred to in specifications, award criteria, means of proof • Procurers may only refer to ecolabels that meet a number of requirements (e.g. the Type I or ISO 14024 ecolabels) • The preamble of the Directive specifically refers to the use of eco-labels (EU-Ecolabel, national ecolabels etc.) • Example South Korea: Act on Encouragement of Purchase of Green Products → state agencies should purchase green products and services for which the eco- label criteria exist (Korea Ecolabel, Good Recycled Mark) GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 10
  • 11. GPP and the SDGs GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 11 Source: National Economic and Development Authority, Philippines, NEDA (2020): https://development.asia/case-study/developing-action-plan-sustainable-consumption-and- production-philippines; adaped by the author of this presentation SDG 12 Target 12.7 Target 12.8 Responsible Consumption and Production
  • 12. GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 Conclusions ● Standards for circular products and services are expected to be developed and enforced in the EU and other regions ● Circularity is increasingly been seen as a decisive competitive factor in a global economy in the future 12 ● Countries in Asia are advised to include GPP within high-level policy goals (e.g. green growth strategy, 5-year plan, socio- economic development plan, circular economy strategy etc.) ● Public authorities require capacity building and technical support for applying Circular Economy principles (including usage of Ecolabel criteria) in procurement process ● Additionally, we recommend start developing legal framework for mandatory minimum environmental product standards for Circular Economy
  • 13. Thank you for your attention! GPP & other instruments for Circular Economy│Siddharth Prakash│Freiburg│04.05.2021 13 Siddharth Prakash Öko-Institut e.V. Sustainable Products & Material Flows E-Mail: s.prakash@oeko.de Web: https://www.oeko.de/en/ Contact