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THE ECONOMICS
AND GOVERNANCE
OF CIRCULAR
ECONOMY IN CITIES
Oriana Romano
Policy Analyst
Cities, Urban Policies and Sustainable Development Division,
Organisation for Economic Co-operation and Development (OECD)
11th OECD WGI Meeting
Zaragoza, 13 November 2018
Outline
What?
Circular
Economy
Why?
Megatrends
and
opportunities
Whom?
Cities and
regions
How?
Economics
and
Governance
What is circular economy?
“Everything is an input to everything else”
(Pierce and Turner, 1990)
Which thematic areas
of research and
analysis linked to
water governance
would you like to see
explored in the 2018-
2021 programme of
work?
Source: OECD ( 2018), OECD WGI Satisfaction
Survey
Why?
Challenges and opportunities
°C
Megatrends
• Demographic growth
• Urbanisation
• Climate change
• Economic trend
Opportunities
• Technological
• Socio-economic
• Environmental
System change
• People
• Policies
• Places
9.7 billion by 2050
By 2050
70% of the world
population
will be urban
Availability and
quality of natural
resources at risks
By 2030, 6.7 $ trillion
per year of
investment needs in
infrastructure
4.5 trillion dollars
potential for
economic
growth by 2030
50 000 jobs
in the Île-de-France
Decreased
pollution;
recyclable
resources
Government, business,
citizens
Urban, rural
Water, energy, waste,
building, food
Source: OECD ( 2018), The Economics and
Governance of Circular Economy in Cities: a project
proposal.
A momentum for the circular economy
SDGs Regional and urban agendas Circular Economy agendas
Water & Circular Economy
Slovenia: Concern for the conservation of soil
and water quality – the need to harmonize
policies and subsidies, incentives for good
governance and adequate response to
changed climatic conditions (heavy rain,
drought, hail, etc.)
Scotland: Resource Efficient Scotland
brings together three previous
programmes which covered resource use,
waste, water use and energy. It offers the
opportunity for key business sectors to be
supported towards achieving greater
circularity.
Amsterdam: circular procurement of new soils
and road- and water construction projects.
EU: Water reuse can be a valuable measure to achieve the
objectives of the WFD in a more Circular Economy, in
particular in situations of water scarcity/ in addition to
water-efficiency measures, the reuse of treated wastewater
in safe and cost-effective conditions is a valuable but under-
used means of increasing water supply and alleviating
pressure on over-exploited water resources in the EU
Granada: The challenge is to
continue advancing in the
generation of renewable
energy in the water cycle to
achieve total self-sufficiency
and sustained over time, and
provide energy to the city of
Granada
Whom?
The role of cities and regions
Responsibilities
Innovation
Investments
Services
Roles
Promoters
Facilitators
Enablers
Clusters
Pioneers
Sector
specialists
Newcomers
How?
Mind the gap- bridge the gap
Source: OECD ( 2011), Water Governance in OECD Countries, OECD Publishing, OECD; Charbit, C. and M. Michalun (2009), "Mind the gaps: Managing Mutual
Dependence in Relations among Levels of Government", OECD Working Papers on Public Governance, No. 14, OECD Publishing, © OECD. doi:10.1787/221253707200 :
OECD Principles on Water Governance, http://www.oecd.org/cfe/regional-policy/OECD-Principles-on-Water-Governance-brochure.pdf .
Unlocking the potential
for circular economy in cities
1.
Measuring
2.
Learning
3.
Sharing
Source: OECD ( 2018), The Economics and Governance of Circular Economy in Cities: a project proposal.
• To identify how
circular a city is
• To guide circular
economy decisions,
assessment and
policy improvements
• Harmonization/
replicability
• Policy Dialogues
• Peer-to-peer review
• Recommendations
• Action plan
• City to city learning
• Central –subnational
government
Timeline
•City engagement
•Stakeholder engagement
•Peer review
•Expertise
Kick-off
December 2018
•Socio-economic and
environmental trends
•Experiences on circular
economy
•Tailored recommendations
Diagnostic
January-May 2019
•Actions
•Champions
•Timing
Action Plan
May-September 2019
 Outputs:
 OECD report
 Case study for each city
 2 International Workshops
 Indicator framework
• What are the main opportunities for the water
sector within circular economy approaches?
• Can circular economy enhance integration
across policies?
• What are the main innovation linked to the water
sector? (e.g. digitalisation, partnerships, etc.)
• How would you like to see circular economy
explored in the 2018-2021 programme of work?
Questions
THANK YOU
oriana.romano@oecd.org
12

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The Economics and Governance of Circular Economy in Cities, OECD

  • 1. THE ECONOMICS AND GOVERNANCE OF CIRCULAR ECONOMY IN CITIES Oriana Romano Policy Analyst Cities, Urban Policies and Sustainable Development Division, Organisation for Economic Co-operation and Development (OECD) 11th OECD WGI Meeting Zaragoza, 13 November 2018
  • 3. What is circular economy? “Everything is an input to everything else” (Pierce and Turner, 1990) Which thematic areas of research and analysis linked to water governance would you like to see explored in the 2018- 2021 programme of work? Source: OECD ( 2018), OECD WGI Satisfaction Survey
  • 4. Why? Challenges and opportunities °C Megatrends • Demographic growth • Urbanisation • Climate change • Economic trend Opportunities • Technological • Socio-economic • Environmental System change • People • Policies • Places 9.7 billion by 2050 By 2050 70% of the world population will be urban Availability and quality of natural resources at risks By 2030, 6.7 $ trillion per year of investment needs in infrastructure 4.5 trillion dollars potential for economic growth by 2030 50 000 jobs in the Île-de-France Decreased pollution; recyclable resources Government, business, citizens Urban, rural Water, energy, waste, building, food Source: OECD ( 2018), The Economics and Governance of Circular Economy in Cities: a project proposal.
  • 5. A momentum for the circular economy SDGs Regional and urban agendas Circular Economy agendas
  • 6. Water & Circular Economy Slovenia: Concern for the conservation of soil and water quality – the need to harmonize policies and subsidies, incentives for good governance and adequate response to changed climatic conditions (heavy rain, drought, hail, etc.) Scotland: Resource Efficient Scotland brings together three previous programmes which covered resource use, waste, water use and energy. It offers the opportunity for key business sectors to be supported towards achieving greater circularity. Amsterdam: circular procurement of new soils and road- and water construction projects. EU: Water reuse can be a valuable measure to achieve the objectives of the WFD in a more Circular Economy, in particular in situations of water scarcity/ in addition to water-efficiency measures, the reuse of treated wastewater in safe and cost-effective conditions is a valuable but under- used means of increasing water supply and alleviating pressure on over-exploited water resources in the EU Granada: The challenge is to continue advancing in the generation of renewable energy in the water cycle to achieve total self-sufficiency and sustained over time, and provide energy to the city of Granada
  • 7. Whom? The role of cities and regions Responsibilities Innovation Investments Services Roles Promoters Facilitators Enablers Clusters Pioneers Sector specialists Newcomers
  • 8. How? Mind the gap- bridge the gap Source: OECD ( 2011), Water Governance in OECD Countries, OECD Publishing, OECD; Charbit, C. and M. Michalun (2009), "Mind the gaps: Managing Mutual Dependence in Relations among Levels of Government", OECD Working Papers on Public Governance, No. 14, OECD Publishing, © OECD. doi:10.1787/221253707200 : OECD Principles on Water Governance, http://www.oecd.org/cfe/regional-policy/OECD-Principles-on-Water-Governance-brochure.pdf .
  • 9. Unlocking the potential for circular economy in cities 1. Measuring 2. Learning 3. Sharing Source: OECD ( 2018), The Economics and Governance of Circular Economy in Cities: a project proposal. • To identify how circular a city is • To guide circular economy decisions, assessment and policy improvements • Harmonization/ replicability • Policy Dialogues • Peer-to-peer review • Recommendations • Action plan • City to city learning • Central –subnational government
  • 10. Timeline •City engagement •Stakeholder engagement •Peer review •Expertise Kick-off December 2018 •Socio-economic and environmental trends •Experiences on circular economy •Tailored recommendations Diagnostic January-May 2019 •Actions •Champions •Timing Action Plan May-September 2019  Outputs:  OECD report  Case study for each city  2 International Workshops  Indicator framework
  • 11. • What are the main opportunities for the water sector within circular economy approaches? • Can circular economy enhance integration across policies? • What are the main innovation linked to the water sector? (e.g. digitalisation, partnerships, etc.) • How would you like to see circular economy explored in the 2018-2021 programme of work? Questions