The document discusses the circular economy concept and policies supporting the transition to a circular economy in Europe. It defines a circular economy as an economic system of closed loops that aims to keep resources in use for as long as possible. The European Commission has adopted an ambitious action plan to stimulate Europe's transition, with goals like recycling 65% of household waste by 2030. Important EU policies include the Circular Economy Package and strategies on plastics and zero waste. However, further international policies are still needed to develop standards, share knowledge, and build coalitions to accelerate the global transition to circularity.
2. What is the circular economy?
• A circular economy is an economic system of closed loops in which raw
materials, components and products lose their value as little as possible,
renewable energy sources are used and systems thinking is at the core.
• That is, the circular economy promotes the use of as many biodegradable
materials as possible in the manufacture of products -biological nutrients- so
they can get back to nature without causing environmental damage at the end of
their useful life. When it is not possible to use eco-friendly materials -technical
nutrients: electronics, hardware, batteries... - the aim is to facilitate a simple
uncoupling to give them a new life by reintroducing them into the production
cycle and compose a new piece. When this is not possible, it will be recycled in a
respectful way with the environment.
3. Development of the definition
More than 100 different definitions of circular economy are used in scientific
literature and professional journals.There are so many different definitions in use,
because the concept is applied by a diverse group of researchers and professionals
(Kirchherr, Reike & Hekkert 2017).The diversity of definitions also makes it more
difficult to make circularity measurable.
Definitions often focus on the use of raw materials or on system change. Definitions
that focus on resource use often follow the 3-R approach:
• Reduce (minimum use of raw materials)
• Reuse (maximum reuse of products and components)
• Recycle (high quality reuse of raw materials)
4. Three elements
According to Korhonen, Nuur, Feldmann & Birkie
(2018), definitions that focus on system change
often emphasize three elements, which are further
explained below:
• Closed cycles
• Renewable energy
• Systems thinking
Some researchers argue that social inclusiveness is
also a necessary part of the circular economy
(Korhonen, Honkasalo and Seppälä, 2018).
5. 1. Closed cycles
• In a circular economy, material cycles are closed
following the example of an ecosystem.There is no
such thing as waste, because every residual stream
can be used to make a new product.Toxic
substances are eliminated and residual flows are
separated into a biological and a technical cycle.
Producers take back their products after use and
repair them for a new useful life (Ellen MacArthur
Foundation, 2015a).
6. 2. Renewable energy
• Just like raw materials and products,
energy also lasts as long as possible in a
circular economy.The circular economic
system is fed by renewable energy
sources. Because it is not possible to
recycle energy, there is no mention of
energy cycles or energy cycles, but of
‘cascade type energy flows’ (Ellen
MacArthur Foundation, 2015a). An
example of this is the co-production of
heat and power.
7. 3. Systems thinking
• The circular economy does not only
require closed material cycles and
renewable energy, but also systems
thinking. Every actor in the economy
(company, person, organism) is
connected to other actors.Together, this
forms a network in which the actions of
one player influence other players.
8. Accelerating the transition to a circular
economy
• The government will take various
measures to accelerate the
transition to a circular economy.
Rules and legislation that stand in
the way of the transition are being
amended, for example. And the
government actively supports
businesses that are engaging in
circular practices.
9. Incentives in legislation
• The government is screening its legislation
to identify any laws that hamper the
transition to a circular economy.These
obstacles will, wherever possible, be
transformed into incentives.
• The government has for example amended
legislation under which orange peel, which
was regarded as waste, can now be used as a
raw material (in Dutch) in soap and
detergents.
10. Responsibility for sustainable products
• Producers and importers will share responsibility for the management of waste
generated by the products they market.This should encourage manufacturers to
make their products as sustainable as possible. It will also ensure that more
products are collected and recycled at the end of their useful life.
• Producer responsibility already applies to manufacturers and importers of: cars;
tyres; electronic goods; packaging; batteries.
• The government is exploring the possibility of expanding producer responsibility,
by reaching agreement with producers as to how much recyclable (recycled or bio-
based) material is to be included in their products.The government is also looking
into the potential for introducing producer responsibility for products like
mattresses, disposable nappies and textiles.
11. What is the European ambition?
In 2015, the European Commission adopted an
ambitious new action plan for the circular economy to stimulate
Europe’s transition to a circular economy, which would boost
global competitiveness, promote sustainable economic growth
and create new jobs. A new proposal for legislation in the field of
waste management is attached. It is included in this proposal:
• The target of recycling 65% of household waste across the EU
by 2030;
• A ban on the landfilling of individual waste streams;
• Improved definitions and calculation methods to measure
recycling rates;
• Economic incentives to market ‘greener’ products and to
support recycling and reuse (European Commission, 2019).
12. What is the European ambition?
• In 2019, the European Commission stated that the action
plan for the circular economy can be regarded as
complete. It stated that the 54 actions of the Action Plan
have already been implemented or are in the process of
being implemented.According to the report, the
implementation of the Action Plan has accelerated the
transition to a circular economy in Europe, which has
helped put the EU back on the road to job creation. In
2016, more than four million people were employed in
the sectors relevant to the circular economy, an increase
of 6% compared to 2012.
13. What policies support these ambitions?
• In 2015, the European Commission adopted
an ambitious new action plan for the
circular economy to stimulate Europe’s
transition to a circular economy. In 2019,
the European Commission stated that the
54 actions of the action plan had already
been implemented or were in the process
of being implemented (European
Commission, 2019).
14. • Important policy measures are:
1.The Circular Economy Package, which contains a communication
strategy and a proposal to amend parts of six EU waste directives;
2.Turning the Strategy for Plastic into a Circular Economy to change
the way plastics and plastic products are designed, produced, used
and recycled. It also requires all plastic packaging to be recyclable by
2030;
3. A Monitoring Framework to measure progress towards a circular
economy at European and national level;
4.The Circular Economy Funding Support Platform to facilitate
access to finance for circular initiatives;
5.The European Union’s Zero-Waste Programme;
6.The Eco DesignWorking Plan, which lays down requirements on
energy use for specific product groups.
What policies support these ambitions?
15. What policies are still necessary?
• Circle Economy calculated for their
reportThe Circularity Gap Report that by
2019 only 9.1% of the world’s raw
materials will be fully recycled. In 2018,
this was still 9.5%. Internationally, the
world is moving away from a circular
economy.The researchers formulated four
recommendations to reverse this trend.
Three of these recommendations are
relevant here:
16. What policies are still necessary?
1. Develop decision criteria and a measurement
framework.This will stimulate the setting of
objectives, evaluations and peer review.
2. Make international knowledge transfer easier.
This will accelerate the international
dissemination of effective policies.
3. Build a global coalition for action that is both
diverse and inclusive.This coalition will
increase the capacity of frontrunners.