Industrial Ecology and Circular Economy: From Waste to Wealth. Why is Circular Economy Needed?

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1 Industrial Ecology and Circular Economy: From Waste to Wealth Why is Circular Economy Needed? Why we need it, how it works, and what we do! GreenCo Summit 23rd June 2017 David Rochat, CEO Sofies International

2 Minimum requirement for the mission: 9 tons! But the most powerful rocket can only send 5 tons to the moon Just transporting the water would cost 11 billion EUR! Manned mission to Mars: departure in 2025 (?) so what is the solution? Recycling is the solution! 30 kg of daily requirements: - Oxygen (1kg/day): 3% - Hygiene water 78% - Drinking water 9% - Food 9% Waste - CO2 (1,2 kg/day): 3% - Solid waste 5% - Liquid waste81% - Perspiration 10% Source: NASA/ESA Source: ESA 2

3 Source: ESTEC/ESA 3

4 Circular Economy: an economy based on closed material cycles How Does Circular Economy Work? Source: Ellen McArthur Foundation 4

5 Industrial ecology: 4 strategies for implementing circular economy inspired by the functioning of natural ecosystems Industrial Ecology / Circular Economy are considered as workable solutions for a sustainable future since a few decades 1. Circularize material cycles and 2. minimize losses 4. Decarbonize by developing renewable energies 3. Dematerialize by promoting functional economy models, ecodesign and technology developments «The traditional model of industrial activity should be transformed in a more integrated model: an industrial ecosystem» R. Frosch & N. Gallopoulos, General Motors Laboratories, Scientific American, November

6 Eco-Industrial Parks: The Kalundborg Symbiosis What is it we do? Circular economy applied to industrial production source: 6

7 An industrial park inspired by the functioning of natural ecosystems = an Eco-Industrial Park Learnings from Kalundborg Economically driven vs. ideologically driven: each symbiosis makes economic sense tons of CO2 emissions avoided 3 million m3 of water saved through recycling and reuse tons of gypsum from desulphurization of flue gas replaced imported natural gypsum 75 M USD investments for 15 M USD yearly savings 5 year ROI! Self-organised project how can it be facilitated, scaled up? What are the key success factors? source: 7

8 How to make EIPs happen? A governance model based on participatory multi-stakeholder approach! How to make EIPs happen? A governance model based on participatory multi-stakeholder approach! Companies, utilities, facility managers, etc. Access to expertise Academia, industrial clusters, network of experts, etc. Dedicated organization to facilitate the process Access to expertise Acquire knowledge on the industrial metabolism Identify and assess opportunities Demonstrate feasibility Promotion campaign Implementation Gain knowledge on the industrial metabolism Identify and assess opportunities Demonstrate feasibility Promotion campaign Implementation various governmental administrations, trade associations, industrial estate manager, investment promotion agencies, political powers, etc. 8

9 1. Supporting the development of Eco-industrial parks in the Chengdu economic and technological zone in China 2. Local network for industrial ecology: uniting public and private stakeholders around a common vision! Challenges Capacity building in the field of industrial ecology Implementation of a collaborative dynamic among businesses to identify projects Position the industrial estate s management as the driving force for this new dynamic Results Implemented projects for metals and wood Identified opportunities for chemical products, energy, and shared services Industrial estate managers are now capable of proposing innovative services to companies over the longterm Challenges Self-sustain 15 years of government lead initiatives Identify, design and promote industrial ecology projects Unite all stakeholders under a same banner Results dozens of projects made visible and promoted knowledge bank creation of a dynamic network single window to expertise and best practice a unique identity and a shared vision 9

10 3. Creating a shared vision for an industrial marketing at the Port of Dunkirk (France) Lessons learnt and conclusion Challenges Restructuring of the industrial capital Increasing competition with other ports Job creation Need for a differentiated industrial marketing approach Valorize the knowledge capital Action plan Create a common vision and motivate public and private stakeholders to contribute Define a methodology and governance model Ensure the endorsement of the proposed model Secure a financial mechanism 10

11 Lessons learnt 2 major success factors Public and private stakeholders share a common vision The governance, the ownership and the leadership of the approach are clearly defined The challenge is not where we think it is Thank you for your attention! More managerial than technical A collaborative approach benefiting from solid framework conditions How will the smartness trend facilitate the emergence of EIPs? Factory of the future, industry 4.0, Big data We hear a lot about smart cities, let s also speak of smart industries!! David Rochat Tel: Mob: david.rochat@sofiesgroup.com 21 11