Sustainable Consumption and Production and Circular Economy: Eco-innovation drivers

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1 Sustainable Consumption and Production and Circular Economy: Eco-innovation drivers Arab Hoballah Chief, Sustainable Lifestyles, Cities, and Industry Branch For «Delivering SCP»

2 Delivering SCP Waste Management Sustainable resource management Sustainable lifestyles Sustainable marketing Sustainable Consumption and Production through circular economy and eco-innovation Design for sustainability D4S Cleaner production & Resource Efficiency Sustainable procurement Sustainable transport Eco-labelling and certification

3 2030 Agenda for Sustainable Development 4 th ICCM 28 Sep-2 Oct 2015, Geneva SAMOA SIDS Pathway 10YFP and its Programmes Post 2015 Framework on Disaster Risk Reduction

4 10-year framework of programmes on sustainable consumption and production (10YFP) A multi-stakeholder platform to deliver SCP and Contribute to the SDGs

5 10YFP Programmes

6 Demand to impact paradigm of current economy Source: International Resource Panel infographics

7 Sustainability as source for innovation and value creation Value to Society Tinkering around edges Singular interventions to improve processes and products Eco-innovation rethinking business strategies and models which mainstreams sustainability throughout all business operations across the value chain Value to Business

8 Business model innovation through R Refuse Recycle Reduce Recover RETHINK Reuse Redistribute/ re-gift Refurbish /Repair Remanufacture

9 Life Cycle Thinking where are the opportunities? high 80% Time Spent Upstream Opportunities: Building up better alliances, access to limited resources, stability of supply, etc. Downstream Opportunities: Customer satisfaction and loyalty, improved brand image, etc. low 20% Opportunities Production/ Extraction Transport Manufacturing Sale Use Disposal Value Chain Source: Adapted from WWF-UK 2003 Source: Jim Fava presentation, 8 th April 2013, UNEP/SETAC LCInit workshop, Paris

10 Critical role & needs of agents for Circular Economy Consumers: Consumption, lifestyle and behavioural choices SMEs: backbone of the economies but can be a critical gap in value chains Finance sector: considerable investment from public and private sources Scientists and academics: Technology innovation and scientific evidence Urban population: cities as critical hub for resource use and efficiency Business: manufacturing at the core of CE, business model innovation and scaling up Policy-makers: sending coherent market signals through regulation and other instruments International organizations: consensus building and cooperation, best practice promotion, capacity development

11 LCA data, methods and tools Working along the value chain towards integrated solutions and shared value Sustainable food systems Sustainable product information Food processing Sustainable lifestyles and practices Food waste, in cities context

12 The Global Network for Resource Efficient and Cleaner Production (RECPnet)

13 RECPnet as a platform to deliver Circular economy and SCP Capacity building Finance Technology Facilitate knowledge, networks and resources Strengthen capacity Measure contribution to SDGs at national, regional and global level Trade Multistakeholder partnership

14 Eco-innovation Project at a glace Objective: Build local capacities for strategic business eco-innovation Implemented with financial support of the European Commission Duration: Initial focus of the eco-innovation intervention is on sectors with highest potential for decoupling: Food processing, Chemicals manufacturing and use; and Metal processing Delivery mechanism: development of tools, capacity development, national demonstration projects and cooperation Tools (9 tools) Beneficiaries Partners/Networks

15 Available for download: The Business Case for Eco-innovation To make convincing case for eco-innovation Overview of trends and indicators Examines the examples of 7 different companies from large to SMEs and start-ups Clear benefits for ecoinnovation: av. annual growth around 15% in flat market Primary research: interviews Target audience: businesses and service providers

16 Why and how UNEP works in the chemical sector Focusing on chemicals sector is important because: Chemicals are central to consumer economy (products) and help to engage variety of market players: consumers, retailers and buyers, producers and policy-makers Chemicals value chain spreads across many sectors some of the most damaging impacts to human health and the environment How can CE and Eco-innovation benefit chemical sector? Takes holistic approach, going beyond water/energy use and extending analysis to hazardous/harmful impacts Helps to identify substitutes for hazardous/harmful chemicals, and their potential impacts Helps to engage consumers thanks to strong link with health Helps identify new business models, e.g. chemical leasing

17 Global Chemical Outlook

18 Circular economy and the chemicals sector Holistic approach of circular economy and ecoinnovation addresses the broad objectives of the SDGs and the wider 2030 Agenda for Sustainable Development Sound chemical management and waste addressed in at least 11 goals and associated targets of the SDGs requires lifecycle approach to ensure their achievement Standards, regulations and private sector active engagement on hazardous chemicals help to promote SCP

19 Enabling policy framework Market is not always conducive to circular economy and eco-innovation adoption and diffusion due to a number of barriers role of policy to remove barriers and create incentives and create context condition National and local level: focus creating enabling conditions at both production and consumption side Global level: focus on creating level playing and addressing asymmetries between the countries

20 Combine current policy instruments Fiscal and economic Regulation Voluntary measures, information and education, science and R&D One instrument is not effective for significant change Their combination and design that makes their impact systemic Need to understand what and how instruments affect the change in behavior in life cycle and broader system Need to consider the context and specific setting

21 Adopt long term vision Measures with short term perspective incremental changes Long terms vision and direction for the market where to focus Need for strategic intelligence and foresight Regularly review the selected measures for their relevance and stringency Push towards continuous improvement

22 ... using a mix of policy interventions to create incentives for transformative change at key stages

23 Policy integration

24 Build and Foster Collaboration An interactive and iterative process need for interface for open and creative exchange and collaboration

25 Finally, food for thought : From Linear to Circular Economy, based on our understanding of demand and consumption patterns drivers; (Triggered by recent Nobel Prize to Angus Deaton) Thank you Arab Hoballah arab.hoballah@unep.org Liazzat.rabbiosi@unep.org