Circular Economy Closing the loop An EU Action Plan for the Circular Economy

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1 Circular Economy Closing the loop An EU Action Plan for the Circular Economy

2 What are the limitations of a Linear Economy? lost value of materials and products scarcity of resources volatile prices of resources waste generated unstable supply of raw materials environmental degradation & climate change 2

3 The EU is heavily dependent on imported raw materials European Union (EU-28) Rest of the world (ROW) EU-28 exports (2014) EU-28 imports (2014) Total trade EU-28 to ROW In 2004: 455 million tonnes In 2014: 640 million tonnes Source: Biomass Manufactures (finished manufactured products) Fuels and mining products (fossil energy, metal ores and non-metallic minerals) 3 Total trade ROW to EU-28 In 2004: 1664 million tonnes In 2014: 1534 million tonnes

4 From a Linear Economy NATURAL RESOURCES TAKE MAKE DISPOSE WASTE WASTE WASTE 4

5 to a Circular Economy 5

6 What are the benefits of a Circular Economy? the value of products, materials and resources is maintained in the economy for as long as possible waste generation is minimised boost to the economy and competitiveness by creating new business opportunities, and introducing innovative products and services brings economic, social and environmental gains 6

7 Circular Economy: looking to the future growth & job creation/ up to +7% GDP up to 600 billion in savings/8% of annual turnover for business in the EU estimated direct jobs in waste management sectors created by 2035 boosting competitiveness and ensuring security of supply building economic and environmental resilience encouraging innovation reducing total annual Greenhouse Gas Emissions by 2-4% 7

8 Circular Economy Package Adopted by the Commission 2 December 2015 Action Plan Communication List of Follow-up Initiatives (Annex) 4 Legislative proposals on waste 8

9 In line with the Commission s overall priorities Protecting the environment and boosting competitiveness Energy Union and Climate go hand-in-hand: both are about building a sustainable future. Jobs, Growth and Investment CIRCULAR ECONOMY Democratic Change, Better Regulation 9

10 Secondary raw materials Consumption Key action areas Production Innovation, Investment & Monitoring Waste Management 10

11 Concrete and ambitious actions ecodesign to include reparability, durability, recyclability legislation on fertilisers, including organic and waste-based fertilisers minimum requirements for the reuse of wastewater actions on Green Public Procurement funding of 650 million for Industry 2020 in the circular economy quality standards for secondary raw materials strategy on plastics, including marine litter interface between chemicals, products and waste legislation 11

12 Priority sectors Biomass & Bio-based Products Plastics Construction & Demolition Food Waste Critical Raw Materials 12

13 Proposals on waste long-term recycling targets for municipal waste and packaging waste, and to reduce landfilling measures to promote waste prevention, including food waste clearer rules for preparation for reuse, simplification on by-products and end-of-waste status extension of separate collection to bio-waste on top of glass/paper/plastic/metals common minimum requirements for extended producer responsibility schemes 13

14 Circular Economy: an international dimension transition to a Circular Economy will help the EU meet its international commitments 2030 Sustainable Agenda, adopted by the United Nations in Sept 2015 COP21, historic agreement on 2 C global warming limit in Dec 2015 G7 Alliance for Resource Efficiency, building more sustainable supply chains and global markets for secondary raw materials 14

15 Next Steps more than 50 key actions included in the EU Action Plan for the Circular Economy timeline for implementation progress report 5 years after adoption actions to be developed in line with the Better Regulation principles European Parliament and Council to decide on the 4 legislative proposals on waste 15

16 BACKGROUND SLIDES 16

17 Action areas

18 Secondary raw materials Consumption Key action areas Production Innovation, Investment & Monitoring Waste Management 18

19 Production Objectives provide incentives to boost circular product design innovative and efficient production processes Key actions reparability, durability, and recyclability in eco-design (e.g. TV screens) best practices for waste management and resource efficiency in industrial sectors industrial symbiosis 19

20 Consumption Objectives repair and reuse of products to avoid waste generation provide consumers with reliable information on environmental impact of products Key actions encourage reuse activities (e.g. waste proposal) ecodesign: availability of spare parts guarantees and action on false green claims Circular Economy criteria in Green Public Procurement independent testing programme to assess possible planned obsolescence better labelling: EU Eco-label, Environmental Footprint 20

21 Waste management Objectives improve waste management in line with the EU waste hierarchy address existing implementation gaps provide long-term vision and targets to guide investments Key actions legislative proposals on waste work with Member States to improve waste management plans, including to avoid overcapacity in residual waste treatment (incineration and mechanical-biological treatment) ensure coherence between waste investments under EU Cohesion Policy and the waste hierarchy 21

22 Market for secondary raw materials Objectives increase the use of secondary raw materials increase the use of recycled nutrients and the reuse of treated wastewater safely manage risks of chemicals of concern improve knowledge of material stocks and flows Key actions quality standards for secondary raw materials EU regulation on fertilisers legislative proposal on minimum requirements for reused water analysis on the interface between chemicals, product, and waste legislation EU-wide electronic system for cross-border transfers of waste 22

23 Priority sectors

24 Priority sectors Biomass & Bio-based Products Plastics Construction & Demolition Food Waste Critical Raw Materials 24

25 Plastics Objectives increase recycling efficiency less than 25% of plastic waste collected is recycled, and about 50% is landfilled Key actions adopt a specific strategy to reduce plastic waste, including marine litter set a more ambitious target for the recycling of plastic packaging in the framework of a new legislative proposal on waste 25

26 Food waste Objectives reach Sustainable Development Goal (SDG) to halve food waste by 2030 today around 100 million tonnes of food are wasted every year in the EU Key actions develop an EU methodology to measure food waste create a platform for the SDG on food waste and share best practices and results achieved clarify EU legislation on waste, food and feed, and encourage food donation improve the use and understanding of date marking along the food chain (e.g. best before label) 26

27 Critical Raw Materials (CRMs) Objectives increase efficient use and recovery of CRMs Key actions encourage recovery of CRMs, and draft a report on best practices and options for further action at EU level encourage action by Member States 27

28 Construction & Demolition Objectives identify and increase recovery of valuable materials Key actions ensure recovery of valuable resources and adequate waste management in the construction and demolition sector, as well as facilitate assessing the environmental performance of buildings put in place pre-demolition guidelines to promote high-value recycling, and voluntary recycling protocols 28

29 Biomass & bio-based products Objectives support an efficient use of wood and biobased products increase recycling of bio-waste Key actions promote an efficient use of bio-based resources through a series of measures, including promoting the cascading use of biomass and support bio-economy innovation set a new target for recycling wood packaging and a provision to ensure the separate collection of bio-waste 29

30 Horizontal action

31 Innovation & Investment Objectives create the right environment for innovation and investment Key actions Horizon 2020 initiative launched on Industry 2020 in the Circular Economy (EUR 650 million) pilot innovation deals to address potential regulatory obstacles for innovators targeted outreach of EU funding, as Cohesion Policy Funds and for SMEs new platform for financing Circular Economy with European Investment Bank and national promotional banks 31

32 How will progress be monitored? build on existing indicators from the Resource Efficiency Scoreboard and the Raw Materials Scoreboard develop a monitoring framework for the Circular Economy in close cooperation with the European Environment Agency (EEA) 32

33 Waste management aspects

34 Background review clauses in the waste legislation by 2014 even with full implementation of existing legislation, valuable resources are being lost gap between existing targets and ambition level of the Resource Efficiency Roadmap and 7th EAP possibility to do more than existing targets important benefits to capture 34

35 Why is action needed? 36% 9% 4% 2% 6% 42% Deposit onto or into land Land treatment and release into water bodies Incineration/disposal Incineration/energy recovery Backfilling Recycling loss of valuable materials negative impacts on land, water and climate low levels of recycling-high levels of landfilling incineration of recyclable waste no long-term targets 35

36 New Waste Proposals 1st package withdrawn in January 2015 with a view to adopting a more ambitious package by the end of 2015 better, more consistent EU legislation not only focusing on waste management a robust set of medium and longer-term targets addressing MS difficulties and specificities provisions on EPR and economic instruments improved reporting and statistics 36

37 Main elements of the proposal

38 Common EU target for recycling 65% of municipal waste by

39 New targets: municipal waste recycling one calculation method based on effective recycling 70% 60% 60% 65% possible 5-year extension for 7 MS recycling less than 20% in 2013 review clause (2025) to consider more stringent targets 50% 40% 30% 20% 10% 42% 0% 2014 (current status) Target 2025 (1 method) Target 2030 (1 method) % Prep. For reuse and recycling 39

40 New binding target to reduce landfill to a maximum of 10% of total waste by

41 New targets: municipal waste landfilling by 2030: maximum 10% landfilling possible 5-year extension for the same 7 Member States suggested for the recycling rate review clause (2025) to consider more stringent targets 35% 30% 25% 20% 15% 10% 5% 0% 31% 10% 2013 (reported) Objective 2030 % Municipal waste in landfill 41

42 Common EU target for recycling 75% of packaging waste by

43 % Prep for resue and recycling New targets: recycling packaging waste clarification on measuring (same as for municipal waste) repeal of the recovery and maximum recycling targets new target for aluminium 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Existing targets 2012 (latest data) Target 2025 Target 2030 Plastic Wood Metals Glass Paper and cardboard Overall 43

44 Prevention focus on food waste, textile, Waste of electrical and electronic equipment (WEEE), furniture target to be set at national level on disposed/incinerated waste (per capita) extended Producer Responsibility links between fees paid and recyclability/reparability 44

45 Simplification and data quality simplification reporting no more implementation reports additional exemptions for enterprises collecting or transporting small amounts of waste better data quality check report national electronic registers 45

46 Best practices EC (with the support of EEA) report 3 years ahead of the target deadline identification of Member States at risk of not meeting the targets recommendations Member States to put in place economic instruments aligned with the waste hierarchy report every 5 years to EC implementation Plan for Member States notifying use of a time extension + technical assistance from EC 46

47 Benefits More efficient waste management system: 30 billion euro savings ( ) More employment: direct jobs GHG emissions reduction: 600 mln tonnes ( ) 47