Open Mic: Blindspot. Oct 24 th 2014

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1 1 Open Mic: Blindspot Oct 24 th 2014

2 2 WEBINAR BY:!James Greyson, BlindSpot Think Tank! FACILITATED BY:!Arthur ten Wolde, IMSA Amsterdam! TECH SUPPORT:!Seb Egerton-Read, Ellen MacArthur Foundation!

3 3 The circular economy dream current resources future resources Nice idea or urgent impera>ve? Restora>ve civilisa>on Resources not lost as wastes Resolve many interlocked issues Economics as a tool for wider change Solu>ons self- organise everywhere Inspires further system changes

4 4 Why is circular economy s2ll a dream? The linear lock- in: Economic vision available since at least 1966 Huge global ac>vity on everything except systemic change everything we think and do another year of linear economy

5 5 the linear loop is locked- in circular loop: #thinkdif to unlock

6 6 The linear lock- in starts with us so we can end it! global tangle conceptual tangle visceral tangle

7 What do we keep telling ourselves to cope? 7 1. Circular economy is already happening! 2. We need more ac>on not more talk! 3. We already know the solu>ons! 4. There s no silver bullet! 5. Let s just get on with it! Are these the same messages for sustainable development, climate change and other global issues?

8 8 How else could we cope? The usual messages are decoys: #ThinkDIF Explore our collec>ve blindspots; what are we missing? System solu>ons lie beyond our comfort zone Systems are complex; system change can be simple We will cope by actually solving global problems We can do this also for other (or all) global problems

9 9 Change in a system 1. Focus on subsystems (of stuff, issues, sectors, geographies, organisa>ons ) 2. Collaborate; set targets 3. Seek improvement 4. Whether or not it works, repeat the above steps

10 10 Change OF the system 1. Focus on the whole system 2. Spot the systemic blindspots 3. Design tools for change 4. The tools change the system, then the new system changes everything else

11 11 European policy makers consider system change EU Circular Economy Communica>on July 2014

12 What guides our thinking on waste? 12 How the waste hierarchy was envisaged in the 1975 EU Waste Framework Direc>ve: Most waste can be avoided Preven>on is priori>sed Disposal to land, water or air is the last resort

13 How the waste hierarchy was actually used 13 The upside down waste hierarchy: Most agen>on and funds support disposal Waste gets managed not stopped The shii from land- disposal to air- disposal is called zero waste, and given public funds, long contracts and carbon credits

14 waste = discarded stuff? 14 pre- waste choices waste management outcomes

15 15 ecological waste = stuff accumula2ng in ecosystems pre- waste choices outcomes

16 precycling = ac2on to stop future waste 16 Ac>on taken now to ensure that resources remain as resources, for the economy or for nature, rather than adding to wastes in ecosystems Circular economy translated into prac>ce Agen>on to the non- disposal op>ons of the waste hierarchy A fresh perspec>ve to support dialogue, collabora>on and innova>on Language to enable systemic change

17 Every product can be precycled: Everyone can precycle 17 What can we do now to give this material a future as a new resource for people or for nature? 1. ThinkDIF? 2. Change the product? 3. Change the social/economic/technical circumstances of the product?

18 We want circular economics 18 without ge2ng our hands dirty under the bonnet 40+ years of thinking on price signals and market externali>es has reached just one conclusion: Taxes, taxes and more taxes We don t pause to ask why do governments avoid green tax shiis?

19 Insurance can help prevent risks 19 Third party car insurance Obligatory Cheaper with lower risk Recycling Insurance Part of the EU WEEE Direc>ve Premiums fund a financial guarantee of future recycling Works for recyclable items Can be extended to all products and all ways to stop ecological waste

20 planet- scale insurance government oversees 20 producers pay premium insurers spend premiums society precycles circular outcomes

21 Designing waste out of economics 21 Linear economics neglects resource- related externali>es Can fix externali>es with a market- based tool (not fiscal/tax) Waste- risk = risk of a product becoming waste in ecosystems Producers are responsible for the waste- risk of their products Require producers to insure against their waste- risk Low waste- risk means zero/low precycling premium High waste- risk means a higher premium Premiums spent to cut waste- risk everywhere

22 Precycling premiums example 22 KeOle A Low effort by producer High waste- risk Pays premium Insurer spends premium on precycling everywhere Producer less compe>>ve KeOle B High effort by producer Low waste- risk Pays no premium Public sees the product s circular plan Producer more compe>>ve

23 Advantages? Simpler: works for all products, all resources, all sectors and many issues (eg climate, cri>cal materials, ecosystems, jobs) 2. Beger for government: less regula>on + much more progress 3. Beger for business: level playing field + innova>on incen>ves + freedom of choice in how to respond 4. Works with other economic and regulatory tools 5. Decouples impacts from GDP growth

24 Corey Balazowich 24 Case study: marine pollu2on Plas2cs, oil, acidifica2on and fer2lisers in oceans are all waste issues All start with products having high waste risk All can be tackled at source with precycling premiums Collaborate interna2onally for a global solu2on It s not difficult; it can be done now!

25 The default strategies are all self- limi2ng 25 Default growth pathway: get growth by destroying what s needed for future growth Default alterna>ve: look beyond GDP. The choice between green and growth is easy for poli>cians Default green economy: target green sectors Default regula>on: more progress = more rules

26 Unlocking circular mindsets in poli2cs 26 Growth is a non- nego>able poli>cal goal 2 paths to seek growth; linear or circular The path is set by the economics Economics either neglects or fixes externali>es Success means efficiently preven>ng (rather than paying or suffering) externali>es New circular ac>vity > loss of old linear ac>vity StockMonkeys.com

27 Thanks! Ques2ons? Comments? 27 Please stay in touch! James Arthur ten