The Circular Economy Package

Transcription

1 The Circular Economy Package EESC hearing, Jan 28, 2016 Brussels Walter R. Stahel Dr h.c. Walter R. Stahel Visiting Professor, University of Surrey Founder-Director, The Product-Life Institute, Geneva 28/01/2016 Walter R. Stahel at EECS Brussels 1 1

2 Objectives of the CE Package to boost competitiveness, create jobs, and generate sustainable growth. The proposed actions will contribute to closing the loop of product lifecycles through greater recycling and reuse, and bring benefits for both the environment and the economy. The plans will extract the maximum value and use from all raw materials, products and waste, fostering energy savings and reducing GHG emissions. to maintain the value of products, materials and resources for as long as possible, from production and consumption to waste management and secondary resources. 28/01/2 016 Walter R. Stahel at EECS Brussels 2

3 The European Commission was instrumental in the initial search for a circular economy (CE) A 1976 report on the Potential for Substituting Manpower for Energy, for DG V Labour and Social Affairs, by Walter R. Stahel and Geneviève Reday at the Battelle Institute Geneva defined the structure and nature of an economy in loops as its conclusion. 28/01/2016 Walter R. Stahel at EECS Brussels 3

4 two CE parts of different nature. Innovation need: recycling atoms. 28/01/2016 Walter R. Stahel at EECS Brussels 4

5 CE -- two loops with different impacts Recycling materials loses most embodied energy (GHG) and water, reduces waste volum has fixed cost and purity disadvantages, is flow processes, is capital intensive, trend to globalisation. Reusing goods preserves most embodied energy (GHG), material and water, prevents waste, has cost (ev. quality), advantage over new, is stock management is labour intensive, trend regional, SMEs 28/01/2016 Walter R. Stahel at EECS Brussels 5

6 Dog biting its tail? If this is the linear industrial economy: resources production consumption waste dog eats tail the historic view 28/01/2016 Walter R. Stahel at EECS Brussels 6

7 The CE is applied prevention on a high level packaging Container ports, ships, trains Logistics- and Shopping Centers Warehouse on wheels, trucks at the Brenner Delivery drohnes? 28/01/2016 Walter R. Stahel at EECS Brussels 7

8 Back-casting view from a truly CE from end-of-life to as-pure-as-new resources end-ofservice-life business opportunitie the era of D the circular user economy proper: value preservation, quality & quantity of stock atoms value preserved product use the era of R innovative materials, components, concepts Production: flow, value added Point of Sale: transfer of ownership & responsibility 28/01/2016 Walter R. Stahel at EECS Brussels 8

9 Research & innovation in the era of R Responsibility for reuse, repair, upgrade, remanufacture, reprogramme facilitates re-use and service-life extension of goods, remarketing used components for re-use. (Eco)design for reuse, modular systems and standardisation of parts increases the efficiency of R approaches (but not user motivation). Research into the ROI of the era of R needed. Teaching CE knowledge and skills in academia and vocational training is key to speed up change 28/01/2016 Walter R. Stahel at EECS Brussels 9

10 end-of-service-life business opportunities for value preservation: reuse or recycling? a decision on value and ownership! WASTE labour RESOURCES sorted intact solid waste to reuse or non-destructive collection to recycle? e.g. garments, bottles, EEE, furniture, aircraft seats, windows C.E. reuse repair remanufacture upgrade recycle HIGH VALUE PRESERVED equal profit LOW exchanges Also: unsorted solid waste (food, packaging, paper, plastics, oils), liquid waste, sewage (detergents, urea, Phosphorus, Nitrates) 17/11/2015 Walter R. Stahel at Rotterdam

11 Research & innovation in the era of D The material sciences and technologies needed to turn end-of-service-life goods into as-pure-as-new resources do not yet exist: split molecules, de-polymerise, de-alloy, delaminate, de-vulcanise, de-coat, de-construct infrastructure and high-rise. Quantum leaps in competitiveness possible. R&D results in this area can be protected and licenced. 28/01/2016 Walter R. Stahel at EECS Brussels 11

12 From consumer to user : individuals motivated by CARING, a new stewardship relationship with goods, and facilitated by such cultural innovation as a sharing society, giving ACCESS to preowned goods, skills and tools: markets & exchanges, repair cafés, both physical & digital (ebay, ifixit.com). 10/11/2015 Walter R. Stahel at Epsom

13 ownership with liability is key vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv Ownership and Value determine the circular economy corporate users eco-design welcome to reduce operation & maintenance costs ownership with liability fleet managers with retained ownership positive value of goods ooooooooooooooooooooooooooooooooo DSS* internalising costs Performance Economy negative value of goods INDIVIDUAL USERS design for sales eco-design? repairable is not repaired, recyclable is not recycled. ownership without liability post-use goods value preserving business opportunities ex-waste managers *DSS Designing Sustainable Solutions, incl. systems and sufficiency 28/01/2016 Walter R. Stahel at EECS Brussels 13

14 The business models of the Performance Economy Fleet managers selling goods as services: transport, hotels, rental goods, real estate, textile leasing O&M skills Retained ownership OEM skills Performance guarantees: commercial freezers, lifts with service contract; Speno; lifelong product guarantees, Industry 4.0 Selling performance: Michelin, RR, Xerox, PFI, Space X, DuPont selling painted car bodies, Interface s green lease OEMs selling molecules as services: rent a molecule, chemical leasing, licence to mine (enables toxic release inventory) c Stahel, /01/2016 Walter R. Stahel at EECS Brussels 14

15 Buying performance as part of green public procurement Selling goods as services entails retaining ownership and liability of goods and their embodied resources, and internalising waste, risk and liability costs, which provides strong economic incentives for loss and waste prevention, resource security the goods of today are the resources of tomorrow at yesterday s prices. 28/01/2016 Walter R. Stahel at EECS Brussels 15

16 shifting from the present to the future This really is an innovative approach, but I m afraid we cant consider it. It s never been done before. for many experts, the CE may be counterintuitive 11/09/2014 Walter R. Stahel 16

17 real wealth is based on use, not ownership according to Aristotle The trend from fashion to function is supply driven: (a) selling performance, goods as services, through rent lease share business models in order to directly reach the customer, achieve a high corporate resource security, reduce corporate costs (compliance, transactions) and increase competitiveness, re-use components which outlive their goods (electric motors, LED, microchips, VIP panels), reduce future corporate liability. (b) selling digital wares: music and video streaming. Industry 4.0 (remote after sale services), Internet of Things (the client is the product). 28/01/2016 Walter R. Stahel at EECS Brussels 17

18 Thank you for your attention Dr h.c. Walter R. Stahel, Visiting Professor, University of Surrey Founder-Director, The Product-Life Institute, Geneva 28/01/2016 Walter R. Stahel at EECS Brussels