Circular economy: Measuring innovation in product chains

Transcription

1 Circular economy: Measuring innovation in product chains

2 Take home messages Indicators needed for measuring progress: In CE-transition process In CE-transition effects More emphasis needed for measuring transition process Recycling dominates in CE-initiatives (low CE-priority) Socio-institutional changes (in product chains) bigger challenge than technological (process-) innovation in many CE-initiatives: Innovation in core technology Innovation in enabling technology Innovation in product design Innovation in revenue model Socio-institutional change Radical (x) (x) (x) X Incremental X

3 Content Take-home messages Context & framework Cases Conclusions 20 October 2016 José Potting

4 Project team José Potting & Aldert Hanemaaijer (PBL) Marko Hekkert & Ernst Worrell (UU) Feedback group Marc Pruijn & Tjeerd Meester (IenM; commissioner) Mattheüs van der Pol (EZ) Mandy Willems (RWS)

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6 Dutch CE-Effect goals for product chains Resources: Reduced consumption of (scarce) resources Sustainable resource extraction Secured resource supply Environment: Less environmental pressure Less waste More natural capital Socio-economic: Increased revenue capacity Increased employment

7 Based on PBL-Infographic (2016) CE-achievement goal for circularity R0 Refuse R1 Rethink R2 Reduce Rule of thumb: More environmental gain with lower R (high circularity) Use R3 Reuse R4-7 Renovate R8 Recycling R9 Recover (R10 Landfill)

8 CE-transition in product chains Rule of thumb More circularity in products chains means Less resource consumption Less environmental pressure No natural law (keep thinking!): Material recycling may require more energy and cause more environmental pressure than new materials Rebound effects as e.g. rail passengers convert to car sharing, or recycled material no longer available for other products ( Material chain is longer than product chain in case of low-grade recycling )

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10 Which change/innovation expected? Socio-institutional changes (in product chains) bigger challenge than technological (process-) innovation in many CE-initiatives: Radical Incremental Dominant Present Unimportant Innovation in core technology X X Innovation in enabling technology (x) Innovation in product design (x) Innovation in revenue model (x) Socio-institutional change X Relevant for measuring progress transition process: Easier: Radical technological innovation (new innovation system) More difficult: Incremental technological innovation (shift in existing innovation system)

11 Socio-institutional Socio: About relations between humans, and between humans & organisations Institutional: Normative: About values, standards & self-evidences Regulative: About mandatory rules of the game Cognitive: About shared reference frameworks across actors

12 Green Deals (GDs) 36 CE-GDs 72 circularity strategies (R priority ladder) All CE-GDs, except one, aspire recycling (high R) Many CE-GDs without radical technological innovation Rule of thumb: More environmental gain with lower R (higher circularity)

13 Case results Green Deals (GDs) 36 GDs with CE-initiatives for product chains: All CE-GDs, except one, aspire recycling 19 GDs do not go beyond recycling Innovation in core technology mainly needed in case of recycling Radical Incremental Type of innovation Dominant Present Unimportant Innovation in core technology Innovation in enabling technology 36 Innovation in product design Innovation in revenue model 4 32 Socio-institutional change

14 Case results Best Practices (BPs) 32 BPs with CE-initiatives for product chains: Most (= 26) BPs, except five, aspire recycling 16 BPs do not go beyond recycling 5 BPs without recycling Innovation in core technology mainly in case of recycling Type of innovation Radical Incremental Dominant Present Unimportant Innovation in core technology Innovation in enabling technology 2 30 Innovation in product design Innovation in revenue model Socio-institutional change

15 Washers and dryers (hypothetical scenario s) Rethink: Centralised use of washer and dryer in 1a apartment buildings, with service contract for use, maintenance, repair and renewal Rethink: House owner has service contract for use, 1b maintenance, repair and renewal Re-use: Consumer provides his old, still functioning 3a equipment to someone in his network 3b Re-use: Retail sells old, still functioning equipment KT HT PO VM SI D D D D D 3 Repair: Consumer pays per repair Refurbish: Retail replaces old by new, modernized 5 components in existing equipment Remanufacture: Old, still functioning components 6 are used for repairing other equipment, or compiling new equipment Recycling, mechanical: Consumer brings discarded 8 equipment (via retailer) to recycler 9 Incineration with energy recovery D D D D

16 Plastic bottles (hypothetical scenario s) Rethink: No bottles needed, because drinks are 1 prepared at home (e.g. from apple juice, cola concentrate & CO 2 -capsules) Reuse: Consumer cleans bottles himself, and 3a fills them by himself with the retailer Reuse: Consumer brings bottles to retailer, 3b drink producer cleans and fills bottles High grade recycling, mechanical: Consumer 8a1 brings bottle to centralised collection 6 Incineration with energy recovery KT HT PO VM SI D D D D D D P D

17 Some measuring instruments (MI) & indicators (I) Source Inventory MVO-Nederland (2015) Metenvanduurzaamheid.nl RIVM/LEI (2015) Monitor duurzaam Nederland (CBS et al. (2014) SimaPro 8.1-software (goedkoop et al Website About indicators (EEA 2015) MI I Transition process Transition-effects Envi- Circularitmenron- Economy 12 ±400 X X X X (x) X (x) 9, 35 X X 127 X (x) X (x)

18 Effect indicators Circularity (resource efficiency): - Input of virgin materials in kg per functional unit of product & for whole sector - Energy consumption (MJ pr ) of recycling process per functional unit of product & for whole sector Environment (all product groups) proxy environmental impacts: - Cumulative energy consumption in MJ pr per functional unit of product & for whole sector Environment (only relevant product groups) Specific impacts: - Specific environmental impact per functional unit of product & for whole sector Economy: - Value added - Employment

19 Process indicator categories & sub-categories Means (6): - Knowledge exchange about technology, change in behaviour of consumers and chain actors - Actors, financing, other barriers Activities (13): - Knowledge exchange - Experimenting by entrepreneurs - Giving direction to search process (regulations, visions, expectations government and chain actors) - Opening of markets - Curbing resistance Achievements (14): - CE-design - Production - Consumption - Waste

20 Take home messages Indicators needed for measuring progress: In CE-transition process In CE-transition effects More emphasis needed for measuring transition process Recycling dominates in CE-initiatives (low CE-priority) Socio-institutional changes (in product chains) bigger challenge than technological (process-) innovation in many CE-initiatives: Innovation in core technology Innovation in enabling technology Innovation in product design Innovation in revenue model Socio-institutional change Radical (x) (x) (x) X Incremental X

21 Follow-up work Together with other European EPA s (EPA Network) Based on joint experiences, learnings and insights Activity & report Measure progress towards a circular economy (indicators) To be provided to European Commission in 2017 ( Your input is welcome!?!? Send it to Jose.Potting@pbl.nl )

22 Questions? 20 October 2016 José Potting