The Economic Challenges of Circular Economy

Transcription

1 De financiering van de circulaire economie Financement de l économie circulaire Brussels, Belgium June 6, 2017 The Economic Challenges of Circular Economy Karel Van Acker

2 A shift in challenges 2005 : election of pope Benedict 2013 : election of pope Francis

3 A shift in challenges Critical Materials EC2014 risk of supply REE (heavy) REE (light) Pulpwood Barytes Diatomite Magnesium Antimony Niobium Natural Graphite Germanium Magnesite Indium Gallium Fluorspar Tungsten Cobalt Silicon Beryllium Scandium Borate PGMs Phosphate Rock Chromium Coking coal Rhenium Molybdenum Lithium Natural rubber Silver Tantalum Vanadium Tin Gypsum Limestone Bauxite Bentonite Feldspar Iron Manganese Silica sand Perlite Talc Zinc Aluminium Clays Copper Hafnium Nickel Gold Tellurium Selenium Sawn Softwood Titanium Potash economic importance 2005 : election of pope Benedict 2013 : election of pope Francis

4 Raw materials prices

5 Africa is striving to extend the local content in the production of materials, and to sell products instead of resources Kojo Busia UN Economic Commission for Africa EIP RawMaterials high level meeting, Brussels,

6 European Commission: Circular economy package Flanders: C.E. is one of the 5 transition priorities

7 Circular economy a new paradigm Keep the value of stocks (quantity & quality) Eliminate waste waste = loss of value Environmental impact impact of the whole system (e.g. energy)

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9 Improve renewability Clean and efficient material loops Reuse, Remanufacturing, Recycling Industrial Symbiosis Landfill Mining Dematerialize Do more with less longer lifetime, sharing Repair Economy Prolongation Lifetime Sharing Economy PSS Improved Design Process Intensification Substitute Alternatives for critical and toxic materials Bio-based materials Alternatives for Critical Materials Improved Functionality (e.g. lightweighting) Strategies to realize Circular Economy

10 Improve renewability Clean and efficient material loops Reuse, Remanufacturing, Recycling Industrial Symbiosis Landfill Mining Dematerialize Do more with less longer lifetime, sharing Repair Economy Prolongation Lifetime Sharing Economy PSS Improved Design Process Intensification Substitute Alternatives for critical and toxic materials Bio-based materials Alternatives for Critical Materials Improved Functionality (e.g. lightweighting) Technological Innovations Societal/Institional Innovations Business Model Innovations

11 Improve renewability Clean and efficient material loops example: e-cars

12 4 Ways of Value Creation in C.E. 1. Waste = Value 2. Maintain/Repair/ReUse/Remanufacture + Eco-Innovation / Design for X 3. Life Cycle Collaboration: Open Source / Supply Chain Financing 4. Functional Economy Pay per Service

13 Roles of actors in the CE Incorporating external costs Long term investments Accounting rules

14 Sharing Economy

15 economic incentives for circular economy recycled content standards manufacturing tradable recycling certificates consumption tax advance disposal fee deposit-refund scheme tax on virgin materials resources EPR use recycling subsidy end of life disposal fee (weight based) landfill tax

16 To conclude Still at the onset of Circular Economy (Financing) Enormous opportunities, numerous uncertainties Learning by doing Financial sector has a crucial role in C.E. Remember the definition of C.E.: it is all about the value of (material) stocks, rather than flows Imagination is infinite. Resources aren t. Act accordingly. GreenXChange (Creative Commons, Nike)

17 Contact Prof. dr. ir. Karel Van Acker KU Leuven Materials Research Centre c/o department MTM Kasteelpark Arenberg 44 - bus 2450, BE-3001 Leuven, Belgium T: ; M: E: Karel.VanAcker@lrd.kuleuven.be

18 Dank voor uw aandacht