Circular economy and textile fibres
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1 Circular economy and textile fibres 27 November, 2016 Francois Souchet Project Manager
2 Significant value is lost in linear systems Plastics, 40 years of effort with little achievement
3 Negative externalities connected to the plastics system will multiply if we continue with business as usual
4 Drivers for change The power of the linear model is increasingly being challenged Challenges to current model ECONOMIC LOSSES & STRUCTURAL WASTE NATURAL SYSTEMS DEGRADATION PRICE RISKS REGULATORY TRENDS SUPPLY RISKS Enablers of new model ACCEPTANCE OF ALTERNATIVE BUSINESS MODELS ADVANCES IN TECHNOLOGY URBANISATION
5 RESTORATIVE & REGENERATIVE BY DESIGN
6 Build on visionary thinkers and established academics
7 Principle 1 Preserve and enhance natural capital by controlling finite stocks and balancing renewable resource flows
8 Principle 2 Optimise resource yields by circulating products, components and materials in use at the highest utility at all times in both technical and biological cycles
9 Principle 3 Waste = Food. Foster system effectiveness by revealing and designing out negative externalities
10 THE CIRCULAR ECONOMY RESTORATIVE AND REGENERATIVE BY DESIGN PRINCIPLE 1 Preserve and enhance natural capital by controlling finite stocks and balancing renewable resource flows Renewables flow management RENEWABLES FINITE MATERIALS Regenerate Substitute materials Virtualise Restore Stock management PRINCIPLE 2 Optimise resource yields by circulating products, components and materials in use at the highest utility at all times in both technical and biological cycles Regeneration Biosphere Farming/collection 1 Biochemical feedstock Cascades Parts Product Service provider Share Maintain/prolong Recycle Refurbish/ remanufacture Reuse/redistribute PRINCIPLE 3 Biogas Consumer Collection User Collection Foster system effectiveness by revealing and designing out negative externalities Extraction of biochemical feedstock 2 MINIMISE SYSTEMIC LEAKAGE AND NEGATIVE EXTERNALITIES 2
11 Biological cycles: cascading Cascading allows additional value creation Biological cycles Increasingly powered by renewable energy Parts Product Service provider Cascades Collection Energy recovery Leakage to be minimised Landfill
12 Biological cycles: extraction of biochemical feedstock Biochemical Feedstock can be extracted for further usage Biological cycles Increasingly powered by renewable energy Biochemical feedstock Parts Product Service provider Collection Extraction of biochemical feedstock Leakage to be minimised Energy recovery Landfill
13 Biological cycles: restoration of nutrients Non-toxic materials are returned to the soil Biological cycles Restoration Farming/ collection Increasingly powered by renewable energy Parts Product Service provider Biogas Anaerobic digestion/ composting Collection Energy recovery Leakage to be minimised Landfill
14 Technical cycles: maintain / prolong Longer use preserves all value Increasingly powered by renewable energy Mining/materials manufacturing Technical cycles Parts Product Service provider Share Maintenance Collection Energy recovery Leakage to be minimised Landfill
15 Technical cycles: reuse / redistribute Products can be reused by additional users Increasingly powered by renewable energy Mining/materials manufacturing Technical cycles Parts Product Service provider Reuse/redistribute Collection Energy recovery Leakage to be minimised Landfill
16 Technical cycles: refurbish / remanufacture Integrity and complexity are partially preserved Increasingly powered by renewable energy Mining/materials manufacturing Technical cycles Parts Product Service provider Refurbish/ remanufacture Collection Energy recovery Leakage to be minimised Landfill
17 Technical cycles: recycle Technical Cycles: Recycle As a last resort, recycling preserves material value As a last resort, material value can be preserved Increasingly powered by renewable energy Mining/materials manufacturing Technical cycles Parts Product Recycle Service provider Collection Energy recovery Leakage to be minimised Landfill
18 The circular economy The circular economy distinguishes between technical and biological cycles RENEWABLES FINITE MATERIALS Renewables flow management Regenerate Substitute materials Virtualise Restore Stock management Farming/collection 1 Parts Biosphere Biochemical feedstock Product Recycle Regeneration Service provider Share Refurbish/ remanufacture Reuse/redistribute Cascades Maintain/prolong Biogas Consumer Collection User Collection Extraction of biochemical feedstock 2 MINIMISE SYSTEMIC LEAKAGE AND NEGATIVE EXTERNALITIES SOURCE: Ellen MacArthur Foundation; drawing from Braungart & McDonough Cradle to Cradle (C2C)
19 The economic case is compelling EUR 1.8 trillion total annual benefits expected by 2030 in mobility, food and built environment on a circular development path Current development path OVERALL BENEFITS EUR 0.9 trillion 1 EUR 1.8 trillion 1 DISPOSABLE INCOME GDP RESOURCES AND EXTERNALITIES Circular development path 7% 18% 4% 11% 31% emissions 22% primary material consumption 48% emissions 32% primary material consumption 1 Reduction in resource, non-resource and externality cost SOURCE: Growth Within: A Circular Economy Vision for a Competitive Europe, Ellen MacArthur Foundation, SUN (Stiftungsfonds für Umweltökonomie und Nachhaltigkeit) and McKinsey Center for Business and Environment, 2015
20
21 Power of cascaded use By-products from one value chain can serve as resources for another
22 Current innovation landscape - examples Definition Emerging Trends Example Actors Sourcing Buy better materials Regenerative agriculture Circular materials Repair Keep products in use longer Repair shops Recycling Keep materials in use longer Textile to textile recycling Business Model New ways to create value Service models Reverse cycles
23 The real opportunity
24 All the analysis done so far show circular economy is the most beneficial and profitable way forward
25 Rethink the Future Take Action
26
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