Renewal of manufacturing towards a sustainable circular bioeconomy, and implications for innovation policy (RECIBI)
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1 Renewal of manufacturing towards a sustainable circular bioeconomy, and implications for innovation policy (RECIBI) Green Growth tutkijatyöpaja , Espoo Riina Antikainen Tiina Jääskeläinen, Paula Kivimaa, Mikael Hildén, Petrus Kautto, Jachym Judl, Sirkka Koskela, David Lazarevic, Kasperi Lavikainen, Miia-Elina Minkkinen Armi Temmes, Mika Kuisma Åke Thidell, Philip Peck, Carl Dalhammar, Håkan Rodhe Rick Bosman, Jan Rotmans
2 Circular economy and bioeconomy are seen as key tools to promote sustainability and boost jobs and growth Circular economy new term Ellen McArthur foundation 2010 with aim of accelarating transition towards CE EU circular economy package launched in ; a new, more ambitious circular economy strategy to be set in late 2015 Roots of CE originate in industrial ecology and closing the loops EU Bioeconomy Strategy launched in Feb 2012 In Finland, national strategy in May 2014 In Finland, Prime Minister Sipilä s Government Programme has bioeconomy and circular economy as key projects.
3 new evidence that a circular economy, enabled by the technology revolution, allows Europe to grow resource productivity by up to 3 percent annually. This would generate a primary resource benefit of as much as 0.6 trillion per year by 2030 to Europe s economies. In addition, it would generate 1.2 trillion in non-resource and externality benefits, bringing the annual total benefits to around 1.8 trillion versus today. This would translate into a GDP increase of as much as 7 percentage points relative to the current development scenario, with additional positive impacts on employment. 3
4 RECIBI aims: 1. To better understand the potential of a circular economy for sustainable renewal of manufacturing in bio-based industries (focusing on novel value chains) 2. To provide novel insights into the role of innovation policies in facilitating the shift towards sustainable circular bioeconomy in Finland and Sweden 3. To create policy recommendations based on the new insights and lessons learned internationally The project will deliver new knowledge on how innovation policies can support renewal and what demands the renewal puts on (environmental) policies for a circular economy 4
5 5
6 Work packages and methods WP1 Case study refinement and analytical framework (lead: Paula Kivimaa) WP2: Sustainable renewal through novel value chains and business models (lead: Armi Temmes & Åke Thidell) Documentary analysis of industries and value chains Data collection and analysis of front runners in value chains Construction of future value chains based on developing technologies, business models and stakeholder involvement Analysis based on renewal and transition theories WP3: Sustainability performance as innovation competence (lead: Riina Antikainen) Impact assessment using quantitative methods such as LCC, EE-IO-modelling, LCA and MCDA, supplemented with qualitative methods Macroeconomic implications of a circular economy WP4: Innovation policy for CE oriented renewal (lead: Mikael Hildén, Carl Dalhammar) Input from WP2 and WP3 Comparison of innovation policy elements Identifying best practices and barriers Co-creation of policy briefs with stakeholders WP5: Synthesis, communication and management (lead: Riina Antikainen) 6
7 Case study areas 1. Wood-based textiles 2. Bio-refineries with a focus on new, highvalue, products/by-products 3. Wood-based building, including new applications, increased modularity and novel construction materials 7 y/demo-plant/
8 Initial findings textile case (1) Wood-based fibres could replace cotton and fully synthetic fibres Novel processes (such as ioncell) are being developed and tested (e.g. VTT, Aalto University, Stora Enso and Marimekko; Spinnova) instead of the traditional environmentally hazardous process Major market actors (in Sweden) expect a rapid market growth and want to see fast development Current production of textile and dissolving pulp mainly for export Several invention-oriented (pre-commercial) projects for new product development including producers, research institutes, academia and market actors In both countries, actors exist in most categories of textile cycles reuse, collection systems, second hand shops, utilization of recovered textiles but scale is small Major clothes and textile trade actors in new textile collection collaborations for reuse and export in Sweden 8
9 Initial findings textile case (2) Consumers are willing to recycle worn-out textiles, but possibilities are poor in spite of years of discussion Collection infrastructure poorly developed, some use for usable clothing exists, but material recycling requires new approaches in addition to the purely downgrading applications Majority of textiles end up in waste (studies of Syke) In Finland t/a textiles consumed, 30 % reused, 14 % recycled In Sweden, the influx of clothes and textiles was approx t/a (2008). In order of t/a of textiles and clothes to household waste. About t was collected in 2008 by major charity organisations. Suggestions for collection targets in Sweden for 2018 and
10 EU regulations under debate Industry seeking for renewal Renewal of the Nordic pulp and paper industries towards textiles? Current state and windows of opportunity Markets are close Ongoing processes within regime Internet reducing paper demand Consumer preferences are changing Innovation funding directed to CE technology Frontrunner/ design businesses: Globe Hope, Marimekko) Negative environmental impact of current viscose & cotton production: Mismatch between available tech and used tech Pressure on regime Incumbents adapting: forest, textile and waste companies Availability of cotton -> fluctuating markets of cotton, polyester and viscose Dropping price of dissolving pulp? Landscape developments Regime Stuck in niche for 30 years Mismatch with regime earliler: - Companies (Säteri, Kemira) were not willing to invest in new tech - Rise of forestry; no need for developing textile fibres Niche 10
11 Developing policies for the renewal of manufacturing based on a sustainable circular bioeconomy policy brief draft 1. A circular economy requires much more than recycling; we must rethink our production and consumption systems in a world of intensifying resource competition and scarcity 2. A transition towards a circular bioeconomy offers interesting opportunities for Finland and Sweden 3. A sustainable circular bioeconomy requires diversification and new business models 4. There are significant constraints on pathways to a diverse circular bioeconomy 5. The emergence of a sustainable circular bioeconomy requires active innovation policy 11
12 Circular economy in media New term Positive approach / attitude Widely understood, not only waste / recycling issue Justification based on growth and jobs rather than on environmental aspects Regulation seen as enabler and barrier 12
13 Comparison of bioeconomy on country level 13
14 Next steps Case studies Deepening the textile case Wood building and biorefineries, the rest of the interviews by end of Jan 2016 Assessment of the material Analysis of sustainability performance of each case, 2016 Innovation policy analysis and country comparison,
15 Thank you More information Riina Antikainen (riina.antikainen(at)ymparisto.fi) 15
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