Circular Economy: an opportunity for micro SMEs. Peter Czaga, DG Environment, European Commission

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1 Circular Economy: an opportunity for micro SMEs Peter Czaga, DG Environment, European Commission

2 Questions to be answered: 1) What is the Circular Economy? 2) Why is it relevant for micro and small enterprises? 3) What practical tools the European Commission offers to micro and small enterprises to become more circular and sustainable? 2

3 From a Linear Economy NATURAL RESOURCES TAKE MAKE DISPOSE WASTE WASTE WASTE 3

4 Circular Economy 4

5 Circular Economy The value of products, materials and resources is maintained in the economy for as long as possible Transition towards a Circular Economy Waste generation is minimised Brings business, economic, social and environmental gains 5

6 Circular Economy Package, Dec 2015 Action Plan Communication List of Follow-up Initiatives (Annex) 4 Legislative proposals on waste 1/3 of the actions are being implemented Under debate at the Council and at the European Parliament 6

7 Production Key action areas Provide incentives to boost circular product design Innovative and efficient production processes Consumption Allow consumers to identify products that have a reduced environmental impact throughout their lifecycle Waste Management Improve waste management in line with the EU waste hierarchy Address existing implementation gaps Provide long-term vision and targets to guide investments Market for a Secondary Raw Materials Improve knowledge of material stocks and flows Boost the demand of secondary raw materials Increase the use of recycled nutrients and the reuse of treated wastewater Safely manage risks of chemicals of concern Innovation and Investment Create the right environment for innovation and investment 7

8 Why is the circular economy relevant for micro and small companies? 1) REDUCING RESOURCE USE / RE-USING WASTE / CUTTING COSTS / IMPROVING COMPETITIVENESS For service providers: cutting operational costs through reduced energy and water use, better waste management. For manufacturers: Raw materials + energy and water = 50% of total manufacturing costs of companies vs. 20% for labour costs. 60% of total waste is not recycled, composted or reused. 44% of large companies in the EU sell their scrap material to another company vs. 24% of SMEs.

9 Why is the circular economy relevant for small companies? 2) PARTICIPATION IN GREEN MARKETS NEW BUSINESS OPPORTUNITIES Demand for green products, technologies and services: EU market for environmental industries is growing by 5% a year Market potential is high: 80% of EU consumers buy green products at least sometimes 26% buy them regularly Demand for specific services: repair, re-use, re-manufacturing, recycling, waste collection and managment, revse logistics, etc.

10 The Green Action Plan for SMEs Adopted in July Includes 34 new or revised EU level action that promote resource efficiency circular economy and ecoinnovation among SMEs Objectives: Facilitate resource efficiency as a driver of SMEs' competitiveness. Help SMEs exploit business opportunities on green markets.

11 What measures does the Green Action Plan include? Information and capacity building: EU Resource Efficiency Excellence Centre for SMEs (2017 Q1) EP Pilot project for capacity buildig for SMEs ( Facilitating cooperation and networking: Industrial symbiosis, international networking Voluntary tools to promote RE: EU Ecolabel, Environmental Technology Verification Scheme, Environmental footprint, EMAS Direct financing, facilitating access to finance: private and public 11

12 European Resource Efficiency Excellence Centre A virtual Centre that will provide information and support to European SMEs, business intermediaries, resource efficiency practitioners, regional authorities. Operational from January 2017 Operate the European Resource Efficiency Self-Assessment Tool for SMEs Develop and manage a network of SME support organisations from EU countries Maintain the interactive collaborative website Promote resource efficiency support measures for SMEs across the European Union 12

13 Practical voluntary tools for SMEs European Eco-management and Audit Scheme (EMAS) EU Ecolabel Environmental Technology Verification scheme (ETV) Environmental Footprint Methods (PEF/OEF) 13

14 Funding opportunities for green SMEs Horizon 2020 funds eco-innovative SMEs to develop, grow and internationalise including through collaborative R&D actions. The LIFE programme will promote the uptake of the circular business models and resource efficiency practices in SMEs. The financial instruments under COSME support SMEs to eco-innovate, introduce energy and resource efficiency actions and internationalise. Private Finance for Energy Efficiency instruments (PF4EE) can support SMEs undertaking small energy efficiency investments. European Regional Development Fund (ERDF) includes possibilities for investments in competitiveness, energy efficiency and renewable energy use in SMEs. 14

15 THANK YOU! PLAN_EN 15