Turning waste into value:A circular economy approach to
climate change mitigation
Dr Naomi Braithwaite
4 December 2015
A circular economy seeks to rebuild capital, whether this is financial, manufactured, human, social or natural.
(Ellen MacArthur Foundation)
By design, its two distinct material flows are safe and regenerative: biological materials are designed to be returned to nature, technical materials are designed for perpetual cycles of use by industry. (The Guardian, 2014)
• Boosting recycling and preventing the loss of valuable materials
• Creating jobs and economic growth (100,000 new jobs in 5 years)
• Showing how new business models, eco‐design and industrial symbiosis can move us towards zero‐waste
• Reducing greenhouse emissions and environmental impacts
Potential benefits of moving to a circular economy
Initial pitfalls of the circular economy:
•Main focus was on recycling and remanufacturing, which have energy impacts through transportation, reprocessing and subsequent manufacturing, and that in practice it is impossible to have a complete circular system in which there is no use of virgin materials and no final waste.
•The focus is shifting to include strategies for more efficient use of products.
‘In circular economy terms, maintaining the first life use of a product is, in principle, the best approach to closing resource loops.’
Ricardo‐AEA (2015) The Durability of Products: Full Report
Product longevity and the circular economy
Strategies to optimise product lifetimes:
• Reuse, Repair, Upcycle
Strategies to set in place a restorative economy:
• Dematerialising products through services: PSS and sharing, leasing, renting, borrowing schemes.
Embodied carbon and climate change
Washing machines use five of the most impactful materials corresponding to 270kg of Co2e embodied emissions. This is without considering the emissions caused during use.
The circular economy and climate change mitigation
Decoupling economic growth from resource consumption
Key messages from Closing the Loop Stakeholder Conference, Brussels, 25 June 2015
Existing EU instruments (e.g. Energy Labelling, Eco Design) should address durability
Repair should be facilitated via access to spare parts, repair services, repair information and manuals, promotion of local initiatives
Demand for mandatory information on lifespan of products and longer guarantees to drive durability of products
Closing the loop – An EU action plan for the Circular Economy
‘The choices made by millions of consumers can support orhamper the circular economy’.
(European Commission, 2015)
Choices:
• Access to information
• Range of existing products
• Durability and ease of repair
• Regulatory framework
Innovative forms of consumption
Collaborative economy, sharing economy or collaborative consumption…
Product Service Systems
Rolls Royce
Power by the hour
In‐use monitoring, service, repair, remanufacture and replacement
Proposed leasing model
Optimising product lifetimes: an industry seminar
Barriers towards leasing:
Costs
Consumer attitudes
Current market and economic system
Lack of investment and operational capital
Uncertainty
Complexity of supply chain
Energy labelling an effective measure
•Despite the fact that most environmental impacts of a washing machine are during use, energy efficiency ratings have reduced these impacts
•Energy efficiency has led to a change in laundering practices and an increase in sales of energy efficient appliances
Research into the feasibility of durability labelling
Consumer perceptions of durability are subjective, fluid, influenced by brand, based on perceptions of quality.
The feasibility of durability labelling
•Manufacturers’ standard guarantees are a mark of reliability and may link to durability•Little interest in extending guarantees or repair•Expected years of life would be an indication of durability
Understanding consumer attitudes and behaviours
• Towards product lifetimes
• Price v. quality
• Repair/maintenance
• Second hand markets