Circular economy - The Global Cleantech Summit 2015

GLOBAL CLEANTECH SUMMIT 2015
HELSINKI, 8TH OF SEPTEMBER, 2015
MR. PEKKA OJANPÄÄ, PRESIDENT AND CEO
LASSILA & TIKANOJA PLC
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BACKGROUND
x2
THE AMOUNT OF
WASTE WILL DOUBLE
by 2025, reaching 6.5
million tonnes per day. 1)
1)
2)
+3
THREE BILLION NEW
CONSUMERS IN MIDINCOME RANGE
use money by 2030. 2)
World Bank
OECD
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billion
2
CIRCULAR
ECONOMY WILL
BECOME A REALITY
providing new
business opportunities.
WASTE IS NO LONGER A THREAT BUT AN
OPPORTUNITY
1960
Landfills
Recycling
• Preventing the hygienic
threat
• Recovery and safe burial
of waste
•
•
•
•
1980
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1990
2000
2010
Sorting at the source
Priority order/waste hierarchy
Producer liability
Gradual elimination of landfills
2020
2030
2040
2050
Incineration
Circular economy
• Aim: obliteration of waste
• Waste recovery at a modest
level
• Expensive long-term
solutions
•
•
•
•
•
3
Closed cycle
Reuse and remanufacture
Repair
From consumption to utilization
New technologies and service
models
CIRCULAR ECONOMY INTERACTIVE
SYSTEM1)
1)
Ellen MacArthur Foundation
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4
CIRCULAR ECONOMY CHANGES TRADITIONAL
VALUE CHAINS BY MOVING UP IN WASTE
HIERARCHY
Prevention
Using less material in design and manufacture.
Keeping products for longer, re-use.
Using less hazardous material.
Preparing
for re-use
Checking, cleaning, repairing, refurbishing, repair,
whole items or spare parts.
Recycling
Turning waste into a new substance or product.
Includes composting of meets quality protocols.
Other recovery
Including anaerobic digestion, incineration with energy
recovery, gasification and pyrolysis which produce energy
and materials from waste; some backfilling operations.
Disposal
Landfill and incineration without energy recovery.
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PRODUCER LIABILITY PROVIDES A GOOD
FOUNDATION FOR THE DEVELOPMENT OF
CIRCULAR ECONOMY
In product design, the environment and
reuse throughout the product life cycle
(Ecodesign) must be taken into account
Operational economy solutions
encourage the design of more durable
products
Renting and leasing models are a
means for producers to ensure the
return flow
Encouragement of voluntary
manufacturer-specific recovery systems
Shift from regulations towards consumer
driven demand
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EXAMPLE OF THE DEVELOPMENT
OF CIRCULAR ECONOMY
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PRIVATE SECTOR LEADS CIRCULAR
ECONOMY INNOVATIONS
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WE CIRCULATE PALLETS
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CONCLUSIONS
Businesses are capable of changing their operations towards sustainable
economy, actually the transition to circular economy is already underway
Circular economy is a positive opportunity for Europe
-
We can ensure self-sufficiency in energy and raw-materials
Technology and service solutions are a major employment and investment opportunity
Circular economy will be achieved in a society which recycles
-
Regulation is needed to ensure resource-efficiency on all levels (recycling targets, ecodesign,
support and reinforcement of recycled raw-material markets)
To achieve effective recovery of recycled raw-materials we need to strengthen the
role of the producer in the value chain–and to diminish that of the state.
Market needs a stable and predictable operating environment (regulation) and a
well-functioning marketplace based on market economy and consumers’ freedom
to choose.
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TAUSTAMATERIAALIA
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CIRCULAR ECONOMY PRINCIPLE1)
A circular economy is one that is restorative by design, and which
aims to keep products, components and materials at their highest
utility and value, at all times.
1
2
3
4
5
1)
Circular economy is a global economic model that decouples
economic growth and development from the consumption of finite
resources;
Distinguishes between and separates technical and biological
materials, keeping them at their highest value at all times.
Focuses on effective design and use of materials to optimise their flow
and maintain or increase technical and natural resource stocks;
Provides new opportunities for innovation across fields such as
product design, service and business models, food, farming, biological
feedstocks and products;
Establishes a framework and building blocks for a resilient system able
to work in the longer term.
Ellen MacArthur Foundation
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STRATEGIC OPPORTUNITY DRIVERS
OF CLEANTECH1)
Cost of scaling going down – fossil fuel costs going up
Influx of private capital
Governments compete to build regional economies and
develop high- paying jobs
Shift of regulatory and financial support to more efficient
technologies
Explosive demand for energy and water infrastructure in
China, India, and other developing nations
Consumer demand for cleanerproducts and services
Certainty of climate change drives business innovation
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