Circulareconomy,morethanjustahype?MarkGoedkoop23September2016

Companiesbasetheir innovations oninspiring initiatives...

Whatcanhappenifyourperspectiveistoonarrow?

Wouldrecyclingreallysolveourproblems?

Recyclinge-wasteintheNetherlands

• Positive impactclosingloops

• Avoidanceofabout500,000TonsCO2eq.and100,000Tonsmaterialperyear

• Insightinprocessesallowingimprovementsinefficiency

CarTiresRecycling(recycledcontentinnewtires)

• Closingloopsdoesn’tbringapositiveimpact

• Negativeimpactinrollingresistance,thereforefueluse

• Positiveimpactforenergyrecovery andotherusesforthematerialrecovered

Average production cradle to gate Distribution Car tyre

debrisUse phase

fuel consumptionEoL

collectionCar tyre EoLprocessing

Thetopdownview:WhatshouldaninspiringconceptlikeCEaimfor?

Wealwayshadacirculareconomy:itisdesignedtospinfasterandfaster…….• Economicgrowthisanacceptedgoal:3%economicgrowth,

means3%moreproductsandservices• Growthwillincreasepollution,unlessweachievelowerload

pervalue

Consumer

IndustryGovernmentInfra structure

Taxes

Wealwayshadacirculareconomy:itisdesignedtospinfasterandfaster…….• Economicgrowthisanacceptedgoal:3%economicgrowth,

means3%moreproductsandservices• Growthwillincreasepollution,unlessweachievelowerload

pervalue

Consumer

IndustryGovernmentInfra structure

Taxes

Infra structure

Taxes

Thecheapestwaytospoil:Environmentalload/valuepersectorDutcheconomy1990(studied in1999)

Agriculture

Base Chemical ind.

Refineries

Base metals

Transport

Electro mechanical

Electricity

Repair of cons. goods

Eco-

indi

cato

r 99

1.00E-07

1.00E-06

1.00E-05

1.00E-04

1.00E-03

1.00E-02

1.00E-01

1.00E+00

product

fra

cti

on

of

tota

l pro

ble

m E

U2

5, l

og

ari

tmic

sc

ale

abiotic depletion

global warmingozone layer depletion

human toxicityaverage ecotoxicity

photochemical oxidationacidification

eutrophicationaggregated score

Ranking of product groups in the EU EIPRO study (2005)

1

0,1

0.01

0.001

0.0001

0.00001

Environm

entallo

adpereuro

Circulareconomyisalsoaboutnewbusinessmodels,likeshiftingtoservices

Areproductservicesolutionsthesolution?

Now,comparecardrivingandCarsharing

• Functionalunit:• Perkmthereisnosignificant

difference.• Butjoiningthesystemwill

changebehaviour:– Somedrivemore– Somewilldriveless

Cumulative value

Pro-duction

Interest, tax and insurance

Service

Car disposal

Gasoline use

Public transport

Whatmembersdidbeforeintroductionofcar-sharing

Cumulative value

Using the car (per hour)

Driving

Public transport

Organi-sation

Whatmembersdidwhentheyjoinedthecarsharingsystem?

Cumulative value

Envi

ronm

enta

l loa

d

Reference

Carsharingsystem

Alternativeconsumption Increase

Alternativeconsumption

Decrease

Overallimpactdependsonalternativeconsumption

Sohowdoweshiftfrombeinginspiredtomakingsense?

Usingstrengths ofCircularEconomyandLCA

InspiringVisionMinimizeenvironmentalandsocial

impacts

MobilizePeople

AccountancyApproachShowimpactsfromLifeCycle

Perspective

RobustScienceBasedMethod

Outsidein2.Identifycompanymaterialityissuesandassess relevancetostakeholders

Howtoidentifyopportunitiesforyourproduct?

Opportunities3.Mapinamatrixtoidentifyopportunitiesfor

innovation

Insideout1.UseLCAtoidentifyhotspots

INNOVATIONOPPORTUNITYMATRIX

relevance

impact

Howtoidentifyopportunitiesforyourproduct?

INNOVATIONOPPORTUNITYMATRIX

relevance

impact

Extendingproductshelf life

Reducingenergyuseconsumers

Increaserecycledcontent

Reduce sugar

PurchasedGreen

Electricity

IsCircularEconomymorethanjustahype?

• Yesifitinspirescompaniestorethinktheirbusinessmodel• Nobecauseitdoesnotstartfromtheglobalurgencies

– Thereisnoshortagesofmineralsoffossilfuels– Theproblemsareclimate,space(land-use)andclimateandprobablya

problemwiththephosphatecycle

• Designershavethegreatchallengetoignorethehypeandthink:– Bottomup,whataretherealhotspotsintheproductcategoryIam

workingon?– Whatarethegreatopportunitiestoaddressthese– LowertheimpactperEuroorDKK

20

Questions?

21