ppa presentation _ nina, veronika, helen _ 12.06.15

THE EU CIRCULAR ECONOMY

A POLICY ANALYSISVeronika Feheregyhazy

Helen Scheithauer Nina Schneider

Background

Introduction

Goals• Increase recycling/re-use of municipal waste to

70% in 2030

• Banning landfillling of all recyclable and biodegradable waste by 2025

Legally enforceable, environmental

• A 30% reduction of waste by 2025

• Maximum landfillling rate of 25%

Non-enforceable, environmental

• Simplify the reporting obligations affecting SMEs

• Harmonise and streamline the calculation of the targets and improve the reliability of key statistics

Legal and Economic

Introduction

Implementation & Evaluation

• Administratively– Easier reporting through clear definitions and calculation methods– More transparency– Establishment of early-warning system

• Financially: Facilitate and promote private direct investment

• Due to criticism: Already updated e.g. by making targets country-specific

• Evaluation :Roadmap– Ex-Ante evaluations of existing policies on waste and product design & and large number of

prior studies on initial situation of the EU member countries– Initial Impact Assessment (IA) regarding e.g . cost & benefits, administrative burden,

implementation arrangements and potential difficulties in transposing the directive– Initial IA as basis for further IA’s for all changes and updates of program– Inter-service steering group assisting in IA’s

Introduction

Rationale of Analysis

Resource EfficiencyHelena Scheithauer

Stakeholder: Government & Corporations

SD Area: Environment & Economy

Packaging and Packaging WasteNina Schneider

Stakeholder: Government

SD Area: Environment

Green Action Plan for SMEs

Veronika Feheregyhazy

Stakeholder: Corporations

SD Area:Economy

Introduction

WASTE MANAGEMENT: PACKAGING & PACKAGING WASTE

Goal: changes to waste life-cycle

Waste management: Packaging & Packaging Waste

Recycling and preparing for re-use of packaging

waste to be increased to 80% by 2030

Phasing out landfilling by 2025 for recyclable waste in non-hazardous waste landfills (max rate 25%)

An early warning system to anticipate possible compliance difficulties

and promote dissemination of best

practices in all Member States

Improving coherence of waste legislation by

aligning definitions and remove obsolete legal

requirements

EconomicStrengths- Recycling waste back into the economy creates jobs- Breaks linkage between economic growth and waste

generation- Less landfill volume reduces maintenance cost for

States- Allows environmental cost to be borne by producers

of waste

Weaknesses- Imperfect production substitutability of recycled with

virgin raw materials- Circular Economy is artificially created requiring

economic resources and capital- Difficult to attribute life-cycle of every product,

difficult to assign specific costs to Polluter/Producer

Opportunities- Reduced import of raw materials from other countries- Opportunity to exchange best practices/information

with other nations to develop own economy

Threats- Decreased competitiveness of local products by

polluting manufacturers with increased cost structures

- Increased regulations may dissuade investors from considering EU


Environmental PreservationStrengths- Reduce ecosystem strain, by reusing resources (e.g.,

waste)- Nonhazardous landfill space saved, retaining natural

capital- Food waste reduced, reducing deforestation, strain on

fertile soil- Reduce landfill volume, reduce negative

environmental effects- Material-specific targets to increase gradually from

2020 – 2030

Weaknesses- Long time for Circular Economy package to be

implemented, delay of environmental benefits- Material Input Per Service unit: environmental cost of

recycling may surpass virgin manufacturing- No mention of hazardous waste management. Only

about the traceability of hazardous waste.

Opportunities- Universal positive image for green policies and

programs, build a good reputation in the global market

Threats- May threaten industries built on waste management,

deforestation, natural resource extraction, etc.


Equitable/Social DistributionStrengths- Increased support and guidance for all Member States

on procedures, definitions and best practices- Increased support for at-risk Member States,

accountability measures to increase success rates - Recycling waste back into economy as secondary raw

materials increases jobs, welfare distribution- Long term: Higher QOL

Weaknesses- Member States begin with varying degrees of

economic resources, no funding available from EC for waste management programs less-developed States need

- Delay of social benefits due to length of policy implementation

- Transition from old to new Circular Economy may have negative social effects (e.g., job loss, etc.)

Opportunities- May attract more tourists, students, teachers

(intellectual capital) due to cleaner, healthier environment

Threats- Increased immigration (to healthier countries) may

cause lower QOL, uneven distribution of benefits, congestion and other neg. effects.


Implementation and Evaluation• Feasibility

– Jan 22, 2015: EC discarded waste, recycling and incineration laws within Circular Economy

– MEPs blamed business lobbying– Efforts in 2015 end to re-table a more ambitious proposal

• Implementation– 2 Process Evaluation Requirements:

- Annual/bi-annual reports for progress to Eurostat 18 months after each waste directive’s reporting period

- Three annual implementation reports sent to Commission’s DG Environment.

Commission prepares overall Implementation Report summarizing aggregate progress of waste legislation


Potential Market and Governance Failures

• Information asymmetries: Member States unable to properly communicate requirements to stakeholders

• More problematic for less-developed nations

Market Failures

• Lower levels of accountability

• Falsification of data related to waste management programs

• Overall corruption

Governance Failures


Recommendations

Strong information campaigns: 1) emphasize LR/SR benefits of effective waste management system; 2) best/worst-case scenario projects for better

visualization; 3) comprehensive training for WFD for relevant

stakeholders

EC retains consultants for third-party organizations (UNIDO) to

assist less-developed nations by providing guided roadmaps


GREEN ACTION PLAN FOR SME’S

Goal: turning environmental challenges into business opportunities

Greening SMEs for more

competitiveness and sustainability

Green entrepreneurship for the companies

of the future

Opportunities for SMEs in a greener

value chain

Access to the markets for green

SMEs

Governance


Economic EfficiencyStrengths- Closing of knowledge gaps- Easier access to financing- Green technologies attractive and affordable for SMEs- Rewards for businesses using green technologies- Increases number of innovations- Increased competitiveness

Weaknesses- No punishment mechanisms- Little attention on role of waste management industry- Role of consumer is neglected

Opportunities- European SMEs as leaders in green tech and

solutions - Facilitation of worldwide export of European

technologies - Decreases dependency - Opportunity to change the mindset of companies- Most new innovations come from SMEs

Threats- Copying of European innovations by foreign

companies- Too many subsidies (inefficiency & dependence)- Not enough integration of SME associations- Lack of recognition of specific needs of micro, small

and medium-sized companies


Environmental PreservationStrengths- Improved material efficiency decreases pressure on

environment- Decrease in demand for rare earth and critical

resources

Weaknesses- GAP was developed under the assumption that

economic growth is needed- No concrete tools mentioned how to assess the

“greenness” of a technology

Opportunities- Increased awareness for environment by SMEs

Threats- May result in easy solution and not in the best ones


Equitable/Social DistributionStrengths- Improved education and trainings for companies and

employees- Job enrichment- New technologies for developing countries

Weaknesses- Little attention towards social sustainability

Opportunities- Encouraging green innovation can give economic

boost- Creation of new jobs

Threats- Exclusion of the local community as stakeholder



– Communication is the key issue– Need for tailored communication campaigns

• Implementation and Evaluation– EC has committed itself to regularly monitor all actions on the GAP, including:

• Review of the financial resources needed and used • Dialogue with relevant SME stakeholder • Effectiveness of the specific programmes.

– Annual SME Performance Review for each Member State



• Inefficiency: Too many subsidies

• Asymmetric informationMarket Failures

• Voting Issues: Lack of involvement

• Bureaucracy: Inappropriate or insufficient information, different interests

• Decentralization Issues

Governance Failures


Recommendations

Communication and Information

Cooperation and Partnerships

Legislative actions

Country-specific implementation


A RESOURCE-EFFICIENT EUROPE

Goal: Utilizing resources more efficiently

Empowerment of consumers

Technological improvements

Transition in energy, industrial, agricultural and

transport systems

Consumers' and producers'

behavioral change

Exploiting synergies and

addressing trade-offs

Public support for R&D

Building up the knowledge base and consistent

analytical approach

A Resource-efficient Europe

Economic Efficiency Strengths - Trade policy to tackle the challenges in commodity markets and on raw materials - Addresses supply and demand side at the same time - Lowers costs - International cooperation benefits- Market integration - Strengthens EU's competitiveness

Weaknesses- No clear directions on how to achieve goals

Opportunities- Coherence between the EU's raw materials and external policies - Opening up of new markets/liberation of existing markets - New/greener technologies to enhance effective production

Threats- Diversity of range and state of economies in the different member states - Global resource scarcity - International cooperation and the EU's position in the global market


Environmental Preservation


Strengths - Specific medium and long-term objectives and

means for reaching them- A new biodiversity strategy for 2020- Early action on adaptation to climate change- Identifies waste a resource

Weaknesses- No clear-cut measuring indicators of

environmental damage- Bad environmental status in some countries

Opportunities- Proposals to reform many related policies- A water policy for increasing water efficiency- Resource life cycle assessment- International cooperation: knowledge transfer,

best practice

Threats- Much coordination needed between different

policy areas and strategies- Threat of causing unwanted side-effects- Global climate change

Equitable/Social DistributionStrengths- Addresses the hidden costs of resource use that society has to bear; thereby creates an opportunity for behavioural change - Tools in place to monitor progress and respond to stakeholder's input - Stakeholder involvement - Promotes good governance - Produces positive externalities

Weaknesses- Information and data availability and reliability

Opportunities- Evaluation and adjustment of policy on a case-by-case basis furthers equity - Knowledge generation and transfer - International cooperation - Strengthening of competitiveness; job creation

Threats- Biased decisions in case-by-case decision making -Focus of policy and trade-offs -The “losers” of change



– very feasible: strategic, integrated; proposes concrete action– main issue: complexity

• Evaluation• “Progress Report on the Roadmap to a Resource Efficient Europe”

– Resource Efficiency Scoreboard: Eurostat – The Life Cycle Data Network

• “Analysis of an EU target for Resource Productivity”– Rationale for a target of increasing resource productivity – Resource productivity: GDP divided by Raw Material Consumption (RMC



• Not addressing the supply and the demand side of the market

• Not addressing hidden social costs

Market Failures

• Not addressing hidden social costs

• Failing to deal with the complexity

Governance Failures


Recommendations

Green Action Plan for SMEsA Resource-efficient Europe

Education and Training

Environmental Indicators + Resource

Efficiency Target

Raw Material Consumption Data

Conclusion/Implications• Resources are used more efficiently, waste is becoming a resource• Job creation • More competitive stance on the global market

EU’s position and perception as one unified body speaking with one voice

Required:

More specific information

available for SME’s

Setting shared standards in all member states

Reflective regional economic

developmentGood cooperation

Environmental Indicators + Resource

efficiency target

Thank you for your Attention!

Any questions?

ppa presentation _ nina, veronika, helen _ 12.06.15

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