Circular Economy Potential for Luxembourg and the Greater Region? Dr. Paul Schosseler Director CRTE / CRP Henri Tudor Vice-president LuxembourgEcoInnovation Cluster
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Circular Economy (C.E.) A circular economy decouples the creation of wealth and well-being from the consumption of non-renewable resources, substitutes energy and materials by labour and improves the quality of life. Walter R Stahel The Performance Economy Product Life Institute (http://product-life.org) 5
The main loops in the C.E. & junctions with the linear economy Point of Sale (P.O.S) Source: Walter Stahel (EC report, 1976) 6
Summary: the five key impacts on economy and society a C.E.: 1. uses human labour instead of energy and materials, at lower costs 2. creates local jobs of all qualifications 3. promotes caring: maintaining stock is based on maintaining existing values and qualities 4. reduces resource consumption, waste and environmental impairment 5. creates resource security (national and corporate) a C.E. creates a competitive regional economy 7
Environmental assessment of systems Vision: Assessing the environmental impacts of anthropic systems from a lifecycle and multicriteria perspective to support decision making processes Research activities: Development/improvement of assessment methodologies focusing on internationally recognized research priorities and on niche areas (single score indicators, multicriteria assessment, computational LCA) Innovation activities: Facilitate the implementation of environmental assessment in the business practice (IT product development, applied methods) Know-how transfer (trainings, collaborative work) Policy Support: Adaptation of green (sustainability) accounting models for policy support in Luxembourg 8
EU Biodiversity strategy 2020 - mapping and assessing ecosystems and their services (MAES) Source: Maes et al. (2013). Mapping and Assessment of Ecosystems and their Services. An analytical framework for ecosystem assessments under action 5 of the EU biodiversity strategy to 2020. Publications office of the European Union, Luxembourg 9
VALUing Ecosystem Services for environmental assessment 10
Vision Strenghten the sectors of Eco-technologies and Clean-technologies Identify Connect Act Mobility Circular Economy Concept ((c) Ellen McArthur Foundation) Circular Economy Sustainable cities and Smart Technologies Luxembourg EcoInnovation Cluster Members Meeting 31.01.2014 11
EcoInnovation Cluster priorities Information, documentation, awareness rising http://www.ecoinnovationcluster.lu/ Newsletter LinkedIn Group Econinnovation days 2015 Circular Economy Analysis of the potential and roadmap Accompany study launched be the Ministry of the Economy to assess the potential lying within a circular economy model and to prepare a roadmap for its implementation in Luxembourg Initiate and coordinate Pilot studies and implementations 12
Luxembourg and the Greater Region as a testlab and front runner for circular economy strategies and models? Threats: High dependence on raw material and energy imports Unemployment in a heterogeneous labor market.. Opportunities: Diversified manufacturing industry, both SME s and global players Strong research and innovation framework (clusters) Expertise in developing business models, especially in the financial and service sectors (insurances) Capacity to create fiscal niches, e.g. taxation (labor, leasing) Integration of multiple governmental strategies: ICT, data centers, security, safety and trust... 13
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VALUing Ecosystem Services for environmental assessment to develop a biophysical-economic characterization method for life cycle impact assessment (LCIA) of biodiversity and ecosystem services based on the use of a multi-scale integrated dynamic ecological-economic model Supply of SERVICES IMPACT on the provision of services Ecosystems 15
Reminder: today s linear industrial economy is driven by the bigger-better-faster-safer syndrome of fashion, growth means more throughput Source: Walter R. Stahel Zero-life products resources materials manufact. distrib. P.O.S. use waste micro-economic profit optimisation CONSUMER STATE The manufacturer s liability for industrial goods concerns the manufacturing quality only. Property and liability are transferred to the CONSUMER at the Point of Sale (P.O.S.) and then the STATE. BUT: asbestos, tobacco, greenhouse gas emissions,..
Politiques Européennes Stratégie de croissance EU2020, lancée en 2010 5 objectifs (3. Changement climatique et énergies durables) 7 initiatives phares (4. Une Europe efficace dans l'utilisation des ressources) COM(2011) 21 - Une Europe efficace dans l utilisation des ressources initiative phare relevant de la stratégie Europe 2020 COM(2011) 571 final - Feuille de route (roadmap) pour une Europe efficace dans l utilisation des ressources La vision: d ici à 2050, l économie de l'ue aura connu une croissance respectueuse des ressources naturelles et des limites de notre planète, contribuant ainsi à une transformation globale de l économie. Notre économie sera concurrentielle et inclusive et offrira un niveau de vie élevé tout en ayant réduit fortement les incidences sur l environnement. Toutes les ressources seront gérées de façon durable, des matières premières à l énergie, en passant par l eau, l air, les terres et le sol. Toutes les échéances auront été respectées en matière de changement climatique, tandis que la biodiversité et les services écosystémiques qu elle soustend auront été protégés, valorisés et considérablement restaurés. 17