Lao PDR, 25 November 2021
Lao PDR’s most recent NDC aims to reach net carbon neutrality by 2050. A new report, led by Shifting Paradigms from The Netherlands in collaboration with Circle Economy, Earth Systems (Lao PDR), Rebel Group (the Netherlands) and DFDL (Lao PDR), now shows how supplementing the NDC with circular economy interventions can help to achieve or even raise that ambition. It also presents the business cases supporting these interventions for the private sector in Lao PDR. The report was realised thanks to the generous support of the UNDP NDC support programme.
We are thrilled to announce the following findings:
Lao PDR can become net carbon neutral by 2040 by adopting a circular economy approach. With the measures proposed in the NDC, it can reduce its GHG footprint from 106 to 58 million tCO2e/year in 2040. The circular GHG mitigation interventions can reduce it further to net zero. Most of the circular mitigation and sequestration potential lies in wood-based construction, improving livestock efficiency, prioritizing active, shared, public and electric transport and reducing food losses. By adopting circular economy strategies within Lao PDR, the country would also reduce the import of carbon-intensive products. This creates additional GHG emission reductions in other countries of approximately 2.2 million tCO2e/year.
These interventions can reduce solid waste disposal by 86 percent and reduce an additional 2.6 million tonnes of food waste and losses. The gross domestic product (GDP) from the circular economy in Lao PDR could reach $16 billion by 2050, while the number of jobs in the circular economy could reach 1.6 million by 2050. The Lao PDR workforce totaled 3.9 million in 2020, of which around 16 percent in circular jobs.
According to business case estimates, the circular economy is a viable business opportunity for Lao PDR. 89% of the circular GHG mitigation and sequestration potential has a positive net present value and 85% provides a payback in less than six years. When introducing a carbon price of $25 per tonne, 98% of the circular mitigation and sequestration potential has a positive return, or negative marginal abatement costs. Without a carbon price, that percentage is 89%.
The transition to a circular, net zero carbon economy requires an investment of $4.1 billion in the period 2022-2036. That is in addition to the $4.7 billion required between 2020 and 2030 to implement the NDC. In comparison, the new Boten-Vientiane railroad requires investment of $5.95 billion. To realize investments in a low-carbon and circular future, regulatory and institutional barriers must be overcome for circular ventures so that they have access to investment capital, for example.
Shifting Paradigms applies a systems’ or metabolic analysis with detailed data visualisation to place a company or jurisdiction in a broader system of material flows. That allows decision-makers to develop a joint vision of a circular, low-carbon future and define their own role in making that vision reality. Building on previous experience with modalities for international cooperation under the Kyoto Protocol and Paris Agreement, we can connect circular mitigation and sequestration opportunities with international climate finance.
Circle Economy is a global impact organisation with an international team of passionate experts based in Amsterdam. We empower businesses, cities and nations with practical and scalable solutions to put the circular economy into action. Our vision is an economic system that ensures the planet and all people can thrive.
UNDP’s work on climate change spans more than 140 countries and US$3.7 billion in investments in climate change adaptation and mitigation measures since 2008. With the goal to foster ambitious progress towards resilient, zero-carbon development, UNDP has also supported the implementation of the Paris Agreement on Climate Change by working with countries to achieve their climate commitments or Nationally Determined Contributions (NDCs).
As part of the three-day state visit of the Dutch royal couple to Norway, the Holland Circular Hotspot and Nordic Circular Hotspot formally signed a Partnership Agreement today. The signing ceremony took place in Trondheim in the presence of His Majesty King Willem-Alexander and Her Majesty Queen Máxima as well as His Royal Highness Crown Prince Haakon Magnus and Her Royal Highness Crown Princess Mette-Marit.
Circle Economy, a partner of both the Dutch and Nordic Circular Hotspots, warmly welcomes this new collaboration, which aims to accelerate the market transition for circular solutions and businesses in and between The Netherlands and the Nordics. Since the Nordic Circular during the World Circular Economy Forum in Helsinki in June 2019, the two Hotspots have worked closely together. The formation of the Nordic Circular Hotspot was inspired by the Holland Circular Hotspot and now the time has come to formalise this partnership.
“Signing a partnership with the Nordic Circular Hotspot comes at a moment that the world realises that it needs circularity more than ever,” said Freek van Eijk, Director, Holland Circular Hotspot, at the signing ceremony. “This is the century for circular entrepreneurs and frontrunners to have the biggest market potential.”
The Nordic economies combined make up the 12th-largest economy in the world. Accelerating the circular and sustainable transformation in this region has great potential and can have a significant ripple effect. The Netherlands is leading the transition to a circular economy, with a Circularity Metric of 24.5 per cent, according to Circle Economy's Circularity Gap Report for the Netherlands. By comparison, the Norwegian economy is only 2.4 per cent circular according to the Circularity Gap Report Norway. Through this collaboration, the Nordics could leapfrog some of the early barriers The Netherlands has gone through, and utilise innovation, resources and knowledge sharing in order to make the circular economy the new normal. Circle Economy was represented in Trondheim by Marc de Wit, Director Strategic Alliances.
“Circular value creation is key to sustainability in our markets for the time ahead,” said Einar Kleppe Holthe, Managing Partner, Nordic Circular Hotspot. “Nothing is better than formalising the partnership between our two Hotspots, connecting The Netherlands and Nordics in a more close and collaborative way.”
“Together we aim at leaving the wasteful, consumption-based and resource-intensive economy of the previous century,” said Cathrine Barth, Founder and Managing Partner, Nordic Circular Hotspot. “As partners we seek to evolve the circular economy and collaborate in view of establishing a healthier, safer and cleaner economy.”
To kick off their collaboration, the two Hotspots will this afternoon host a roundtable on circularity with 15 Norwegian and Dutch companies and organisations from different sectors. The roundtable will be held in collaboration with the Trondheim Centre for Sustainable Development and Nordic Innovation. Its purpose is to find ways to learn from each other, work cross-sectorally and holistically, and to germinate collaborative projects and initiatives.
The signing ceremony was part of the state visit, held from November 9-11 and accompanied by Dutch foreign minister Ben Knapen, affirming the outstanding relations between Norway and The Netherlands. Both countries share common values and jointly seek solutions to major international challenges. The main themes of the visit include bilateral and international co-operation, climate change, the energy transition and sustainability, with the circular economy being in the spotlight through the Partnership Agreement.
The Nordic Circular Hotspot is the leading resource on the circular economy in the Nordics. With partners in all the five Nordic countries plus The Netherlands, supported by the Nordic Council of Ministers and Nordic Innovation, its mission is to accelerate the transition to an inclusive, resource-efficient, regenerative and circular market in the Nordic region. The Hotspot aims to contribute in a meaningful way to reinvent how the Nordics design, produce and market products. It also wants to rethink how the Nordics use and consume goods and services, and redefine growth in the Nordics and what is possible through reuse, reduction, repairing, regeneration and, most importantly, systems change. The Hotspot’s goal is to achieve critical mass of circular and sustainable dynamics and transactions in all value chains, to reach transitional tipping points faster in all segments and sectors of the Nordic market. https://nordiccircularhotspot.org
The Holland Circular Hotspot Foundation aims to create and strengthen circular economy export and investment opportunities for the Dutch business community, and stimulate international exchange of circular economy knowledge and innovation. This is done in close collaboration with the Dutch national government and the Netherlands Enterprise Agency. By doing so, Dutch knowledge and expertise will contribute to the implementation of a circular economy in an international context, create mutually-interesting business opportunities and help to accelerate the realisation of theSustainable Development Goals and contribute to the climate objectives. https://hollandcircularhotspot.nl
Circle Economy is a global impact organisation with an international team of passionate experts based in Amsterdam. We empower businesses, cities and nations with practical and scalable solutions to put the circular economy into action. Our vision is an economic system that ensures the planet and all people can thrive.
The Growth Knowledge Partnership (GGKP) is the largest global network of experts and organisations dedicated to generating, managing, and sharing green knowledge. Circle Economy was approached to join the network to complement the existing community with circular economy specific content and expertise.
The platform is hosted and funded by Global Green Growth Institute, OECD, UNEP, UNIDO and the World Bank - to provide government and industry with the evidence needed to transition to an inclusive green economy.
Circle Economy will leverage the partnership's expansive global network - sharing knowledge and tools, participating in expert working groups, seeking funding opportunities and amplifying our organisational reach and impact.
For more information, visit the GGKP website.
Together with ICLEI - Local Governments for Sustainability, Metabolic and the Ellen MacArthur Foundation, Circle Economy is launching the Circle Lab for Cities programme, supporting cities in boosting their efforts toward a circular economy.
'With this programme, we are launching a digital platform for cities that offers knowledge, actionable insights and tools to support the implementation of practical circular economy solutions, helping them achieve their sustainability goals. This digital platform will continuously evolve and offer updated content and new features as more cities engage with it. We welcome user feedback so we can continuously develop content and release features based on cities' specific needs,' says Ivonne Bojoh, Head of Digital at Circle Economy.
Through the Circle Lab for Cities programme, cities can explore the circular solutions implemented by their peers, scan their urban metabolism, and act to advance their transition to a circular economy in priority sectors.
Specifically, the digital platform developed as part of this programme includes a wealth of tools, knowledge and actionable insights—allowing city practitioners to identify priorities based on a local assessment of resource flows and existing initiatives. City actors will also have the opportunity to explore and learn from the circular solutions their peers have already implemented. The programme also includes the development of tools and materials to support planning, stakeholder engagement and monitoring of the circular strategies implementation locally.
'The Circle Lab for Cities programme aims to provide each city with the right instruments to take the next step in their circular development journey. As a global network, we aim to develop tools with local governments, to ensure that they address practical needs and are adaptable to different local contexts. This is why we will be testing all tools with network cities from five world regions,' says Sunandan Tiwari, Director of Global Implementation at ICLEI.
Funded by the MAVA Foundation, the programme represents a powerful collaboration that brings together leading expertise on the circular economy and one of the largest networks of local and regional governments working towards a sustainable urban future.
The program is guided by the Circular City Actions Framework, developed by ICLEI – Local Governments for Sustainability, Circle Economy, Metabolic and the Ellen MacArthur Foundation to introduce cities to the range of strategies and actions available to them as they work towards a circular economy at the local level.
The framework is structured into five complementary strategies, the 5 Rs:
The 5 Rs are linked to 15 actions local governments can take that reflect the different roles local and regional governments play, from public service delivery to cooperation with local stakeholders, asset management, urban planning and regulation. They can be applied to all production, consumption and waste management processes influenced by the city, local businesses or residents. In addition, Circle Economy and ICLEI are launching a Cities Collection on the Circle Lab Knowledge Hub. The collection features city examples across the 5 Rs and diverse sectors cities can influence.
Local governments and city actors are invited to participate in the Circle Lab for Cities programme, which offers a hands-on, cost-effective and practical process equipping them with the strategies and tools their city needs to take the next step towards a circular economy.
From engaging in the programme and making use of the tools it offers, cities can expect:
Are you a city practitioner interested in testing tools to make your circular economy strategy more actionable? Register below and be among the first to test circular development tools which will help make your city more circular.
Today, we are thrilled to announce that Circle Economy has joined forces with the Research Institutes of Sweden (RISE) to measure the circularity of the Swedish economy. The analysis, funded by the strategic innovation programme RE:Source, will deliver tailored recommendations for a circular economy in Sweden and inspire stakeholders from businesses, governments, academia and civil society to steer the country's transition.
Sweden, like many countries around the world, recognises the circular economy as a means to meet emissions targets, improve living conditions and make the economy more competitive. But while the why of the circular economy is clear, the how remains a big challenge. Through the Circularity Gap Report analysis for countries—Circle Economy's method for analysing material flows in national economies—RISE and Circle Economy will shed light on Sweden's resource reality: what kind of materials already flow in the economy? Where do the biggest waste streams come from? Are certain streams already cycled back into the system? Understanding how circular Sweden is today will provide valuable insights into opportunities for the future.
‘Thanks to this analysis, we will understand how circular Sweden is, where Sweden is excelling and where Sweden needs to improve. Based on that, we can identify circular actions that are likely to have the biggest positive impact. This will help us drive the circular economy transition in the Nordics and the world.’ - Vojtech Vosecky, Circle Economy Associate
‘It will be interesting to identify what measures should be prioritised for Sweden to become more circular and to what extent these measures are addressed in various national strategic documents such as the national action plan for a circular economy.’ - Carl Jensen, Project Manager at RISE
‘Our mission is to improve resource efficiency in society, but to measure improvement over time we need first of all a baseline measurement. That is why we decided to fund this important initiative.’ - Klas Cullbrand, Innovation Manager at RE:Source.
Thanks to the support from RE:Source, outcomes of the analysis and key recommendations will be launched in the form of a Circularity Gap Report for Sweden in the first quarter of 2022.
By conducting a Circularity Gap analysis, Sweden will join the ranks of Austria (9.7% circular), the Netherlands (24.5% circular), Norway (2.4% circular) and Quebec (3.5% circular). Read more about Circle Economy's Circularity Gap Reporting Initiative here.
For more details about the Swedish project or our activities in the Nordics, feel free to get in touch with Vojtech at www.circle-economy.com/contact
About RISE
RISE Research Institutes of Sweden is Sweden’s research institute and innovation partner. Through international collaboration with industry, academia and the public sector, we ensure business competitiveness and contribute to a sustainable society.
About RE:Source
RE:Source has been appointed by the Swedish Energy Agency, Vinnova and Formas as a Strategic Innovation Program, supporting research and innovation leading to sustainable use of materials. www.resource-sip.se
About Circle Economy
Circle Economy is an impact organisation, founded to create prosperity for all within the limits of our planet. We combine data, tools and digital knowledge for the greater good. With nature as our mentor, we support businesses, cities & nations to accelerate circularity with practical roadmaps for change. We are an international team of passionate experts working globally, based in Amsterdam.
Amsterdam, 21st of September, 2021—Today, Circle Economy announces changes in its leadership team. As of 1 September 2021, Annerieke Douma (Director Global Alliances and Cities) has left Circle Economy after six years. Staying in Indonesia, Annerieke will remain connected to Circle Economy as an Advisor for Southeast Asia, while Hatty Cooper (Director Director Governments and Institutions) will additionally oversee the Cities programme, formerly led by Annerieke, moving forward. Meanwhile, Ivonne Bojoh—our Head of Digital—will assume the responsibilities of Chief Operating Officer ad interim.
'I am grateful to see the need for a circular economy gaining momentum rapidly over the past six years as one of the solutions to the global challenges we are facing. Cities, businesses and nations all play a key role in the necessary systemic change. I am convinced Circle Economy will continue to have a foundational role in the transition to a circular economy. I am grateful to have been part of an incredible team and to our close partners for the trust and collaborative effort we have put into contributing to a more equitable and prosperous society. The Cities Programme is in the best possible hands with Hatty Cooper moving forward.' - Annerieke Douma
'Working with national- and local-level decision makers at the intersection of government, industry and civil society is vital to achieving an impactful and sustained circular transition for all. I look forward to collaborating with Annerieke in her new role in Southeast Asia and working with a great team to pursue our ambitious agenda to double global circularity by 2032.' - Hatty Cooper
'As Circle's COO a.i., I can leverage lessons learnt from (digital) scale-up organisations and guide our teams to work according to the tri-track agile method. This will enable us to continue valuable research and development work for programmatic development, while we productise and distribute the content and data through our (upcoming) digital platform.' - Ivonne Bojoh
At Circle Economy, we want to thank Annerieke for helping shape what Circle Economy is today. While she was with Circle Economy she, among others, successfully developed a thriving Cities Programme, launched the first Doughnut City and initiated the Circular Jobs Initiative in collaboration with strategic global partners.
At the same time, we look forward to helping more businesses, cities and nations put the circular economy into action with the continuing leadership of Hatty Cooper (Director Governments and Institutions) and Marc de Wit (Director Strategic Alliances), in close collaboration with Martijn Lopes Cardozo (CEO) and Ivonne Bojoh (COO a.i. & Head of Digital).
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We are thrilled to announce that Circle Economy has entered into a new partnership with the Nordic Circular Hotspot, the leading platform for the circular economy in the region.
Together, we intend to accelerate the circular transition in Denmark, Finland, Iceland, Norway, Sweden and The Netherlands through knowledge sharing, networking and collaborative projects. By uniting our strengths, networks, experience and expertise, we aim to leverage our joint abilities to set a powerful course for the circular future of the Nordics.
“Since collaboration is key to circularity and today’s value chains swiftly need to change from linear to circular, it is crucial to join forces with like- and heart-minded organisations such as Circle Economy. Some of our ten Managing Partners already have had several years of experience working with Circle Economy by co-creating general awareness in the Nordics and growing the circular movement together. Working with nature as our inspiration, we very much look forward to our partnership and to accelerating the transition to a circular economy in the Nordics, hand in hand." - Einar K. Holthe, Managing Partner, Nordic Circular Hotspot and Market Strategist, Natural State
"Due to their innovation drive and strong sustainability movement, the Nordics are in a great position to become a global leader in the circular economy. But the region is in the midst of a major transition and still has a long way to go. By partnering up with the Nordic Circular Hotspot, we are co-creating opportunities to provide Nordic states, cities, regions and businesses with the fuel needed to accelerate their circular transition." - Vojtech Vosecky, Circle Economy Associate
Our partnership is part of the Nordic Circular Hotspot’s ten-year Partnership Programme, which has been designed to accelerate a strategic, systematic and efficient circular market transition and sustainable development in the Nordic region.
For further information on this partnership or our activities in the Nordics, feel free to reach out to Vojtech through our contact form.
About the Nordic Circular Hotspot
The Nordic Circular Hotspot is a collaboration platform and ten-year circular market transition programme run by a consortium of ten Managing Partners from five Nordic countries plus The Netherlands and co-financed by Nordic Innovation. On a mission to enable and accelerate the transition to an inclusive, regenerative and circular market in the Nordics, the Nordic Circular Hotspot operates as an active enabler, well-connected facilitator and strategic collaborator in the region. Its secretariat is located in Oslo.
About Circle Economy
Circle Economy is an impact organisation, founded to create prosperity for all within the limits of our planet. We combine data, tools and digital knowledge for the greater good. With nature as our mentor, we support businesses, cities and nations to accelerate circularity with practical roadmaps for change. We are an international team of passionate experts, based in Amsterdam.
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How can the circular economy support ecotourism?
Lao PDR is a country of rich and diverse natural landscapes including rainforests, waterfalls and limestone mountains. Its stunning nature offers unique opportunities to develop sustainable tourism, but financial, legal and other barriers hinder its development. Can the circular economy be a lever for change?
Our latest endeavour—participation in a UNDP-led project with Shifting Paradigms, Rebel Group and Earth Systems—explores how Lao can develop circular business models to support its ecotourism. Together, we led a Community of Practice: a series of workshops and consultations, bringing together local entrepreneurs and policymakers.
The result? Practical solutions that will help participants achieve their sustainability goals through a shift to circular business. For example, the sustainable tourism provider Green Discovery now collaborates with PLM Eastbeam, considering how to substitute steel for wood to build an eco-friendly bridge, and with Lao Biogas to champion more sustainable energy sources.
From investigating opportunities for sustainable building materials to financing circular business opportunities, the Community of Practice helped foster new connections, spark knowledge exchange and put theory into action.
‘We worked with businesses in Lao to kickstart and scale their circular ecotourism activities—using our Community of Practice to spark new ideas and transform theory into action.’ says project leader, Aglaia Fischer.
Stay tuned for our upcoming white paper summarising the outcomes of the project.
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