The construction sector consumes 42 billion tonnes of resources annually, making it the most material-intensive sector. The construction sector also produces about one-third of all global waste, most of which is not recycled or reused, but ends up in landfills. This is a known problem faced by actors across the industry value chain. Changing one of the largest industries in the world is no easy feat, but change is already happening.
Circle Economy has teamed up with ROCKWOOL one of the frontrunners, committed to change the sector. ROCKWOOL recognises the potential of the circular economy and has decided to join Circle Economy's member community. They aim to address the global environmental and social challenges caused by the industry while simultaneously creating new commercial opportunities. The concept of a circular economy is not new to ROCKWOOL. For instance, the group upcycles secondary materials from industries such as the utilities and metallurgical sector. ROCKWOOL also recycles its own waste in closed loops and designs products for extended life spans and nearly indefinite recycling thereby leveraging the natural recyclability and durability of stone wool.
"Our membership with Circle Economy can help us better understand the opportunities we have in our value chain and help us connect with other stakeholders so the impact can be wider,”
Dorte Vigsø, Sustainability Manager, ROCKWOOL Group.
To further improve ROCKWOOL's operations, Circle Economy assessed the company's value chain and identified opportunities to increase impact. Applying a system mapping methodology to measure and assess circularity across ROCKWOOL’s value chain, from resource extraction to end of life, Circle Economy identified a range of opportunities to build on existing activities. It also showed that ROCKWOOL has the potential to become fully circular in the future.
"We need better incentives to improve the management of demolition and construction waste. Investigating ROCKWOOL's value chain helped us understand the structural issues holding back the industry. Far-reaching collaboration across the value chain and with legislators is needed to move forward."
Marc de Wit, Director Strategic Alliances, Circle Economy
Looking at the industry as a whole, a lot still needs to happen. The collaboration with ROCKWOOL uncovered three key levers to improve circularity: (1) Increase the sourcing of non-virgin and regenerative materials for both raw materials and energy supply; (2) Develop more high-value and circular product applications that can be integrated into modular, adaptive building components; (3) Reclaim more waste from the construction sector through ROCKWOOL’s internal recycling and partnerships with other players.
The biggest steps towards circularity can only be taken with the support of and collaboration with legislators and value chain partners. Circle Economy found multiple opportunities for ROCKWOOL to improve the circularity within its own operations. However, structural barriers in legislation and other parts of the value chain impede the development of the necessary recycling infrastructure for construction and demolition waste to become fully circular. ROCKWOOL and Circle Economy call on both legislators and value chain partners to join forces in developing pragmatic solutions to overcome the identified barriers. Doing so will drastically improve economic incentives for a circular utilization of construction and demolition waste thereby unlocking the full potential of the circular economy model. To start the dialogue, ROCKWOOL is open to discuss the opportunities identified in the report via sustainability@rockwool.com and through their Circle Economy membership.
Almaty is the world's first Central Asian City to identify circular economy opportunities. A resource metabolism scan uncovers how Almaty can use circular economy strategies to shape its future as an international trading hub at the intersection of Europe and Asia.
Almaty in Kazakhstan is the first city in Central Asia to identify circular economy opportunities. The city commissioned an international consortium -- Shifting Paradigms, Circle Economy, Centre for Sustainable Production and Consumption (CSPC), FABRICations and Emerging Markets Sustainability Dialogues (EMSD) -- to map resource consumption. The analysis produced new cross-sectoral circular economy strategies to achieve the city’s sustainable development ambitions.
This resource metabolism scan comes as Almaty achieves impressive economic growth, re-establishing its position as an exporter of agricultural commodities. An important station on the Belt and Road Initiative, China’s development plan to improve trans-continental cooperation, Almaty sees connectivity with Asia, Europe and other regions as key to growing international trade. At the same time, the government is opening new channels for public participation in urban planning decisions, to meet the needs of its citizens.
"This project helps strengthen international cooperation and share positive experiences, as well as fostering a dialogue between all stakeholders to achieve the principles of sustainable development".
B.K. Baibek, Mayor of Almaty City
The consortium worked intensely with local governments and industry players, to ensure the metabolism scan highlights circular strategies which take full account of cultural, socio-economic and geographic factors.
In agriculture, the most promising circular economy opportunities lie in diverting organic residues away from landfill and processing them into soil enhancers or organic fertilisers. Regional ambitions for agricultural output will require investment in soil quality. Applying processed organic residues on land can reduce the application of synthetic fertilisers, while also improving water retention, soil life and resilience to erosion.
Local industries already collect and recycle a significant share of mineral and metal residues. Improved connectivity to foreign markets through the Belt and Road Initiative can support the extension of manufacturing capacity with remanufacturing, whereby used products or components are refurbished as new; for example, car parts, furniture and construction elements. New service models can support this approach by incentivising companies to produce products that last, allowing suppliers to retain ownership and run take-back schemes to cycle products to second or even third users in different market segments.
“During the project it was encouraging to see the amount of traction on the ground, from grassroots initiatives to large government programmes. Since 40% of the carbon footprint of the city can be addressed with circular economy strategies, it is important to scale these initiatives.“
Jelmer Hoogzaad, Shifting Paradigms
Circular strategies in the construction sector are based on passive design and adjusting the design to replacing new, carbon-intensive construction materials with materials of secondary or renewable origin. This starts with design. Merely considering energy and resource use in the design phase of a building can bring down energy use with more than half. Design can also open opportunities for the use of secondary and renewable construction materials, potentially turning the construction sector into a net sink of CO2.
"It is encouraging to see the circular economy gaining momentum outside of Europe and recognised as a tangible tool for transition. It provides a change agenda to transform from an economy of depletion to an economy of opportunities that works for all people."
Harald Friedl, CEO Circle Economy
By showcasing also what is already happening in the city, the circular prospect becomes more comprehensible. Artist impressions in the report aim to make the circular future tangible, connect it with socio-economic challenges and show how circular initiatives can make Almaty an even more pleasant place to live.
Local government programmes that encourage and support circular economy practices, such as repair, recycling and circular design activities help attract new investment, create jobs and result in tangible socio-economic benefits for the city and its people, reveals the report: The Role of Municipal Policy in the Circular Economy: Investment, Jobs and Social Capital in Circular Cities.
The report explores the connection between municipalities pursuing circular economy policy and investments in circular business that create jobs.
In order to maximise the benefits for society of the circular economy, municipalities can employ a series of regulatory, economic and soft instruments. Municipal circular policies, especially strategy, targets, loans and subsidies, are conducive to generating employment.
“We know that circular strategies can create new, local, stable jobs and support an economy that is low carbon and human centered. Cities play such a key role to make the transition happen and it is the policy makers who now have the opportunity to make thriving cities. Governments can use the circular economy to make the sustainable development of their cities possible." – Harald Friedl, CEO, Circle Economy
Circle Economy has announced an updated participation offer for brands and retailers who wish to join the Cotton Recycling Pilot, a 12-14 month project designed to address barriers to the use of post-consumer recycled cotton and increase supply chain experience with circular textiles. Circle Economy and Recover will bring together supply and demand to establish a mutual understanding of the capabilities and limitations of post-consumer recycled cotton. This update expects to enable brands and retailers to meet their post-consumer recycling commitments and bring circular textiles one step closer.
Two new knowledge partners are joining the project. WRAP, the UK Waste and Resources Action Programme, works extensively towards catalysing change across sectors with a strong focus on resource efficiency and addressing the economic viability of solutions for the circular economy. As leader of the Sustainable Clothing Action Plan, WRAP expects to be a key partner in this project. KPMG Advisory S.p.a., the Italian branch of the global advisory group, will contribute their experience and expertise in delivering professional business services to support the growth of companies and markets, focused on innovation as a key pillar of the work they support.
Through this partnership, WRAP and KPMG Advisory S.p.a. (Italy) will join Textile Exchange and Reblend to support the work of the Cotton Recycling Pilot and share data and insights from past projects and ongoing work. The project is additionally supported by the Dutch Ministry of Infrastructure and Water Management. By combining knowledge and working together, industry uptake of recycled post-consumer textiles can be accelerated without reinventing the wheel.
Applications for brands and retailers to join the project will close on 30 September, so contact us now to work together and make a lasting impact in our industry!
Learn more about the project and get in touch here:
Amsterdam, June 19th 2019 - Circle Economy and Alstoff Recycling Austria (ARA) today announce the release of Circularity Gap Report Austria, the first measure of circularity for a nation state. This landmark report paves the way for nations to lead the transition from a linear economy of Take-Make-Waste to a circular economy.
The analysis, commissioned by ARA, found a circularity rate for Austria of 9.7%, ahead of the figure of 9.1% in Circle Economy’s Global Circularity Gap report published in January 2019. The Austria report will enable political and business leaders to identify and monitor the best interventions to boost the circularity rate, the proportion of materials that are recycled, re-used and re-manufactured in the Austrian economy.
Closing Austria’s circularity gap
The report estimates the improvements to be gained from four courses of action:
Combined, these four actions can boost Austria’s circularity rate to an estimated 37.4%.
From global to national scans
Nation states can play a pivotal role in the global transition to a circular economy. Setting comprehensive national policies can drive global action, setting a benchmark for collaboration at multilateral level. The Paris Climate Agreement of 2015 is testimony to the influence of national governments in setting an agenda for the United Nations.
Austria leads the way
Austria ranks as one of the global frontrunners in recycling. After four decades of policy interventions, 58% of all municipal waste is recycled. The Circularity Gap Austria identifies opportunities to radically reduce inputs of primary materials, including waste and emissions. This study, commissioned by ARA, demonstrates Austria’s determination to unlock new business opportunities as a frontrunner in the circular economy.
Hybrid methodology
Applying the methodology of the Global Circularity Gap Report to a national context, Circle Economy has focused on two parallel methodologies: a production-based analysis and a consumption-based analysis.
The production-based methodology tracks materials that are produced within a closed system. This analysis is comprehensive at a global scale, when the planet is in effect a closed system. When applied to a nation state, however, the production-based analysis will not include the full material footprint of imported goods.
The consumption-based methodology adapted from Circle Economy’s Global Circularity Gap Report tracks products across the entire supply chain. This analysis tracks material footprints across the globe, to measure the total material cost behind domestic consumption.
A landmark for national policy
The Circularity Gap Report Austria is the first of its kind. Its outcomes therefore have relevance beyond providing an agenda for Austria. As a contribution to the discourse on the measurement of circularity at national level, the report sets a precedent for other nations to steer effective collaboration in the realisation of a circular economy.
Endorsements
"Austria is taking a pioneering role in the transition to the circular economy. This Circularity Gap Report - Austria shows how Austria is performing as a country in comparison to the global average of 9,1%. In this epoch of climate breakdown, with profound societal and economic challenges, our vision of a circular economy is an inclusive, sustainable and future-proof model for development. We have done this work with hundreds of businesses and dozens of cities around the world. With this report commissioned by ARA, Austria becomes the first country to bring national perspective to this global debate. Austria has developed a strong social partnership over the years, with a strong record in recycling. We hope that all stakeholders - policymakers, industry, academia and civil society - will build on the great ideas put forward in this report, and jointly map a path to faster and scalable action." -- Harald Friedl, CEO, Circle Economy
"Turning from the global to national level with Austria, we used a hybrid methodology bringing a greater focus on consumption to our assessment. Looking simply at production, we can track only what is produced in a system or enters as a finished product. Fine for the globe, but when focusing on a nation, such a model cannot account for materials used in production outside the state, the full material footprint of a product. By tracking products across the entire supply chain, even when their footprints criss cross the globe, we can measure the total material cost behind domestic consumption." -- Marc de Wit, lead strategic partnerships and consulting, Circle Economy
To download the report: https://circle-economy.com/circularity-gap-report-austria
Media enquiries
For further information and to arrange interviews with the report’s authors, please contact Mark Ashurst at press@circle-economy.
Circle Economy works with cities and businesses to accelerate the transition to a circular economy and to close the Circularity Gap. An impact organisation, we identify opportunities to turn circular economy principles into practical reality.
Our work combines practical insights with scalable responses to achieve our vision of economic prosperity and societal balance within planetary boundaries. Our mission is to connect and empower a global community in business, cities and governments to create the conditions for systemic transformation.
.svg)
