The Limburg Energy Fund (“LEF”), a regional investment fund established by the Province of Limburg, is the first of its kind to join Circle Economy's membership community.
LEF has a mandate to support sustainability in or for Limburg. The fund has received €90 mln from the Province of Limburg and the European Investment Bank. It provides subordinated and senior debt, and equity financing, to projects that contribute to CO2 reduction, renewable energy, energy efficiency, resource efficiency, waste or asbestos reduction.
"We are very proud and happy to welcome LEF as our latest member. They lead by example, currently financing various circular projects. Their ambition, specific circular focus and experience will be of great value for the work we do within Circle Economy"
- Fieke de Haan, Lead Circle Finance Programme
With this mandate, LEF is the first regional investment fund with a specific circular focus, stimulating retention of value from residues of biological, technical and energy cycles and improving the efficient use or re-use of resources.
“The Limburg Energy Fund pledges to contribute to further growth of the circular economy. LEF has financed more than €20 mln in circular projects, mobilizing more than €100 mln in private sector funding. By joining other members of the Circle Economy community, we will share knowledge and hope to step up our financing of circular projects”
-- Philip Tan, Director Limburg Energy Fund
Four examples of circular projects financed by the Limburg Energy Fund
Its time to wake up to the opportunities of the circular economy. In the 12 months since we launched our first Circularity Gap Report, resource extraction and greenhouse gas emissions have continued to increase.
Key indications confirm that the problems of the linear economy are engrained in our global system. We are headed in the wrong direction.
Today we have launched the second annual Circularity Gap Report in which we position the circular economy as a tool for the paradigm shift we so desperately need. It offers the prospect of a global economy which is regenerative and abundant.
https://www.youtube.com/watch?v=sGZK_uSvjfA
The 'Building Value' report launched today demonstrates the radical potential in the built environment to accelerate the circular economy. The industry should re-think how to calculate value in buildings and how to finance them.
This report identifies key reforms to current methods of valuation and financing to stimulate circular construction. An alternative pathway is mapped from a case study of the Fridtjof Nansenhof social housing project in Amsterdam, due for redevelopment in 2020.
The report is a collaboration between Circle Economy, Sustainable Finance Lab, ING, Allen & Overy, Eigen Haard, The Royal Netherlands Institute of Chartered Accountants (NBA), Alfa Accountants and Advisors, Madaster, Arcadis, Arup, and DOOR architecten, co-funded by Nederland Circulair! The participants formed a Community of Practice (CoP), to develop relevant, transferable tools to guide circular construction.
Rethinking Construction: one building, six layers
The report argues that each building should be conceived as six individual layers, each with their own lifespan. Applying circular principles, strategies can be developed to maintain the value of each layer.
The EPM hierarchy
Value can be maintained within each of the six layers by prioritizing reuse in this order: elements, products, materials (EPM). New business models, such as Product-as-a-Service, enable effective reuse of EPMs.
Market for reusable elements
Prioritizing reuse will require a developed market for building elements. Technology has enabled actors within the built environment to increasingly collect, store and exchange data. Reliable governance of EPM data is essential to respect privacy, security and transparency.
The business case
Accurate valuation of individual layers and EPMs is key. The Community of Practice conducted a scenario building exercise to compare the long term (financial) performance of circular features for two building layers. The business case is shown to be highly dependent on assumptions for factors including depreciation, discount rates, lifespan and market development.
Valuing circular construction
Distinguishing between building layers, when realizing the value on the balance sheet, is necessary to explicitly show the value of layers and EPMs as part of the overall value. The traditional emphasis on location value as part of the total value has eclipsed the importance of building layers and EPMs. These factors should be reported separately on the balance sheet to guide investment decisions.
"Separating location and building elements on the balance sheet should result in a different way of valuing and financing buildings when the developing market for repurposed building elements is more established.”
Jan van der Doelen, Sector Banker Building & Construction, Real Estate at IN
Bringing future value into present financing
Financiers play a crucial role in identifying and mitigating risks in the transition to a circular economy. Circular business models capture value over a longer time horizon, reflected in higher future values. Investment decisions should assess this future value: "The business case of a circular construction project is based on the ambition to reduce our demand for natural resources. If a small extra investment results in increased flexibility of the building in the long-term, then it is a smart investment. This long-term investment vision could be further incentivised if financiers make circular construction an investment criterium.” says Dries Wijte, Manager Back Office Finance at Eigen Haard.
Next steps
On the 16th of January the Community of Practise hosted an event, inviting industry professionals to further the conversation and challenge the report findings with the market. Several of the CoP partners have already committed to continue to build on the knowledge and support the implementation of a circular built environment.
Interested in winning a free trip to Amsterdam and attend Beyond Next, including travel and accommodation? Interested in contributing to a circular economy with your research and ideas? Well read on, because we have partnered with Amsterdam Fashion Institute, ABN AMRO, Gemeente Amsterdam and HEMA to run challenges to accelerate the transition to a circular economy.
You can now submit existing research, facts and figures, inspirational examples, and other key insights related to these challenges. The challenges cover four major themes of education, product as a service, organic waste in a circular city, and single use plastics.
We will synthesise and openly share the results of this crowd-based exploration on Circle Lab, the online platform for the circular economy, for everyone to find inspiration in, learn from, and use in developing new solutions.
These results will also support attendees of the Beyond Next Challenge Track as they ideate and prototype new solutions to the challenges throughout the two-day festival.
THE PRIZE
Send in some research and you could win a free trip including entry tickets worth €150 and accommodation and travel expenses up to €1,000!
Eight winners will be chosen based on a combination of the number and the quality of their contributions.
For more information on the challenges and how to contribute, check out the challenges below:
Beyond Ownership >
How can we promote access over ownership in the household?
Brought to you by ABN AMRO
Beyond Plastics >
How can we transition to a system free of single-use plastics?
Brought to you by HEMA
Beyond Education >
How can fashion education equip students for a ‘new reality’?
Brought to you by the Amsterdam Fashion Institute
Beyond Leftovers >
How can we effectively collect and use organic waste throughout the city?Brought to you by the Gemeente Amsterdam
Cities and regions hold huge potential for circular disruption. Their secret weapon? Policy! Circle Economy is excited to share 300+ examples of circular policies from over 40+ countries to the Knowledge Hub - the world’s largest open-access case study library of circular initiatives, technologies, and now, policies. By sharing practical examples of circular policies, cities and policymakers throughout the world can share their knowledge and expertise to overcome the barriers towards a circular future. The collection of inspiring cases have been collected in collaboration with ICLEI, and with the support of the Goldschmeding Foundation.
Visit the Knowledge Hub for Cities
Breaking down the barriers to circular knowledge
In 2017, Circle Economy recognised the huge need for a single location that assembles practical knowledge, expertise and example of circular solutions that are proven to work. The solution? The Knowledge Hub - the world’s largest case study database of circular businesses, initiatives - and, now, circular policy is added to that list. The platform provides an open-access platform for cities and policymakers to connect and further share their experience and expertise on circular policy.
Throughout the world, successful circular policies are blooming. Yet, all too often, this knowledge and experiences of these circular policies are held in silos, hidden away. Now, the Knowledge Hub for circular policy aims to break down these walls.
300+ circular cases across 40+ countries
Building upon the policy framework created by the Ellen MacArthur Foundation in 2015, the 300+ circular policies span 25+ policy instruments that are boosting the transition to a circular economy throughout the world; from circular procurement to collaboration platforms; landfill bans to green bonds. To give a taste of some of the innovative circular policies that can be found on the Knowledge Hub, here are three inspiring examples from European cities and regions;
As the recognition of the circular economy continues to grow, globally, so too will the library of circular policies in the Knowledge Hub. Open-access and collaborative, this digital platform will continue to empower and inspire a global community of circular changemakers. We invite cities and policymakers to share their knowledge, experiences and best practices on circular policies to accelerate the transition towards a circular economy.
There is an abundance of theoretical knowledge on the advantages of new disruptive emerging technologies such as blockchain, but it is much harder to prove the actual benefits in practice. In the next 3 - 6 months, a consortium made up of Circle Economy, Sustainable Finance Lab, Nederland Circulair!, Rabobank, Bundles, Allen & Overy, ING,ABN Amro, Leystromen and De Lage Landen are bringing together enabling knowledge, technology and experts to test the possibilities of Blockchain for circular pay-per-use models in a Community of Practice. This Community of Practice (CoP) will explore how Blockchain technology can facilitate circular pay-per-use models. The CoP, co-funded by NederlandCirculair!, will pilot Bundles, a circular company that offers pay-per-use washing machines, on a Blockchain platform developed by Rabobank. Access instead of ownership is seen as one of the potential drivers for the transition towards a circular economy. Pay-per-use models are facilitating this shift and are widely seen as an important tool to put a circular economy into practice. In pay-per-use models, customers pay for the use of a product instead of possession. This model creates incentives for products that last, stimulates value chains to work together and places more responsibility on producers for the collection, processing and reuse of products.The challengeHowever, financing pay-per-use businesses is a challenge as the product is not sold, the payback period is longer, creating higher (upfront) capital requirements. In addition, transaction costs for each 'use' of the product are often high due to the high administrative burdens. And as a large number of (chain) partners are involved in the complex material, information and money flows, there is an urgent need to establish a fluent operational payment infrastructure.Bundles is such a circular company that tries to cope with all these challenges. The company offers clean laundry in a 'hybrid use model' in which the user pays 40 cents per wash on top of a fixed monthly fee. Ideally, however, Bundles would offer its customers a greater variety of prices for the use of short, long, cold or warm wash programmes, or the ability to differentiate between sustainable or unsustainable, loyal or flexible users. This way, sustainable use and maintenance of the washing machine can be even further incentivised.The potential solutionTo facilitate this need, Rabobank has set up a platform with the functionality of a virtual currency that allows for micro-payments and smart contracts for pay-per-use models. If this enables 'real-time' micro-payments at low transaction costs, Bundles' circular ambitions can become a reality. Moreover, financing would become easier because payments are automated and more reliable... Follow the challenge virtually on www.circle-lab.com!We also invite other entrepreneurs, financial institutions, blockchain experts, and other interested parties to contribute to this effort on Circle Lab, Circle Economy's open-source platform for cities, businesses, and citizens to learn more about and engage with the circular economy. The contributions collected during the online challenge will bridge insights from the crowd with those of the CoP. If the pilot is successful it could be groundbreaking for Bundles, and therefore for the circular economy. [cta link="https://circle-lab.com/group/25/ideas"]Explore the Challenge[/cta][hr]For more information about the CoP Blockchain for Circular Pay-per-Use: elisa@circle-economy.comFor press inquiries: melanie@circle-economy.com To stay updated: sign-up for our newsletter. [hr]
AMSTERDAM, 17 October 2018 – Today the City of Amsterdam, Circle Economy and Copper8 launch ‘Amsterdam Circular: evaluation and action perspectives’ a comprehensive consolidation of insights from the practical implementation of 70+ circular projects in the circular City of Amsterdam and is validated by 100+ local businesses. The in-depth insights of the full report span eight municipal instruments applied over five value chains and offers practical action perspectives for cities to effectively accelerate their transition towards a circular future. Further buildings on these insights, City of Amsterdam and Circle Economy also launch a digest ‘Municipal policy for the circular economy: Lessons learned from Amsterdam’ which translates the key learnings Amsterdam’s circular projects into 17 practical actions for urban policymakers to accelerate circularity.[cta link="https://www.circle-economy.com/wp-content/uploads/2018/10/amsterdam-evaluation-EN-20180328.pdf" ]Download the full report[/cta][cta link="https://www.circle-economy.com/wp-content/uploads/2018/10/Municipal-Policy-for-the-Circular-Economy-Lessons-learned-from-Amsterdam-FINAL.pdf" ]Download the digest[/cta]Sharing learnings from Amsterdam’s 70+ projectsThe ‘Amsterdam Circular: evaluation and action perspectives’, is the second release in the three-part series that shares the most recent insights from Amsterdam’s pioneering journey towards a circular economy. With the momentum behind the circular economy only growing, it is important to consolidate and share these on-the-ground learnings of a frontrunning city to identify key municipal instruments that can accelerate a city’s transition towards circularity. Policy to boost the circular economyThe transition towards a circular economy is no easy feat, and can only be realised through effective engagement of, and collaboration between business and government alike. Throughout their journey to become fully circular by 2050, the City of Amsterdam has recognised the importance of such a holistic approach; actively encouraging the experimentation and implementation of circular strategies, enabled through a number of municipal instruments. This proactive ethos has resulted in the completion of over 70 circular projects throughout the city. Ultimately, in order to help spark a circular transition globally, it is important to consolidate these pioneering insights into practical actions that other city leaders can adopt. Evaluation of 100+ businesses in 73 circular projects over 5 value chains. The Amsterdam Circular: evaluation and action perspectives is the outcome of an extensive and collaborative project carried out by Circle Economy and Copper8 in 2018. The study, commissioned by the City of Amsterdam and the first of its kind in the world, conducted a thorough evaluation of the 73 completed circular projects in the city through participatory workshops and interviews with the 100+ companies involved. The report Amsterdam Circular, evaluation and action perspectives not only provides a thorough evaluation of eight key municipal instruments, but also analyses the progress of the circular economy in five value chains of the national Transition Agenda, including construction, consumer goods, and biomass. From these detailed insights, five key actions perspectives were created to continue the city’s momentum towards becoming a fully circular city.
We are facilitating and supporting people who actually want to do business in a circular economy, who want to reuse things, who want to have a minimal footprint. We have started 70 projects, from which we learn. Learn both from the mistakes we make but also from the successes we have, to make sure that these projects are examples, and they can inspire others to do the same.” - Marieke van Doorninck Deputy Mayor Sustainability of Amsterdam.- Marieke van Doorninck, Deputy Mayor Sustainability of Amsterdam
17 practical actions to boost the circular transition in citiesResulting from the practical evaluation of Amsterdam’s diverse portfolio of over 70 circular projects, the City of Amsterdam and Circle Economy also, today, launch ‘Municipal policy for the circular economy: Lessons learned from Amsterdam’ a practical consolidation of the full Amsterdam Circular, evaluation and action perspectives report. The summary generates 17 actionable recommendations for urban policymakers throughout the world to boost circularity. Focusing on five of the municipal instruments that have been instrumental throughout Amsterdam’s circular journey, the Municipal policy for the circular economy report highlights tangible actions to boost circularity through Legislation, Spatial planning, Circular public procurement, Business support and Knowledge instruments. Illustratively, the insights generated from Amsterdam’s experiences highlight not only the market demand that can be generated through the incorporation of circular economy criteria into the tendering process but also importance for alignment over municipal departments.[cta link="https://www.circle-economy.com/wp-content/uploads/2018/10/amsterdam-evaluation-EN-20180328.pdf" ]Download the full report[/cta][cta link="https://www.circle-economy.com/wp-content/uploads/2018/10/Municipal-Policy-for-the-Circular-Economy-Lessons-learned-from-Amsterdam-FINAL.pdf" ]Download the digest[/cta]
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The launch of the two reports, Amsterdam Circular: evaluation and actions perspectives, and the Amsterdam Evaluation Digest marks the second chapter in a three-part series that aims to break down three of the key questions that cities face when transitioning towards a circular economy. Each entry in the ‘Circular Journey of Amsterdam’ series sees the launch of, partner, Circle Economy’s latest report and insights from the City of Amsterdam and will tackle three key questions;
Interested in Amsterdam's full circular journey?
[cta link="https://circle-economy.com/amsterdam-circular-journey"]Explore[/cta]
[hr]For questions and press inquiries please contact: melanie@circle-economy.comFor more information please contact annerieke@circle-economy.com
When it comes to circularity, it seems we need to go back to school as an entire industry - hundreds of apparel brand and textiles businesses worldwide are striving to adopt the circular economy but many lack the know-how to assess their current state and to measure progress, have limited knowledge and understanding of best practices and circular strategies and struggle to establish the right partnerships in order to move from intent to action. In short, and as echoed in the Global Fashion Agenda (GFA) Status report, while the 'why' of the circular economy is understood, the 'how' is left largely unanswered.At Circle Economy, we've been furiously working on the development of Educational Trainings to teach not only designers but product developers, buyers, sales and marketing teams alike. Today, Circle Economy launches just that, titled: On Course: Circular Fashion and consists of 5 separate modules each focussing on a different key theme:
The trainings, which may be taken individually or as a suite, focus on educating and empowering teams across work streams to apply circular strategies in a practical and relevant way. The modules use design thinking tools to not only build skillsets but help in the integral mindset shift needed to accelerate circularity.
But the need for education doesn't stop there. Long-term industry change will not happen if current and upcoming fashion students continue to be trained for 'business as usual'. If Industry is at a crossroads, then so too is education. It's the classic chicken and egg conundrum.Schools, colleges and universities are at the helm here - they play a vital role in enabling the circular mindset and skillset of the next generation of industry professionals and ultimately securing the possibility of long-term sustained change. Educational Institutes can no longer shy away from the vast and damaging impact the industry has and must equip the next generation of fashion professionals with the values, perspectives, knowledge (and audacity!) needed to mend this ship we have set sail on, or to build a smarter, vehicle for change.That's exactly why Circle Economy and the Amsterdam Fashion Institute (AMFI) partnered in 2016. As a like-minded, action-orientated partner, AMFI is just as eager to kick-start a revolution and to rethink how we produce, design and sell clothing.This partnership has manifested in two distinct projects;In 2016, spurred on by the common belief that collective power disrupts, AMFI and Circle Economy redesigned Beyond Green in order to bridge the gap between Industry and education to move both parties further and together. Three editions later, we are taking the 2019 edition to the next level - watch this space!In 2018, AMFI, Circle Economy and Fashion For Good collaborated to re-build The AMFI Master Fashion Enterprise Creation into the world’s first master’s degree focused on circular fashion entrepreneurship. This pioneering MAFEC brings together a multi-disciplinary and international class of students, who all share in the pursuit of re-designing the fashion industry and becoming a global force for good. So, here we have it. The On Course: Circular Fashion trainings, our contribution to and development of circular curricula and a new and improved Beyond Green. All concrete steps for the industry to take to achieve their circular goals. Which step are you going to tread on?
Want to get involved?
[cta link="http://www.circle-economy.com/circular-textiles-in-action"]Sign-up now[/cta]
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