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The Fibersort is a technology able to automatically sort large volumes of mixed post-consumer textiles based on fiber composition. These sorted materials are perfectly suited to become inputs for textile recycling processes, and commercialisation of the Fibersort will bring closed-loop textiles one step closer to reality.[embed]http://www.youtube.com/watch?v=L2dYN59ax-I[/embed]A solution for the growing textile waste problem In North-West Europe alone, 4650 Kt of textiles are discarded every year. That is the equivalent of 600.000 elephants! Of these discarded textiles a meagre 30% is collected. Nearly half of these items are not suitable for re-wear and are currently downcycled, landfilled or incinerated. The Fibersort gives them a chance to become inputs for textile-to-textile recycling. The Fibersort technology is uniquely positioned to deliver two things. First, it reduces the need for virgin textile materials by providing feedstock more efficiently for textile-to-textile recycling. This will alleviate the environmental pressure of producing virgin materials. Second, it creates additional market value and business opportunities by making it economically feasible to sort textile excess (waste).

Simon Smedinga, Operational Director of Salvation Army ReShare says: "The Fibersort machine offers a breakthrough that allows us to close the loop in textiles. The project partners have shown dedication and idealism and show that through chain collaboration a lot can be achieved. I am convinced that the Fibersort machine will bring the textiles industry big steps closer towards a closed looped system. "

Getting the Fibersort technology ready for commercializationThis technology must be commercially viable to help transform waste into new resources. The Fibersort project partners Circle Economy, Valvan Baling Systems, Reshare, Procotex, Worn Again, and Smart Fibersorting are working with industry stakeholders to better understand end-markets for sorted textiles, optimise the machine and validate the business case. In September of 2019, the consortium will launch a commercially viable Fibersort process into the market and release reports to support the growth of this pivotal technology over time.

Cyndi Rhoades CEO of high-value recycler Worn Again says: "The Fibersort will enable suppliers of post-consumer textiles to meet the feedstock specification for our process more efficiently than today’s sorting methods. The first results of the Fibersort are looking very promising. We are very optimistic that this innovation will help to provide advanced sorting capabilities for the new generation of textile to textile recycling technologies like ours and help the industry on its way to circularity."

The Fibersort in ActionOn the 14th of March the Fibersort consortium extended an open invitation to the industry to come and see the Fibersort in action during a Demo Day. Performance information was shared with the industry for the first time, because the consortium knows that opening their doors and welcoming feedback and insight from the market is the best way to create lasting industry transformation. During Fibersort Demo Day the project partners also hosted workshops designed to increase attendees'  understanding of the systemic issues around recycled textiles and collect valuable insights for the project. [hr][cta link="https://mailchi.mp/circle-economy/fibersort-signup"]Learn more about the Fibersort[/cta][hr]

At Circle Economy, we have the distinct privilege of working with a broad range of companies, organisations and individuals to facilitate the transition to a circular economy. Our team is in a unique position to address some of the most fundamental issues of the linear world and facilitate the rise of a future without waste.The Circle Textiles Programme, one of our longest running sector initiatives, has been actively engaged in the transition to circular textiles since 2014. During this time we have been investigating the topics and issues defined in several recent reports by Ellen MacArthur Foundation,Reverse Resources,GreenBlue, Global Fashion Agenda, European Clothing Action Plan (ECAP), Valuing your Clothes, Measuring the Dutch Clothing Mountain, digging deep to identify gaps, and uncovering potential for the future of circular textiles. One problematic chasm that must be bridged is the lack of information about textile excess. This "waste", be it post-consumer, pre-consumer, post-industrial or something else, is not well documented, and yet the fundamental component of circular textiles is returning these materials to the beginning of the supply chain. Without key data points as a baseline, it's pretty tough to measure impact. It's even harder to know where to begin...With a rapidly growing number of companies and individuals investing both human and financial resources in making an impact within textiles, it's time to get more details on textile excess, set the baseline and enable the measurement of our collective efforts. When the Fibersort project kicked off in 2017, we seized this perfect opportunity to shine a powerful ray of light into one critical corner of the divide: What is in post-consumer textiles? With this information, our team knew we could share valuable insights with brands, textile collectors / sorters, and recycling technologies, and work together to shape a better, non-linear industry.Last fall we got our hands dirty and got some answers. With the help of AMFI, Wargön Innovation, the Dutch Clothing Mountain, and the Fibersort Project Partners, we sorted 5000 kg of post-consumer textiles from across Northwest Europe. Check out the results here. Moving forward, we will increase the sample size, update the data, share insights with industry stakeholders, and collect more critical information to accelerate the transition to circularity.This is a collective effort. No single company or organization can do it alone, and we want to know what you need to know to make that next step toward circularity. Your questions will inform how we shape our work now and in the future.

Are you also looking into post-consumer textile flows? If so, we'd like to hear from you.

Email leslie@circle-economy.com to connect

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Circle Economy is very proud to announce that our community keeps on growing.

We would like to zoom in on seven (!) new organisations who have recently joined our Textiles Programme. VF Corporation is one of the world's largest apparel, footwear and accessories companies. Two of its iconic brands, The North Face and Timberland, will join forces with Circle Economy to identify and build new circular opportunities and jointly test and develop the Circle Fashion Tool, together with leading denim manufacturer Orta Anadolu and pioneering bedding company, Auping. Quality and circularity go hand in hand, as demonstrated by new members, TheNext Closet and the London based fashion brand Dagny. Leading technologies, such as mechanical recycler Recover and chemical recycler Worn Again Technologies, are critical solution providers for textiles waste - we are delighted to continue these partnerships and welcome new members in this space. Read more about them below! AupingAuping is Dutch bedding and mattress company that is committed to becoming fully circular by 2020. They have recently announced that they will be creating a mattress that is fully recyclable. We are excited to support them in their journey to circularity!DagnyWe are very excited to have this new London based brand join as a member. Dagny was established with circularity at its core and they prove that great fashion can be sustainable. Dagny has set itself a bold goal: to minimize the footprint of garment manufacturing while maximizing the positive impact that conscientious design and production can have.The Next ClosetThe Next Closet is an online marketplace with the mission to make the second-hand clothing market mainstream. They are a great example of how business model innovation can support the circular textile industry. Orta AnadoluToday, Orta produces over 60 million meters of denim in its Turkey and Bahrain factories and is creating a platform for leading manufacturers to step up and reclaim a denim industry where art, technology and ethics meet for new infinite possibilities of denim today and tomorrow. We are very happy to announce that Orta will support us to test and develop the Circle Fashion Tool. RecoverRecover has been recycling post-industrial clipping waste for over 70 years and four generations of research and development in textile recycling has led to some impressive technical advances that make the quality of Recover’s upcycled yarn comparable to virgin, at a competitive price and with a fraction of the environmental impact.  We are thrilled to have them as a renewed member and partner, as they playa critical role in achieving a circular textiles industry. Worn Again TechnologiesThis innovative chemical textile-to-textile recycling technology has the ability to  separate and extract polyester and cotton from old or end-of-use clothing and textiles and ‘recapture’ these fibres for future use. Worn Again is also a project partner for the Fibersort project and has long been pushing the boundaries within the circular textiles industry. VF CorporationVF Corporation has launched its newest sustainability strategy in December 2017, which includes an aspirational goal to “lead the large-scale commercialisation of circular business models through brand-led recommerce and rental initiatives”.To start this journey they have joined the Textile Programme as members, where we will work together with Timberland and the North Face to scope circular opportunities and test and develop the Circle Fashion Tool.

Our world economy is only 9.1% circular, leaving a massive ‘Circularity Gap’. This alarming statistic is the main output of this first Circularity Gap Report, in which we launch a metric for the circular state of the planet. Taking the United Nations’ Emissions Gap Report as inspiration, the Circularity Gap Report provides a framework and fact-base to measure and monitor progress in bridging the gap, year on year. Being able to track and target performance via the Global Circularity Metric will help us engage in uniform goal-setting and guide future action in the most impactful way.

Closing the circularity gap serves the higher objective of preventing further and accelerated environmental degradation and social inequality. The transition to circularity is, therefore, a means to an end. As a multi-stakeholder model, a circular economy has the ability to unite a global community behind an action agenda, engaged and empowered both collectively and individually. Its systemic approach boosts capacity and capability to serve societal needs, by embracing and endorsing the best humankind has to offer: the power of entrepreneurship, innovation and collaboration.

The circular transition thereby provides actionable ways forward to contribute to reaching the Sustainable Development Goals and the Paris Agreement. Our linear model is effectively no longer fit for purpose, failing both people and the planet. Circular economy strategies have the potential to be instrumental in the push to mitigate the associated climate impacts, given that majority (67%) of global greenhouse gas emissions are related to material management

The report shows how key societal needs are met and the resource reality behind the delivery. For key needs like housing, mobility and nutrition, the Report reveals the global material footprint. It shows which needs consume what resources. Our global metabolism visual illustrates what happens with products and materials after their functional use in society. In particular, it uncovers the modest flow of resources cycled back into the economy and helps us estimate how much material goes wasted beyond recovery. This exposes how deeply our linear system is still ingrained in our daily lives.

Bridging the circularity gap requires intervention across the full breadth of society and action in nations, sectors, supply chains and cities. Major trend corrections are needed to get the global economy on a pathway towards circularity. This Report identifies key levers at a global level and points to ‘inconvenient truths’ that provide systemic challenges for moving to circularity by mid-21st century.

We have identified 4 steps to take action in bridging the circularity gap through leadership and action:

1. Build a global coalition for action, comprised of front-running businesses, governments, NGOs and academics, that will input and convene an authoritative annual report on the circular state of the global economy and measure progress towards its implementation
2. Develop a global target and action agenda by working with all relevant stakeholders to agree on clear goal-setting and alignment with the SDGs and emission-reduction targets.
3. Translate global targets into local pathways for circular change, taking big-picture directions and interpreting these for nation states, individual sectors, supply chains, regions and cities to embed strategies in their specific context and align with incentives and mandates.
4. Improve our understanding of how different levers for circular change affect aspects such as material saving, value retention and climate mitigation. Also consider fully the dynamics of international trade and employment, plus implications for education, training and future skills, both for young people today and the next generations of tomorrow.

Visit www.circularity-gap.world to read the full report

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From ownership to service: A new Fairphone pilot just for companies

This blog post has initially been written and posted by Fairphone.

It’s perfectly normal to rent an apartment. And plenty of people lease cars. But would you ever consider doing the same with a phone? What would the ideal business model be? What are the benefits for Fairphone and our community? That’s what we’re working to uncover with our recent research and a new pilot project.

A circular approach with a focus on service

When we started making the Fairphone 2, we designed it with a circular economy in mind – meaning we considered every part of the phone’s life cycle to use resources as smartly as possible. For example, it’s easy to repair, we have a take back program and we’ve researched the best recycling methods. Some time back we also discussed alternative business models for consumers to incentivize take back.

But really implementing a circular economy requires time and experimentation. It demands a change in mindset about ownership, and a different approach to selling our products. Over the last 4 months, Circle Economy and Fairphone formed a community of practice with financiers (such as Sustainable Finance Lab), accountants, data experts and lawyers to start investigating a more resource-efficient business model: one that ensures the intrinsic value of the phone stays as high as possible for as long as possible.Our research resulted in one clear idea: Fairphone as a service.

From research to pilot project

This week, Fairphone and Circle Economy published a research paper summarizing our findings on this new proposition. It includes a potential business model for Fairphone as a service and how we can shift the concept of value from the product itself to the services that the device offers. So concretely, we would like business customers to move from buying a phone (ownership) to renting a device that allows them to make calls, send texts, use apps and enjoy entertainment (services).Putting ownership in the hands of the manufacturer (Fairphone) gives us more control over the device and puts us in a better position to take advantage of the circular economy. Because if we lease the phone instead of selling it, we can ensure that all the resources inside are used optimally over the course of the phone’s life cycle, including when it’s time to be used by a another client or recycled.After completing our research, we’re ready to move from theory into practice. So we’re currently setting up a pilot project with PGGM (who have indicated their intention to participate).

Want to try Fairphone as a service?

• In the short term, we’ve decided to limit our test to the business market. Besides moving us all closer to a circular economy, our new proposition will help companies:
• Lower costs (a fixed monthly rental fee instead of buying phones)
• Easily manage repairs (some done in-house with spare parts; we take care of the rest)
• Always have working devices (each package includes extra phones to replace those that might be out for repair)
• Reduce end-of-life worries (we’ll take care of recycling)

We’re still looking for a couple more companies to help us test this concept “in the wild”. If you work for a small or medium-sized organization and are excited to help us refine this idea, please have a look at our research and get in touch: research@fairphone.com. We’re excited to hear from you!Note from the editor:We’d like to say thank you to everyone who joined our community of practice and shared their time and expertise. We’re very grateful for all your contributions!

The 'Circular Cities Switzerland' Project is launched by Circle Economy and ecos

17 January 2018, Amsterdam. This month ecos and Circle Economy are launching the Circular Cities Switzerland project that aims to expand the breadth and depth of the circular economy dialogue in Switzerland. The project focuses on the development of tangible circular strategies in the cities of Bern and Basel - two of Switzerland's most iconic and forward-thinking cities. The 'Circular Cities Switzerland' project is supported by MAVA, a family-led philanthropic foundation, with a key focus on sustainable economy. The 'Circular Cities Switzerland' project runs for 8 months and aims to systematically prepare the ground to implement compelling and internationally visible circular economy projects. These so‐called “lighthouse projects” will demonstrate the economic, social and environmental benefits of the circular economy and accelerate the narrative at a national level.

“I am excited that we have been able to create this partnership between ecos and Circle Economy in which we bring together leading expertise on the topic of the circular economy and sustainable development. The partnership will demonstrate how Swiss cities can join the exciting journey towards circular material flows”, said Holger Schmid, Director Sustainable Economy, at MAVA.

The Circular Cities Switzerland project will firstly provide a baseline analysis and strategy development using Circle Economy's Circle City Scan to bring together key municipal and local business stakeholders, guiding them step-by-step from orientation to implementation toward the practical realization of a circular city.

"We are proud to be part of this partnership and grateful for the support of MAVA, which will allow us to accelerate and advance our work by combining CE's methodology and ecos' local expertise to solve the most pressing challenges to cities of our time" said Marc de Wit, Director Strategic Alliances, at Circle Economy.

After the analysis and strategy development process the project will prepare local businesses to  implement circular strategies. The outputs of the Circle City Scan will give the most progressive Swiss cities and their stakeholders practical tools and knowledge to set an explicit “circular city agenda”, and take first meaningful steps with local stakeholders to realize new forms of collaboration between businesses, the government, NGOs, and citizens. All learnings will be captured  in a handbook that provides a sound framework to start implementation of the circular economy in Swiss Cities.

POLICY INTERVENTIONS THAT HELP FINANCE THE CIRCULAR TRANSITION

In 2016, The Dutch government set ambitious goals for a transition to circularity, aiming for a fully circular economy by 2050 and halving the use of raw materials by 2030.In a joint policy paper, Sustainable Finance Lab and Circle Economy outline the monumental task that the Dutch government is facing, including the financial bottlenecks that are impeding the circular transition and what the government can do to remedy this.Four bottlenecks that block the financing of the circular transitionFour main bottlenecks that slow down the financing of the circular transition have been identified:

1. Externalities. Producers and users of non-circular products do not pay the full price for the costs they incur, although these costs have a real price tag. At the moment, these expenses are not covered by the polluter, leading to a perceived lower financial return for circular initiatives.
2. Innovation risks and -spillovers. Innovation is indispensable for the circular transition. Innovative products and projects are associated with higher risks, which are hard for investors to calculate. In addition, there is a lack of equity (risk capital) in the Dutch financial landscape to finance innovative circular initiatives.
3. Transition risks and coordination problems. Besides the 'normal' risk of innovation, there are the further increased risks of system innovation in which many parties are interdependent. From product design to retail, the entire value chain must be geared to the circulation of components and materials. This requires a high degree of coordination and thus a system change.
4. Lack of knowledge and wrong incentives in the financial sector. Financial professionals must understand and adapt to the new circular way of working, products, services and business models. In addition, the financial sector has its own dynamic with incentives that  lead to short-term strategies that are often related to the linear system.

A selection of the promising roles for the Dutch government

The government can partially remedy these bottlenecks with the financial instruments at its disposal. With these instruments, the government can influence the innovation and transition system and thus create a better circular climate for businesses.

Inspired by foreign circular policy, and the lessons learned from the energy transition, Sustainable Finance Lab and Circle Economy have identified promising policy interventions that the Dutch government can take. Interventions that are currently not, or only partially, fulfilled. A selection of possible policy interventions include:

• Pricing externalities by increasing existing taxes on waste handling and energy usage, or introducing a Waste Trading Scheme (WTS) such as the Emission Trading Scheme (ETS) implemented for the energy transition. Such a WTS is a trading system that introduces a maximum (ceiling) to waste generation, ideally determined by the capacity of the earth for absorbing (different types of) waste. These tradable rights determine the market price for negative linear external effects. Similar tradable rights can be issued for the use of resources, where the ceiling should be based on the renewable nature of the resource in question.
• Competitions to evoke circular innovation. The government can encourage circular innovative breakthroughs by writing out competitive rewards. There are still a lot of circular challenges to come up with, just think of the enormous challenge we have to prevent, process and ‘circularizing’ plastic.
• Enforce minimum guarantee periods.The government can give direction to market parties through rules and regulations, reducing uncertainty for financiers. For example, in France penalties can be incurred when designing products for 'planned obsolescence'.
• The government as a financier. With the establishment of InvestNL, the Netherlands will have a public investment institution. This too can become an important tool for achieving circular objectives.
• The financial sector itself. It is important to recognize the financial sector itself as an indispensable part of the innovation system. It is crucial that financial professionals have sufficient knowledge of circularity. The government can stimulate circular investment decisions through knowledge development and dissemination of circular business models, circular opportunities and linear risks. The financial sector can be steered towards a more long-term vision through rules and regulations.

For a comprehensive list of circular policy instruments, the associated advantages and disadvantages and the research questions that must be answered in order to come to concrete recommendations, download the report here (In Dutch only).[cta link="https://circle-economy.com/financial-policy-interventions"]Download the Dutch report[/cta]

A practical toolkit for Product-as-a-Service models

Amsterdam, 08.01.2018.Today Sustainable Finance Lab, Circle Economy, Fairphone, PGGM, ING, ABN AMRO, NBA,  Allen & Overy, and Circularise, have teamed up within a Community of Practice and launch the report The Circular Phone that provides practical answers to common financing pitfalls for circular businesses, using Fairphone as the real-life example. All learnings and contract templates created during the project are now available open-source and ready for other companies to apply to their products.Shifting ownership to design better productsWhile the circular economy is gaining momentum all across the world, the urgency to actually implement circular business models remains a challenge. One of the most promising ideas to bring circularity to life, is the “Product-as-a-Service” models. They focus on use and service, rather than on the product itself. To help propel businesses in their journey to implement circular business models these frontrunning companies and organisations have teamed up within the Community of Practise to solve the barriers encountered by these companies.This report will give companies the tools to jumpstart and run their circular business, especially those, that have built models of retaining ownership of their products. This incentivises companies to create high-quality and durable products, while customers enjoy the performance of a product without the hassle. So far, businesses striving to implement "Product-as-a-Service” models have had the challenge of reconciling the need to find financing parties with the complexities of their own business model.The difficulty in finding financing for “Product-as-a-Service” modelsIt has proven to be very challenging to create a financial model for complex "Products-as-a-Service" models. This is especially true when the product involved has components that can be cycled infinitely, because current reporting tools are not equipped to deal with this circular way of thinking. Businesses often lack the expertise to provide financiers with the financial impact of their circular business model, leaving them unable to convince financiers of its soundness. The lack of a proof of concept of the business model leaves difficulties for financiers four sound decision making.

The work with Fairphone is going in depth into the challenges the transition to a circular economy poses. All experts of this Community of Practice have contributed energy and knowledge to solve a concrete problem at hand. We use this to build open source tools - for example a first circular service contract - that can be used to all those interested to implement and scale their circular impact.

- Harald Friedl, CEO Circle EconomyA Circular Fairphone Service for CompaniesThis report highlights the learnings generated during a six month project with the Amsterdam based company Fairphone, known for its ethical sourcing and circular practices, as the real-life example.

Fairphone 2 was a breakthrough in the industry for circular product design; its modularity provided ease of repair and upgradability. But a real transition to the circular economy requires new business models that detach profit from the use of resources. With Fairphone-as-a-Service, we are taking a new and exciting step in our journey to change the industry.

- Miquel Ballester, Resource Efficiency Manager at FairphoneThe First Circular Service Contract & Cash Flow ToolTo achieve a financeable model for the Circular Fairphone Service, the Community of Practice created a blueprint for Fairphone's business model. Through the creation of a legal template - a 1st Circular Service Contract- and a financial cash flow tool, the group has proven that the gap between the businesses and financiers can be bridged. One of the other concrete and practical outcomes was a 5-year cash flow projection that enables financiers to assess the benefits and risks of their investment.Fairphone is currently exploring opportunities to start a pilot project to offer the world's first Circular Fairphone Service for companies.[cta link="https://www.circle-economy.com/the-circular-phone"]Download the report[/cta]

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Note to the editor

Open Source Access to all LearningsSustainable Finance Lab and Circle Economy have created a model with all the learnings gained during the Community of Practice. Following their open source ethos, all learnings and the Circular Service Contract can be downloaded here. The financial modelling tool developed for Fairphone is replicable and can be applied to any other "Product-as-a-Service”.About The Community of PracticeTo tackle the financing challenge for "Product-as-a-Service” models, several stakeholders and experts were connected in a ‘Community of Practice’ (CoP). Fairphone (the future PaaS provider), PGGM (the intended launching customer), ING and ABN AMRO (financial experts), NBA (accounting experts), Allen & Overy (legal experts), Circularise (data experts), Circle Economy & Sustainable Finance Lab (project and content management). With special thanks to NederlandCirculair! that co-funded the Community of Practice together with the above-mentioned organisations. Thanks to the input of all these parties, in an open learning environment of several workshops and thematic deep dives, we were able to create the launching pad for the Circular Fairphone Service.For additional information and interview requests, please contact: 

FairphoneFabian Hühne: fabian@fairphone.com. Tel: +31 20 788 44 02Circle Economy Melanie Wijnands: melanie@circle-economy.com Tel: +31(0)652650156