PATHWAYS TO A CIRCULAR ECONOMY - Port of Rotterdam

Three major trends point towards the circulareconomyThree major trends support the shift towards adopting acircular economy: a new era of resource scarcity, a new ageof innovation as seen by clean technology advancementsin the energy sector, and the emergence of a bio-age toreplace the oil age.1 A new era of resource scarcityIn the past five years, prices for resources (i.e. mineralsand metals, energy and agri commodities) have jumpedconsiderably, and have shown increasing volatility (seeFigure 3). Between 2005 and 2007, a number of factorscame together to create significant upwards momentumin the prices of resources, which many have referred to asa commodities boom. Unified growth across the world’smajor economies – in part fuelled by the unsustainableavailability of cheap credit – was one factor driving theprice increases, while booming demand in emergingeconomies, driven by trends of urbanisation, populationgrowth and increasing affluence was another. Governmenttrade and development policies also played a part, bydistorting markets and abruptly changing price signals.Furthermore, the price growth attracted attention frommarket investors and speculators, which arguablyexacerbated price rises and increased volatility.While the global financial crisis alleviated the upwardspressure and precipitated a market correction, resourceprices have not yet returned to levels seen before thecommodities boom, and many now believe they areunlikely to do so. The view that there has been a structuralupwards shift in prices suggests we are entering an eraof resource scarcity, where issues regarding security ofsupply are becoming increasingly important.15/73PORT OF ROTTERDAM / RABOBANKPATHWAYS TO A CIRCULAR ECONOMY