DELIVERING THE CIRCULAR ECONOMY A TOOLKIT FOR POLICYMAKERS

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40 • DELIVERING THE CIRCULAR ECONOMY – A TOOLKIT FOR POLICYMAKERS Figure 5: Step-by-step methodology 2.1 2.2 2.3 ALIGN ON STARTING POINT, AMBITION AND FOCUS ASSESS SECTOR OPPORTUNITIES 2.1.1 Baseline circularity level and policy landscape 2.2.1 Map circular economy opportunities in each focus sector 2.3.1 2.1.2 2.2.2 2.3.2 Set ambition level Prioritise and detail circular economy opportunities 2.1.3 2.2.3 2.3.3 Select focus sectors Quantify sector Impact 2.2.4 Identify barriers 2.2.5 Map sector-specific policy options Engage stakeholders ANALYSE ECONOMY-WIDE IMPLICATIONS Quantify economy-wide impact Map economy-wide policy options Prioritise, package and sequence policy options
DELIVERING THE CIRCULAR ECONOMY – A TOOLKIT FOR POLICYMAKERS • 41 Especially the assessment of the circularity potential in the sector selection would benefit from prior experience in the circular economy. The core project team ideally contains members from different government departments (including business/industry and environment), to ensure broad expertise as well as early buy-in from these key departments. In the Denmark pilot, in total, around five man-months were dedicated to this step. In the Danish pilot, both the Danish Business Authority (part of the Ministry of Business and Growth) and the Danish Environmental Protection Agency (part of the Ministry of Environment) provided key contributions to the core project team; this resulted in a very strong mix of expertise and access to data and contacts. As in any strategic project, key stakeholders should be engaged from the very start. Three broad types of stakeholders need to be engaged in the project: businesses, policymakers and other society stakeholders. Businesses. It is crucial to involve businesses throughout the project in order to: (i) get insights and knowledge to identify the most relevant circular economy opportunities and barriers in each focus sector; (ii) create early alignment on common direction for the country and the focus sectors; (iii) further demonstrate circular economy benefits to businesses and build capabilities. As the circular economy is a new notion to both policymakers and (certain) companies in many countries, business involvement is even more important than in other policy areas. Different from some other policy areas, it is crucial to engage individual businesses and not just industry associations, as the assessment of opportunities and barriers requires a deep technical understanding of specific products and business lines that individual businesses can typically provide better than industry associations. Of course, involving industry associations is important as well to provide a well-rounded picture of opportunities and barriers in the focus sectors. Businesses would need to be involved primarily in the second phase of the project – i.e. to identify the circular economy opportunities and barriers once the focus sectors have been identified. In the Denmark pilot, 25-plus businesses were involved. Most of these companies were Danish, but selected businesses outside Denmark were also interviewed in order to incorporate international best practices. Policymakers. Aside from a core group of policymakers leading the project, it is important to engage a wider group of policymakers, including representatives from different government departments (for example Finance, Business/Industry, Environment, Food/Agriculture, Energy). They should be involved intensively throughout the project, to leverage their expertise and ensure alignment with the project direction. In the Denmark pilot, senior representatives from six ministries (the Ministry of Business and Growth, the Ministry of Environment, the Ministry of Finance, the Ministry of Foreign Affairs, the Ministry of Climate, Energy and Building, and the Ministry of Food, Agriculture and Fisheries) and policy and economic experts from the Danish Climate Council, Statistics Denmark and DREAM (a macroeconomic modelling organisation) were involved in an ‘Observer Group’ from the beginning of the project. This ‘Observer Group’ convened three times over the course of it, and provided crucial input in each step. Other society stakeholders. These include citizens and consumers, labour and environmental organisations, researchers and academics. They should be involved throughout the project to ensure a rounded picture of national circumstances and ambitions. In the Denmark pilot, a multi-stakeholder ‘Danish Society Stakeholder Group’ consisted of representatives from, amongst others, different political parties, industry associations, and unions.
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DELIVERING THE CIRCULAR ECONOMY A TOOLKIT FOR POLICYMAKERS

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