DELIVERING THE CIRCULAR ECONOMY A TOOLKIT FOR POLICYMAKERS

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46 • DELIVERING THE CIRCULAR ECONOMY – A TOOLKIT FOR POLICYMAKERS Figure 8: Policy landscape in the Denmark pilot POLICY INTERVENTION TYPES EXAMPLES OF EXISTING INTERVENTIONS EXAMPLES OF POSSIBLE ADDITIONAL INTERVENTIONS (AS OBSERVED AT START OF PROJECT AND NOT TAKING INTO ACCOUNT SUBSEQUENT ANALYSIS) EDUCATION, INFORMATION & AWARENESS • Consumer information campaigns, e.g. ‘Use more, waste less’ and ‘Stop Wasting Food’ • Systems thinking integrated in curricula • Further pilot projects to demonstrate circular economy potential to businesses COLLABORATION PLATFORMS • Green Industrial Symbiosis programme • Four new partnerships (food, textile, construction and packaging) as part of the Danish Waste Prevention Strategy • Rethink Resources, an innovation centre to support resource efficiency in companies • ‘Genbyg Skive’ pilot project to re-use building materials to create business opportunities and reduce waste - BUSINESS SUPPORT SCHEMES • Fund for Green Business Development (EUR 27m 2013–2018) to support innovation and new business models • Maabjerg Energy Concept (MEC) bio-refinery part funded by Innovation Fund Denmark (EUR 40m) • Dutch ‘Green Deal’ inspired programme to provide on-demand support to companies in implementing circular economy opportunities PUBLIC PROCUREMENT & INFRASTRUCTURE • Government Strategy on Intelligent Public Procurement contains initiatives to support circular procurement practices • Strategy on waste prevention also contains an initiative to develop guidelines for circular public procurement • Guidelines on the circularity of materials and products integrated into public procurement policy REGULATORY FRAMEWORKS • Ambitious energy efficiency and GHG emissions targets, e.g. 40% GHG reduction by 2020 vs. 20% at EU level, • Ambitious targets for recycling/incineration/landfill, updated every 6 years, e.g. recycle 50% of household waste by 2022 • Taskforce for increased resource efficiency to review existing regulations affecting circular economy practices • New metrics introduced to measure economic performance, e.g. complements to GDP such as natural capital • Engagement at EU level to adapt existing or introduce new regulations relevant to the circular economy, e.g. product policy FISCAL FRAMEWORKS • Taxes on extraction and import of raw materials, vehicle registration and water supply • High and incrementally increased taxes on incineration / landfill to promote recycling and waste prevention • Highest energy taxes in Europe (70% above EU27) and CO2 taxes • Tax cuts designed to promote use of low-carbon energy • Investigation into effects of tax shift from labour to resources SOURCE: European Commission, Tax reforms in EU Member States 2013; IEA, Energy Policies of Denmark: 2011 review; Nordic Council of Ministers, The use of economic instruments in Nordic environmental policy 2010-2013; Danish legislative council, Waste management policy in Denmark, 2014; The Ex’Tax project, New era. New plan. Fiscal reforms for an inclusive, circular economy, 2014.
DELIVERING THE CIRCULAR ECONOMY – A TOOLKIT FOR POLICYMAKERS • 47 • In the UK, the British Standards Institute (BSI) has developed a number of standards that support waste prevention, resource efficiency, eco-design and remanufacturing, for example on design for manufacture, assembly, disassembly and end-of-use processing. It is also working on a framework standard for the circular economy, detailing the core principles an organisation should embed to realise its full benefits 49 . • The Cradle to Cradle Institute administers the publicly available Cradle to Cradle Certified Product Standard and is developing an open database of ‘preferred’ alternative chemicals, materials and processes to help companies reformulate products to make them more circular. Policy landscape Understanding, at a high level, the strengths and possible development areas of the current policy landscape allows for more targeted identification of relevant policy interventions later in the project, and to engage stakeholders early on in a discussion on which broad types of policy interventions could make sense for the country. This discussion will of course be refined once specific circular economy opportunities and related barriers have been identified; yet getting a reflection started with key stakeholders as soon as possible is a valuable end in itself. Such a discussion could reveal potential upcoming policy revisions, which are highly relevant to consider when new policy interventions are developed. An understanding of the policy landscape can be established within six key categories illustrated with examples in Figure 7: education, information and awareness; collaboration platforms; business support schemes; public procurement and infrastructure; regulatory frameworks; and fiscal frameworks. These categories are explained in more detail in Section 2.2.5. Figure 8 shows the outcome of this analysis for the Denmark pilot. For the ‘examples of existing interventions’ column the exercise involved consulting government reports and other information sources with assistance from multiple Danish government departments. The ‘examples of possible additional interventions’ column involved research on circular economy policies other countries are pursuing and on interventions that have been discussed in literature, for example those studies listed in Table 2. 2.1.2 Set ambition level Objective: Align stakeholders on overall direction and focus of later sector deep dives to work towards a common direction. End product: Clear, quantified ambition level. Setting a national ambition level can be a powerful lever to align project stakeholders on the overall direction. An ambition level can for example influence the sector selection (e.g. focus on employment vs. environmental challenges when selecting focus sectors), as well as the prioritisation of circular economy opportunities within the focus sectors. If adopted (even if non-binding), national targets can send important signals to businesses and investors. Famous examples include the carbon reduction targets adopted by the European Union (20% reduction by 2020 and 80% by 2050, vs 1990 levels), the US (26–28% by 2025, vs. 2005 levels 50 ), and China (peaking of CO 2 emissions around 2030 and increasing the share of non-fossil fuels in primary energy consumption to around 20% by 2030). 51 Below is a brief outline of three themes that could, individually or in combination, inspire countries in setting their ambition level: 49 See for example BSI, Waste prevention and the circular economy: Due diligence research report (2014). 50 European Commission, Roadmap for moving to a competitive low-carbon economy in 2050 (2011). 51 The White House, US-China Joint Announcement on Climate Change (12 November 2014).
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