DELIVERING THE CIRCULAR ECONOMY A TOOLKIT FOR POLICYMAKERS

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56 • DELIVERING THE CIRCULAR ECONOMY – A TOOLKIT FOR POLICYMAKERS Figure 13: Qualitative assessment of potential of opportunities for the Construction & Real Estate sector in the Denmark pilot QUALITATIVE ASSESSMENT OF POTENTIAL Low potential High potential Prioritised for further assessment Indirectly included as enabler of key sector opportunities • Use of biological elements in architecture (e.g. ‘living roofs’ that purify water) • Return of organic construction material to biosphere • Sharing of floor space reducing demand for new buildings • Shared residential floor space (e.g. Airbnb, Couchsurfing, Hoffice) • Shared office space (e.g. Liquidspace) and increase of desk sharing policies • Increased use of under-utilised buildings • Multi-purposing of offices and public buildings for better utilisation • Re-purposing of building interiors to increase lifetime of existing buildings • Coordination of all stakeholders along value chain to reduce structural waste • Energy use optimisation through low-energy houses and smart homes • Increased reuse and high-value recycling of building components and materials, enabled by • Designing buildings for disassembly • New business models (e.g. other owner of materials than property owner) • Building passports/signatures and reverse logistics ecosystems Increased teleworking to reduce need for office floor space XCHANGE Modular production off-site for rapid assembly on-site 3D printing of building components SOURCE: Ellen MacArthur Foundation
DELIVERING THE CIRCULAR ECONOMY – A TOOLKIT FOR POLICYMAKERS • 57 DETAILING THE OPPORTUNITIES Prioritising and detailing the opportunities happens in an iterative process – understanding the opportunities to a certain extent is required to rank, but prioritisation is required to determine which opportunities need to be fully detailed. To make the opportunities concrete and tangible, it can be helpful to zoom in on a specific part or a few specific products within a value chain. For example, in the Denmark pilot, analysis in the machinery sector was focused on two of its key products: pumps and wind turbines. It can also be helpful to assess how they can be implemented using the four building blocks of the circular economy, described in the first Towards the Circular Economy report and briefly summarised below: • Circular design, i.e. improvements in materials selection and product design (standardisation/ modularisation of components, purer materials flows, and design for easier disassembly), which lie at the heart of the circular economy. • Innovative business models, especially changing from ownership to performance- based payment models, which are instrumental in translating products designed for reuse into attractive value propositions. • Core competencies along reverse cycles and cascades, which involve establishing cost-effective, better-quality collection and treatment systems (either by producers themselves or by third parties). • Enablers for improving cross-cycle and cross-sector performance which are factors that support the required changes at a systems level and include higher transparency for materials flows, alignment of incentives, and the establishment of industry standards for better cross-chain and cross-sector collaboration. Other aspects are access to financing and risk management tools and infrastructure development. As an example, consider the remanufacturing opportunity identified in the machinery sector in the Denmark pilot. It belongs to the ‘Loop’ action area of ReSOLVE. It involves at least three circular economy building blocks: design for disassembly and remanufacturing, performance business models that allow the manufacturer to retain ownership over the products, and reverse cycles to return and remanufacture the products. DEFINING SCENARIOS To ensure a consistent ambition level when detailing the opportunities, it can be helpful to define the time horizon and the overall scenarios in which these opportunities are assessed. A short-term and long-term time horizon can be defined to identify tangible near-term opportunities as well as more ambitious, longer-term potential. Ideally, the selected time horizons align with other strategic national or international targets and initiatives. The scenarios can include a view on how society is expected to have evolved, at the selected time horizons, in terms of technology, customer behaviour, and other frame conditions. In the Denmark pilot, a short-term scenario of five years (2020) and a long-term scenario of 20 years (2035) were selected. The year 2035 was selected to illustrate as much of the full potential of circular activities as possible, without going so far out that businesses and other stakeholders would find it hard to assess concrete opportunities. The related circular economy scenarios were defined relatively conservatively – for example, only relying on technologies that are today already at late R&D or early commercial stage. See Appendix B for additional details.
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DELIVERING THE CIRCULAR ECONOMY A TOOLKIT FOR POLICYMAKERS

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