The Circular Economy

1. The Circular Economy • Unwrapping the European Commission’s package • Business implications [Insert presentation title as footer using 'Insert > Header & Footer' menu to replace this text]

2. Two halves of the circular economy

3. Some background • Circular Economy package originally introduced by outgoing Environment Commissioner JanezPotocnik in June 2014 • Set new targets for recycling (70% by 2030) and reduced landfilling (maximum 5% by 2030). Introduced a resource efficiency target of 30% improvement by 2030 • Introduced other measures as work in progress (eg revision of the Eco-design Directive) • Package was rejected by the incoming administration under President Juncker. New V-P FransTimmermanspromised a “more ambitious” CE package in 2015

4. Dec 2015 - a Package delivered under pressure Waste legislative proposals Action plan • 65% recycling target and 10% landfilling target for MSW (2030) • Unified calculation method • Definition of “final recycling process” • General requirements for Extended Producer Responsibility • 75% recycling target for packaging (2030) • WEEE / Batteries & Accumulators / End of life vehicles: To be reviewed and finalized by 2017 • Production: BREFs, Ecodesign • Consumption: Ecolabel, GPP • Waste management: EFW policy paper • Markets: Materials quality standards, incentivising reuse, waste shipment regs • Sectorial action: Strategies on Plastics, Marine litter, Food waste, Construction & Demolition, Biomass & Bioenergy • Innovation & Investments: Funds under Horizon 2020, Juncker Plan, Cohesion Funds • Concrete recommendations to come within next 4 years

5. Some key elements (1) • 65% recycling target for municipal waste (2030) – 70% in previous Package with 5 year delay for lagging Member States • 75% recycling target (2030) for Packaging – 80% in previous Package • 10% landfill target (but legally binding) – 5% in previous Package (but non-binding) • Harmonized & stricter calculation methods which will make it more difficult to reach targets • More coherent EU product policy framework: Eco-design extended to resource efficiency and recyclability, more ambitious Green Public Procurement, recyclability in Eco-label • Funding & Innovation in favor of circular economy projects - but apparently no “new funds” targets

6. Some key elements (2) • Minimum requirements for governance of Extended Producer Responsibility (EPR) schemes • Facilitated waste shipments across the EU (electronic data interchange); improved traceability of hazardous waste • Priority flows identified: C & D waste; foodwaste; plastics; critical raw materials; biomass & bio-based products • Development of quality standards for secondary raw materials, probably in the framework of End-of-Waste • New initiative on Energy from Waste (no ban or target) • REACH and Recycling to be analyzed & improved (2017)

7. Some key elements (3) • Lack of immediate “Pull” measures to help sustain the recycling sector (i.e. no minimum recycled content, no market / financial tool to cover the cost gap, etc.) • Only “Push” economic incentives (e.g. landfill and incineration fees, Pay-as-you-Throw …), no reduced VAT or other fiscal measures • Recycling calculation method proposed favors input into “final recycling process” (i.e. industrial production process) • Possible extension of by-products definition • Industry-led voluntary certification of treatment facilities for key waste/recyclatestreams • Lack of clarity of some definitions on backfilling, MSW

8. 1. Fine-tune harmonization of the calculation method and definitions • 2. Build bonus/malus system into proposed General requirements for EPR • 3. Improvements to the Waste Shipment Regulation • 4. Widen the scope of the CE package to Commercial & Industrial Waste • 5. Measures to cover cost gap between Primary and Secondary Raw Materials • 6. Draft EU guidelines to allow MS to use fiscal measures for recycling/ reuse • 7. Include recyclability and recyclate content in eco-design and eco-labelling • 8. Set national targets for GPP and define harmonized criteria • 9. Harmonize national End-of-Waste procedures • 10. Ensure compatibility between REACH & recycling • 10 priority actions

9. Generally supportive, but prefers voluntary measures to targets. Not keen on 65% recycling target • “Not certain” that the obligation to use economic instruments can be included in a Directive that is not subject to unanimity • Wants Article 8a EPR “general principles” (particularly full cost recovery) to be indicative guidelines rather than mandatory • Does not support the proposed amendment compelling Member States to introduce waste prevention targets • Supports using incinerator bottom ash as aggregate as counting towards recycling • What does the UK think?

10. Member States position on the Package • Supportive of ambitious package: for sustainable sourcing and for challenging waste collection and recycling targets • No position/no clear support for an ambitious package • No support for sustainable sourcing and/or support for not too ambitious targets

11. Wasteproposals - provisionalcalendars • ENVI – possible delay. 2000 amendments on 4 Directives • ITRE – timing on track. 1000 amendments on 4 Directives

12. Services - delivering systematic change World Technical Congress - 2016

13. Change supported by policy • Multi-generational - no political about turns • 15-20 year goal with outlines of the policy and details for the next 5-10 yrs – like the carbon law • Review and tune each 5 years – how are we doing, tuning to meet the desired outcomes • Clear sector transition policies – from design to manufacturing to waste and recovery • Defined tax intentions, boundaries and expectation – public finance transition plan

14. A circular waste management service Remanufacture Redesign Disassembly Repair Reuse Used product collection and take back Third party sales Consumer Customer Raw material production Manufacture Sales + distribution Services Waste CE Service Product designer Audit and analyse customer processes and products to minimise waste and identify opportunities for redesign and reuse Closed loop recycling Open loop recycling Waste collection after minimisation Separation and processing of material streams to customer specification Residue to EFW MRF processing

15. Reformation of waste to new products New skills, outcomes and business lines

16. Reformation of waste to new fuels New materials, markets and collaborations

17. Circular Products Resource management integrates and facilitates the systemImplications for logistics

18. Using data to drive change & innovation

19. Data giving new insights to wasted materials

20. Developing smart technology

21. Different metrics deliver different outcomes

22. Collaboration across the value chain Working on how to harvest materials UK Gov research contract for collection and treatment of aluminum composite packaging

23. Collaboration across the value chain Redesigning products to be more circular Supply chain parties working together in the redesign of products REFLEX: INNOVATION FOR THE FLEXIBLE PACKAGING SUPPLY CHAIN

24. To conclude • The UK (ie England/Defra) supports the principles of the CE Package but is otherwise lukewarm. Preference is for voluntary measures and no targets/regulation • Proposed waste-related targets will probably pass through the European Parliament, with time derogations for a number of MS • All “pull” measures have been put into the action plan (2016-2020), with no firm delivery dates or outcomes • The waste management sector is in the process of change – technological, cultural, data, customer interactions