Circular economy in the EU-South Korea relations Civil Society Forum, Seoul, April 11th, 2018 Georgi Stoev, chair of Committee on Trade and Investment of EUROCHAMBERS and DAG EU-Korea Vice-President of BCCI

Action plans and Roadmaps The EU’s Roadmap to a Resource Efficient Europe relies on the circular economy as its most important deliverable. The EU Circular Economy Package was adopted in December 2015. The circular economy involves structural and technological changes, needed for the sustainability of the economy till 2050. South Korea has also taken substantial actions to transit into a circular economy. 2

Some common environmental concerns South Korea faces environmental resource constraints, which brought the necessity for the country to replace its linear approach with circular economy, as a new economic model. 84% of the energy supply in South Korea comes from fossil-based energy sources. The participation in ITER and the deployment of energy recovery is one of the key priorities to achieve a circular economy. Only 23% of the EU waste is recycled and the rest is incinerated. Some of the main emission-intensive sectors that have to be addressed through new circular economy models, both in the EU and in South Korea, are power generation, manufacturing, construction, waste management, and transport. Moreover, various simulations have shown that without appropriate mitigation actions, climate change will damage up to 20 percent of the global GDP. 3

EU priority sectors and areas The EU Action Plan for the circular economy is organized into five key areas of action: Plastics Critical raw materials Food waste Biomass and bio-based products Construction and demolition waste The five priority sectors are supported with measures, covering the whole life-cycle of products, from production and consumption to waste management and the market for recovered secondary raw materials. Eco-innovation is recognised as vital for delivering the objectives of the Europe 20/20 strategy, making European companies more competitive in the global markets. 4

Circular economy targets across Europe The European Commission estimates that the circular economy can save EU businesses up to €600bn. Some of the goals at European level include the recycling of 70% of the municipal waste and of 80% of the packaging materials by 2030. Scotland has set a waste reduction goal of 25% (from 2011 levels) by 2025. The Danish government is aiming at recycling 50% of all household waste by 2022. The Green Transition Fund, run by the Danish Ministry for Growth and Business, shows a good example of the circular economy at work and is focused on creating industrial symbiosis where one company’s waste is another company’s resource. 5

Strategies and targets from South Korea National Strategy for Green Growth - increasing the share of renewable sources in TPES (Total primary energy supply). Renewable Portfolio Standard (RPS). RPS, applied to major power generators with a capacity of 500 MW or more, obliges since 2012 electricity companies to produce a certain portion of electricity from renewable sources. Resource efficiency programme (REP): the goal is to reduce the amount of resource required to provide products and services, thanks to efficient production processes and recycled resources. Recycling Technology Programme (RTP): the goal is to lower the share of resource-intensive industries in GDP: steel, petrochemicals, and cement. Energy Recovery Programme (ERP): the goal is to increase the demand and supply of energy from waste. 6

Mechanisms under the EU-Korea FTA The Trade and Sustainable Development (TSD) Chapter of the EU-Korea Free Trade Agreement (EU-Korea FTA): its implementation is supported by an active participation from civil society through the EU and Korean Domestic Advisory Groups (DAG). TSD Committee meetings: exchange of information between the EU and South Korea on environmental policies and on their respective actions to promote the Circular Economy, including waste management. Opportunities for further cooperation and exchange of information of mutual benefit, such as the respective efforts to ratify the Minamata Convention on Mercury, the EU offer of a Circular Economy Mission to Korea, etc. 7

Previous events involving both parties 19th European Forum on Eco-innovation held in Seoul on 27-28 October 2015 focusing on the “Business Opportunities in Eco-innovation”. Fifth meeting of the Civil Society Forum, which brings together the EU and Korean DAGs, took place on 20-21 March 2017 in Brussels and was preceded by a workshop on Corporate Social Responsibility. At European level, Circular Economy Stakeholder Conference held in Brussels on 20-21 February 2018. 8

Incentives measures Manufacturers should be provided with incentives to improve their products' efficiency. Consumers, on the other hand, should be provided with incentives to purchase energy-efficient products . South Korea confirmed that is prolonging the temporary tax exemption for repaired goods for another two years, beyond the 31 December 2016 deadline, following repeated EU and industry demands. 9

Smart cities and electromobility-new challenges and opportunities Electromobility and smart cities (smart grids) have the potential to solve the problem of city pollution and present new challenges to circular economy. Despite the technical and political challenges that still remain, they offer a major contribution to the decarbonisation of transport and to a better quality of life and present new opportunities for all stakeholders in circular economy. The Working Group on Motor Vehicles and Parts met in Brussels on 21 June 2016 and addressed environmental issues, technical standards, harmonization, convergence and market access issues. Market access issues discussed included, inter alia, truck-tractors, self-certification and marking of car parts, restricted market access for certain vehicle types, vehicle width limit, homologation certificates, etc. 10

Wrapping up (the Circle) Resource extraction Production Distribution Consumers Waste Production Distribution Consumption Repair Reuse Recycle Recycling sector Linear economy Circular economy means a zero waste programme both for Europe and South Korea. Circular economy also means reuse of electronic goods, reducing waste-to-incineration, decarbonisation of transport and new waste-to-energy technological approaches. The EU measures resource productivity by European country and for the EU as a whole through the Eurostat system. The statistics have shown a satisfying increase in resource productivity for the EU since 2000. According to the International Energy Agency, improved energy efficiency in buildings, industrial processes, and transportation could reduce by one third the world's energy needs in 2050, and help control global emissions of greenhouse gases. But most of all, circular economy means societal engagement, collaborative regulations, common standards and incentives for consumers and manufacturers. Circular economy 11

Thank you and let us do it together