Green Economy – Circular Economy (EU experiences) Peter Olajos Member of Board at Foundation for Circular Economy Former Member of the European Parliament Former d. State Secretary of Green Economy Development and Climate Policy CEO of Green Player Consulting

FCE  The Foundation for Circular Economy (FCE) was established in 2013 as a private and independent initiative to promote the circular economy in Hungary and worldwide. The primary aim of the FCE is create a platform and a knowledge centre where business, academia, government/local self governments as well as NGOs can work together in collecting, sharing, spreading and raising awareness of the knowledge, experience and practice related to the circular economy.  The major planned activities of FCE in relation with the circular economy: awareness raising knowledge sharing of innovations and corporate best practices providing a business platform and network for companies and entrepreneurs stimulating industrial and academic co-operations for innovations (eg. clusters) financial and professional support for innovations in design and processes providing access to international networking and information initiating or joining to domestic or international projects consulting services

Our Partners  Biomimicry Hungary  BME Eco-Design  Sharing Economy Hungary  EPEA Switzerland  Cradle To Cradle Products Innovation Institute  Dubai Green Economy Partnership Sharing Economy Hungary

Green Economy and Circular Economy Green Economy is generates increasing prosperity while maintaining the natural systems that sustain us. The circular economy is a generic term for an industrial economy that is, by design or intention, restorative and in which material flows are of two types, biological nutrients, designed to reenter the biosphere safely, and technical nutrients, which are designed to circulate at high quality without entering the biosphere.

Origin and Family of Circular Economy  The circular economy is grounded in the study of feedback rich (non- linear) systems, particularly living systems.  A major outcome of this is the notion of optimising systems rather than components, or the notion of ‘design for fit’.  As a generic notion it draws from a number of more specific approaches including cradle to cradle, biomimicry, industrial ecology, sharing (collaborative) economy and the ‘blue economy’.  Most frequently described as a framework for thinking, its supporters claim it is a coherent model that has value as part of a response to the end of the era of cheap oil and materials.

The European Commission released its blueprint for a circular economy in Europe  The European Commission adopted the Communication "Towards a circular economy”: a zero waste programme for Europe and annex to establish a common and coherent EU framework to promote the circular economy. Turning Europe into a more circular economy means:  boosting recycling and preventing the loss of valuable materials;  creating jobs and economic growth;  showing how new business models, eco-design and industrial symbiosis can move us towards zero-waste;  reducing greenhouse emissions and environmental impacts.

DEFINING THE CIRCULAR ECONOMY The vision: a smarter, more regenerative and restorative way to create, use and dispose of products that designs out waste from this cycle. An alternative to the “take, make and dispose” model that predominates today, the circular economy is an old concept that’s steadily gaining ground among influential entities and corporations.

Circular Economy Benefits EU budget is €900 billion

Circular Economy Benefits

Drivers The circular economy is a concept dating back more than 30 years, so why is it getting attention and adoption now?  For businesses, the key reasons are practical (depletion of key natural resources, rising commodity costs) and technological (new tools make circular principles easier to implement).  Greater urbanization will also help to enable implementation.  Meanwhile, more governments are getting behind the idea, and consumers are embracing new ways of consuming. (China, EU, USA, …)

HOW BRANDS ARE BECOMING MORE CIRCULAR  The shift to a fully circular system is complex, but many brands are taking steps toward this vision by rethinking elements of the status quo. In some cases this involves catalyzing existing behaviors, while in others it means embracing new concepts, like car-sharing.  Some of these steps move brands into a new, more ongoing relationship with consumers, who become a valued component in the circular system.

Circular Examples

Second hand sales

Circular phones

Circular batteries

Circular Carpets

Circular Lighting

Circular Jeans

Circular Furnitures

Circular Clothing

Circular Shoes

Repair

Circular Plastic Bottles

Circular Car parts

Carlsberg Circular Community Targets:  Have 15 suppliers in the Carlsberg Circular Community working actively to create C2C solutions  Obtain 3 C2C product certifications  All Carlsberg Group companies to conduct annual consumer-facing sustainable packaging activity  Improve return rate in markets where returnable glass bottles are part of the long-term packaging strategy Designing for endurance

Circular Economy What it means for BRANDS

Five new ways the circular economy can build brand experience  Selling temporary ownership(Car2Go, Mud Jeans)  Second hand sales (Worn Wear)  Collecting and recycling goods (Puma, H&M)  Product repair (Renault, iFixit)  Designing for endurance (Carlsberg)

Cradle to Cradle®  The Cradle to Cradle® Design is based on a thorough and complex analysis of products and services in order to create economical, environmentally benign, healthy and aestethic objects or processes, which can be reused easily, again and again. You can read more about the concept of Cradle to Cradle in the book co-authored by William McDonough and Michael Braungart.  During the Cradle to Cradle Certified™ certification process a product or a service is analysed based on various criteria and as a result, it can receive Basic, Bronze, Silver, Gold or Platinum certification. The certification process is done by the Cradle to Cradle Products Innovation Institute in San Francisco.certification processCradle to Cradle Products Innovation Institute  Already several companies in the world apply Cradle to Cradle® Design, through their products, like for example Herman Miller, Playworld Systems, Desso, Method or Ford.Herman MillerPlayworld Systems DessoMethodFord

Hungarian Examples: Sharing Economy Deutsche Telekom Hungary Sharing Community

RES is Circular: Biogas

Thank You for your attention! Peter OLAJOS Contact: Web: