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Closing the loop – An EU Action Plan for the Circular Economy

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1 Closing the loop – An EU Action Plan for the Circular Economy

2 Circular Economy: an EU priority
Protecting the environment and boosting competitiveness go hand-in-hand: both are about building a sustainable future. Jobs, Growth and Investment Democratic Change, Better Regulation Energy Union and Climate CIRCULAR ECONOMY

3 The SDGs are now the key global framework to end poverty, protect the planet, and ensure prosperity for all. The Commission's follow-up to the 2030 Agenda has recently been formalised with the Communication, ''Next steps for a sustainable European future'' adopted in November last year. It is accompanied by a staff working document, which presents a mapping of the links between the Sustainable Development Goals and European policies. The EU Circular Economy agenda as a key contribution towards SDGs by: creating jobs and boosting GDP (SDG 8 & 9), improving environmental quality for citizens and animals alike (SDGs 14 & 15), combatting plastic marine litter (SDG 15), protecting freshwater resources (SDG 6), decreasing greenhouse gas emissions (SDG 13) and generally making our economic model and daily lives more sustainable (SDGs 11 and 12).

4 Construction & Demolition
4 Key areas of action 5 Priority sectors Construction & Demolition

5 Production and Products
Embed circularity in the design of new products and the materials they are made of Deal with current and future materials which are not circular

6 Consumption Helping consumers and public authorities choose sustainable products and services Providing reliable, standardised and comparable information to enable optimisation of policy and investment decisions

7 Waste Management Guided by SDG 12, stipulating that by 2020 we should : achieve the environmentally sound management of chemicals and all wastes throughout their life cycle significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment.

8 Secondary Raw Materials
Better understanding of the uses of recycled materials Clearer definition of the requirements they have to meet in order to be reprocessed into secondary raw materials that are of comparable quality to virgin materials and can replace them at a reasonable cost and with the lowest possible use of resources (energy, water, etc.).

9 Implementation since December 2015…

10 Ecodesign Working Plan 2016-2019 BREFs - industrial sectors
EMAS – EU Ecolabel Refit False Green Claims – On-line sales of goods Legislative proposals on waste Production: Many valuable materials are lost every year, because it is difficult to recover them from products, such as mobile phones or flat screens. Better product design can help save precious resources The possibility to repair or recycle a product and reuse its components and materials depends largely on the initial design of the product. Following political discussions on ecodesign in April and October 2016, the Commission confirmed the importance of smart product design and decided to focus efforts on the product groups with the highest potential in terms of energy and resource savings and further reinforce the evidence base for regulatory action. This resulted in the adoption on 30 November 2016 of the Ecodesign Working Plan as part of the Clean Energy for All Europeans package While ecodesign measures have so far mainly focused on energy efficiency, in this working plan, the Commission undertook to also explore more systematically the possibility to establish product requirements relevant for the circular economy such as durability, reparability, upgradeability, design for disassembly, information, and ease of reuse and recycling. Product categories:building automation and control systems;Electric kettles; lifts; refrigerated containers; hand dryers;high pressure cleaners; photovoltaic systems BREFs: BREFs do help addressing environmental performance of big installations (emissions, consumption and nature of raw materials, use of energy and generation of waste). The Circular Economy Action Plan looks at complementing BREFs by better addressing potential resource efficiency improvements that could be made in the relevant sectors. This will take the form of a description of best available techniques complemented by performance benchmarks where it is possible to identify them. Including guidance on CE in new/revised BREFs for industrial sectors is an on–going process. BAT conclusions that have been adopted in 2016/2017 are the following : Common Waste Water and waste Gas Treatment / Management Systems in the Chemical Sector and (2016) Non-ferrous metals Industries (2016) BAT conclusions for the intensive rearing of poultry or pigs (2017) Consumption: The action plan on the Circular Economy proposes wide-ranging measures that will help consumers to choose products and services that are better for the environment and, at the same time, provide monetary savings and an increased quality of life. New measures will be proposed to improve consumer information about the energy efficiency of products (in line with the Commission proposal for a revised EU Energy Label), the raw materials used in their production, and the possibilities for recycling at the end of their life. The Commission will also assess PEF and conduct EMAS and EU ECOLABEL refit to uptake their effectiveness. Tackling false green claims- Updated guidance on UCPD+Consumer legislation fitness check. The updated Guidance on Unfair Commercial Practices is a comprehensive text designed to clarify and guide the proper application of the 2005 Directive on unfair commercial practices (UCPD). Delivered Revision of the UCPD to include individual remedies and redress procedures for consumer which would also be beneficial for consumers related to misleading green claims. Online sales of goods: the Commission's proposal includes the following: Reversal of the burden of proof for two years: Currently, the time period during which the seller has burden of proof varies by Member State; now it will be extended to two years throughout the EU. No notification duty: Consumers will not lose their rights if they do not inform the seller of a defect within a certain period of time, as is currently the case in some Member States. Minor defects: If the seller is unable or fails to repair or replace a defective product, consumers will have the right to terminate the contract and be reimbursed also in cases of minor defects. Second-hand goods: For second-hand goods purchased online, consumers will now have the possibility to exercise their rights within a two-year period as is the case with new goods, instead of the one-year period that currently applies in some Member States. The proposal was discussed at the Council on 10th March In the Parliament, INCO Committee is currently preparing its position. The rapporteur presented his draft report in November He proposed to extend the scope of the Commission proposal to offline sales. Amendments tabled in committee DG Just has launched the study "Behavioural Study on consumers' engagement in the Circular Economy". Kick-off meeting took place 30 March. Study mainly focused on durability and reparability of products GPP: In 2016, the Commission published new Green Public Procurement criteria for office buildings, for roads, and for computers and monitors. These can be used by public authorities on a voluntary basis, and include requirements relevant to the circular economy. For example, computers and monitors have to be designed so that they can be repaired with commonly available tools and that batteries can be easily replaced, and the possibility to upgrade them is rewarded. The use of recycled materials for the construction of roads and buildings is encouraged. Training schemes for public procurers are also foreseen by 2018. What was once considered as waste can become a valuable resource. To realise the potential of these so called secondary raw materials, we have to remove the existing barriers to their trade, improve the waste management practices and guarantee high quality standards. Only then can industry make full use of secondary raw materials and help ensure their secure supply. Why is action needed? loss of valuable materials, negative impacts on land, water and climate; low levels of recycling-High levels of landfilling; incineration of recyclable waste.42% deposit onto into land, 36% recycling, 9%blackfilling Prevention: focus on food waste, textile, Waste of electrical and electronic equipment (WEEE), furniture target to be set at national level on disposed/incinerated waste (per capita) extended Producer Responsibility – links between fees paid and recyclability/reparability Simplification: reporting – no more implementation reports additional exemptions for enterprises collecting or transporting small amounts of waste better data quality check report national electronic registers State of play: Concerning the waste package, following one and a half years of intensive discussions since the proposals were presented by the Commission in December 2015, the EP reports were adopted on 14 March 2017 and the Coreper mandate – on 19 May. The trilogues were open on 30 May 2017 in a positive and constructive spirit. The second trilogue was on 26 June. Two more trilogues and a number of technical meetings are planned up till October In line with the Joint Declaration on the legislative priorities for 2017 where this file features, the objective is to achieve swift progress and first level agreement by the end of this year. As the Coreper position is quite conservative, the Commission has been urging the Council to demonstrate more flexibility towards the position of the EP. The target levels aside, the Commission has emphasising that the positions of the Council and the European Parliament share a lot of common ground, such as the move to a more harmonised and stricter calculation method and better instruments to improve waste management performance. We hope that Coreper would be able to agree on a revised mandate in September. Secondary Raw Materials Proposal for a revised fertilisers regulation: Regulation will create a genuine single market for fertilisers made from secondary raw materials (in particular recovered nutrients), thereby turning waste management problems into economic opportunities. Proposed rules can make the fertilisers sector less dependent on imports of critical, primary raw materials such as phosphate, which can also be recovered from domestic organic waste. The draft Regulation provides rules for free movement of all CE-marked fertilising products across the EU, including for organic fertilising products. Adopted on Undergoing the legislative process. Plenary vote in the Parliament foreseen in Sep An agreement on the core text has been reached while the annexes may still require some technical and political arbitrages as regards: the cadmium limits for fertilisers - no changes to the Commission initial proposal of 60/40/20 mg Cadmium/kg implemented over a period of 12 years, as none of the 3 alternative proposals put on the table gathered a qualified majority and the need for total chromium limit values, limits for copper and zinc. Stakeholder consultation has been conducted. Commission Staff Working Document and sypnosis report already published. Water reuse was included in the Circular Economy Action Plan: 1. Reuse in integrated water planning and management: Guidance document to integrate water reuse in water planning and management has been endorsed by MS water directors in June 2016. 2. Water reuse in industrial activities: Integration of water reuse continues to be considered in the development and review of BREFs for relevant (agro)industrial sectors under the scope of the IED. The latest BREFs ("Common Waste Water and Waste Gas Treatment / Management Systems in the Chemical Sector" in summer 2016; "Intensive Rearing of Poultry or Pigs) include water recycling and reuse while water saving is a key topic identified for the work just started on the "Food, Drink and Milk" BREF. 3. Minimum quality requirements for water reuse for irrigation & GW recharge  legislative proposal: The legislative proposal on water reuse will set minimum requirements for reused water for irrigation and aquifer recharge. The proposal aims to encourage efficient resource use and reduce pressures on the water environment, in particular water scarcity; to increase the recycling of nutrients contained in waste water; and to contribute to growth and jobs creation by stimulating innovative technologies and water infrastructure. Presentation new version JRC report in WFD CIS Ad-hoc task group - 23 June 2017, IA report will be finalised in Summer and Regulatory Scrutiny Board on 27 September 4. Support to research and innovation- EU funds for investments in water reuse: Water reuse was made a top priority area in the European Innovation Partnership (EIP) on Water and was showcase in the EIP Conference in Leuwarden in February Dedicated funding is available in ERDF, H2020, LIFE. In 2016, water reuse was made a top priority in the European Innovation Partnership (EIP) on water and was showcased in the EIP conference in Leeuwarden on 10 February 2016. Revised fertilisers regulation Guidance for water planning

11 EU Platform on Food Losses and Food Waste
Contribution EU Bioeconomy Strategy to the circular economy Report on critical raw materials and the circular economy EU Platform on Food Losses and Food Waste: Platform launched in August 2016 and had its first meeting in November 2016 devoted to discuss the methodology to measure food waste. Lastest meeting June2017. The Platform will bring together public entities and actors in the food value chain including consumer- and other non-governmental organisations. Sub-groups meetings dates: food donation (20 March 2017); food waste measurement (31 March); "action & implementation" –pending discussion today - digital tools: COM/REFRESH – roll-out planned (July-Sept). Next meeting foreseen Development of the draft methodology was finalised in Key principles were discussed at MS expert group in June Key elements under discussion with EU Platform on Food Losses and Food Waste . As the methodology is an implementing act foreseen under the Waste Framework Directive, it can be adopted after that (date for act will depend on codesion process for waste proprosal). Work on development of EU guidelines to facilitate redistribution of safe, edible food is in progress (ISC in Summer/Adoption foreseen by NOV/Dec 2017). Pilot Project on food donation launched by the end of EU guidelines to clarify the legal status of former foodstuffs intended to be used as feed is in progress. First draft has been presented in October DG ENV will consult it with MS expert group. To be adopted by the end of2017 Report on critical raw materials and the circular economy: Draft outline presented to the AHWG on critical raw materials in October The report was on the agenda of the ISG on raw materials on 2 February To be adopted together with the revised list of critical raw materials in the course 2017 (pending approval by the Cabinet of VP Katainen). C&D: Predemolition audits: Study adopted in early 2017.The results will be disseminated in 6 promotion events in 6MS (May-Oct 2017). It is aimed to be picked up by industry which will provide indication for the next steps (more formal standards or voluntary status) The C&D protocol was published in October Dissemination and communication actions on the protocol are being implemented from end of 2016 onwards in order to assist MS, regional, local authorities and private practitioners in adopting it in their construction market. The intention is to run a pilot phase with business to start implementing it and then assess future options: developing a formal standard or keep its voluntary nature. For 2017: communication campaign in parallel to the Pre-demolition assessment guidelines. Core indicators for the assessment of the lifecycle environmental performance of a building, and incentives for their use: The indicators are being developed via a major stakeholder exercise, and include both resource use indicators and indicators linked to the quality and the value of buildings. They will provide a common language for the mainstream market in communicating on environmental performance. They were presented, together with guidelines on how to use them, in a conference on Assessment of the contribution of the 2012 Bioeconomy Strategy to the circular economy and possible review Pre-demolition audits Recycling protocol CDW Level(s)- sustainable buildings

12 2017- What's next? Plastics Strategy
Interface product-chemical-waste legislation Monitoring Framework Legislative proposal to promote water reuse European Circular Economy Stakeholder Platform

13 Plastics Strategy The Plastics strategy: The Plastics strategy aims at (1) decoupling plastics production from virgin fossil feedstock and reducing its life-cycle GHG impacts (2) improving the economics, quality and uptake of plastic recycling and reuse, and (3) reducing plastic leakage into the environment, in particular the oceans.  Solutions to (1) Dependency from fossil oil Alternative feedstock: Biomass: but environmental impacts? See biofuels CO2: viability? Innovative technologies: eg converting mixed plastic waste into virgin polymers, substances of concern in plastics that could otherwise be recycled. Incentives: rather support recycling instead of energy recovery 2) Low rate of recycling and reuse of plastics Secondary plastic materials: Weak economic incentives to use recycled plastic materials in products No constant high flow of high quality recyclates No clear horizontal approach on how to deal with legacy substances in recyclates (mostly PVC) Low recyclability of plastics: Many plastic materials and products are designed to be thrown away. => RE aspects needed: durability, recyclability, reusability, reparability Design facilitating recycling seems crucial Throw-away plastics Prevention. 3. Leakage of plastics into the environment Marine litter: Alarming: macro + micro plastics CEAP: aspirational 30% reduction target for litter items found on beaches and for fishing gear found at sea. Sustainability framework for biodegradable plastics: Such plastics: in specific circumstances RISKS: consumer negligence, leakage problem, microplastics in soils and water; cross-contamination of conventional plastic waste streams. Work on definitions and standards: biodegradable, compostable, home-compostable Oxo-degradable: only breaks down into very small particles with high environmental impact, and biodegradable claims are unproven. Consumers' awareness: keep plastic wastes in controlled circuits awareness raising, educational programmes, better information disposable plastic products: prevention? Reduce? extended producer responsibility schemes and recycle all type of plastics.

14 Objectives Reduce plastic leakage in the environment
Exploit the full potential of plastic recycling and uptake of recyclates Stimulate research, innovation & investments Take up the international challenge

15 Interface Product-Chemical and Waste Legislations
Increase safety, facilitate recycling and improve the trust in secondary raw materials 4 obstacles Insufficient information about substances of concern Presence of substances of concern in recycled materials Uncertainties about how materials can cease to be waste Difficulties in applying EU waste classification The roadmap published on adressed 4 issues Four issues have been identified that create obstacles for a smooth transition of recycled materials from waste to new products: #1: Insufficient information about substances of concern in products and waste Limited information is available about the presence of substances of concern in articles, waste streams and recycled materials which affects the ability to monitor compliance of recovered materials (and articles produced therefrom) with relevant legislative requirements (including REACH and CLP, but also product legislation such as RoHS, etc). This lack of information hinders the assessment of whether these materials are safe and fit for purpose in relation to their envisaged uses which also increases business risks for recyclers. #2: Presence of substances of concern in recycled materials and in articles made thereof Currently there is no general framework to deal with the presence of substances of concern in recycled materials and in articles made thereof and, in particular, no agreed methodology to determine the overall costs and benefits for society of the use of recycled materials containing such substances compared to disposal of, or energy recovery from, the waste and the impacts of production of virgin materials in case recycling is prevented. #3: Uncertainties about how materials can cease to be waste There are different interpretations regarding the manner in which waste can cease to be waste, in accordance with the Waste Framework Directive. This situation generates legal uncertainty for operators and authorities and creates difficulties in the application and enforcement of chemical and product legislation, which requires, as a starting point, to know whether a given material is still subject to waste legislation (either as hazardous or non-hazardous waste) or has ceased to be waste. #4: Difficulties in applying EU waste classification methodologies and impacts on the recyclability of materials The rules that govern the classification of waste as hazardous or non-hazardous determine, among other things, whether the holder of waste needs to obtain a hazardous waste management permit and may affect the recyclability of waste materials. Lack of consistency in terms of application and enforcement of waste classification methodologies leads to uncertainty about the legality of waste management practices of certain important waste streams containing substances of concern in a complex material such as minerals, plastics or glass. Next stepts: CPW Interface – Joint Session CARACAL & Waste Expert Group 29 June 2017 Targeted Stakeholder Consultation until 7 July 2017 Focus on Policy Options Future legislative actions evaluated through an impact assessment in 2018

16 Assess the progress towards CE in the EU and its MSs
Monitoring Framework Assess the progress towards CE in the EU and its MSs Existing data from Eurostat and in cooperation with EEA Building on Resource Efficiency Scoreboard and Raw Material Scoreboard Monitoring framework is being built on the following principles: Monitoring progress  in the EU and MSs Existing data, mainly from Eurostat and other official sources, cooperation with EEA  reliability and low administrative burden Building on and complementing existing Commission scoreboards on Resource Efficiency and on Raw Materials  include some indicators from RES/RMS and complement with specific CE indicators Consultation with Member States and CE Stakeholders conference on 9 March  wide acceptance In close coordination with the SDGs progress report Circular economy contributing to SDGs, indicators consistency State of play of circular use of materials in the EU: The circular use of raw materials in the EU economy is relatively low but slightly higher than the global average. A large part of the EU’s materials use consists of construction materials, which are used in long-life, in-use stocks. These stocks often provide value to the EU economy for decades and will only become available for recycling when they have reached their end of life. As long as the demand for raw materials to make long-life products and to build infrastructure exceeds the amount of materials that can be supplied from recycled materials, primary extraction will remain necessary. The circular use of raw materials in the EU economy could be improved by extending the life time of products – for example through repair and re-use – or by increasing end-of-life recycling rates for materials. Moore than 70 % of raw materials used in the EU originate from domestic extraction, 16 % from imports and 13 % from recycling. Of the 7.7 billion tonnes of materials that are processed annually in the EU economy, 3.5 billion tonnes (45 %) are used for energy and 4.2 billion tonnes (55 %) are used as materials as such. Among the latter, 3.5 billion tonnes, mostly construction minerals, are used as ‘in-use stocks’ — buildings, infrastructure and other long-life goods that remain part of the circular economy, but are only available for recycling once they have reached the end of their life. Once these stocks have reached their end of life, almost half of the materials they contain are recycled, thus offsetting the need to extract primary raw materials. Finally, the economy sees part of the materials transformed into emissions and residues that cannot be recycled to be used for their original purpose (domestic processed output). Consultation phase closed. Internal Discussions

17 EU-wide minimum requirements for urban waste water reuse for agriculture irrigation
*Encourage efficient, safe and cost-effective water re-use *Increase the recycling of nutrients contained in waste water in agriculture The legislative proposal on water reuse: Affects11% of European population and 17% of EU territory. By 2030, half of Europe's river basins will be affected. The legislative proposal on water reuse will set minimum requirements for reused water for irrigation and aquifer recharge. The proposal aims to encourage efficient resource use and reduce pressures on the water environment, in particular water scarcity; to increase the recycling of nutrients contained in waste water; and to contribute to growth and jobs creation by stimulating innovative technologies and water infrastructure. Presentation new version JRC report in WFD CIS Ad-hoc task group - 23 June 2017, IA report will be finalised in Summer and Regulatory Scrutiny Board on 27 September [now postponed to end October] WATER REUSE IS GOOD FOR BUSINESSES The world water market is growing by 20% every year, and it could be worth 1 trillion € by 2020. European products, services, and expertise will be available to communities around the world. The EU water sector includes 9,000 active SMEs and almost 500,000 jobs. A 1% increase in the growth of the water industry in Europe could create up to 20,000 new jobs. A single framework will make it easier to implement water reuse technologies around the EU. *Contribute to growth and jobs creation by stimulating innovative technologies and water infrastructure

18 European Circular Economy Stakeholder Platform
Network of networks- Open Platform Next steps: Policy dialogue with stakeholders' input: best practices national, regional, local strategies policy statements and commitments Coordination Group for circular economy-related networks-call for expressions of interest- 192 applications Website – launch end of October Following the Circular Economy Stakeholder Conference held in Brussels on 9-10 March 2017, the Commission and the EESC jointly launched the European Circular Economy Stakeholder Platform. The European Circular Economy Stakeholder Platform will be a "network of networks" going beyond sectorial activities and highlighting cross-sector opportunities and challenges. The Platform will be a hub gathering knowledge on circular economy and a place for dialogue between stakeholders. It will be structured as follows: Pillar I: Policy dialogue gathering stakeholders' input and views. Pillar II: Coordination group for circular economy-related civil society, business and trade union organisations and think-tanks as well as existing, national and regional platforms gathering together civil society, public bodies, business and trade unions active in circular economy. Pillar III: Website as a virtual venue for dissemination of circular economy-related content such as national strategies and good practices. The website will also feature a dynamic database with contacts, published studies and events relevant to circular economy. The Commission and the EESC are calling for applications for the selection of existing networks (or similar grouping organisations) as members of the Coordination Group of the European Circular Economy Stakeholder Platform. Submission of expressions of interest is done through an online application form. The deadline for the submission is

19 Coordination and Awareness Financial Instruments
CE Finance Support platform Supporting the generation and financing of circular economy projects Pillar I Coordination and Awareness Pillar II Advisory Services Pillar III Financial Instruments

20 More to come in 2018 ? Options for a more sustainable Product Policy Framework Follow up to the Product/Organisational Environmental Footprint

21 Eco-innovation and SMEs
Green Action Plan for SMEs (39 actions) European Resource Efficiency Knowledge Centre for SMEs EP Pilot Project "Boosting the Circular Economy among SMEs in Europe" We find it important to pay a strong attention on SMEs when talking and acting about eco-innovation. A lot of SMEs are an enabler of change - lot of good eco-innovative solutions are coming from small companies, especially start-ups, that are flexible, can react quickly to changing demand and markets. But often they need an additional support to succeed. We are working in the framework of the Green Action Plan for SMEs. Dates from 2013, has 39 actions (funding, capacity building, awareness raising). The aim is to assist SMEs in the circular economy transition. Two actions to highlight briefly. By the end of the year a new web-based " EU Resource Efficiency Knowledge Center "will become active and provide advice, training, capacity building and information materials primarily for national and regional SME support organisations wanting to promote circular economy models. During the summer DG Environment has started a Pilot Project financed by the European Parliament that provides capacity building for SMEs and SME support organisations on circular economy, eco-innovation and participation on green markets. We recruited SME support organisations, green solution providers and regional authorities who want to receive capacity building on eco-innovation and the circular economy.

22 Learn more about the Circular Economy


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