Transitioning to a Circular Economy might be a dream come true for a lot of sustainability students, professionals, activist and for many people as well. News regarding the negative consequences of the linear economy are everywhere: climate change, deforestation, displacement, conflicts over resources, limited access to water, and so on. The drivers of these problems have been highlighted for a long time and action has not been taken yet. Many people are asking themselves why, for example James Greyson in this post, and answers are the same: is too costly, is too difficult, is too soon. Nonetheless, change is in the air and it looks round.
The Circular Economy is not an invention in itself, it is a clever name given by some savvy people to a specific way of thinking our world and our behavior which basically acknowledges the material limits of our world, the material-lessness of our well being and the complexity of how our world works. This way of thinking started a long time ago, but only until now people seem to be listening.
And a big sign of this, in our opinion is the fact that the European Commission has issued a communication package laying the ground for a transition towards a Circular Economy, to this new way of thinking. It is important to understand that this is only one step and many elements are still not fully developed (as Maxine Perella highlights here), but it is important to point out that one of the big players in the world economy, the European Union, is recognizing the relevance of a transition towards the Circular Economy. In this post we want to address two elements, the European Commission understanding of the Circular Economy and how they are thinking about innovation for the circular economy.
Just to summarize, for the European Commission, the Circular Economy:
Based on these arguments, and having in mind that there are different type of barriers that need to be addressed including technology, financial, information and cultural obstacles, the European Commission calls for Circular Innovation. Despite not using this term, the communication stresses the importance of a circular approach to innovation and provides examples of what it entails:
The Circular Economy is not new, their principles, ideas and proposals have been addressed long before 2014 when the European Commission launched its communication, however the actions that need to be taken are the novelty of this approach. How are we going to overcome the long standing barriers and obstacles that these approaches have faced in the past 40 years, is the key challenge towards a Circular Economy. The key question here is how are we going to manage the multilayered (product/services, processes, business models, systems) innovation process that is described in the communication and that is going to bring us all to a sustainable system; in other words, how are we going to implement Circular Innovation?
Some hints are provided in the section 2 of the communication which aims at setting up an enabling policy framework that will foster research, encourage investments and provide instruments to businesses and consumers for action. Here the actions proposed towards Circular Innovation are:
In the following sections, the communications emphasizes the role of waste and recycling in paving the way towards a Circular Economy but having in mind that this road will lead Europe to a zero-waste state, it is important to keep in mind the measures and incentives should aim to reduce waste to its minimum level. Avoiding perverse incentives should be at the top of the agenda.