There is a real risk that the concept of a circular economy will be seen as the goal instead of one of the means that are available at this moment in time to support the transition to a more sustainable world. Before highlighting the manner in which the principles of a circular economy can contribute to a more sustainable world and resilient cities, let’s first understand the concept of a circular economy.
What Is A Circular Economy?
The concept of a circular economy is often simply seen as the (high-quality) reuse of resources, however, this doesn’t do the concept justice. A circular economy is about the closing of cycles, the making of products from reusable resources and using these for as long as possible through maintenance, repair and by sharing the utilisation of these products. So a circular economy is also about innovation, value retention, new uses of existing products, recycling, adaptability and flexibility. This involves the use of renewable energy and using waste as raw material.
An integrated approach is characteristic of a circular economy; it makes designers begin to think about the use, repair possibilities and reuse of components during the design phase itself to close all the circles.
The idea behind a circular value chain is not completely new. Many underlying concepts, like the cradle-to-cradle concept, have been known for years. What make a circular economy apt for large-scale implementation in this era are the technological developments and the economic benefits that make fast and large-scale changes both possible and appealing. Essentially, it is an economical system in which we handle resources, products and energy in a more intelligent manner. And of which a sustainable economy is a logical result.
What the system looks like differs per product, product chain and product use. That is why ‘the’ circular economy does not exist. It cannot simply be defined in terms such as recycling, use of renewable energy or common usage. These are all components of a circular economy. Its appearance will differ with every product.
Ellen MacArthur, creator of the term ‘circular economy’, also does not give a concrete definition, but does name the characteristics of a circular economic system and the principles on which it is based: “A circular economy seeks to rebuild capital, whether this is financial, manufactured, human, social or natural. This ensures enhanced flow of goods and services. The system diagram illustrates the continuous flow of technical and biological materials through the ‘value circle’.”
According to Ellen MacArthur, a circular economy is based on five principles, of which system thinking (the ability to understand how parts influence one another within a whole and the relationship of the whole to the parts) is not only important, but also essential. They are:
1. Design out waste
2. Build resilience through diversity
3. Rely on energy from renewable sources
4. Think in systems
5. Waste is food
Essentially, it is an economical system in which we handle resources, products and energy in a more intelligent manner
Transition Through Legislation And Regulations
All over the world people are attempting to translate the concept of circular economy, both in the development of legislation as well as through the application in practice and the development of so-called ‘living labs’. It is important to realise that the transition cannot take place at once but happens step by step. This involves one development helping the next one get started so that a bigger consciousness can arise, with an increasing understanding of the relation between the components within the system.
As such, an extensive legislative and regulatory framework has been developed in China over the past few years. The Circular Economy Initiative Development Strategy, focused on sustainable consumption and production was implemented in 2002. Since then, it has been developed in a number of pilot areas in China. The concept of a circular economy has been introduced as a development model to help China develop a more sustainable economic structure. The focus of circular policy in China has shifted from waste recycling to broader efficiency-oriented control at every stage of production, distribution and consumption. Besides resource and waste problems, the improved strategy also encompasses energy efficiency and conservation, land management and soil protection and integrated water resource management as key issues.
A circular economy has two kinds of material streams: the stream of organic materials designed to flow safely back to the biosphere and the flow of technical materials, where product and product components are designed so that they can easily be reused
Meanwhile, a more silent revolution is becoming visible: sustainable energy is becoming cheaper than energy that is derived from fossil fuel: one of the most important drivers of the plummeting prices of solar energy in China. Their large scale use appears to help lower the prices of solar panels and make the electricity it produces less expensive than energy that has been generated from coal and gas. In this way, the Chinese Government has played an important role in the price reduction of sustainable energy in the world.
Since the year 2000, Japan has also been focusing on waste management and resource depletion, devised around the concept of creating a society that is less dependent on natural resources. An important law in this perspective was the Law for the Promotion of Efficient Utilisation of Resources, ratified in the year 2000 and aimed at minimising waste by producers and consumers alike. This law was the first in the world to cover the entire lifespan of the product.
Germany is the first country to enact a kind of circular economy law, which mainly focuses on the field of waste management. The Circular Economy and Waste Law based on the credo of waste hierarchy through ‘Avoidance, Reduction, Disposal’, was implemented in the 1990s. Since then, there has been a paradigm shift from the waste management policy approach towards a circular economy model. This means that producers and sellers are now obliged to design their products to meet the following criteria:
1. Minimisation of the amount of waste arising from production and use
2. Possibility of maximum high-quality waste recovery
3. Feasibility of environment-friendly disposal
of unusable waste.
Transition Of Urban Areas
Many cities show a growing awareness of the fact that they need to look beyond the traditional concepts if they want to keep on functioning correctly, grow and strengthen their local economy. The interesting thing is that the circular thinking not only makes cities more sustainable but also more independent and resilient.
In the current phase of growing awareness and transition we can see that different cities also have different objectives when they use the concept of a circular economy. These different objectives in turn lead to different actions taken. Some cities look for answers for worldwide problems such as climate change; for other cities it is about identity, independence and social cohesion, but there are also cities where it is mainly about strengthening economic growth.
The following examples illustrate the point:
Kalundborg, Denmark
Kalundborg is a small city in Denmark with a population of 16,000 inhabitants. In Kalundborg, public and private companies buy and sell waste from each other in a closed cycle of industrial production. The participants exchange materials and energy for mutual benefit, on the basis that by-products from one business can be used as low-cost inputs by another business. By now a variety of over 30 products are traded, such as water, steam, ash, gas, heat, sludge and energy. In addition, a number of agricultural companies have an interest in this type of industrial symbiosis, as purchasers of fertiliser products and waste heat.
or waste streams between companies, so that one company’s waste becomes another company’s raw materials
The interesting fact about this system in Kalundborg is that it has been developed over the course of several decades, long before the concept of a circular economy even existed, with cost reduction as the primary reason and ecological benefits being an extra advantage. This shows that a circular economy does not only work as a concept on paper, but clearly also delivers an economic and ecological profit in practice. Kalundborg has broadened its focus over time and now, in addition to cost reduction and economic benefits, the sustainability aspects and environmental benefits have become a key priority.
El Hierro, Spain
El Hierro is the smallest island off the Canary archipelago, an autonomous region of Spain, with nearly 11,000 residents. Since June 1, 2014, the island only makes use of clean energy thanks to an ingenious method of storage. And they are already thinking about the next step: replacing all petrol cars on the island with electric cars.
The project combines two renewable energy sources: wind and hydropower, using water as energy storage. The main component of the wind-hydro system is a wind farm (10-12 MW) that supplies energy to inject directly into the grid or to pump water from a lower to an upper reservoir. Thanks to the potential energy storage (pumped water) and the controllable power output of hydro turbines, the system can establish a stable grid in terms of frequency and voltage. On windy days with high electricity production, seawater is pumped upwards and stored in two enormous reservoirs. Any excess electricity is used to desalinate water at the island’s three desalination plants. The capacity of the upper reservoir – half a million cubic metres – is sufficient to meet the energy demand of the island during five consecutive days without wind. This is more than enough, since it is rare on this island to have more than two wind-still days.
Besides the step towards clean energy, one of the basic features of the island’s integrated sustainable development strategy is a group of actions generated under the initiative ‘El Hierro - Zero Waste’ started in 1998. This programme encourages the residents of the island to produce less waste and recycle as much as possible. Around the island are several collection points where people can deposit glass, paper, plastic and organic waste. The contents are then collected and processed by a new central recycling centre on the island.
All of this results in the island being less dependent, using local sources and resources, producing less waste and CO2 and acting as an example for many other regions and islands all over the world.
A circular economy does not only work as a concept on paper, but also clearly delivers an economic and ecological profit in practice
Amsterdam & Haarlemmermeer, The Netherlands
A large number of companies in the Netherlands are engaged in circular entrepreneurship as well. During the Week of the Circular Economy (21- 28, January 2016) over 750 entrepreneurs came together to exchange experiences, both as a means of inspiration as well as to determine further steps. In addition, experiments for the development of circular areas are in full swing. One example is the industrial site Park 20/20, which is designed in such a way that it is completely climate neutral, by the design approach that materials, energy, waste and water can be recycled.
The El Hierro system consists of five wind turbines with a total capacity of 11.5MW and two water reservoirs - one at 700m above sea level, the other down near the coast
Immediately south of Park 20/20, the circular innovation area ‘The Valley’ is being developed. It was set up as a national and international showcase for the transition to a circular economy and aims to be the location where circular developments come together. This means that the conservation of value – economical as well as physical – is a central part of the entire chain: from plan development, implementation, management and utilisation of the area to the (business) activities that are going to take place.
Another example is a former industrial area called Buiksloterham in Amsterdam, which is being redeveloped by public and private parties, into a neighbourhood with high circular ambitions. Buiksloterham was launched as the Netherland’s first living lab for smart, circular and bio-based urban development. This largely abandoned and polluted industrial area provides plenty of space for gaining experience in circular area development. Because the redevelopment of this area with a size of 100 hectares is seen as a living lab, laws and regulations are dealt with in a more flexible manner.
Over the coming years, Buiksloterham will be transformed into a neighbourhood in which products and raw materials are reused as much as possible. It aims to be a social, diverse and liveable neighbourhood that is self-sufficient in the area of energy and makes use of renewable energy. The neighbourhood is to be a model for what could happen in other cities in the Netherlands and beyond.
Chances And Challenges For The Future
It’s pretty clear that the term circular economy stands for more than just a focus on recycling or reuse of materials. It begins when one starts thinking about the design and production process of (new) products by planning them in such a way that waste is avoided, by using the waste of someone else as a resource and by using renewable energy. This calls for thinking in systems and the recognition of mutual relations, in companies and production processes as well as in the development of buildings, neighbourhoods and cities.
It aims to be an area of continuous innovation and experimentation. To become a neighbourhood that is diverse and features attractive and human scale streets and buildings, with strong civic engagement and a resilient local economy.
And a place where all energy comes from renewable sources and all products and materials are recovered for reuse, repair, and recycling
Built-up urban areas lend themselves particularly well to the circular concept. This is due to the close proximity of citizens, retailers and service providers, the highly skilled workforce and technology savvy markets and high concentrations of biological and technical nutrients. But because there is an existing system in cities, the change cannot be made at once. In established urban areas there will always be a step-by-step transition, with a certain motivation as a starting point. Then the focus can be broadened and the circular concept can be applied more and more self-evidently on the entire urban system. Step by step, this creates a resilient system that can convert shocks and changes to innovative solutions.
In conclusion, we can see that, especially in cities, certain aspects of circular thinking have been applied since a long time. After all, big parts of the city have already been reused creatively for centuries with retention of value. Historic buildings have been successfully transformed from structures with commercial and storage functions into new uses such as houses, offices and hotels. There are many more such examples. We only need to let ourselves be inspired to think out of the box!
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