Environment

The potential of a resource-efficient and circular economy for climate change mitigation and adaptation

Joint Eionet meetings on Energy, Environment and Climate Change mitigationEEA Headquarters, Copenhagen, Denmark 10 September 2018

©iStock/luckbar

Giulia Rosatogiulia.rosato@ec.europa.eu

DG Environment, Unit.F.1Sustainable Development Goals, Green Finance and

Economic Analysis

Outline

• Introduction

• Recent studies and data

• The EU approach to circular economy: best practicesfrom the EU Circular Economy Action Plan

• Challenges and opportunities

• Conclusion

Introduction

• Successful energy transition, leading to decoupling growth from GHGemissions and energy consumption (3rd Report on the State of theEnergy Union, COM(2017) 688 final).

• In this process, synergies and trade-offs between climate andenvironment have been sometimes neglected. Climate change hasbeen the policy priority.

• This presentation will attempt to demonstrate the need for a moresystemic transition to achieve the objectives of the Paris Agreement,focusing on the Circular Economy.

A long-term climate policy,beyond the nexus energy-climate

4©iStock/lovelyday12

5

“In 2050, we live well, within the planet’s ecological limits. Our prosperity and healthy environment stem from an innovative, circular economy where nothing is wasted and where natural resources are managed sustainably, and biodiversity is protected, valued and restored in ways that enhance our society’s resilience.

Our low-carbon growth has long been decoupled from resource use, setting the pace for a safe and sustainable global society”

The EU’s 7th Environment Action Programme (7th EAP)

The EU vision for a sustainable future

6

Recent studies and data

Modelling resource efficiency and ambitious climate policies suggest that:

The International Resource Panel (IRP)

UNEP (2017) Resource Efficiency: Potential and Economic Implications. A report of the International Resource Panel. Ekins, P., Hughes, N., et al., at: http://www.resourcepanel.org/reports/resource-efficiency

Circular economy measures could reduce EU industrial emissions by 56% (300 Mt) annually by 2050, more than half of what is necessary to achieve net zero emissions. Globally, the reductions could be 3.6 billion tons per year in the same period.

Even with the rapid adoption of energy efficiency and low-carbon energy, the emissions from materials production will still amount to 6500 Gt.

A circular and resource efficiency approach is indispensable to reach our climate goals.

Material Economics

“Circular opportunities can cut 2050 emissions from steel,plastics, aluminum and cement by 56%”

Material Economics Sverige AB (2018), The circular economy - a powerful force for climate mitigation: Trans-formative innovation for prosperous and low-carbon industry. Please see: https://www.sitra.fi/en/publications/circular-economy-powerful-force-climate-mitigation/

Material Economics Sverige AB (2018), The circular economy - a powerful force for climate mitigation: Trans-formative innovation for prosperous and low-carbon industry, p. 24.

The EU Circular Economy Action

Plan

From a Linear Economy…

DISPOSEMAKETAKENATURAL RESOURCES

WASTEWASTEWASTE

12

…to a Circular Economy

13

14

15

The EU approach

4 key areas of actions

5 priority sectors

Energy and resource efficiency through Eco-design

• The Commission is working to embed circularity in the design of newproducts and the materials they are made of.

16

Eco-design

• The Eco-design Working Plan 2016-2019 sets out how Ecodesign will contribute to the circular economy objectives: focus on durability, reparability, products’ information and ease of reuse and recycling.

• Improved waste management helps to reduce GHG emissions directly by cutting emissions from landfills and indirectly by recycling materials which would otherwise be extracted and processed.

17

The role of waste management

© iStock/by_Djenka

Best proven techniques to increase energy efficiency for waste-to-energy processes are:

• Co-incineration in combustion plants

• Co-incineration in cement and lime production

• Waste incineration in dedicated facilities

• Anaerobic digestion

Waste-to-Energy

EU action against food waste

• Food waste alone generates about 8% of global GHG emissions

• The Revised EU Waste Legislation (30 May 2018) calls on Member States to take action to reduce food waste at each stage of the food supply chain, monitor food waste levels and report back regarding progress made

18

Food waste

• Elaboration of a common EU methodology to measure food waste• EU Platform on Food Losses and Food Waste, involving Member States

and actors in the food chain to define measures and share best practices and results

• Plastics production and the incineration of plastic waste give rise globally to approximately 400 million tonnes of CO2 a year.

19

EU Plastics Strategy

• Using more recycled plastics and alternative types of feedstock based on solid evidence can reduce dependence on fossil fuels and curb CO2 emissions.

• Recycling all global plastic waste could bring potential annual energy savings of 3.5 billion barrels of oil per year.

20

Challenges and Opportunities

• The transition to a global circular economy may lead to some trade-offs that need continued dialogue and cooperation.

• The need for a stronger knowledge base and systemic thinking and policy integration

The circular economy is starting to be integrated in climate change modelling

• The need for a better understanding of the interplay between trade, circular economy and climate action.

21

Challenges 1/2

• Significant investments needed in waste management infrastructure to ensure the needed level of recycling

22

Challenges 2/2

• Tackle the environmental footprint of individuals’ consumption and behaviors

Source: Eurostat

The Paris Agreement and post-2020 NDCs: resource efficiency as a key pillar of the global decarbonisation agenda

Opportunities 1/2

Mainstreaming circularity and resource efficiency considerations in:

• the monitoring progress of the Global Stocktake

• the Facilitative Talanoa Dialogue

• The Global Climate Action Agenda (GCAA) – an opportunity to promote also other nature-based solutions for climate change

UN Climate Summit COP24, 3-14 December 2018, Katowice, Poland European Commissions’ possible side event to strengthen the contribution of resource efficiency and circular economy to the implementation of the Paris Agreement

Opportunities 2/2

25

• A sustainable management of natural resources lies at the center of virtually all viable solutions to climate change “efficiency first”

• A circular economy, by improving resource efficiency (both material and energy-related) and reducing waste through measures such as reuse, recycling and remanufacturing, can greatly lower resource consumption and GHG emissions;

• Systemic thinking and policy integration are paramount for a sound policy-making;

Key messages

Thank you!

26