Circular economy at the heart of environmental transition

With society under pressure from the climate crisis and the urgent need for energy transition, businesses are being asked to radically overhaul their design and production models. This major transformation includes massive adoption of techniques and materials that use fewer natural resources; systematic reuse and recycling of tools and materials; and widespread promotion of short loops.

This new edition of The Agility Effect newsletter is dedicated to: circular economy♻️

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What is circular Economy? 🔄️

There are multiple competing definitions of the circular economy. It can be interpreted quite differently when viewed from the perspectives of academic research, public policy, non-profit organisations or business. But despite their differences, these all share a common intent: to create a new economic paradigm to accelerate the environmental transition.

A more circular approach focuses on three main elements:

1. Sustainable Resource Management: reducing inputs and emphasizing the reuse and recycling of materials previously considered waste.
2. Climate Change Mitigation: reducing greenhouse gas emissions.
3. Enhanced Resource Control: increasing the proportion of resources that are controlled locally.

The circular economy focuses on minimizing extraction, production, disposal, and waste, while maximizing reuse, repair, and recycling of materials and energy.

Interview🎙️: How can we accelerate the transition to a circular city model?

The Agility Effect brought together Céline Acharian, CEO of La Fabrique de la Cité , and Sylvain Grisot, urban planner and founder of the firm dixit.net, to discuss critical environmental transition issues.

What is a circular city? 🏙️

Sylvain Grisot: A circular city is one that transitions from the traditional linear model of urban development, which involves expanding into new agricultural lands for building, to a circular model that maximizes the efficient use of existing space. This involves creating multiple loops to optimize every square meter.

So a circular city is primarily about curbing urban sprawl?

Céline Acharian: Today we all know that soil is essential in fighting climate change and ensuring food self-sufficiency. Basically, we must increase density on a like-for-like basis, starting from what already exists.

Sylvain Grisot: Sprawl isn’t the problem, it’s the symptom. Urban sprawl, driven by car dependency and resulting in soil erosion and biodiversity loss, needs to be addressed. Increasing urban density using existing spaces and reusing buildings are key steps.

How can the government help to accelerate the implementation of urban circularity?

Céline Acharian: Financial help is available, which can be useful. But I should point out that it is decreasing. What the government should do is show its confidence in initiatives emerging at local level and relax regulatory constraints to allow room for experimentation.

From a methodological point of view, what approaches should be prioritized?

Sylvain Grisot: The research I’ve undertaken in circular town planning has helped me to identify four loops. The first involves intensifying the use of buildings and focusing more on utilisation of time than on space. The second includes reusing existing buildings to avoid demolishing and rebuilding as far as possible. The third seeks to densify available space in urban and peri-urban areas for new build projects. And finally, the last loop involves repurposing and restoring the city by assigning new uses to brownfield sites, for example.

Building: reuse before recycling

The building sector in France produces 46 million tonnes of waste every year. With 90% of this waste coming from demolition and renovation works, the reuse of materials is a highly appropriate response.

How are companies promoting the reuse and recycling of materials and equipment?🏗️

• Crédit Agricole is giving second life to cable guides from renovation projects. The banking and finance group is also committed to promoting the reuse of ventilation ducting, which is made from steel and therefore has a huge carbon footprint.🪢
• Reyuz launched at VINCI Energies in 2022 to allow its business units to buy and sell unused equipment (office furniture, technical equipment, worksite materials, etc.)📲

Manufacturing sector to stake everything on circular economy 🏭

A major source of CO2 emissions, the manufacturing sector must urgently start pursuing energy efficiency on all fronts.

🔎A study by the firm OPEO and the Institut national de l’économie circulaire (INEC, the National Institute for the Circular Economy) shows that in 2021, while 85% of industrialists see circular economy as an opportunity, only 27% have begun transforming their value chains.

Entry points into circularity include:

1. Energy Efficiency: Manufacturers can reduce emissions and resource consumption by improving energy efficiency. For example, heat recovery and connecting blast furnaces to district heating networks can significantly reduce CO2 emissions. ⚡
2. Digital Tools: Artificial intelligence and digital twins can help monitor energy costs and anticipate drops in energy efficiency. 🖥️

For a long time, the circular economy was the poor relation of the public debate on energy transition and the blind spot in related policies. Due to its importance for the economy and its responsibility in terms of greenhouse gas emissions, the manufacturing sector has a major role to play in driving and scaling up this new model.

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