Why we have to talk about the Circular Economy?

 The European Commission

26 January: the first anniversary of the EU's Circular Economy Package. A year ago now, the Juncker Commission adopted a project to rethink Europe's economy. Known as the Circular Economy Package, it's a recognition that the world is changing, and that the resource-intensive practices that once brought so much growth are unsuited to the 21stcentury. A leaner, more circular economy will bring great opportunities for Europe's citizens, cutting waste and energy use and benefiting the environment. It will mean local jobs in green industries, and more competitive companies that grow in a sustainable way.The package aims for that leanness through more than 50 measures, including legal proposals to boost recycling and cut waste. The Commission has made big commitments – globally with the sustainable development goals and within Europe with the Juncker Investment plan. The circular economy package helps deliver on both. 2016 saw important first steps in areas like food waste, ecodesign, organic fertilisers, guarantees for consumers, innovation and investment. This week sees the launch of a new proposal to ensure that waste incineration is in line with the principles of circular economy.

Companies

The circular principles are gradually being integrated into industrial best practices, green public procurement, and the construction and water sectors. Companies across the EU are embracing these changes. The Netherlands is a member state in the vanguard of the transition.  One of the best examples is the Philips. As the CEO, Frans van Houten told in an interview in 2014: ”Two years ago, we decided to embed circular-economy thinking in our strategic vision and mission, both as a competitive necessity and with the conviction that companies solving the problem of resource constraints will have an advantage. We believe that customers will increasingly consider natural resources in their buying decisions and will give preference to companies that show responsible behavior—something we are already seeing. Designing products and services for a circular economy can also bring savings to a company. ”

Monitoring

 A framework to monitor progress towards the Circular Economy should be in place by June. Also in June, Green Week – Europe's biggest annual environmental conference – will focus on green jobs, and the potential for more green employment around the union.

Funding

As ever, funding is key. More than 100 circular economy-related projects have now been identified as 'best practices'. This week sees the launch of a new platform that will bring together the European Investment Bank with national banks and other partners to share best practices on financing circular economy projects and business models. The idea is to publicise circular economy thinking more widely, improving the bankability of circular economy projects, and ensuring that existing instruments for circular economy projects are actually used to the full.

Circularity is about rethinking our approach, a step towards a real system thinking in the economic policy of the EU.