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Circular economy’s effective implementation needs both theoretical and practical analysis. So far in most states around the world there is an evident lack of adequate research and comprehensive theoretical framework on the issue. The European Union suggests some vital guidance in positive management of this vital part of modern political economy both in governance and wellbeing.
Background
In numerous states presently, fragmented and inconsistent circular economy (CE) strategies often prevented its successful implementation in short- and long-term perspectives. Thus, effective management and political means are needed to carefully design CE methodology, as well as planning and strategic guidance coped with a systematic approach to modern challenges, including sustainability, climate mitigation and digitalisation. Besides, structured approaches to navigating the complexities of long-term management have to be prioritized.
Among the EU-wide legislative efforts and plans are: the European Green Deal, the new Circular Economy Action Plan and the Zero Pollution Action Plan.
At the same time, it is easy to see that the whole CE concept is based on proper solution of the sustainable development goals (the SDGs were adopted by the global community at the end of 2015) and require substantial altering of the states’ old-aged political economy’s patterns.
See, for example:
https://www.integrin.dk/2022/01/03/new-era-for-the-political-economy-and-integration/
There is a significant theoretical background in global literature on CE, addressing a so-called “standardized methodological CE framework and mapping”. Existing CE roadmaps, while incorporating elements such as priority areas, stakeholders, strategic action plans, long-term goals and timelines, often suffer from fragmentation and inconsistency. The lack of a cohesive and systematic CE strategy has to be rectified by integrating cross-sectoral elements and economically feasible instruments, including strategic management, systems thinking, sustainability sciences, etc.
It is necessary to highlight substantial variations in current CE world-wide and among the EU-27, as well as emphasize the need for a more holistic and standardized approach. Such analysis will be useful for policymakers, business community and practitioners in forming some optimal managing tools in strategic CE. Suffice it to mention that such strategic CE has an interdisciplinary and cross-sectoral structure which reflects the CE’s complex facets providing for adaptable solutions through various management approaches and reflecting the diverse reality of CE applications.
In spring 2024, the seventh edition of the most awaited Circular Economy conference in Europe took place accompanied by the World Circular Economy Forum (WCEF) to bring policy makers, industry leaders, academics and activists from all over the world to turn circular visions into actions. Online and on-site participants presented a mix of policy-oriented solutions highlighting the key role of a legislative framework for the circular economy.
Besides, the European Circular Economy Stakeholder Platform (ECESP), powered by the European Commission and the European Economic and Social Committee, showcased and discussed Europe’s progress in the green and digital transitions.
More in: https://circulareconomy.europa.eu/platform/en/ecesp-annual-conference-2024-circular-economy-visions-actions
CE: theoretical content
The circular economy, CE has emerged as a focal point in efforts to achieve sustainability in various domains on a global, national, regional and business scale, generally after SDGs have been revealed. This has led to a re-evaluation of resource management, stakeholder engagement, and policymaking, emphasizing an interconnected and cyclical approach.
Therefore, the CE concept shall be traced back to sustainability-oriented ideas which, among other items, included industrial ecology, “performance economy” and renewables; these ideas emphasize not only waste reduction and management, but also optimized the use of resources and promoted sustainable production and consumption. Therefore, implementing CE principles at various levels of governance offers a robust economic model to address systemic inefficiencies in sustainability and negative externalities while simultaneously fostering environmental quality and economic wellbeing.
However, embedding CE principles in political economy presents a challenge because of the CEs complexity and diversity, as well as the ecosystems involved. It requires comprehensive and strategic alignment with governance frameworks at the national, regional and municipal levels. The CE’s understanding implies responsive strategies in considering the socio-economic, cultural and political differences across different states, regions and sectors.
Only after the SDGs adoption in 2015, numerous CE types and methods have emerged globally and in the EU, indicating a shift towards more structured and collaborative long-range planning for CE adoption. These CE “mapping initiatives” are crucial for guiding the transition to a circular paradigm: they identify priority areas, engage stakeholders, promote collaboration and establish clear goals to ensure a cohesive approach to implementing CE principles across sectors and levels of governance despite their diverse origins and structures.
Source: https://www.mdpi.com/2071-1050/16/15/6682
The CE road-mapping framework should go beyond traditional socio-economic approaches, allowing for flexible solutions coped with integrating different fields of science and knowledge. Such an approach would form a solid CE foundation with so-called actionable strategies and create an effective governance to implement and monitor the process. “Forming the foundation” would need a revised CE’s conceptual theory with practical application for the benefit of business community and peoples’ wellbeing.
CE’s evolution
The evolution of approaches to CE reflects a profound transformation in the approach to sustainable development (with social, economic and environmental concerns) going from a narrow waste management, recycling and “rational use” of resources to a national/globally-based SDGs strategies; the process is going on more consistently during the last decade. In Europe it was German’s “Closed Substance Cycle and Waste Management Act” in 1996 as a first in the region legislative measure in the national governance; the act’s importance was in combining waste processing with a systemic resource management thus “closing material loops” and proceeding to an optimal CE strategy.
The integration of sustainable development into the CE approaches reflected the complex CE solution involving social, environmental and economic dimensions in governance; in this way, the new CE’s facets embraced broader economic, nature protection and environmental quality goals making the CE a comprehensive strategy.
More in: Manioudis M. and Meramveliotakis G. Broad Strokes towards a Grand Theory in the Analysis of Sustainable Development: A Return to the Classical Political Economy. – New Political Economy (2022); 27, 866–878. Google Scholar, Cross Ref.
Various national CE approaches, e.g. Sitra in Finland, French and German’s Acatech’s, the Netherlands strategy, etc. have been vital initially combining political and legislative measures. Then the role of research and development has been increasingly recognized for formulating innovative CE planning. Also on the municipal level, local authorities and civil society began exploring CE initiatives, focusing mainly on urban sustainability: e.g. London’s CE plan extended beyond waste management to encompass urban industrial components. Then Amsterdam’s circular strategy followed focusing on sustainable urban development, including circular and waste management; Glasgow’s roadmap integrated circular principles into urban regeneration and development.
General source and reference: Abu-Bakar H. and Charnley F. Developing a Strategic Methodology for Circular Economy Road-mapping: A Theoretical Framework. In Sustainability (2024); 16, 6682. https://doi.org/10.3390/su16156682
In Europe, the “Closing the Loop: EU Action Plan for the CE” (2020) exemplifies a regional approach through the EU-wide Interreg program, outlining measures for sustainable regional CE guidance policy and waste management showing the CE’s growing recognition at supranational levels. Sectoral approaches to CE addressed sustainability challenges in corporate and industrial sectors by fostering innovative approaches for circularity. For example in the EU, the construction sector was critical due to its significant generation of construction and demolition wastes.
Standardization in CE
Standards, in general provide systematic approach to embedding CE principles and practices into national/corporate sustainable governance, as well as assure CE consistency, quality performance and implementation compatibility.
As a rule, two sets of standards applicable to CE are used: the ISO 59000 series, which is focused on CE directives, and ISO 37000, which governs practical management.
Thus the ISO 59000 series [98] represents a set of standards that delineate foundational principles and guidelines for CE management systems, designed to assist in establishing a systematic framework for LRP that embeds circularity at the core of business operations. Elements of this standard are drawn from to provide support at different phases of CE roadmapping. Illustrated in Table 9 below are these critical elements, showcasing their application throughout the CE roadmapping process and highlighting their roles. ISO 37000 [99] offers governance guidelines crucial for CE roadmapping, ensuring that governance structures are strategically aligned with organizational objectives. This alignment enhances sustainable decision-making and stakeholder engagement, which is vital for executing CE initiatives effectively.
More on ISO facilities in: ISO 59000- Circular Economy -Terminology, Principles and Guidance for Implementation. ISO: Geneva, Switzerland, 2023. Source: https://www.iso.org/obp/ui/#iso:std:iso:59004:dis:ed-1:v1; for ISO 37000 – Governance Guidance and Recommendations. ISO: Geneva, Switzerland, 2023.
The European perspectives in CE
The European Commission adopted the new circular economy action plan (so-called CEAP) in March 2020. It is one of the main building blocks of the European Green Deal, Europe’s new agenda for sustainable growth. The EU’s transition to a circular economy will reduce pressure on natural resources and will create sustainable growth and jobs. It is also a prerequisite to achieve the EU’s 2050 climate neutrality target and to halt biodiversity loss.
More on green deal in: https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en
The CEAP includes initiatives concerning the entire life cycle of products: it targets how products are designed, promotes circular economy processes, encourages sustainable consumption and aims to ensure that waste is prevented and the resources used are kept in the EU economy for as long as possible.
The circular economy’s aspects are presently also within the urban agenda and that of the cohesion funds. The latest report is a consolidated version revealing the achievements of the EU-wide action on “mainstream circular economy in the post-2020 cohesion policy”. The report investigates the existing opportunities for the circular economy projects under the EU Cohesion Policy during 2014-2020, explores future opportunities and gaps to be addressed in the next generation of Cohesion Policy post-2020. It also contains the position paper delivered to the European Parliament and European Commission, from the EU Urban Agenda Partnership on Circular Economy.
Source:
https://futurium.ec.europa.eu/en/urban-agenda/circular-economy/library/consolidated-report-action-mainstream-circular-economy-post-2020-cohesion-policy-and-corresponding
In the new Commission’s College plan (for the period of up to 2030) special actions devoted to “more circular and resilient economy” in the member states. Under closer implementation are efforts to decarbonise national economy through a “continued shift” to a more sustainable pattern of production and consumption, as well as retaining the value of resources in economic growth.
Actually, the main CEAP’s purpose is for “cleaner and more competitive Europe”, the idea which was adopted in 2020, to assist the states in creating a “market demand” for secondary materials and a single market for waste, notably in relation to critical raw materials. The world community notes that “there is only one planet Earth, yet by 2050, the world will be consuming as if there were three Earths; the global consumption of materials such as biomass, fossil fuels, metals and minerals is expected to double in the next forty years, while annual waste generation is projected to increase by 70% by 2050.
Source: World Bank’ report-2018 “What a Waste 2.0: A Global Snapshot of Solid Waste Management to 2050”.
As half of total greenhouse gas emissions and more than 90% of biodiversity loss and water stress come from resource extraction and processing, the European Green Deal launched a concerted strategy for a climate-neutral, resource-efficient and competitive economy. Scaling up the circular economy from front-runners to the mainstream economic players will make a decisive contribution to achieving climate neutrality by 2050 and decoupling economic growth from resource use, while ensuring the long-term competitiveness of the EU and leaving no one behind.
Mote in Communication on:
https://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1583933814386&uri=COM:2020:98:FIN
The Commission intends to put forward a new chemicals industry package, aiming to simplify REACH and provide clarity on “forever chemicals”, or PFAS with the aim of making the EU economy more resilient and less dependent on external supplies.
More on REACH in: https://ec.europa.eu/commission/presscorner/detail/en/ip_23_4581
In 2023, the Commission revised the circular economy monitoring framework (adopted in 2018); the revision adds new indicators on: e.g. material footprint and resource productivity – to monitor material efficiency; and consumption footprint – to monitor that the EU consumption fits within planetary boundaries.
More in: https://ec.europa.eu/eurostat/web/circular-economy/monitoring-framework
Circular economy: health aspects in Europe
Additional efforts are expected in the vital sectors connected to the EU-wide health and pharmaceutical sector: the member states have been confronted with severe shortages of medical devices and medicines, with antibiotics, insulin, painkillers and other products becoming particularly difficult to obtain. To remedy this, the Commission will draft a Critical Medicines Act to reduce dependencies relating to critical medicines and ingredients, particularly for products where there are only a few supplying manufacturers or countries.
This will be part of the Union’s efforts to complete the European Health Union with diversified supply chains, access to the most advanced treatments, more resilient health systems and strategic inventories of key medicines. The EU will continue to work on anti-microbial resistance, to step up efforts on preventive health, in particular for mental health, including at work, and cardiovascular diseases, as well as on treatments for degenerative illnesses and research on autism; this will build on the successful model of the Beating Cancer Plan.
More on PFAS and green transition in: https://www.integrin.dk/2024/09/20/european-green-transformation-restricting-pfas/
The EU member states must also do more to protect the security of national health systems, which are increasingly the target of cyber and ransom ware attacks. To improve threat detection, preparedness and crisis response, the Commission will propose a EU-wide action plan on the cybersecurity of hospitals and healthcare providers in the first 100 days of the new mandate.
More in: https://futurium.ec.europa.eu/en/urban-agenda/circular-economy