UPM-Biofore-Magazine-1-2017-ENG

Significant cost savings for companies Blériot notes that the potential for companies to save costs is a significant incentive for them to move towards the circular economy. Substantial sums of money can be saved by using rawmaterials and energy more efficiently. Companies can also find significant economic potential in recycling usedmaterials and selling side streams to another operator or processing them into products that bring added value to their business. Blériot adds that it is essential to view the various parts of the circular economy as a whole instead of focusing on the individual elements. He believes that this is the only way to identify every possibility. “Business models based on the circular economy require new kinds of partnerships to be formed between companies.” Blériot believes that the new economic model will redefine competitive standings inmany industries. The companies and countries that are the first to change their ways will enjoy the strongest start. “The circular economy offers companies a great opportunity to reinvent themselves and utilise new opportunities. More and more companies are investing in research aimed at advancing the circular economy, as well as in efforts to develop new business models.” Early days for the major shift The circular economy is a hot topic on the global agenda, but major changes are typically slow to unfold. Blériot is reluctant to estimate how long it will take for the ideas being discussed to be put into practice on a larger scale. “It’s still early days for the major shift. However, a lot of positive development is already visible under the surface. No companies have become fully circular in their operations just yet, but many have begun changing their course in the right direction.” Blériot believes that governments will also play an important role in promoting the circular economy. He has noted that there is widespread support for more efficient use of resources in countries all around the world. However, progress is sometimes delayed by outdated legislation and various administrative barriers forming a roadblock for business and innovations related to the reuse of waste and by-products. According to Blériot, initiatives such as the European Commission’s ambitious Circular Economy Package prove that there is a desire for change. The package sets out a framework for accelerating the European economy over the coming years through a strategy of resource efficiency and environmental sustainability. “The Circular Economy Package may encourage companies to make strategic changes in the right direction. It could even lead to quick changes being enacted.” 

rawmaterials more efficiently, recycling materials and replacing non-renewable resources with renewable ones,” Blériot states. No waste is generated in a 100% circular

development; for instance, new technology is already allowing solar power to be adopted at a much faster rate than before.

Fundamental changes in consumption Blériot emphasises that the circular economy does not aspire to downscale economic activity. On the contrary, it can even accelerate economic growth, as companies become more competitive and produce a growing range of innovations. Consumers will not be required to lower their standard of living, either. However, Blériot does anticipate major changes in consumer habits. “The nature of consumption will change, with the focus shifting away from owning products andmore towards a pay- per-use model. This means that consumers and businesses will share goods and services between them to a greater extent than they do today.” Blériot mentions transport as a positive example of this development. He believes that new concepts for ‘mobility as a service’ will lead to a significant decline in the need to own private vehicles in the coming years. One example is a mobile phone application that can be used to select the most suitable means of transport for each individual journey, seamlessly combining transport services such as buses, trains and taxis in a single package. “A car is an expensive investment that spends over 90% of the day standing still. If there are easy-to-use alternatives available at competitive prices, people will have less interest in owning personal vehicles.”

economy, as surpluses and side streams from production processes can be cascaded and used as rawmaterials by other operators in the cycle. “When the product reaches the end of its lifecycle, the materials return to circulation. They are used to manu­ facture a similar product or are utilised in some other way.” According to Blériot, ensuring that the product can be reused or its materials recycled in a cost-efficient way is a goal that companies will need to factor in from the initial product design phase onward. Biomass is loaded with potential Blériot believes that future developments will lead to biomass and bio-basedmaterials becoming an essential part of the circular economy and new circular innovations. “Finland is a frontrunner in this field, and the nation has a solid bioeconomy strategy. It is interesting to see what kinds of newmaterials and products will be developed using bio-based rawmaterials. Products such as biochemicals and biofuels are great examples of this development.” Replacing non-renewable energy sources with renewable ones is another integral goal of the circular economy, Blériot points out. This trend is being accelerated by rapid technological

Joss Blériot

FACTS

Only 20% of all materials are recycled

The average citizen of a wealthy OECD country consumes a total of 800 kg of food and beverages, 120 kg of packaging materials and 20 kg of new clothes and shoes per year.

Only 20% of purchased materials are recycled after use.

The remaining 80% are removed from circulation and disposed of at incineration plants and landfill sites or as wastewater.

In the United Kingdom alone, recycling and processing food waste from households and restaurants into biogas, nutrients and chemicals could create new business income channels worth up to EUR 1.4 billion. Furthermore, new business revenues of roughly EUR 1,800 per tonne of clothing collected could be generated in the UK through recycling textiles.

Joss Blériot believes that new concepts for ‘mobility as a service’ will reduce the need to own private vehicles. One example is a mobile phone application that can be used to select the most suitable means of transport, such as buses, trains and taxis in a single package.

Source: Towards the circular economy, report vol. 2, Ellen MacArthur Foundation

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