Circular Economy, Industrial Ecology and Short Supply Chain

Delphine Gallaud, Blandine Laperche

• Publisher: Wiley-ISTE
• Year: 2016
• Print ISBN:
  9781848218796
• Edition: 1
• eBook ISBN:
  9781119307471
• Topic: Technology & Engineering
• Subtopic: Electrical Engineering & Telecommunications
• Index: Technology & Engineering

In contrast to the linear "take-make-dispose" model of resource consumption, a new industrial model is proposed in the form of a circular economy. This model aims to optimize the use of resources and to reduce or eliminate waste, and is based on re-use, repair, ecodesign, industrial ecology, sustainable supply and responsible consumption.

Industrial ecology and short supply chains can contribute – particularly on a territorial scale – to the emergence of a real sustainable development. This book develops these concepts and presents experiments that are taking place in France and other countries, in addition to an integrated model which details the mechanisms through which industrial ecology and short supply chains can generate economic, social and environmental profits. The possible issues and obstacles facing these new practices are also analyzed, in order to develop the outline of an adapted management and governance which will enable them to be fully realized.

1
Building Region-based Sustainable Development: Vocabulary and Tools

The awareness of the negative implications of human activities on the environment has gained ground recently, despite several early warnings. The definition and implementation of circular economy, industrial ecology and short supply chains, however, show a growing consciousness of the environmental impacts of economic activities; and are part of an approach aimed at developing a more sustainable model of economic development.

The common point of all these approaches is to be systemic and to take into account the set of actors concerned by various economic activities. Circular economy, industrial ecology and short supply chains rely on close and new relationships between businesses and between these businesses and the end-consumer. Circular economy seeks to move away from the linear model of industrial activity – “take, make, dispose” – so as to offer approaches that include interaction loops among actors. Industrial ecology and short supply chains can be considered as part of the conceptual and practical toolbox needed to foster the transition toward this new model of development. Finally, these approaches of industrial ecology and short supply chains are closely linked to the territory, as long as local actors build this relationship within the region by activating proximity. Successful experiments take place against the backdrop of various spatial levels depending on the projects carried out by the actors. We will pose the question of the pertinent spatial scale of these models, and show how these theoretical approaches, when combined with concrete processes, can contribute to sustainable regional development.

Finally, these approaches are, for the moment, both intellectually and in the fact, most often developed separately. Short food supply chains have to do more specifically with the thematic subcategory of food systems, while industrial economics concerns manufacturing activities. The contribution of this chapter is, therefore, to offer an integrated analysis of industrial ecology and short food supply chains. In this chapter, we will discuss new approaches that take into account the manner in which economic activities affect the environment negatively, in such a way as to attempt to prevent these negative effects. We will begin by giving definitions of circular economy, industrial ecology and short supply chains, illustrated in each case by concrete experiments. We will then present arguments showing why and how industrial ecology and short supply chains can participate in the building of sustainable regions.

1.1. Circular economy

The concept of circular economy is a fairly recent one and its definition, which is not yet stabilized, owes much to the work of the MacArthur Foundation (section 1.1.1). However, experiments related to circular economy have been developed in various parts of the world since the early 2000s (section 1.1.2). The theoretical and factual roots of the concept are much older (section 1.1.3).

1.1.1. The circular economy according to the MacArthur Foundation

The Ellen MacArthur Foundation was created in 2010 and focuses a large part of its activities on circular economy. The foundation’s report, “Towards the Circular Economy”, written by the MacKinsey consulting group, examines the economic potential offered by circular economy. The first volume, which was published in January 2012, has “Economic and business rationale for an accelerated transition”, as a subtitle, while the second one, “Opportunities for the consumer goods sector”, was published in January 2013. Volume three, which deals with the theme of “Accelerating the scaleup across global supply chains”, was released in January 2014.

In this report, circular economy is considered as a new industrial model which is opposed to the linear model of resource consumption based on the “take, make, dispose” triptych. Its objective is to eliminate waste that is harmful to the environment. It promotes the use of goods with natural components called “nutriments” which can be reabsorbed into the biosphere without damage, as well as the repurposing (via reuse, repair and recycling) of technical components not suited for the biosphere (see Figure 1.1). The final consumption of goods must, in a circular economy, be based on a “functional service economy”; that is, the rental of goods and no longer on the sale of goods which generates waste.

Figure 1.1. Circular economy according to the E. MacArthur Foundation

Source: MacArthur Foundation

There are multiple benefits to be gained by implementing circular economy. For businesses, the case studies presented in the report show substantial reductions in spending and greater independence with respect to the supply of raw materials. Increased interaction with consumers (via rental contracts) may also reinforce their loyalty. Simplified product design (with a possible upgrading via additions) would enable businesses to manage the lifecycle of their products better. At the macro-economic level, the positive effects would also translate into more creativity and innovation, thus fostering employment and well-being. On this last point, negative externalities resulting from waste (pollution and diseases) would be reduced. Less subjected to the phenomenon of planned obsolescence, consumers would see their range of choice increase through the supply of tailor-made products. All of these positive effects could be achieved through the generalization of circular economy. The Ellen MacArthur foundation has highlighted two development scenarii in Europe; a transition scenario with savings of 12 to 14%, in terms of costs of materials, and an “advanced” scenario with savings on the order of more than 20% around 2025. The possible savings, in terms of resources, could reach more than one billion dollars per year. Of course, there are many obstacles hindering this transition (being economic, regulatory and psychological). According to the MacArthur Foundation’s report, despite these ever-present obstacles, there are some factors favorable to a transition to circular economy. These include the increasing scarcity of resources, restrictive environmental norms, high-performance technologies well-suited to the implementation of circular economy (social networks, RFID systems for waste tracking, etc.) and a more amenable attitude from consumers.

Though circular economy is primarily concerned with material goods (automobiles, washing machines, mobile phones, etc.), the MacArthur Foundation has also focused on the potential of applying these principles to everyday consumer goods (food, beverages, textiles and packaging), demonstrating via case studies the potential savings and revenue generated by circular economy (Volume 2). For example, in the food processing industry, and more specifically in beer production (the third most consumed drink in the world after water and tea), the processing of grain residue according to circular principles could generate a profit of about $1.91 per hectoliter of product. For packaging, again using the example of beer, changing to reusable bottles would reduce overall packaging costs by around 20% per hectoliter, etc. The third volume of the report examines the conditions and opportunities for and obstacles to the generalization of circular economy on a global scale. According to the authors, who are associated with the World Economic Forum, this type of generalization would assume a selection of optimized materials being used in the manufacture of products to facilitate recycling, which is often made difficult by the variety of materials used. Such a selection would require joint and concerted action by companies and governments, which remains a fairly utopian scenario for the moment.

On the whole, and according to the case studies collected by the MacArthur Foundation¹, circular economy encompasses a set of fairly disparate practices (eco-design, the use of renewable energies, recycling of waste, short food supply chains, industrial ecology and functional service economy), which are, often, completely separate from one another (or organized in a given region, as in the case of Kalundborg’s industrial symbiosis). It is necessary for these practices to “make a system”, to fit together along value chains functioning in loops, closed or not (including design, production consumption, and the return to the biosphere or the reuse) to generate a more sustainable development model.

1.1.2. Experiments in circular economy

In 2014, the Commissariat général au développement durable (French General Commissariat for Sustainable Development) published a study focusing on an international comparison of public policies dedicated to the circular economy [COM 14]. Four countries were examined: Japan, Germany, the Netherlands and China. These countries were chosen because they were forerunners in implementing legislation in favor of circular economy.

In Japan, transition to a circular economy is considered as a way of compensating for the country’s lack of natural resources and scarcity of space. It is based on the 3 Rs (reduce, reuse, recycle) and the desire to create a “Sound Material Cycle Society”; that is, “a society in which the consumption of natural resources is preserved and the environmental impact reduced through the application of a 3R approach to wastes”. Legislative measures are built around a law promoting the efficient use of resources 3R, 2000 and a Law on waste management, as well as sector-specific Laws.

The Netherlands relies on a number of concepts related to the circular economy, including Cradle to Cradle and Blue Economy, which have also been recognized as precursors by the MacArthur Foundation (see section 1.1.3). The initiatives stemming from circular economy are numerous and varied, as it concerns industrial ecology and the creation of regional industrial symbioses, as well as waste management, etc. These initiatives rely more on guidance and awareness measures than on regulatory measures, and put the material lifecycle approach at the heart of the matter. Waste policy should not be seen solely as an end of pipe action, but should be a part of the process from its beginning and, thus, be associated with eco-design strategies.

Since the early 2000s, Germany has put the optimization of material use at the center of its sustainable development policy, with the objective of decoupling economic growth from the consumption of materials, associated with a quantitative objective: doubling the material productivity between 1994 and 2020. Germany has also implemented a resource efficiency program called ProgRess, which notably includes a raw materials strategy aimed at ensuring the security of the strategic metals supply to German industry and the strengthening of the closed-cycle management of these materials.

In China, the circular economy is a national priority, intended as a remedy for both the country’s raw materials and energy dependence and its environmental problems, as well as a support for growth-based on the development of eco-industries. Circular economy was included in China’s 11^th five-year plan for economic and social development (2006–2010) as an element vital to the establishment of a society frugal with energy and resources. A law on the promotion of circular economy was adopted on 29 August 2008 and became effective in 2009; this Law, which was based on several pre-existing sector-specific laws, was inspired by the G...

Table of contents

• Cover
• Table of Contents
• Title
• Copyright
• Preface
• Introduction
• 1 Building Region-based Sustainable Development: Vocabulary and Tools
• 2 Difficulties, Barriers and Stakes in Transitioning Towards Sustainable Regions
• Conclusion
• Bibliography
• Index
• End User License Agreement