The Royal Netherlands Embassy in Washington DC, in co-operation with the US Chamber of Commerce Foundation, held a one- day conference on boosting the circular economy in Washington, DC on February 11, 2016. Around 140 representatives from business, government and non-profit organizations discussed ways and means to promote the transition to a resource efficient circular economy. The event was moderated by Jennifer Gerholdt of the Chamber of Commerce Foundation. Opening remarks were made by Netherlands Ambassador Henne Schuwer and Congressman Paul Tonko (D-NY), whereas keynote speeches were delivered by John Lanier, Executive Director of the Ray C. Anderson Foundation and William McDonough of MBDC and co-author of “Cradle to Cradle: Rethinking The Way We Make Things”. Program as well as presentations of the conference can be found at the bottom of this page.

Introductory remarks

All speakers emphasized that the take-make-waste linear economic model that the world has relied on for more than two centuries is no longer sustainable, given world economic growth, growth of the world population and depletion of resources. Transforming the linear model into a circular economy is urgently needed. Circular economy is about more than just recycling or waste management programs. It is about a fundamental rethinking and redesigning of products and materials. It was noted that industry and academia are developing innovative concepts, whereas governments could give guidance and facilitate. These three parties need to collaborate for successful implementation of the circular economy in order to promote tremendous economic opportunities: Implementing a circular economy could lead to annual savings of US$ 340 - 360 billion per year in the EU alone. It will lead to private sector revenue generation, stimulate innovation and job growth.

Keynotes

In the keynote speeches, the basics of the linear and the circular economies were explained, as well as the urgency for the world to make the transition from the first to the latter. Important leverage points in this transition are access to information; redefining the goals of the system (thinking beyond profit only, but more in terms of environmental value); changing the rules of the system through tackling constraints, giving incentives and penalties (in which there clearly is role for governments as well as for business); and ultimately also behavioral change - a societal paradigm shift. Although sustainable development saw an upsurge since the 1970’s, it clearly is not enough. It is merely a way of being less bad. Instead, when using the cradle-to-cradle design framework, the equilibrium can be restored by retaking, remaking and reusing, whilst taking the interaction between equity, economy and environment into account. In this concept, waste does not exist, but is a valuable resource in the circular resource through recycling and upcycling. Even CO2 can be treated as an asset instead of a liability, if properly integrated in the nutrient chain.

Panel: How the private sector is reimagining the future of business

Resource efficiency for economic reasons obviously is an important driver for companies to make the transition to circular business models, but this can only be a success if there are enough incentives for all parties in the supply chain. Producers, consumers, recyclers - they should all be able to benefit from it. If circular solutions are more expensive than the standard, they will not be used. Cooperation between partners in the chain here is essential: Dow explained that instead of using fresh water, one of their plants now uses recycled water from a nearby waste water treatment plant. Dell and Philips collect their products at the end of the life cycle. After recycling and upcycling the components are put back into the production stream. Technological and process innovations are key enablers in these developments, although it should be kept in mind that the most efficient solution is not always the most effective. For the Delta Development Group’s approach, understanding this distinction is most important, as is the focus on creating value instead of money. The panel noted that changes in behavior are essential with a bigger focus on the use of products than on their ownership. This change is already noticeable in the millennium generation, e.g. with regard to the sharing of bikes and cars. But there are still a lot of challenges to overcome. The public sector e.g. is much more difficult to incentivize to change than business. On the other hand, government policies and regulations should be more directed towards enabling the circular economy.

Panel: Governments Going Circular

The Netherlands made accelerating the circular economy a priority for its EU-presidency during the first half of 2016, advancing the proposals made by the European Commission in December 2015. They package contains a comprehensive action plan which i.a. proposes binding targets for recycling; caps on landfill; measures to promote recycling or re-use; green procurement; stimulate industrial symbiosis and economic incentives for producers. This package now shows more ambition than in the past. At a national level, the Netherlands in the meantime has launched more than two hundred so called “Green Deals”, public-private partnerships aimed at solving barriers, sharing knowledge and connecting parties. Furthermore, there is a program on closing the materials loop (From Waste To Resource), and a program aimed at waste prevention at the household level. Also, the Netherlands government is partner in a program called RACE (Realization of Acceleration towards a Circular Economy), aimed at identification and rapid elimination of specific legal barriers. In the US, the EPA’s efforts focuses on sustainable materials management, aimed at the most productive use of products across their lifecycle. A system-based approach is important to assure the use of the right material for the right purpose. EPA’s policy is to stimulate lifecycle thinking and foster collaboration on change and innovation. Changing the way the US consumer is thinking is important because consumer demand has a huge influence on what is being produced.

Panel: Closing the Loop

Next to industry and governments, non-profit organizations play an important role in closing the circular economy loop. One of the goals of the World Resources Institute is to move society in mastering the constraints of the present environment, with a focus on five sectors: climate, energy, food, forest and water. It was noted that government, business and civil society (customers, potential voters e.g.) are all part of one holistic system. Circular economy is about making the dynamics between these three groups work positively for both the environment and industry. As resources are getting scarcer and costs of extraction higher, industry in particular is encouraged to make the transition to a circular model. The US Chamber of Commerce looks at global trends which influence their members and promotes international strategic collaboration between industries in order to be more sustainable. Understanding the system, transparency and sharing of best practices are of utmost importance. Building on this experience, ideas can be shared with governments.

Workshop: Circular Business Models

The Ellen McArthur Foundation has as mission to accelerate the transition to a circular economy. It works with business, government and academia to build a framework for an economy that is restorative and regenerative by design. It does so by offering business rationales for circular economy e.g. through raising awareness on different ways of value creation. Philips explained how selling light as a service instead of bulbs or neon tubes contributes to closing the circular loops. The company basically buys energy and sells light. In developing clever light systems, which provide the exact amount of light where and when needed and through the use of LED’s, energy consumption was reduced by 50%. Ownership, recycling and upgrade of the light systems stays at Philips, which ensures a closed loop. Tarkett Flooring has the vision to design products for re-use according to Cradle2Cradle principles. Their success is all about innovation in return systems, recycling and upcycling – the optimization of materials. Additional drivers for the company to make the shift to a circular model were to make a positive environmental impact and building trust. But this is a long process. They noted it took almost two years before the circular vision was formulated and accepted.

Workshop: Future Metropolis: A Vision For The Built Environment

The German Marshall Fund (GMF) presented their efforts on circular economy as part of their Urban & Regional Policy Program. They facilitate the transatlantic exchange of knowledge for building inclusive, sustainable, and globally engaged cities. One of their latest projects is demonstrating the Dutch experience on waste-to-energy as an inspiration to raise awareness of the opportunities circular economy offer in the city of Pittsburgh. GMF indicated that they see the circular economy principles as an important asset in making cities more resilient and sustainable. The Delta Development Group (DDG) introduced the concept behind the business park named “Park 20|20” in Amsterdam. DDG assists companies in the park to transform their business into a circular model by restructuring their complete supply chain. Through thorough research into how their markets work and smart organization of the chain, DDG can make their circular solutions profitable. OMA, the Office for Metropolitan Architecture, presented a view on circular urban development. The Urban Food Hub in Louisville, KY served as an example. OMA approached the design of this facility from a system perspective, concentrating the whole chain of farming, processing, retail and consumption into one complex. By connecting the various steps of the process physically, there is an opportunity to feed waste back into the loop and restore the awareness of the public for the whole production process.

Workshop “Disruptive Technologies”

Accenture identifies ten different disruptive technologies that can accelerate the implementation of circular business models. A number of them were exemplified by companies present in the workshop: Innovative track and return systems can support circular business models by making it more cost-effective to collect products for service, re-use, repair or recycling. Optoro explained how their recently awarded reverse logistics system works. Digital tools prove to give far better and easier access to data, which make it possible to achieve a higher level of efficiency and more circularity. Advanced recycling technologies made it possible for Waternet to extract resources from waste water residue, whereas life and materials sciences technology put Dutch company Reststoffenunie in a position to successfully transform this residue into fertilizer. Furthermore, hybrid technologies like 3D-printing or digital technologies used by Airbnb and Uber, can considerably contribute to a resource efficient circular economy.

Presentations:
- Program
- The Circular Economy: From Concept to Reality
- Take-Make-Dispose Economy
- Living Our Vision
- Circular Business Models
- Future Metropolis
- Disruptive Transformation in Your Business
- Sustainable Reverse Logistics
- Vision for the Built Environment
- OMA
- Sustainable UMD
- Netherlands Water and Waste in Transition to a Circular Economy