The Circular Economy

The European Commission adopted an action plan in 2015 to help accelerate Europe’s transition towards a circular economy, boost global competitiveness, promote sustainable economic growth and generate new jobs. This action plan sets out a number of measures aimed at ‘closing the loop’ of product lifecycles: from production and consumption to waste management and the market for secondary raw materials. It also identifies five priority sectors to speed up the transition along their value chain:

  • Plastics,
  • Food waste,
  • Critical raw materials,
  • Construction and demolition,
  • Biomass and bio-based materials.

The EU Monitoring Framework for the Circular Economy working document shows that the transition towards a more circular economy has helped put the EU back on a path of job creation. In 2016, sectors relevant to the circular economy employed more than four million workers, a 6% increase compared to 2012. Circularity has also opened up new business opportunities, giving rise to new business models and developed new markets, domestically and outside the European Union. In 2016 alone, circular activities such as repair, reuse or recycling generated almost €147 billion in value added
while standing for around
€17.5 billion worth
of investments.

However a recent stakeholder report suggests that full circularity would apply to only 9% of the world economy, leaving vast areas for improvement.

In July 2018, the Circular Economy package published by the European Commission brought into effect four revised Directives, including:

  • The Revised Landfill Directive 2018/850,
  • The Revised Waste Framework Directive 2018/851 and
  • The Revised Packaging and
  • Packaging Waste Directive 2018/852.

This Package highlights the importance that the European Commission is placing on the circular economy and the need for reduction of waste across the Union. The impetus at a European level is now stronger than ever.

The Concept

The circular economy is based primarily on ensuring the product life cycle decline stage is effectively postponed by reusing, upgrading, remanufacturing and, of utmost importance, recycling. The circular economy aims at re-engineering growth, which translates in positive society-wide benefits and goes beyond the current take-make-dispose extractive industrial model. The transition to the circular economy entails four fundamental building blocks—materials design, product design, new business models and the right enabling business conditions.

The circular economy is based on three principles;

  • Designing out waste,
  • Differentiating between consumables and durable parts of a product, and
  • Using renewable natural systems.
These principles subsequently provide four sources of value creation;
  • Minimizing material usage compared to the current linear system and minimal times between phases of usage,
  • Maximize the number of use-circles and time in each circle,
  • Diversifying reuse across the value chain, and
  • High quality collection and distribution systems ensuring uncontaminated material streams.

As illustrated in the design below, the circular economy requires a re-think of processes throughout the lifecycle of products; from design to production methods, to repair and maintenance, and ultimately to collection and recycling or re-using. The waste at the end of the lifecycle is no longer considered as useless material which can only be remedied through disposal but will now be considered as a new resource which will once again feed into the production of new products.

In a country such as Malta, that is highly dependent on importation of both raw materials, as well as finished goods, the design and production or manufacturing stages within the cycle are relatively minor. This means that the extent of Malta’s influence throughout these stages of the product cycle will be limited and focus should be directed towards the latter stages of reusability, repairability, collection and recycling.

The successful transition towards a circular economic system will only be possible with collective action will involving stakeholders committed in the development of circular business models. Therefore, these need to be managed through the introduction of Collaborative Life Cycle Activities (Co-LCA).

Co-LCA embeds three levels (Purpose, People and Action) and follows four steps:
  • Explore the topic,
  • Engage with appropriate stakeholders,
  • Expound and address the problems, and finally,
  • Evaluate the benefits and implement solutions together with the business sector.

The entrenchment of well-structured collaborative lifecycle approach in the transition to a circular economy will lead to the creation of an LCA community with the intent of addressing waste challenges measurable through shared values – societal, environmental, economical.

This transition is supported financially through a number of funding programmes, including: the European Structural and Investment Funds, Horizon 2020, the European Fund for Strategic Investments (EFSI), and the LIFE programme.

Implementing the Circular Economy Action Plan has accelerated the transition towards a circular economy in Europe where a shared vision boosts ongoing efforts to modernise the EU industrial base and ensure its global competitive edge while preserving its natural capital.