Green Growth and Circular Economy Toolkit Reports
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Table of Contents TRANSITION TO CIRCULAR ECONOMY IN KENYA APPLYING ELLEN MACATHUR
FOUNDATION‘S TOOLKIT, WITH SPECIAL REFERENCE TO ITS GREEN GROWTH
STRATEGY & DENMARK CIRCULARITY. ....................................................................................... 4
1. INTRODUCTION ......................................................................................................................................................... 4
CONSTRUCTION ............................................................................................................................................................. 5
Packaging General ......................................................................................................................................................... 6
Plastic Recycling - Unilever. ........................................................................................................................................... 7
BARRIERS FOR PLASTIC RECYCLING........................................................................................................................... 8
SOLUTION:AFRICAN PLASTICS RECYCLING ALLIANCE ............................................................................................... 8
MORE STAKEHOLDERS EMERGE.................................................................................................................................. 10
Challenges, opportunities and Impacts....................................................................................................................... 10
Impact 3 - FOREST CONSERVATION ........................................................................................................................ 10
IMPACT 5 : SECOND HAND CLOTHING .................................................................................................................... 11
Challenges ................................................................................................................................................................ 12
Opportunities........................................................................................................................................................... 12
INTRODUCTION .................................................................................................................................. 13
Circular economy trends in Kenya .............................................................................................................................. 13
1. KENYA‘S GREEN GROWTH STRATEGY POSITIVE EFFECT ON TRANSITION TO CIRCULAR ECONOMY. ................. 14
1.1 CIRCULAR ECONOMY VERSUS LINEAR ECONOMY .......................................................................................... 14
1. 2. KENYA PURSUING ELLEN MAC ARTHUR ‘S TOOLKIT GUIDELINES ................................................................. 14
1.3. GESIP PLAN ...................................................................................................................................................... 14
1.4. GESIP FORMULATION & EXECUTION ............................................................................................................. 15
1.5. COLLABORATORS IN GESIP PROGRAM ........................................................................................................... 15
1.6. EARLY PROJECTS WITH TRANSFORMATIVE POWER INITIATED. ............................................................... 16
1.7 THEMATIC AREAS OF THE PROGRAM ............................................................................................................. 16
1.8. GUIDING PRINCIPLES ........................................................................................................................................ 17
1.9. RESOURCE MOBILIZATION. ...................................................................................................................... 17
1.10 CIRCULAR ECONOMY IN KENYA: THREE COURAGEOUS PIONEERS. .......................................................... 19
2. PARAMETERS UPON WHICH DEVELOPING A CIRCULAR ECONOMY TOOLKIT FOR
DENMARK IS BASED ......................................................................................................................... 22
2.1. THE PROBLEM ....................................................................................................................................................... 22
2.2 SOLUTION AS PROVIDED BY ELLEN MACARTHUR FOUNDATION ......................................................................... 22
2.3. THE STANDARD GUIDE FOR TOOLKIT AS PER ELLEN MacARTHUR ..................................................................... 22
FOUNDATION GUIDELINES. ......................................................................................................................................... 22
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2.4. INSIGHT INTO DEVELOPING AND TESTING THE DENMARK PILOT...................................................................... 24
2.5. OPPORTUNITIES TO GO CIRCULAR. ...................................................................................................................... 24
2.6. STEPS TO BE TAKEN .............................................................................................................................................. 25
3. THE DENMARK PILOT .................................................................................................................. 25
3.1. BACKGROUND...................................................................................................................................................... 25
3.2. THE DENMARK BASE FOR CIRCULAR ECONOMY ................................................................................................ 25
3.3. OVERVIEW ON DENMARK TODAY ........................................................................................................................ 26
3.4. DENMARK PILOT PHASE ESTIMATES .................................................................................................................... 26
4. DELIVERING CIRCULAR ECONOMY. ...................................................................................... 26
4.1 THE PRINCIPAL TOOLKIT DEVELOPMENT CONTRIBUTION ................................................................................... 26
4.2. OTHER CONTRIBUTORS. ....................................................................................................................................... 27
4.3 GOVERNMENT REPRESENTATIVE ........................................................................................................................ 27
4.4. OBSERVER GROUP (from government). .............................................................................................................. 27
4.5. THE ROLE OF POLICY MAKERS & THIS TOOLKIT. .................................................................................................. 27
4.6. TWO COMPLEMENTARY POLICYMAKER STRATEGIES THAT CAN ACCELERATE THE CIRCULAR ECONOMY. .... 27
4.7. NATURAL SYSTEMS DEGRADATION. ................................................................................................................. 28
4.8. REPORT AIMS TO COMPLEMENT EXISTING CIRCULAR ECONOMY POLICY LITERATURE BY: ............................ 28
5. THE CIRCULAR ECONOMY OPPORTUNITIES IN FIVE FOCUS SECTORS FOR
DENMARK. ........................................................................................................................................... 28
5. 1 OPPORTUNITIES AND THEIR POTENTIAL IMPACT. ............................................................................................... 28
5.2. ENERGY SECTOR .................................................................................................................................................. 28
5. 3 TEN CIRCULAR ECONOMY OPPORTUNITIES FOR DENMARK. .............................................................................. 29
5.4. FOOD & BEVERAGE .............................................................................................................................................. 29
5. 5. CONSTRUCTION & REAL ESTATE ........................................................................................................................ 29
5. 6. MACHINERY ........................................................................................................................................................ 29
5.7. PLASTIC PACKAGING ............................................................................................................................................ 29
5.8. HOSPITALS ........................................................................................................................................................... 29
Performance models in procurement........................................................................................................................... 29
6. THE CIRCULAR ECONOMY TOOLKIT: A MODEL FOR SMALL BUSINESSES. ................ 30
6.1. BACKGROUND .................................................................................................................................................. 30
7. PLANT CHICAGO: FOCUSING ON FOOD SYSTEM .............................................................. 33
7. 1 FOOD SPECIFIC FOCUS AREAS FOR CHICAGO PLANT ................................................................................... 33
7.2 NON-FOOD AREAS THAT CHICAO PLANT SET GOAL ON ............................................................................... 33
7.3. SOURCING. .................................................................................................................................................... 33
7.4. FOOD RECOVERY ............................................................................................................................................. 33
8. LIST OF PLANT CHICAGO PRACTICES .................................................................................... 35
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9. PATHWAYS TOWARDS A GERMAN CIRCULAR ECONOMY ............................................... 36
9.1. BACKGROUND...................................................................................................................................................... 36
9.2. BARRIERS TO THE TRANSFORMATION TO CIRCULAR ECONOMY ...................................................................... 37
9.3. FUNDAMENTAL MOTIVATION FOR SYSTEMIC CHANGE: ................................................................................... 37
9.4. OPTIONS FOR SHAPING GERMANY ‘S TRANSITION TO CIRCULARITY. .............................................................. 37
10. SHORT REPORT ON BRAZIL’S CIRCULAR ECONOMY EXEMPLARY PROGRAM ........ 39
10.1. CIRCULAR ECONOMY: BRAZILIAN EXPERIENCE ................................................................................................ 39
10.2. FINANCE ........................................................................................................................................................... 39
10.3. THE ENGINE BEHIND THE BRAZILIAN CE EXPERIENCE ................................................................................... 39
10.4 CIRCULAR ECONOMY ACHIEVEMENT IN WASTE IT .......................................................................................... 40
10.5. RESULT ............................................................................................................................................................. 40
11. LESSONS LEARNT FROM OTHER JURISDICTIONS ............................................................. 41
12. LESSONS LEARNT FROM GERMANY ..................................................................................... 44
12.2. PRIME MOVERS AND DRIVERS OF TRANSFORMATION: “THEORY OF CHANGE” ............................................. 44
12.3 POLICYMAKERS & HIGH-TECH STRATEGY 2025 .................................................................................................. 44
12.4. THE TARGET SYSTEM: FORMULATION OF GOALS AND INDICATORS ............................................................ 45
12.5 TOPIC SELECTION AND PRIORITIZATION ........................................................................................................... 46
12.6 SCIENTIFIC COMMUNITY: .................................................................................................................................... 46
12.7 MEASURES FOR IMPLEMENTATION+.......................................................................................................... 47
12.8 PRIVATE SECTOR MOBILIZATION ........................................................................................................................ 48
12.9. SOCIAL MOBILIZATION ............................................................................................................................. 49
12.10. SCIENCE AND RESEARCH .............................................................................................................................. 49
13. INITIATING KENYA CIRCULAR ECONOMY: UNDERSTANDING THE CIRCULAR FLOW
................................................................................................................................................................ 50
13.1. UNDERSTAND CIRCULAR FLOWS ....................................................................................................................... 50
13.2. REGENERATIVE THINKING FOR KENYA CONDITIONS. ....................................................................................... 51
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TRANSITION TO CIRCULAR ECONOMY IN KENYA APPLYING ELLEN MACATHUR FOUNDATIONS TOOLKIT, WITH SPECIAL
REFERENCE TO ITS GREEN GROWTH STRATEGY & DENMARK CIRCULARITY.
1. INTRODUCTION
Transition to Circular Economy (CE) trajectory by Kenya can be better achieved if the sister system;
Green Growth (GG), is well understood, embraced, familiarized, and its tenets are incorporated into
the CE, because the former seems to be conjoined at the hip with the latter. GESIP was started in 2017
and any progress that has been made so far is complimentary to CE itself.
GESIP aside, Kenya has done so well to address waste problems motivated by profit, and even, yes,
even the state or county government, are ups in arms in setting up circularity systems in decoupling
from the linear economy, if the ongoing businesses in waste recycling is anything to go by.
First it was meritorious EcoPost company that coverts plastic waste into fencing posts and other
products, then the hotel and caterers sector, (Kenya Association of Hotelkeepers & Caterers
[KAHC], Ecotourism Kenya, that took the initiative to ban plastics from hospitality industry and opt
for environment- friendly glass containers. Finally the Nakuru Sewage & Sanitation Company’s
briquette manufacturing from sewerage, is anything to go by. The Ministry of Environment, in 2017,
banned single use of plastic, where individual hotels like Serena Hotels, that consume about 230,000
plastics yearly opted to entirely eliminate them from their system.
Development of actionable and user-friendly toolkit for Kenyan policy makers, that embraces Green
Growth, and experiences from developed, and developing world is, therefore, a priority. This will help
bring acceleration towards achievement of the objective as per scope of the undertaking, which has
been found feasible and attainable with herein mentioned infrastructural propositions.
Best reference has been made to countries that have or are adopting to Circular Economy, to make the
best out of their decoupling experiences from linear economy.
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First is Denmark Pilot that is a principal model herein, and best example of application of MacArthur
Foundation’s e-concept and guidelines for Circular Economy, which Kenya is also adopting. This is
followed by United State’s Plant Chicago Ltd, a detailed and marvelous approach to waste problem
from food. Brazilian town of Belo Horizonte handling is ingenious and it represents the Third World.
Finally comes the Germany, with an inspiring toolkit report - “PATHWAYS TOWARDS GERMAN
CIRCULAR ECONOMY”. This is country with strong economy, that demonstrates, with resilience,
how stakeholders, government can be amassed, and assembled not only to speak the same language
about waste management recycling, but also draw and enact relevant laws to bring every sector into
Circular Economy. Other theory revisited, is William Mc Donough’”Cradle to Cradle” which covers
not only Circular Economy, but Material Health, in biological and technical metabolism, Renewable
Energy, which is Clean Energy and Restorative Carbon Balances,Water Stewardship for Clean Water
in Production and use Cycles, and Social Fairness.
In Kenya, the structural setting has been worked up, and milestones put in place towards successful
decoupling of the economy, from that of consumption system, to a green growth and ultimately
Circular Economy.
Reported
CONSTRUCTION
In Kenya, NCA notes that institutions (public and private) affiliated to the construction industry and
requiring further engagement regarding CE-related research and technical cooperation include:
National Construction Authority-Construction Research and Business Development Department
Kenya Industrial Research and Development Institute (KIRDI)
Kenya Building Research Centre
University of Nairobi
Nairobi Institute of Technology
Kenya Green Building Society
Jomo Kenyatta University of Agriculture and Technology
To date there is a significant amount of waste generated from the construction, refurbishment and
demolition of buildings. In recent years, a couple of buildings have been demolished for various
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reasons such as new developments being constructed on road reserves, riparian land (Avey, 2018;
NEMA, n.d.). Incentives towards a more circular based business approach towards the reuse and
recycling of materials from construction and demolition waste have unfortunately not visibly been put
in place, possibly because such an approach is not (yet) considered financially viable in most building
projects.
Fortunately, some construction-related circular economy products and related services are already
emerging on the free market. One of such products is the Interlocking Stabilized Soil Block (ISSB)
where Kenya’s small-scale builders have found ways to work both crushed glass, shredded plastic
waste as well as agricultural residues into bricks that are otherwise made mostly from soil and
therefore provide an attractive alternative to conventional building materials (Rhono et al., 2015).
These building blocks have the advantage that they are cheaper than many conventional construction
materials and simultaneously create local employment for companies involved in the processing of
waste materials and manufacturing of the ISSBs. s. KGBS is the leading Green Building movement in
the Kenyan market that ensures buildings are designed and built sustainably. KGBS comprises of a
dedicated of professionals, keen to work in collaboration with local and EU based industry experts,
leaders, government departments to develop modern day building best practices crafted to suit the
Kenyan dynamic property industry.
Kenya’s Building Research Centre has been empowered to coordinate the national government in
shaping the implementation of its green building agenda. As such, the centre is active in ‘the
development of green building policy, regulations and guidelines, mainstreaming green building
principles in building design and construction and it is conducting research in the area of ecologically
sustainable and climate resilient construction materials’ (UNDP, 2014).
Packaging General
Value chain stakeholders discussing any aspect of optimizing “packaging” need to understand that
merely trying to improve on new (apparently more environmental benign) designs and materials will
not really address the real impact of rapid resource depletion linked to manufacturing packaging
(WEF, 2016) and the pollution of the resulting “packaging waste” when packaging has reached its
useful end of life. Instead, a real “innovation approach” asks to apply one’s mind rather on how to
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optimize and expand possibilities linked to new “product delivery solutions” along the entire value
chain. If the current strong growth of plastics usage continues as expected, the plastics sector will
account for 20% of total oil consumption and 15% of the global annual carbon budget by 2050 (ibid.).
Plastic Recycling - Unilever.
In Kenya, the use as well as the restriction and even ban of certain plastics has opened up both
potential opportunities as well as challenges in the way business is conducted. Cutting out unnecessary
packaging, especially plastics (and avoiding plastic bags altogether) is a priority for businesses in
Kenya to stay both competitive as well as legally compliant but in really it is not always easy to
achieve e.g., for street food vendors due to the lack of viable and financially feasible packaging
material alternatives.
PET and plastic recycling initiatives have already created numerous job opportunities for marginalized
groups, including young people and women. In Nairobi County, Kenya, Unilever’s Zero Waste project
created 70 green jobs for young Kenyans and opportunities for 1,700 collectors.79 The establishment
of these end-to-end recycling facilities has also been a promoter of industrialization through
technology and skills transfer. Previously, PET bottles were sent to other countries for recycling and
then shipped back.
Formalizing the process will also help alleviate some of the oppression faced by women waste pickers
within the plastic waste sector. Despite the changes in gender composition, it is clear that the forms of
inequalities women face affect their earning.
These include:
– Women waste pickers may not be allowed access to high-value recyclables and are often paid
less for the same recyclables. They also face greater health risks as a result of handling waste
and/or working in unhygienic environments.
– Women also do not find opportunities to occupy positions of authority within their workgroups
or, when they do occupy those positions, they may not be as respected as their male
counterparts81
Collectivization models have been successful in addressing some of these challenges for women waste
pickers.
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BARRIERS FOR PLASTIC RECYCLING
A few obstacles have made the management and recycling of plastics challenging the quality and
accessibility of used plastic remain far lower than that of virgin plastic, inhibiting investment and scale
of recycling plants.
Sufficient consumer focus and incentives to support recycling efforts are lacking. Consumer incentives
to use and support sustainable packaging are not yet strong enough to support companies –either
producing or importing such materials – in rolling out innovation at scale.
Besides PET, other plastic products have poor recyclability. There are thousands of different plastic
products that are categorized under seven resin codes. For recycling, these plastics must be sorted
differently given the variations in characteristics even among the same resin group (mainly melting
points). This dynamic affects the recyclability potential of other plastics requiring investments in
infrastructure to allow for cost effective collection and sorting of these plastics.70Working to alleviate
plastic packaging pollution through the following approaches can help create new economic
opportunities while removing threats from the aforementioned sectors:
SOLUTION: AFRICAN PLASTICS RECYCLING ALLIANCE 1. Increase recycling and innovation in PET collection methods as a way of creating loops
2. Incentivize investments in PET recycling facilities through regional harmonization of
legislation and the introduction of tax incentives
3. Explore longer-term opportunities in design innovation and reuse of other types of plastic
packaging Increase recycling and innovation in PET collection methods as a way of
creating loops.
To increase the quality and accessibility of used plastic, collection needs to be scaled up and the cost
streamlined. Many initiatives are launched each year, focused on areas such as improving collection
schemes and installing new sorting and reprocessing technologies. A notable initiative is the African
Plastics Recycling Alliance launched in early 2019 by leading consumer goods companies to
promote innovation and collaborate on technical solutions and to facilitate and launch local initiatives
to improve plastics collection and recycling. The initiative includes Coca-Cola, Nestlé, Diageo and
Unilever, the biggest players in terms of the amount of plastic packaging produced.
Apart from the common bottle collection from streets and dump sites, other options include collection
through a deposit system similar to that of glass bottles in some countries.
.......
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As of March 15, 2017, the Kenyan government approved a law which banned the use, manufacturing
and import of single use plastic carrier bags in the country. Kenya became the second African country
to outlaw single-use plastic carrier bags, following Rwanda, which outlawed them in 2008 with drastic
fines. The national plastic bag ban has accelerated Kenya’s conversation on political and civil level
around both environmentally safe and Circular Economy compliant designs for plastic packaging
where possible (to be used as a technical nutrient) as well as the introduction of sustainable alternatives
to plastic, which need to be equally affordable and re-usable. Beyond the plastic bag ban and as an
even more pro-active pollution prevention measure for particularly vulnerable areas Kenya recently
introduced the ban on the use of single-use plastics in parks and protected nature areas (UNEP, 2020).
However, very recent media reports suggest that this plastic ban as a pro-active stance to fight plastic
waste pollution “at source” is now under siege (Guardian, 2020). Evidence has surfaced that major oil
companies including the American Chemistry Council have been secretly lobbying the US to
pressurize Kenya on their behalf to drop such legislation. The status quo in Kenya is however that
apart from very limited plastic types and related products such as PET bottles, and PE containers with
least some intrinsic economic value, most other types of plastic waste already pile up in Kenya’s
rubbish dumps and find their way into the countries oceans and rivers- some of them creating very
hazardous emission when burnt (e.g. PVC).
Following a mass balance approach (defining the consumption as the difference between the combined
import and local production of plastics minus exports) Kenya utilizes a total of 517,000 tonnes of
plastics alone for packaging per year and produces 1.3 kton of waste daily of which only 10% of this
waste is collected (Eunomia, 2018).
Case Study: Design Innovation
In February 2020 Unilever launched its first plastic packaging (for its “Sunlight” product) made
from 100% recycled flexible materials in Nairobi, Kenya. They will be marketed in Kenya and
the rest of the East African sub-region. This initiative is part of the wider “U-Turn[3] Waste
Management project” run by this corporation since 2018 (Unilever, 2020).
Through Sustainable Inclusive Business, a project funded by the Government of the Netherlands,
KEPSA is also supporting the Kenya Association of Manufacturers (KAM) to set up a business model
for Extended producer responsibility for other streams of plastics apart from PET. Many enterprises
start to get involved in plastic waste recycling in order to generate jobs. (See herein EcoPost).
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MORE STAKEHOLDERS EMERGE
During the initial phase in assessing the need to establish the Producer Responsibility Organisation, 70
companies indicated their interest to become members. This is positive feedback indicating the level of
interest to be part of the EPR scheme. Nonetheless, with the transition from a voluntary a mandatory
requirement by the government as well as the need to ensure sustainability the organization would
require support on two levels, namely institutional strengthening and capacity development of the staff
(SIB, 2020).
In addition to all of the above initiatives the Kenya Plastics Pact is currently developed and seemingly
following the strategic trajectory of the first African Plastic Pact in South Africa. It is hoped that
such a Pact can achieve the objective of environmental protection, while not needing full bans of entire
economic value chains e.g., as around the plastic bag. The future Kenya Plastics Pact needs to deliver
on the key objectives of setting up collection and take-back schemes preventing plastics to end up as
waste and subsequently pollute the environment through finding both design and use optimization
solutions for plastic to be circulated in tightly controlled closed-loop systems.
EXAMPLE OF WASTE RECYCLING. KITALE
Waste collection and subsequent sorting and recovery can be accelerated through the engagement of
youth groups and community-based organizations affiliated to waste management. The opportunities
and challenges among groups and community-based organizations in the waste management sector are
common but slightly differentiated. An illustration of such a waste management initiative from the
Trans Nzoia county is given in the case study table below. This case study is merely an illustration of
how an inclusive community waste management initiative can tackle environmental and urban waste
challenges from a socio-economic perspective. Even though rooting business models in circular
economy principles is a promising way forward, it will be important not to entirely disrupt livelihoods
of people who already earn a living from current waste streams unless proper alternatives are provided.
These organized waste support activities not only benefit waste pickers as a group; they also generate
significant economic benefits for the society as a whole, through lowering the costs of recycling for
counties, contributing to national industrial competitiveness and by benefitting the environment
(Medina, 2008). Besides the social good, they keep the youth out of crime, drugs and other societal
burdens.
Challenges, Opportunities and Impacts.
Impact 3 - FOREST CONSERVATION Sustainable forest management has an opportunity to create green jobs in Africa.
G
share of the world’s forest standing at 17%, forest management could generate about 3 million jobs
across the continent.101These opportunities will not only improve Africa’s built environment but also
enhance livelihoods. CE presents Africa with opportunities to achieve sustainable construction through
efficient resource usage and reduce emissions while building affordable homes.
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IMPACT 5: SECONDHAND CLOTHING
The impact of fast fashion has led to a large influx of second-hand clothing (SHC) in Africa. As a
result, an increasing amount of unsold SHC ends up in landfills and water bodies in Africa because
most countries have no formal collection and recycling facilities. However, global consumers are
becoming more environmentally conscious and increasing pressure on the industry to become more
circular. New business models such as cloth repair and upgrading services of garments, leasing
services, the resale section for pre-owned brand garments within stores, and peer-to-peer exchange are
the emerging trends in the industry to mitigate the sector’s impact. Fortunately, these trends are
already developing in the continent through local designers and tailors. Hence, scaling the momentum
on the ground puts Africa at the forefront of the emerging circular fashion industry.
Making the cotton-growing industry more sustainable and less resource-intensive will enable
cotton farmers to participate in the growing circular fashion industry. Developing cotton processing
and textile manufacturing could increase the pressure on resources and emissions if not established
sustainably. Currently, the industry consumes 93 billion cubic metres of water annually – enough to
meet 5 million people’s consumption needs.127 Second-hand clothing (SHC) markets are raising
concerns about “dignity” and local industry competitiveness in Africa. SHC markets are thriving in
Africa; however, some African governments have discussed banning or increasing tariffs for SHC
because the market competes with local industries. Additionally, some governments have claimed that
SHC are undignified. Joseph Rwagatare, a columnist for the New Times, a Rwandan newspaper,
wrote: “No one goes around proudly showing off someone else’s discards.”128. This could affect the
clothes recycling market and force exporter countries of SHC, mostly the US and European countries,
to find an alternative to recycling discarded clothes. The African textile industry has an opportunity
to pursue a three-pronged strategy focused on circularity:
1. Develop recycling industries that convert fashion and textiles waste into garments for
commercial export markets
2. Spearhead the transformation of conventional textile industries to green industries that use
safe and renewable inputs for textile manufacturing
3. Recycle textile cotton waste and cloths into yarns that can be upscaled into cloth to reduce
the use of virgin resources.
Develop recycling industries that convert fashion and textile waste into garments for commercial
export markets. In the initial stages, countries could employ local MSMEs that are already recycling
and upcycling SHC to grow the industry. For example, Suave in Kenya up cycles SHC into backpacks,
purses, laptop bags, etc. However, these businesses are small, fragmented and informal. Hence, in the
long term, Africa could industrialize these activities by investing in structured collection and sorting
centres, recycling facilities and sufficient value addition on SHC, thereby creating jobs, increasing
global recycling efforts and transforming the economy in the continent. Spearhead the transformation
of conventional textile industries to green industries, with the right enabling environment. Although
the industry is not operating at full capacity, current government efforts across the continent will
revitalize the textile and apparel industry.
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Challenge & Opportunities
Making the cotton-growing industry more sustainable and less resource-intensive will enable
cotton farmers to participate in the growing circular fashion industry. SHC markets are thriving in
Africa; however, some African governments have discussed banning or increasing tariffs for SHC
because the market competes with local industries. Additionally, some governments have claimed that
SHC are undignified. Joseph Rwagatare, a columnist for the New Times, a Rwandan newspaper,
wrote: “No one goes around proudly showing off someone else’s discards.”
This could affect the clothes recycling market and force exporter countries of SHC, mostly the US
and European countries, to find an alternative to recycling discarded clothes.
The African textile industry has an opportunity to pursue a three-pronged strategy focused
on circularity:
1. Develop recycling industries that convert fashion and textiles waste into garments for
commercial export markets
2. Spearhead the transformation of conventional textile industries to green industries that
use safe and renewable inputs for textile manufacturing
3. Recycle textile cotton waste and cloths into yarns that can be upscaled into cloth to reduce
the use of virgin resources Develop recycling industries that convert fashion and textile waste
into garments for commercial export markets.
While there is a lot of pushback in using SHC for the local market, there is also the potential to create
recycling industries that add value to SHC and re-export back to Western markets to meet the growing
consumer demand for circular clothing. Currently, less than 1% of the material used to produce
clothing is recycled, of which approximately 95% could be recycled. Africa has an opportunity to
create a textile recycling industry that upcycles, repurposes and converts SHC into added-value
garments or products. In the initial stages, countries could employ local MSMEs that are already
recycling and upcycling SHC to grow the industry. For example, Suave in Kenya up cycles SHC into
backpacks, purses, laptop bags, etc. However, these businesses are small, fragmented and informal.
Hence, in the long term, Africa could industrialize these activities by investing in structured collection
and sorting centres, recycling facilities and sufficient value addition on SHC, thereby creating jobs,
increasing global recycling efforts and transforming the economy in the continent. Spearhead the
transformation of conventional textile industries to green industries with the right enabling
environment.
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INTRODUCTION
Circular economy trends in Kenya
Within Africa, Kenya can be seen as one of the frontrunners in furthering a transition to circular
economy (CE). At the same time, the country still has important steps to make to mainstream it further
in its broader economic policy framework. In Kenya, CE-related developments are mostly driven by
the national government, which has been very active during the last five years in introducing policies
to address waste-related problems and lately it is starting to develop a CE policy approach that goes
beyond waste.
.......
Policy framework supporting circular economy activities CE models and concepts are relatively
novel in Kenya, although many new CE-relevant policies have been introduced in the last few years.
Key policy and regulations include:
The ban on single-use plastic bags (2015) made Kenya the second African country to completely
ban the use of single-use plastic carrier bags. The effectiveness and the implementation of the ban
have been controversial, as an adequate plan for alternative for the plastic bags was lacking. Next to
that, enforcement is inadequate to completely stop illegal flows of single-use plastic carrier bags
entering the country from abroad.
The ban on the use of single-use plastics in parks and nature areas (2020) is the second step in
the fight against single-use plastics. The tourism sector has been the primary driver behind this ban,
as government officials saw the growing plastic pollution in nature areas as a risk for negative impacts
on tourism in those areas.
The Sustainable Waste Management Bill (2020), which is currently under review by the
parliament, reforms the waste management sector but does so through the lens of CE principles.
The bill also includes provisions for the development of a new Extended Producer Responsibility
(EPR) policy. In the current design of the EPR policy, private sector associations will be involved in
the development, implementation and enforcement of the new policy as the Ministry of Environment
lacks the required enforcement capacity.
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Most of these policies have been primarily driven by the Ministry of Environment and Forestry, which
is one of the weaknesses of Kenya’s CE policy up to now. Circular economy is an inherently
horizontal and cross-cutting concept that touches upon many aspects of the economy and society.
Therefore, for CE policy to be successful it is important that a holistic CE policy is developed, that has
an integrated approach across economic sectors and that is supported by all relevant national ministries
and appropriate intergovernmental structures. Setting up a national circular economy action plan could
be a valuable step to give direction to CE development in Kenya.
1. KENYA‘S GREEN GROWTH STRATEGY POSITIVE EFFECT ON TRANSITION
TO CIRCULAR ECONOMY.
1.1 CIRCULAR ECONOMY VERSUS LINEAR ECONOMY Circular Economy (CE), as a collaborative economic practice sustained by the local circulation of
resources, including energy, materials, nutrients, knowledge, and money, is defined as an economy
that is restorative and regenerative by design and aims to keep products, components and material at
their highest utility and value at all times distinguishing between technical and biological cycles. This
is opposed to Linear Economy which....
1. 2. KENYA PURSUING ELLEN MAC ARTHUR ‘S TOOLKIT GUIDELINES
Continued long-term value creation requires a new ECONOMIC MODEL less dependent on cheap
easily accessible materials and energy that can restore and regenerate natural capital. Kenya is in the
course of developing a toolkit following the footsteps of Ellen MacArthur Foundation’s guidelines
as adopted by many countries including Denmark and Germany.
1.3. GESIP PLAN
It will be incomplete for one to talk about Circular Economy without first visiting Kenyas’s Green
Growth Strategy & Implementation Plan (GESIP), an ambitious eighteen-year program to achieve
Green Growth (GG) economy in Kenya by 2030.
GESIP is geared towards enabling Kenya to attain a higher economic growth which is firmly embedded
in the principle of sustainable development. Before that grand plan, there were other two Medium-Term
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Plans namely, (MPT I 6y6y6y6662008-2012, and MTP II (2013-2017). It is on a successful
achievement of this two that the new strategy i.e GESIP builds on.
1.4. GESIP FORMULATION & EXECUTION Formulation of GESIP was done by Ministry of Environment and Natural
Resources and other government agencies like National Environmental
Management Authority (NEMA).
1.4.1 Macroeconomy Framework The GESIP macroeconomy framework identified enabling conditions to achieve rapid transition and accelerate the process of greening the economy by addressing the vulnerability to shocks through the following actions:-
o Maintaining macroeconomic stability for GG
o Human development and capacity building.
o Prioritization of GG implementation in the county government plans.
o Governance and sustainable structural transformation.
o Sustainable financing.
o Reduction in cost of doing business.
o Establishing framework for extracting industries.
o Sustainable trade regime vis a vis with relevant market opportunities associated
with transformation to GG and finally.
o Creating green jobs.
1.4.2. POLICY HIGH LIGHTS
The proposed policy highlights Kenya’s initiative: -
• Contributes towards achieving sustainable development.
• It gives GESIP process and guiding principles to achieve the objectives.
• It gives an enabling environment for successful transition.
• GESIP thematic areas and strategic objectives are discussed. Implementation plan and matrix
give specific actions and key performance indicators.
1.5. COLLABORATORS IN GESIP PROGRAM
1.5.1. Ministry of Environment and National Resources were
The principal actors in GESIP plan. There were also diverse stakeholders, non-state
actors in participative and consultative basis that was enriched by a rigorous technical
review process. Such included: UNEP, AfDB, DANIDA, WWF and Deutsche
Gesselschaft fur Zusammenarbeit (GIZ).
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The intensive consultations saw GESIP stakeholders’ engagements with technical
thematic working groups, validation workshops, printing and documents launch.
1.5.2. Technical Support was given by:
1.5.2.1. UNEP through Kenya Institute for Public Policy Research (KIPPR).
1.5.2.1. AfDB through the Canadian International Institute for Sustainable
Development. (IISD).
1.6. EARLY PROJECTS WITH TRANSFORMATIVE POWER INITIATED.
GESIP is the anchor of national and local sustainable socio economic and
environmental initiative both in public and private sector. Its transformative power is
demonstrated in initiating some projects e.g.
• SWITCH Africa Green Project.
• Operationalizing Green Economy Transition at sub-national level in Africa.
• Denmark – Kenya Green Growth and Employment Program.
• NETFUND Green incubation Programme
• Green School Program and
• Sustainable Financing initiative under Kenya Bankers’ Association.
The Kenya country, having gone through the process of initiating the 2018-2030
GESIP program, and having gone through the transformative process towards Green
economy, it has set up itself on transition to sustainable path for Circular Economy.
1.7 THEMATIC AREAS OF THE PROGRAM
The setting up of the following thematic areas, have helped green growth namely: -
• Sustainable infrastructure, encompassing designing, building and operating the
energy infrastructure elements.
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• Building resilience: Green economy is expected to strength the resilience of
economic social and environment systems to the adverse effects of external
shocks.
• Sustainable natural resource management: Transition to GE entails addressing
diverse of natural resources of change and supporting areas technologies and
research. It also pursues inclusive policy to involve community to participate in
preservation of environment.
• Resource efficiency: This is all resources to include, natural resources, physical
resources and ecosystem. more output realized - with less natural resources
while Overall economic value will be increased through TFP (Total Factor
Productivity) or GDP to domestic material consumption ratio.
• Green Growth, to be education that needs reorientation to all, to enlighten
population and through Civic Education.
• Social Inclusion and sustainable development.
1.8. GUIDING PRINCIPLES 1.8.1. Operating Guidelines These can be achieved through the Guiding Principles
through:
- Sustainable consumption and production.
- Equity and social inclusion.
- Resource efficiency.
- Polluter pays principles.
- Precautionary principle, (human health and environ); and
- Good governance.
1.8.2. Green Economy Summit Include: Cabinet Secretaries for:
- Devolution and planning; National Treasury; Environment Water; Energy and
Petroleum; Transport; Agriculture Industrialization.
Others: -
- Council of Governors (responsible for environment)
- Civil Society Orgs(members) and (US$ 24 Billion)
- Kenya Private Sector Alliance.
1.9. RESOURCE MOBILIZATION.
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1.9.1 COST AND FUNDING
Costs and financing for implementation plan for GESIP have been considered at Ksh.
2.4 trillion annually.
Budgeting requirements were presented for transition to GE between 2012 to 2030 to
generate higher income.
Other ways to seek funds include - establishing green funds and funding emanating
from banks etc. It is also possible to access to Climate Change Funding.
1.9.2. Monitoring and Evaluation and Knowledge Management
Effective management is to ensure a LOW CARBON EFFICIENCY and inclusive
and social transformative. This plan is to generate, manage and share information
distribution network to build GESIP portal for public information and actions.
A result-based M&E System linked to NIMES would ensure that tracking of progress
takes place.
Key performance indicators already identified and listed would be used in progress.
Implementors to develop a socio-economic and environment indicator to apply
according to their annual work plans.
Indicators to be combination of traditional sustainable and environment to include:
poverty, employment and emissions as per unit of GDP representing a decoupling of
economic growth, as well as more complex indicators such as Green House Gas
(GHG) emissions.
1.9.3 Key Management Skills & Enabling Environment.
Key options considered include:
• Online knowledge platform.
• Public awareness campaign.
• Access to and distribution of information.
• Engagement fora by National & County Governments.
• Targeted policy dialogue debates.
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1.10 CIRCULAR ECONOMY IN KENYA: THREE COURAGEOUS PIONEERS.
1.10.1 ECOPOST: PLASTIC WASTE RECYCLING BY A YOUNG WOMAN.
There is so much about Circular Economy that has been quietly going on especially in
plastic waste recycling. EcoPost is a brand of a Kenyan citizen who went into full
manufacturing of recycled products from waste plastics.
Around 2009, a young girl by the name of Lorna Rutto, quit her job in the bank to pursue
a hobby-that turned manufacturing business.
The story is told (Daily Nation of September 20, 2014), that Ms Rutto established a small
factory to turn waste plastic into landscaping products. In March 2010, she cofounded
EcoPost Ltd to manufacture fencing posts and for construction as support beams, cow
shades and garages. Later the poles were utilized in national parks and tourist resort.
After many errors, the budding entrepreneur, established her factory in Kariobangi Light
industry in Nairobi. Ms Rutto, who holds an Accounting degree from Nazarene
University, could not imagine that her venturing into plastic waste recycling would turn
her into a pioneer in this new sector of business, to help stop cutting trees for posts.
By 2014, Lorna Ruttos factory was able to turn 769.2 kilograms of plastic waste into
fencing posts on daily basis, or 20 tonnes every month or churning out 100 posts every
day, “which is equivalent to saving ten mature trees everyday”. This is a modest example
of circular environmental conservation at work, and practicing Circular Economy at best,
from humble beginning and from the most unexpected place, whose story is worthy
telling and emulating. The article of the Daily Nation, in Spark News section on Impact
Journalism by David Herbling, concludes that the posts made from waste, are now used
to build house and hotels.
In order to arrive at a toolkit befitting Kenya conditions, Circular Economy system of
Denmark, Germany, Brazil and US (Plant Chicago), have been studied and analyzed, in
the following page, to create the post appropriate and actionable system, to help the
country to decouple its present linear wasteful operations resource consumption-based
economy, to a sustainable one.
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1.10.2 BRIQUETTE MANUFACTURING FROM SEWERAGE: KENYAN PRIVATE-
PUBLIC PARTNERSHIP CIRCULAR ECONOMY INITIATIVE TO CONSERVE TREES.
An ambitious project by Nakuru Sewerage and Sanitation Company (Nawassco) and
Dutch Water Company -Vitens Evidens not only generates incomes and creates
employment but goes a long way in creating sanitation solutions while conserving
trees via offering alternative forms of fuel. The company Nawasscoal, a subsidiary
company engaged in biomass fuel production is “in a circular economy where human
poop is turned into briquettes that is used in place of charcoal, that serve more than 50,000
families in Nakuru. A family can buy 2 kg briquettes of makaa.dot.com, which has
already been certified by Kenya Bureau of Standards, as they call it for only Ksh 30/-,
which is cheaper than charcoal and burns longer, is odourless, and doesn't produce smoke.
Utilizing the waste while conserving the environment, according to Reiniide Epinga, a
sanitation advisor with SNV Netherlands Development organization which is a partner
to the briquette project says, a ton of briquettes saves 80 trees and thus saving forests.
This translates into 1,200 trees every month.
The process entail sludge disposal into the company’s processing plant. The content is
then emptied into drying beds, the. It is emptied into drying beds inside green house where
it left to dry for three weeks. After that the dried junks are heated in dry kiln at high
temperatures to burn off any harmful gases, while eliminating pathogens. This stage
also make the faeces odourless.
Initially the company received Sh.400 mill grant from European Union and which
funded expanded expansion of the project into a business that is currently a model in
demonstrating commercially viable sanitation value chain.
1.10.3. KENYA HOTELS & CATERERS VOLUNTARY ABANDONMENT OF PLASTIC
CONTAINERS FOR GLASS
Another interesting story in Kenya, is volunteer en masse abandonment of use of plastic
bottles by hospitality industry in the country. According to the Standard June 8, 2021,
plastics that were found in plenty across tourism industry, has been darling of plastic
manufacturers, but this now seem to be changing.
Plastic bottle waters have given way to glass bottles. Hoteliers, whose move is due to
environmental consideration, say move to do so was because plastic bottles nuisance in
their elimination that end up in landfills, or simply float around even in river bodies such
as ocean, thus touching on question of survival of the industry.
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In 2019, about 17 hoteliers came together and passed a resolution that all their facilities
would stop using plastics for serving drinking water and other services. This will remove
millions of plastics that would end up in landfills, that would have ended up in ecosystem
Kenya Association of Hotelkeepers and Caterers (KAHC), together with Ecotourism
Kenya, say, increase of refillable glass is friendly to the environment and helps hoteliers
avoid waste.
In 2017, The Ministry of Environment banned single use plastics. The move was hailed
by global environmental bodies including UNEP. This was followed by banning of any
plastic use in protected area. This means parks, forests even beaches are all no go places
for plastic containers. This move has paid well for the environment because in 2020, only
to give one example, Serena Hotel in its annual report, said that the ban by government
and association’s resolution enabled them to eliminate 230,000 from its hotels that usually
ended up in the landfills.
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TOOLKIT 1 DENMARK
2. PARAMETERS UPON WHICH DEVELOPING A CIRCULAR ECONOMY TOOLKIT FOR DENMARK IS BASED
2.1. THE PROBLEM
How can the world achieve continued economic development while preserving the resource base that
is fuelling this economy?
2.2 SOLUTION AS PROVIDED BY ELLEN MACARTHUR FOUNDATION
The Circular Economy (CE) holds the promise of reconciling these seemingly opposing objectives and
creating long-term value. NOT Linear Economy (LE), as practiced today which is based on
‘take,make,dispose’ that relies on large quantities of cheap, easily accessible materials and energy,
and is reaching its physical limits.
2.3. THE STANDARD GUIDE FOR TOOLKIT AS PER ELLEN MacARTHUR
FOUNDATION GUIDELINES.
The Ellen McArthur Foundation (EMF) developed a Circular Design Guide (CE toolkit) intended to
support companies to apply the circular principles on their own organizations. The Toolkit has the
following components as indicated in the table with a summary of the objectives of each phase;
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Toolkit Phase Methods Summarized Objectives
Understand
Understand circular flows O1. Introduction of key concepts of CE to people
involved in the initiative Regenerative thinking
Service flip O2. Reflection on how company can get more
circularity in its valuiie proposals Insides out
Inspiration:digital system
Learn from nature
Define
Define your challenge O3. Reflection about company challenges and
opportunities to get the circular economy Find Circular opportunities
Building teams O4. Identification of people to be involved in
CE. Who can help or need to be engaged? Circular Buy In
Circular Business Models O5. Think about the circularity on business and
how it should affect the customers using the
brand
Create Brand Promise
Make
User- centered research O6. Identification and learning on users across
whole system
Circular Brainstorming O7. Learning how to brainstorm ideas around the
principles of circularity
Embed Feedback
Mechanisms
O8. Learning with embed feedback mechanisms
to recompile comments before release the
product or service
Smart material Choices O9. Material, business strategy and prototypes is
important to development product and services
with focus in CE
Concept Selection
Rapid Prototyping
Release
Product Journey Mapping O10. Identification of both technical and
biological cycles for the new value proposal
Imagine New Partnerships O11. Planning and executing partnerships
Launch to learn O12. Planning the pilot launch
O13. Defining learning objectives for the pilot
launching
Continuous Learning
Loops
O14. Using all the received feedback for
analysing planned versus reality, generating an
action plan
Align your Organization O15. Using design thinking approach for
planning a new value proposal
O16. Getting employees involved in the new
value proposal definition
Create Your Narrative O17. Communication among stakeholders the
trajectory of the company towards circularity
To make this toolkit as concrete and actionable, it was tested in a pilot country, Denmark. It chiefly
focused five sectors: construction, real estate, machinery, plastics and packaging and finally hospitals.
The findings of this cannot be transposed to other countries as conditions are unique.
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2.4. INSIGHT INTO DEVELOPING AND TESTING THE DENMARK PILOT
In consultation with many other stakeholders and policymakers, six insights as shown below emerged
from developing the toolkit and testing it in the Denmark pilot.
2.4 1. A transition towards the CE can bring about the lasting benefits of a more innovative, resilient,
and productive economy.
2.4.2. In the CE, underlying opportunities of profitability exist, but there are often non-financial
barriers limiting further scale-up.
2.4.3. Analysis of various sectors in the government system can help to address varieties of
opportunities and challenges involved in transitioning towards CE.
2.4.4. Broader changes to the existing fiscal system and the measurements of economic performance
could help enable systemic transition towards the CE.
2.4.5. As the Denmark pilot has shown, involving government agencies, industry, and business
intensively throughout the process is especially important.
2.4.5.1 to identify existing opportunities and
2.4.5.2 create early alignment on common direction the country wants to travel and
2.4.5.3 finally to demonstrate the inherent benefits that businesses anticipate and build their skills and
capacities towards that.
2.4.6. Even newcomer country as Denmark in CE, there exists significant opportunities to scale the
transition towards CE status. Policy makers can play a major enabling role. In Denmark, the potential
being in Construction and Real Estate development, and Food and Beverage sectors.
2.5. OPPORTUNITIES TO GO CIRCULAR.
2.5.1. Advanced in technology create ever great opportunities to support Circular Economy businesses
models.
• Smartphone
• The “Internet of Things”
• Advanced Manufacturing & Processing technicalities.
• Decreasing Costs of Renewable Energy.
2.5.2. Consumer Acceptance of alternative businesses models has in some markets been
demonstrated.
2.5.3. Increased Capital available for businesses that delivers financial returns, but also create social
environmental values.
2.5. 4. Social –economic trends make the benefits easier to capture.
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2.6. STEPS TO BE TAKEN 2.6.1. ALIGNMENT.
Core team to have their businesses analysis skills and experts on Circular Economy including ability to
benchmark circularity metrics and facilitate first discussion with project stakeholders.
2.6.2. BUSINESSES
a. Create early alignment on common direction for the country and focus sectors.
b. Demonstrate circular economy benefits to businesses and build capabilities.
2.6.3. POLICYMAKERS
Beside core group of policy makers:
Engage: representatives from government depts. e.g., intensively finance businesses/industry
environment, food/agriculture, energy
3. THE DENMARK PILOT
3.1. BACKGROUND
Denmark has a history of circular economy, starting from 80s when it introduced deposit-refund
scheme for beverage containers, land fill taxes started in1987. Set up target in 2011 to be fully
independent from fossil fuel by 2050. Recently it created a Waste Management under Denmark
Without Waste I/II, removing from incineration to recycling in its waste management. It has even set
up a Task Force for Resource Efficiency., the National Bio-economy Panel, the Green Industrial
Symbiosis programme, and the Rethink Resources Innovation Centre. Denmark participates in
international initiatives such as Ellen MacArthur Foundation.
3.2. THE DENMARK BASE FOR CIRCULAR ECONOMY
In the Danish pilot, both the Danish Business Authority (part of Ministry of Business and Growth) and
the Danish Environmental Protection Agency (part of Ministry of Environment) provided key
computers to the core project team making it a strong mix of expertise.
Three broad stakeholders need to be engaged in the project businesses, policy makers and other society
stakeholders. For Denmark, it is businesses, govt policy makers and other society policy makers.
The pilot had a multi-stakeholder – the Danish Society Stakeholder Group, consisting of
representatives from political parties, industry, associations and unions.
The findings for Denmark resulted from an intensive analytical phase going through provided
methodology, and including consultation with more than 25 businesses, a group of senior
policymakers, and a series of international experts. With such backup, it gives a good directional view
on CE opportunities for Denmark.
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3.3. OVERVIEW ON DENMARK TODAY
Many companies in Denmark, both large corporates and SMEs including multinationals are embracing
Circular Economy. For example, to mention only three:
3.3.1. Shipping lines Maersk working with Korean shipping yards DSME and 75 parts suppliers have
produced product passports for container ships, to remain effective for the life length of the ship. The
life of the ship is a database listing the material composition of the main parts of the ship and material
used to build the ship.
3.3. 2. Brewing company, Carlsberg, is using Cradle to Cradle (C2C) design framework to develop
C2C certified packaging and has set up Carlsberg Circular Community to look into packaging reform.
3.3.3. Baby clothing company Viggs offers a circular subscription model for baby clothes, made from
organic fabrics are returned to Viggs ones they have been overgrown, they are dry cleaned and given
to other babies to optimize its use.
3.4. DENMARK PILOT PHASE ESTIMATES
3.4.1. Transition towards Circular Economy will bring lasting benefits and resilient more innovative
and productive economy.
Result for Denmark:
• GDP Economy = 0.8-1.4%
• EMPLOYMENT: 7-13,000 jobs
• CARBON FOOTPRINT: – 3.7% reduction.
• 5-50% virgin resource consumption reduction for selected materials.
These estimates are for 2035 and cover 25% of Danish economy only considered producing
sectors and hospitals.
4. DELIVERING CIRCULAR ECONOMY.
A Toolkit for Policy Makers in the Denmark story resulted from the collaboration of major and key
players: EMAF, DANISH GOVERNMENT, BUSINESS AUTHORITY & DANISH
ENVIRONMENT PROTECTION AGENCY.
4.1 THE PRINCIPAL TOOLKIT DEVELOPMENT CONTRIBUTION
The findings for Denmark resulted from an intensive analytical phase going through provided
methodology and including consultations with more than 25 businesses, a group of policy makers and
a series of international experts. With such backup, it gives good directional view on Circular
Economy opportunities for Denmark.
• DANISH
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• STAKEHOLDERS
• POLICY MAKERS
• BUSINESS
• ACADEMIA
4.2. OTHER CONTRIBUTORS.
• McKinsey Center for Business Environment (MCBE) provided Analytical Support.
• NERA Con. Consultancy provided Support for Macroeconomics & Policy Analysis for Part 2
& Part 3.
• MAYA provided funding.
4.3 GOVERNMENT REPRESENTATIVE
Denmark had representatives from six ministries involved:
• Ministry of Businesses and Growth.
• Ministry of Environment.
• Ministry of Finance.
• Ministry of Foreign Affairs.
• Ministry of Food/Agriculture and Fisheries.
• Ministry of Energy.
They were involved from start to leverage their expertise and ensure alignment with project direction.
4.4. OBSERVER GROUP (from government). • Ministry of climate Energy and Building.
• Economic experts from Danish Climate Council.
• Statistics Denmark.
• DREAM (‘macro-Economic modelling org’)
• Energy and Greenhouse gas emissions. Gas emission for GDP output were selected but industrial
structure influences outcome.
4.5. THE ROLE OF POLICY MAKERS & THIS TOOLKIT.
Some early work of World Policy Makers: - 4.5.1 Started to provide positive stimulus for the adoption of circular businesses practice (CBP) eg. Dutch Government Green Deal. 4.5.2 Some governments set task forces to remove barriers e.g. Taskforce on Resource Efficiency in Denmark.
4.5.3. Plant Chicago created in 2020 by Plant. Chicago NFP
4.6. TWO COMPLEMENTARY POLICYMAKER STRATEGIES THAT CAN ACCELERATE THE CIRCULAR ECONOMY.
4.6.1. Focus on fixing market and regulatory failure.
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4.6.2. To actively stimulate market activity by setting targets, changing public procurement policy.
4.7. NATURAL SYSTEMS DEGRADATION. • Climate Change.
• Loss of Biodiversity and Natural Capital.
• Land Degradation.
• Ocean Pollution.
4.8. REPORT AIMS TO COMPLEMENT EXISTING CIRCULAR ECONOMY POLICY LITERATURE BY:
• Providing actionable methodology rather than providing general answers: This toolkit offers
methodology for policy makers to identify policy options based on each county.
• Assessing the barriers preventing the opportunities and ultimately the analysis of the policy
options to overcome the barriers.
Providing the insights from Denmark Pilot on insights gathered through a six-mold pilot study conducted in close
collaboration with Danish policy makers and businesses.
5. THE CIRCULAR ECONOMY OPPORTUNITIES IN FIVE FOCUS SECTORS FOR DENMARK.
5. 1 OPPORTUNITIES AND THEIR POTENTIAL IMPACT.
Five focus sectors were selected for the Denmark pilot, using the Select Focus Sector approach of
focusing assessment of sector opportunities on the prioritization matrix that maps sectors on role in
national economy and circularity potential.
5.1.1. Food and beverage, a producing sector. The analysis of this sector focused on on the pork and
dairy processing industry, but also included deep dive on the consumer side.
5.1.2. Construction and Real Estate, a producing sector. Based on construction and renovation of
buildings, but also included deep dive on real estate utilization (Sharing).
5.1.3. Machinery producing sector. The analysis in this sector was based on pumps and turbines.
5.1.4. Plastics and packaging, a cross-cutting sector spanning consumer goods companies,
wholesalers, retailers and consumers.
5.1.5. Hospitals, a consuming sector. The focus on this sector focused on public procurement.
5.2. ENERGY SECTOR
As much as energy is important, it was not included in this programme because, in its future plans,
Denmark is already working towards a target to base all energy consumption including the transport
sector, on renewables by 2050.
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5. 3 TEN CIRCULAR ECONOMY OPPORTUNITIES FOR DENMARK.
Out of the five sectors, are found opportunities, namely.
5.4. FOOD & BEVERAGE
Value capture in cascading bio-refineries
Reduction of avoidable food waste.
5. 5. CONSTRUCTION & REAL ESTATE
Industrial production and 3D printing of building module.
Reuse and high value recycling of components and materials.
Sharing and multi purposing of buildings.
5. 6. MACHINERY
Remanufacturing and new business models.
5.7. PLASTIC PACKAGING
Increased recycling of plastic packaging.
Bio-based packaging where beneficial.
5.8. HOSPITALS
Performance models in procurement. Waste reduction and recycling.
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TOOLKIT 2 PLANT CHICAGO
(US)
6. THE CIRCULAR ECONOMY TOOLKIT: A MODEL FOR SMALL BUSINESSES.
6.1. BACKGROUND A Circular Economy entails gradually decoupling economic activity from the consumption of finite resources and designing waste out of the system. 6.1.1 ADAPTATION OF THE Ellen MacArthur’s CONCEPT
Chicago Plant has used IDEO and Ellen MacArthur Foundations Circular Design Guide to help designers into a Circular mindset. This has been supported by US Chamber of Commerce Foundation that has offered a variety of resources, including case studies, reports, webinars and online CE toolbox. Then there CE metrics to help measure circularity of business. They include Circulytics from Ellen Mac Arthur and UL 3600 Standard which certifies products, facilities and companies according to specific circular indicators.
According to the US Small Business Administration, small businesses make up to 99% of all
businesses operating in US. With the firms employing not less than 20 people. Small Medium
Enterprises (SMEs produce more than half of US GDP.
SMEs have characteristics necessary to make Circular Economy possible. They are entrepreneurial,
flexible, future oriented, creative, innovative, and well connected with the needs and desires of the
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community.
This version of the toolkit that has been recently developed (2020), has been chosen to represent food
industry which is man’s predominant occupation. Second, it is meant for small businesses that
operate in the formal system, and in this case, in the city of Chicago, Illinois in the USA. It is a good
model of the CE from a developed world and fitting for application for a lifestyle changing Third
World in food handling that cover: -
- Farm and Growing
- Food Service
- Packaging Goods and
- Food Recovery & Compositing.
SMEs operate in small geographical scales conducive to lower environmental impacts and the creation
of a strong local Circular Economy. With this in mind, Plant Chicago created a Local Circular
Economy toolkit for small businesses. Where Circular Economy is a collaborative economic
practice sustained by the local circulation of resources, including energy, materials, nutrients,
knowledge and money.
6.1.2. LOCAL CIRCULAR BUSINESS PRACTICES
What is local economy?
A local economy is a collaborative economic practice sustained by the local
circulation of resources, including energy, materials, knowledge and money. Candidates include: Farms, food producers, food retailer’s cafes, restaurants, food rescue
organizations, food scrap haulers and compost operations.
6.1.3. COMPULSORY CIR ULAR ECONOMY PRACTICES 6.6.1.1. Purchase Inputs that can be locally regenerated e.g., reuse, recycled, composed.
6.6.1.2. Purchase inputs that are made with local material.
6.6.1.3. Purchase goods that are produced locally.
6.6.1.4. Source renewable energy, extend the life of available resources and equipment.
6.6.1.5. Reincorporate waste into production or end product.
6.6.1.6. Contract local services to divert non-product output from landfill.
6.1.4. HIERARCHY OF ACTIONS TO ADOPT CIRCULAR ECONOMY.
6.1.4.1. Rethink and Reduce - choose products to meet the demand in the best way and if there is
any, we can use fewer or different resources in its production.
6.1.4.2 Redesign - Consider reuse, repair, and recycling options in advance of production.
6.1.4.3 Reuse - Use product multiple times.
6.1.4.4. Recycle - Process and reuse materials.
6.1.4.5. Recover - Create energy from materials. Disposal should be avoided.
6.1.4.6. Repair and Remanufacture- After initial use, maintain and repair products, or usen them
to create new products.
6.1.5. A PARADISE SHIFT EVEN FOR CORPORATES.
Many large companies around the world are already taking the Circular Economy seriously as part of long- term
strategies. According to 2019 report from financial services company ING, 62% of US firms planned to adopt a
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circular economy framework as part of their business strategy and 16% already have de so. However, Plant Chicago
complains that majority of existing case studies , conferences and membership-based Circular Economy (CE)
initiatives focus on supporting large multinational corporations as they work to become more circular and ignore
the smaller sub-sector.
(Adapted from PBL Netherlands Environmental Assessment Agency - themasites.pbl.nl/circular
economy/)
6.1.6. VERSIONS OF THE TOOLKIT
This version of the toolkit is meant for small businesses who operate in the food system.
6.1.6.1 This include farmers, food producers, food retailers, cafes, restaurants, food rescue
organizations, food scrap haulers and compost operations.
6.1.6.2. It also focuses on resources, policies, challenges, and opportunities that are specific to the
Chicagoland (Illinois) region.
6.1.6.3. It is also recommended that toolkit could be helpful to a wide variety of businesses in other
industries and locations to reach out to their local and/industry specific networks.
6.1.7. Drivers The local Circular Economy, business is driven by value of equity, transparency, diversity and
inclusion. These are drivers to:
6.1.6.4.1. Regenerate local ecosystem –
6.1.6.4.2. Address the needs and aspirations of local stakeholders.
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6.1.6.4.3. Increase local human knowledge and capacity around Circular Economy practices,
including training and retaining employees to maximize value of their businesses
7. PLANT CHICAGO: FOCUSING ON FOOD SYSTEM
For Chicago Plant approach, Ellen Mac Arthurs Foundation’s guide has been used to
provide suggestions that include, worksheets and full workshop agenda, for getting
groups into Circular Economy and design thinking mindset.
The following best practices in food industry, material inputs: -
- should be made from reused or recycled materials.
- products should be made from material that can be recycled, reused, remanufactured,
or composted locally.
- products should be grown/made that are produced through circular economy
practices.
7. 1 FOOD SPECIFIC FOCUS AREAS FOR CHICAGO PLANT 7.1. Food cafe restaurants and food retailers.
7.2. Farms.
7.3. Food manufactures or consumer packaged goods
7.4. For food recovery, waste haulers or composters.
7.2 NON-FOOD AREAS THAT CHICAGO PLANT SET GOAL ON 7.2 1. Use of framework SMART which stands for: Specific Measurable, Achievable, Relevant
and Time-bound, created by University of California.
7.2 .2. Reduction in energy and water use.
7.2.3. Source of energy - from renewable sources.
7.2.4. Economic use of equipment
7.3. SOURCING. 7.3.1 Source locally, practice reduction, source reused or recycled materials, and grown using
regenerative practices.
7.3.2 Minimize packaging by collaborating with suppliers.
7.3.3 Ingredient sourcing should be products made from local materials from locally
grown/produced ingredients, or recaptured materials.
7.4. FOOD RECOVERY
7.4.1 BACKGROUND: US ORGANIC WASTE
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2018 ReED Report Restaurant sector generate 11.4 tons of food waste annually costing more than US
25 billion. This is sent to landfills which releases methane a potent greenhouse gas.
In Circular Economy like Chicago Plant food recovery is practiced: Edible food is instead recovered
and distributed to those who need it.
Non-edible food (i.e. food scraps), is composted or used to produce biogas/ biomass energy generation
system.
7.4.2. FOOD DEPOSITORIES
The Greater Chicago Food Depository accepts donations from companies across US.; Feeding
America is a nationwide network of food pantries. Food Recovery Network NGO supports students
fighting food waste on campuses and beyond. Bill Emerson Good Samaritan Donation Acts protect
food donors from criminal and civil liability, if they are donating to non- profit organization.
7.4.3. PICK-UP SERVICES Mahoney Environmental does cooking oil pickup and also
recycling services. Many other pickup stations have been set up.
7.4.4 PACKAGING. In Chicago, retail stores are affected by city’s Check-
out Bag Tax which applies to all plastics and paper bags given to customers at the point of checkout.
7.4.5. ORDINANCE to severely limit of single use of plastic items, was introduced in 2020.
35
8. LIST OF PLANT CHICAGO PRACTICES
PC generated a lost of practices collaboratively in 2019 with the help of group advisors with
experience in business, academics, community outreach and circular economy practices.
8.1.2.1 To generate local ecosystem.
8.1.2.2. To address the needs and aspirations of local stakeholders. 8.1. 2.3. To increase local human knowledge and capacity around circular economy practices.
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TOOLKIT 3 PATHWAYS TOWARDS A
GERMAN CIRCULAR ECONOMY
GERMAN CIRCULAR ECONOMY INITIATIVE.
9. PATHWAYS TOWARDS A GERMAN CIRCULAR ECONOMY
9.1. BACKGROUND In the report PATHWAYS TOWARDS A GERMAN CIRCULAR ECONOMY and literature
review initiated by National Academy of Science that has come up with the paper CIRCULAR
ECONOMY INITIATIVE SYSTEMS and Acatech, have found out that conditions are favourable to
a circular economy amidst barriers that can be eliminated Circular Economy is increasingly perceived
as an important concept for reconciliation between ecological and economic goals.
There is competitive advantage for Germany if it uses its skills and structural strengths to show that
decoupling economic growth from resource consumption would benefit from a Circular Economy also
as a way of reconciling Environmental Goals with greater productivity innovative capability,
competitiveness and employment.
Germany has 3.4 trillion Euro GDP and 19.5 trillion euro fixed assets. It, therefore, requires sound
procedure to achieve transformation.
First, is to study and obtain insights and experiences from other EU countries using existing road
maps, strategy papers and action plans using ASPEN’s Theory of Change. A Catech and SYSTEMIQ
37
carried out qualitative interviews with major stakeholders.
9.2. BARRIERS TO THE TRANSFORMATION TO CIRCULAR ECONOMY
Barriers to the successful transformation to circularity have also been identified at all levels and are
interdependent. These include fiscal barriers, operational and technical challenges at the corporate
level. They are further expanded to include cognition; culture; knowledge; bold regulations and
standards; market; finance; technology and business operation.
The initiative which was launched in 2019 has political mandate and funding from the German Federal
Ministry of Education and Research (BMBF). It brings together a group of partners namely,
businesses, science and societal stakeholders and other policy makers.
The group performs three tasks: a). Investigate specific applications.
b). Supports their implementation.
c). While also identifying conditions favourable for Circular Economy
9.3. FUNDAMENTAL MOTIVATION FOR SYSTEMIC CHANGE:
9.3.1. Cooperation with a number of industries is required;- Policy makers must take the lead. A CE is
an issue which requires interdisciplinary handling and must spur all relevant stakeholders into action.
9.3.2. CE is a means to achieve global goals.
9.3.3. Indicators are required for making progress towards CE measurable and for setting suitable
targets.
9.3.4. Roadmap is necessary for specific measures and their effect is helpful to achieve
comprehensive implementation of CE measures in practice.
9.3.5. TARGETS: An explicit implementation strategy is conditional for achieving goals eg CO2
targets through Agenda 2030 & High-tech Strategy 2025; Progress and National Development
Strategy.
9.3.6. National priorities (necessary) entail compelling and adequate data set.
9.3.7. Engagement with Interest groups-
9.3.7.1. Private Sector
9.3.7.2. Scientific Community – universities research; In Portugal scientific institutions involved at
regional level.
9.3.7.3. Involving regional and local governments is helpful for tackling locally different challenges
and enabling quick implementation of initiatives.
9.3.7.4. Influential and charismatic individuals can play a major role and creative part for example
chairing an advisory committee
9.3.8. Engagement of Federal states advantageous e.g Rhine-Westphalia, Augsburg, etc). National
and regional efforts should here build on one another.
9.3. 9. Society represented by agents on a grand scale. Usually not easy. A German Hybrid Model;
“Gesprachstaff Ressourcen” being tried is promising.
9.4. OPTIONS FOR SHAPING GERMANY ‘S TRANSITION TO CIRCULARITY.
9.4.1. ELEMENTS OF PATHWAY FOR DECOUPLING FROM RESOURCE
38
CONSUMPTION.
The following propositions set out by the team of authors build on the lessons derived in chapter 4 and
describe elements of a pathway on which economic development in Germany could be decoupled from
resource consumption.
9.4.1.1 WHY– fundamental motivation for systemic change
- Develop a concrete shared vision for a CE as a means for achieving important societal goals
9.4.1.2 WHO- prime movers and drivers of transformation
- Establish an independent operational unit for driving forward a CE in Germany across disciplines and
policies
9.4.1.3 WHERE to – the target system
- Develop a consistent system of targets and indicators for control and tracking
- Systematically prepare specific proposed solutions to barriers and incentives for CE
9.4.1.4 - Develop a national CE roadmap based on the vision and target System
9.4.1.5. WITH WHOM – engagement of interest groups
- Establish a cross-sectoral, precompetitive space in which information is exchanged, partnerships are
established and (industry) standards are defined
9.4.1.6. HOW– measures for implementation
- Initiate specific measures for fostering business models and technologies
- Establish “circular clusters” to focus development on fields of particular relevance for the future
- Initiate an educational initiative to embed the central ideas of a CE and the systemic approach in
relevant curricula
- Position Germany in the EU and internationally as a CE Pioneer
TOOLKIT 4 BRAZIL
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10. SHORT REPORT ON BRAZIL’S CIRCULAR ECONOMY EXEMPLARY PROGRAM
10.1. CIRCULAR ECONOMY: BRAZILIAN EXPERIENCE
10.1.1 BACKGROUND AND THE INITIATIVE
BELO HORIZONTE
IN response to citizens demand for greater digital inclusion in the Belo Horizonte area particularly in
low-income communities, the City Government launched its BH Digital programme in 2005 to
expand infrastructure in under-served areas of the city and provide digital literacy to all. The Digital
Department was created in Prodabel, the private- public city information and technology provider, to
execute the tragedy which included setting up digital inclusion sites around the city. Given the
electronic and electrical equipment (EEE), waste landscape in BH and a growing demand for post-use
electronics treatment solutions, it was agreed that these sites should be equipped exclusively with
refurbished computers.
Brazil, in its plunge into Circular Economy, has singly picked on such sector, which it has done so
well - the computer reconditioning, which they call BELO HORIZONTE (BH) through
establishment centres called, The Computer Reconditioning Centres (CRC)
This, together with training in electronics, goes to a great extent into: -
10.1.1.1. waste reduction
10.1.1.2. digital inclusion
10.1.1.3. skill development
10.1.2. RELIANCE ON DONATION OF OBSOLETE IT WASTE AND OF THE POOR.
In this electronic manufacturing facility, citizens from low-income communities receive extensive
training to restore donated post-use IT equipment is to full working conditions.
10.1.3 300 DIGITAL INCLUSION SITES
This refurbished equipment goes on to support 300 ’digital inclusion sites’, where Belo Horizonte
locals have access to computers and internet and are trained in digital literacy.
After ten years it has succeeded in skill development, waste diversion and digital inclusion efforts.
Electronic sector has helped Brazil break away from relying on Linear Economy, to transform same
circularity into other sectors.
10.2. FINANCE
CRC is financed by Brazilian Federal Government. Since it started, the BH CRC has signed multiple
funding agreements with government to guarantee the initiative’s continuity. The government has
extended grant to CRC, while the city has engaged in its operations and provided land of about 900
sq m of free space.
10.3. THE ENGINE BEHIND THE BRAZILIAN CE EXPERIENCE
40
After the Belo Horizonte citizens demanded from their government to assist in digital inclusion, the
government positively responded, and CRC was formed and, on its way, to become a success story for
the Third World country.
Besides a team to oversee the management of manufacturing activities, a strong team of public
bodies and NGOs were ready to donate funds and in kind to build up the capacity.
SITES FOR CRC
For digital inclusion to effectively function, sites were established throughout the region, and centres
set up in private and public buildings, where it most matters - in low-income areas to deliver digital
literacy to democratize information and facilitate online communications for online flurry of activities
that would include job applications and even paying bills.
10.4 CIRCULAR ECONOMY ACHIEVEMENT IN WASTE IT
10.4.1 TELL-TALE STATISTICS
In one decade, BH CRC made great strides as follows: -
-7,000 post-use products were restored from all sites. This included CPUs, monitors and printers.
-15,000kg of post-use electronics have been diverted from landfill every year in average including
165,000kg by 2018.
-10,400 citizens have been trained technology, environment, and computer manufacturing.
-The city of Belo Horizonte was recognized as the most digitally advanced city in Brazil and the
initiative became principal occupation in manufacturing, skill training and digital inclusion.
- The tele centres to train at least 2,000 people in IT every year.
10.4.2. HOW IT IS DONE:
10.4.2.1 EQUIPMENT DONATION PROCESS
This comes under The Digital Inclusion Department in the Ministry of Science, technology
Innovation and Communication (MCTIC). First, any member from private or public institution who
wish to donate, submits detailed list of equipment being donated and their state to the Ministry of
Planning, who seek to know from the Department which Centres are in most need of this, then enter in
the process of their collection.
10.4.2.2. ASSESSMENT WHETHER LEGIBLE FOR REMANUFACTURING
At CRC, the donated equipment goes through a rigorous assessment to identify those that are suitable
to go through the process of remanufacturing. While they are restored as full units for reuse, others
become suppliers of spare parts. It is normal that one third always leave CRC as complete equipment
for reuse. Or if not used, they are auctioned to boost the revenue of the centre, which is ploughed back
into the CRC system.
10.5. RESULT
10.5.1. AN IMPACTFUL EXPERIENCE
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The Brazilian experience has proved that cities’ powerful networks and unparalleled reach suggest that
they are the best placed to lead initiatives of this sort. The network of registered CRCs now includes
another two city-led operations located in Joao Pessoa Curitiba.
10.5.2. CIRCULAR VERSUS LINEAR ECONOMY.
Probadel and City of Belo Horizonte have shown need to incorporate circularity into professional
training activities, inclined to make the most of technology, products, and materials to generate values
in CE rather than wasteful linear model. BH has become a national reference, with its faceted approach
that integrates innovation, social inclusion, and environmental inclusion. Transforming this into a
national policy would scale electronics manufacturing and digital literacy in Brazil, the Latin America
top waste generator.
11. LESSONS LEARNT FROM OTHER JURISDICTIONS The following table shows examples of resource policy instruments from other European countries
and thus some of the results from a broad survey of all the interviewees. Examples which have
progressed to different levels of implementation were deliberately selected.
11.1. Negative economic incentives
Taxes
Great Britain: Plastic bag tax (5 pence per bag): demonstrable influence on consumer behaviour,
encouragement to use reusable carrier bags, 80 per cent drop in sales just in the first year after
implementation.
Kenya: Plastic bag usage ban in place.
11.2 Fees
Slovakia: Legislation for the introduction of a bottle deposit for plastics bottles set in train.
Kenya: Such legislation necessary for bottles in buses
Netherlands: Significant increase in waste fee from € 13.21 per 1000 kg in 2018 to € 32.12 per 1000
kg in 2019.
Kenya: Necessary legislation to discourage platter.
11.3. Positive economic incentives
Tax relief
Portugal: Tax reductions on car and motorcycle repairs, on research and development costs for SMEs
(general; additional reductions for eco-design R&D).
Kenya: Incentive for CE by the motor sector
France: Reduction of value-added tax on CE-related activities, at the planning stage.
Kenya: This tax relief cut across sector. Good for awareness.
11.4. Subsidies
42
Portugal: Grants for CE projects by businesses, universities, and local authorities (funding rate 85
percent on average, no repayment).
Kenya: Grant to those who practice CE incredibly positive.
11.5. Information instruments
Public information campaigns
France: "National Debate" to facilitate political participation by citizens: public dialogue between
policy makers and citizens, web portal with function for submitting criticism and suggestions. One part
of the National Debate addresses the environmental transformation of the country. This clearly
revealed that environmental issues and a CE are important to citizens.
Kenya: National Debate urgently required.
Great Britain: "Love Food Hate Waste" campaign to educate citizens about preventing food waste
and provide tips for avoiding it.
Kenya: Not necessary, not much food is wasted. Maybe post-harvest food loss prevention needed.
11.6. Business advice service
Luxembourg: Fit4Circularity programme: workshops and conferences to get CE issues on the
innovation agenda in businesses.
Kenya: All above measures viable to promote CE.
Portugal: "Vale Economia Circular" supports CE advice services for businesses.
11.8. Other
Finland: List of best practice examples from businesses and cities in the implementation of CE
measures.
Netherlands-Friesland: Large-scale survey of regional SMEs in order to develop evidence-based
policies for implementing circular business models.
11.9. Regulatory incentives
11.10. Extended producer responsibility
Luxembourg: “Ecobatterien” is a non-profit association which organises separate collection of
primary and secondary batteries for portable, industrial and vehicle applications and proper,
environmental disposal and recycling.
Kenya: Such a measure will get rid of abundant waste batteries. A non-profit needed.
11,11. Standardization
Great Britain: Standardization for the use of polymers at the planning stage.
Kenya: Parliamentary legislation needed.
11.12. Public procurement
Slovakia: Third "National Action Plan for Green Public Procurement" (2016-2020) with twelve
priority product groups already in force.
Portugal: Strategy for green public procurement with 20 product groups, for six of which
corresponding.
lists of criteria and indicators have been developed. Another six product groups are set to be
underpinned by indicators in 2019.
Kenya: There is absence of public procurement action in Kenya.
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11.13. Other
Netherlands: The “Dutch Green Deals” enable businesses to request a review of legislation which
impedes CE business models.
Kenya: Similar establishment like DGD in Kenya can be copied to make CE workable.
11.14. Education and research
Establishment of university departments and courses
Scotland: Various Scottish universities are currently developing CE Master's degree programmes.
Kenya: Introduction of Eco degrees overdue; presently none.
11.15. Integration into general education
Finland: Finnish educational reform: integration of CE issues into existing syllabuses from nursery to
university level.
Netherlands-Friesland: "Spark the Movement" – programme to support educational institutions with
structurally integrating CE teaching content.
Portugal: National strategy for environmental education – one pillar of which is a CE. Funding from
the Environmental Funding Program is available for implementing the strategy.
Kenya: Kenya educational system needs to be reviewed and integrate env. Education and CE into
learning system from nursery to university.
11.16. Earmarking of research budget
Slovakia: The national funding programme for supporting research and development (2019-2023) is
set to provide 112 million euro for research and development into materials and products based on
domestic raw materials and efficiently recovered secondary materials. One sub-item of this research
priority is "Effective processing of strategically important raw materials as a basis for the Circular
Economy". The funding programme is still going through the approval process.
Kenya: National Fund for R&D necessary to be founded to address their problem.
11.17. Other
Netherlands-Friesland: Professional development for all public sector staff to inform them about CE
issues and enable them to take CE-compliant decisions.
Kenya: Corporate fraternity and all professional need CE awareness. Government to encourage in
collaboration with private sector.
11.18. Voluntary commitments
Scotland: SWITCH – Scottish Waste Industry Training, Competence, Health & Safety Forum – aims
to assume a pioneering role in raising standards in health and safety, training and development and
technical skills and to foster Scotland's resource management industry.
Finland: "Society's Commitment to Sustainable Development" as an instrument for creating a
common system of values and arrive at shared areas of responsibility in the form of a society-wide
"competition". Businesses, training institutions, administrative bodies, parties, local authorities and
other stakeholders can enter into specific operational commitments in order to contribute to making the
common goals a reality.
Kenya: The issue about waste of food in Kenya is minimal because of poverty. Every food is utilized.
However waste management remains a big problem except that such waste is generally non-food.
Raising health & safety standards is a priority. Citizens should be trained in all this through formal and
informal systems to foster resource management at micro and macro levels.
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12. LESSONS LEARNT FROM GERMANY
GERMAN LESSONS I : ’KREISLAUF WIRTSCHAFT’ STAKEHOLDERS
12.1.1. EU narrative prominent in German programmes:
Germany played a significant role in devising the EU Circular Economy Action Plan and international processes such as the G7 Alliance for Resource Efficiency and G20 Resource Efficiency Dialogue and so helped to shape the narrative at an EU level. The content of these is therefore prominent in existing German programs, such as ProgRess II, FONA etc. The development of a uniform CE strategy could build on these successes and give them international visibility.
12.1.2. A Circular Economy as a trailblazer: It is important to bring the contribution of a CE to the fore as a trailblazer for national objectives.
12.1.3. A CE is not recycling:
The term CE presents a particular challenge in Germany because the term used, “Kreislaufwirtschaft“, is historically strongly associated with the concept of recycling or closed-loop resource management in Germany (see chapter 3). Many stakeholders are therefore choosing to use other terms in order to escape these connotations. It would therefore be helpful to establish a clear definition of a CE.
12.1.4. A CE ensures sustainable economic activity:
The narrative should be of relevance to society as a whole. It should therefore be emphasized that a CE helps to ensure future economic activity under environmentally sound conditions.
12.2. PRIME MOVERS AND DRIVERS OF TRANSFORMATION: “THEORY OF
CHANGE” In the “Theory of Change“, drivers are those stakeholders who provide the impetus and spur other interest groups into
action. They are crucial to the control and development of the change process and important decision-makers.
INSIGHT
While policy makers define the appropriate framework for the transition to a Circular Economy, the impetus can also originate from other societal stakeholders. The legislative framework has to be appropriately adapted to permit the transformation to a CE. Good example of Roadmap in Denmark. In Denmark, for example, the Confederation of Danish Industry adopted an ambitious new environmental strategy in 2015 which addressed issues of raw materials shortages and the environmental impact of industrial processes. The EU Circular Economy Action Plan was adopted that same year and, independently, the Ellen MacArthur Foundation published a study into the potential for circularity in Denmark.163 The Danish government then tasked an Advisory Board consisting of twelve Danish entrepreneurs with drawing up recommendations for fostering a CE. Industry, while not being the initiator, thus became an important stakeholder. All the Advisory Board’s recommendations were ultimately included in the Danish roadmap.
In the Netherlands, Parliament initiated the CE movement by demanding interministerial cooperation on the issue. In Friesland, the impetus for a CE was generated by a regional business movement which jointly developed a regional CE strategy with the regional government.
12.3 POLICYMAKERS & HIGH-TECH STRATEGY 2025
INSIGHT
45
If a Circular Economy is to transform society as a whole, cooperation between a number of ministries is required. The interdisciplinary nature of a CE is also apparent during development of the country strategies from the involvement of the
various stakeholders at a political level. The responsibility was often shared between the ministries of the environment and the
economy.
In Portugal, for example, there is an inter ministerial commission for climate protection measures and a CE. This is led by the Minister of the Environment who, when required to establish a consensus, can call on all other ministers to clarify strategies and responsibilities. In Slovenia, the former prime minister set up a “Commission for the Green Economy“ which enabled cooperation on CE matters during his legislative period.
German Lessons II: INTER DISCIPLINARY & HIGH TECH STRATEGY
12.3.1. Policy makers must take the lead: As in other transformation processes, leadership is the responsibility of policy makers: Interviews with national business representatives revealed that German businesses would explicitly like to have clearer conditions for a CE, for example in the form of regulations and standardization. These are vital in order to support the many good approaches, projects and business models which there already are in Germany.
12.3.2. Inter-ministerial issue:
CE is an issue which requires interdisciplinary handling and must spur all relevant stakeholders into action. There are already outstanding examples (such as the High tech-Strategy 2025) of how such inter-ministerial cooperation can drive forward important future strategies. When it comes to developing a national CE strategy, it would appear to be appropriate to involve various ministries, in a first step for example the ministries with responsibility for the environment, the economy and research. In this way, it is possible to ensure that CE questions.
12.3.3. have a high profile in major cross-sectoral issues such as the current debate around a new industrial policy.
12.3.4. Important to assume responsibility for the long term: Creating an interdisciplinary, independent
office for coordinating all relevant ministries and allocating responsibilities would appear to make sense.
12.4. THE TARGET SYSTEM: FORMULATION OF GOALS AND INDICATORS INSIGHT A Circular Economy (CE) is a means for achieving existing national targets or national contributions to global goals. The investigated country strategies describe a CE as an approach to achieving and harmonizing existing national targets which
have already been set in various policy areas, most frequently targets for recycling rates, waste volumes and CO2 emissions, while global goals are focused.
German Lessons III: TARGET SYSTEM DEVELOPED THROUGH-STRATEGY 2025 - INDICATOR
EXAMPLE 12.4.1. An explicit implementation strategy is essential for achieving targets:
German policy makers have already developed a target system through Agenda 2030, national CO2 targets, the raw material productivity target from ProgRess and the National Sustainable Development Strategy, the targets in the High-tech-Strategy 2025 etc. An explicit CE strategy would therefore be of additional benefit to Germany by supporting and driving forward integrated implementation of the existing targets.
12.4.2. The indicator set for measuring progress must be expanded:
In order to make the progress towards CE measurable, Germany would have to develop a comprehensive system of indicators going beyond the efficiency concept (see explanations about indicators,
46
12.4.3. A hierarchy of targets can avoid conflicts during implementation:
Interviews with experts revealed that developing a hierarchy of targets would be advantageous in relation to possible trade-offs (e.g. climate protection versus independence from critical material imports).
12.5 TOPIC SELECTION AND PRIORITIZATION
INSIGHTS
- Priority selection can be considered on various levels: material, sector or life cycle as well as on the level of an enabling environment. - The priority areas in the analyzed roadmaps were frequently defined on the basis of economic and political considerations. - Making a systematic selection of national priorities entails compiling an adequate data set.
German Lessons IV:
ADAPTING FUNCTIONAL SYSTEMS;APPLICATION OF INTEREST GROUPS; POTENTIAL ENERGY SAVING &TRANSBOUNDARY MATERIAL FLOWS.
12.5.1. Consideration of functional systems: Selecting the most suitable level for consideration is a challenge. Consideration on a material, sector or life cycle level limits the scope for solutions. Functional units are another option for defining system boundaries. This level of consideration is already used for compiling life cycle assessments to ISO EN 14044.
12.5.2 Political topicality increases the prospects for successful mobilization: Environmental and economic relevance to Germany should be taken into account when selecting key themes and the criteria used for this purpose.
12.5.3. Systemic modeling reveals potential savings:
An adequate data set is the only way of identifying potential savings arising from the implementation of CE levers. Already established data sets for recording material flow should accordingly be built upon in order to add further factors such as potential savings of energy and CO2 to the material flow standpoint.
12.5.4. Take account of transboundary material flows:
Particularly for an exporting country such as Germany, limiting the scope of consideration to within national borders is not helpful when modeling material flows and setting objectives.
12.6 SCIENTIFIC COMMUNITY: Since the issues around a Circular Economy (CE) have an impact on society as a whole, many social groups have a justified interest in helping to shape the development of a national CE strategy and so set the course for the future of the economy.
Engagement of Interest Groups: Impact on Society as a whole; full participation; Generate Momentum; Involve
-It is beneficial to involve existing CE activities and initiatives in the strategy process in order to generate momentum and to make effective use of all available resources.
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- Broad and early engagement of the private sector creates commitment and identification with the
process and so boosts the significance of the issue at a political level.
- Engaging the population is very complex but creates a broad understanding of the purpose of a CE
and breaks down obstacles to implementation.
-CE strategies are prepared in close collaboration with the scientific community, but without the
formalized engagement as with businesses
-Involving local and regional governments is helpful for tackling locally different challenges and for
enabling quicker implementation of initiatives.
German Lesson V: GERMAN PRACTICES
12.6.1 Early engagement of interest groups
Close engagement of businesses is essential since they will be directly affected by the implementation of transformation or will be the operational and implementing drivers.
12.6.2 Businesses as a strong driving force for transformation:
Given the significance of medium-sized businesses to the German economy, mobilizing these businesses is particularly important to a German CE strategy.
12.6.3. Engagement of Federal states advantageous:
There are already some activities in Germany at Federal state and regional level which are addressing the potential of a CE
for their state or region (Baden-Württemberg, North Rhine-Westphalia, Augsburg, etc.).
12.6.4. Society represented by agents:
In order to include the perspective of civil society in a CE strategy process, one hybrid model which might be appropriate is the
civil “GesprächsStoff Ressourcen” dialogue which the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety is already carrying out for the second time as part of a further development process of the German Resource Efficiency Programme.
12.6.5. Science can provide impetus for Germany’s pioneering role: The transition to a CE will raise important issues for both technology and the social sciences. Both the business- focused research institutes and the well-established government scientific advisory committees are already successfully helping to transfer knowledge into practice.
12.7 MEASURES FOR IMPLEMENTATION+ The measures are selected by the driver of the roadmap process. In the European country strategies investigated in this study, policy makers were usually the driver. A selection of example measures is shown in tabular form in the appendix. These are broken down on the basis of the Pol- Ress II in-depth analysis.199
12.7.1 Negative economic incentives:
For example, taxes, contributions or fees which inter alia provide an incentive for preventing waste.
12.7.2 Positive economic incentives: For example, tax relief, subsidies which inter alia provide an incentive to design higher quality products, keep materials within the loop or carry out repairs.
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12.7.3 Regulatory instruments:
For example, statutory regulations or ordinances which oblige producers and consumers to take a certain course of action. These also include an extended responsibility (EPR).
12.7.4 Information instruments:
For example, environmental labels or campaigns which inform and educate consumers.
12.7.5. Education and research:
For example, educational instruments and funding for research projects which promote an understanding of a Circular Economy (CE) (inter alia the development of national indicators).
12.8 PRIVATE SECTOR MOBILIZATION
German Lessons Vl : INSIGHTS If the many operational obstacles to the implementation of CE activities are to be overcome, business involvement is important for identifying them.
Insight 19: Moderated platforms help businesses to work on circular solutions in new combinations spanning value chains.
Establishing new rationales for optimization helps to break down current linear market structures. 12.8.1 Breaking down barriers to innovation: Like other countries, Germany also has regulations which, as a result of conflicting goals, are obstacles to circularity levers. One example is the irreconcilability of hygiene regulations with the use of secondary material for foodstuffs packaging. Germany could follow the example of the Dutch “Green Deals“ to break down these barriers and the European Commission’s “Innovation Deals“ to identify and break down barriers to innovation.
12.8.2. Partnerships spanning value chains are important: In Germany too, connectedness across value chains in industry is essential to accelerating transformation. Because optimization is generally carried out from a corporate Consortia and partnerships spanning value chains and voluntary commitments by entire are helpful in expanding the perspective to encompass an entire value network.
12.8.3. New evaluation methods are necessary: As a result, there is a funding gap for CE business models. Since other roadmaps also provide little guidance in this respect, it appears to be helpful to take a closer look at the financial obstacles and suitable measures for overcoming them.
12.8.4. Public procurement as a significant lever:
Public procurement indisputably has a role to play as a lever for boosting demand for innovative sustainable products. Accordingly, it seems to be helpful also to apply the High tech- Forum’s recommendation to the procurement of circularly designed products, for example by linking up with Germany’s national programme for sustainable consumption.
12.8.5. Digitalization paves the way to a CE:
The transition to a CE will only be successful if full use is made of the possibilities offered by digitalization and connectedness as well as automated data processing.
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12.9. SOCIAL MOBILIZATION
German Lessons VII: Consumer perspectives important:
INSIGHTS
The success of circular products and services entails behavioral changes among consumers, as a CE is not just a technical fix. If consumers are to be enabled as stakeholders, the principles and mechanisms of action of a CE must become general knowledge.
12.9.1 Consumers are important stakeholders in a CE.
Their perspectives must be taken into consideration when considering and evaluating different circularity levers. Creating transparency for consumers is important. The European Commission’s efforts mentioned in the CE Action Plan to ensure disclosure of the environmental footprint of products and companies are central here.
12.9.2. Enable citizens: Educational programs and information enable individuals to make informed decisions. Existing best practice examples such as the “Too good for the bin“ campaign by the German Federal Ministry of Food and Agriculture (BMEL)209 can provide inspiration. Citizens should also be encouraged and supported to take action themselves (repair cafés, food sharing, urban farming, etc.).
12.9.3. Breaking down consumption patterns: Above and beyond education, it is important to work out what type of incentives are suitable for fostering resource-efficient behavior. It is possible to build on existing initiatives such as the “National Programme for Sustainable Consumption“ or the “Climate-compatible Consumption Platform“.
12.9.3. Acceptance by social engagement:
It would appear helpful to build on the initiatives of stakeholders which, like policy makers, are driving social mobilization, such
as NGOs. This can also create broader acceptance of the goals and measures set out in a national strategy.
12.10. SCIENCE AND RESEARCH
German Lessons VIII: Scientific & Research, “Executive Agencies”, “Innovative Networks”, Interdisciplinary CE Platforms Collaboration.
INSIGHTS
Policy makers have identified the potential of a CE for innovation and are supporting the scientific community in investigating this potential. The scientific community has identified challenges associated with a CE and is beginning to develop dedicated educational programmes and courses.
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12.11.1. Cooperation with science holds great potential for innovation:
In Germany, science and research are often closely linked to business, not least due to its leading, business- focused research institutions such as the Fraunhofer Institutes and the many courses of study in business management and technology. This unique feature of the German economy makes science an integral part of the country’s innovation agenda. This can boost the German economy’s potential for innovation and help to ensure that the technological challenges of a CE are identified and solved at an early stage.
12.11.2. CE platforms for focusing interest and implementation:
Precisely because of a CE’s interdisciplinary nature spanning value chains, developing “innovation networks“ would appear to be particularly appropriate. This can be appropriately supported by establishing political/strategic or operational platforms (e.g. in the form of regional clusters) and developing corresponding research programs.
12.11.3 Actively fill in gaps in research using funding schemes:
Science and research are important “executive agencies“ of an “innovative state“215 because they can use government research funding to fill in gaps in research and development identified by policy makers. The new “resource efficient circular economy“ research plan established by the German Federal Ministry of Education Research (BMBF), for example, directly contributes to setting a course towards a CE.
12.11.4. Make use of international efforts: International competition and cooperation are characteristic of science, particularly in capital-intensive innovative fields of industry. It is accordingly important to bring unique features to the fore and to endeavor to build partnerships, for example in the context of European programs such as “Circular Economy Research and Innovation“ under Horizon 2020.
13. INITIATING KENYA CIRCULAR ECONOMY: UNDERSTANDING THE CIRCULAR FLOW
This design is for Kenya proposed according to Ellen MacArthur Foundation guidelines for toolkits.
13.1. UNDERSTAND CIRCULAR FLOWS
SECTOR ITEMS/PRODUCTS SOURCE APPLICATION IN KENYA
PACKAGING
MATERIAL
Plastics (Petroleum)
Glass
Metal/Aluminum
Paper
Wood/Timber
Textile/Sisal
Industrial
Manufacturers
Manufacturers of
utensils,
beverage bottles,
window panes
and door glass.
Paper packaging
Agro-industrial Dairy
(milk,butter,cheese)
Breweries, supermarkets,
laboratories, pharmacy,
hotels.
(See hotels 13 1.10.3
Hotels ban plastics. Grain
gunny bags can be
recycled.
PAPER Newspaper, Media Print Printers, Book
Publishers
Grocery packing in kiosks.
CANVAS & SHEETS Books, Greenhouses, tents Agriculture/Touri Farmers (Greenhouses)
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sm/Travel Camping
RUBBER &
LEATHER
Tyres/Motor Cars
Leather products shoes,
belts, baggages
Tyre
Manufacturers
Leather Industry
General Travel schools.
Old Tyres retreated and
recycled. Shoes made
“Mitumba”
SOIL, CEMENT,
STONE, TIMBER,
STEEL
Bricks, tiles, window &
door(wooden) Nails
Building
Contractors,
timber loggers
Houses roads, Silos.
In Kenya knocked-down
house material reused.
13.2. REGENERATIVE THINKING FOR KENYA CONDITIONS.
CIRCULARITY REMARKS
PLASTICS 1 Hard type: Create returnable container
system for all hard plastic items for
reuse. Money is paid for returned items.
e.g. bottles, containers of any type.
PLASTIC 2 Soft, sheet plastics: To be collected on
a public stop and melted down by a
special company to reuse waste plastic.
A fund for pollution Control be
founded. Every primary user to remit
funds. (Refer to 1.10. recycled plastics
make fencing posts. - ECOPOST)
GLASS Encourage of use of returnable glass e.g.
Dairy Milk as used to be before.
Compulsory for dairy reusability of
container.
ELECTRON
IC (e-waste)
Create Centers for recollection reuse
reconstruction, repair, resale to create
job.
Brazil | Node | Belo Horizonte to reuse
reproduce and resale to create
employment. Urgently Needed.
CLOTHE &
LEATHER
Recycling already in existence in all
towns.
Sanitizing system necessary for used
imported clothes to avoid disease
transfer.
PAPER All that use paper, be it primary or
secondary engage in tree planting.
Schools – compulsory tree planting
and all young in a lifetime to reach
1000 trees.
Print businesses to fund tree plantation
programme.
RUBBER Tryres already reused tyres almost 96%.
Then village sandals.
Tires retreated recycled. Tires also
make African shoes.
13.3. DEFINE:
DEFINE: Unlike EU, US recycling of most products and materials are voluntarily
recycled due to poverty and create jobs and downstream business. This is true
with clothes/textile footwear, rubber (tires), steel and nails. In Kenya the
recycle and reuse ranges between 70-97%.
CHALLENG
ES:
Plastic waste however is different. Once used, turns unusable, soft ones are
torn but thrown all over and flown by wind. Hard container plastics, too,
create challenge. Adopt “Ecopost” example
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CIRCULAR
BUSINESS
MODEL:
The best model for e-waste “Helo Berzonte Brazil for recycling of used
electronics and for food-waste” Plant Chicago”
CIRCULAR
BUY-IN
FOR
KENYA:
Circular Buy in – would be grain gunny bags in agricultural industry.
Dairy industry should be encouraged to revert to returnable glass container
just as Coca Cola and other beverage companies are doing it. Soda take-
always should be discouraged. Collection kiosks can create jobs.
Building construction need not visited because almost 100% recycled except
rubble.
13.4: MAKE:
BRAINSTORMING: Stakeholders, farmers, breweries and beverage industries, food
processors wood, textile and leather industries should come together
be innovative and create ideas for circularity.
CIRCULARITY
DEBATE &
SOLUTION
SEARCH:
Policymakers – government ministries, government agents and
parastatal company management should join all others to debate about
circularity to create policies.
Consumer organizations & NGOs researches can all brainstorms on
circularity.
MODELS Best Models would be Germany Denmark, US (Chicago) and Brazil.
Us Plant Chicago represents food waste handling Brazil e-electronic
waste handling for third world Denmark and Germany overall best in
waste management for all things.
13.5: RELEASE:
CIVIC
EDUACTION
Civic Education should be upscaled and schools, youth and public be taught
about Climate Change Pollution. Energy conservation through renewable
energy use. Tree Thousander compulsory planting in lifetime be spread.
PILOT
LAUNCHING
The “Belo Horizonte” Brazilian model should be the best example to emulate
for e-waste handling, job creation.
SCHOOLS School of all kinds would be catalysts for circularity knowledge spread and
for continuous learning. Universities, technical schools should be involved
in research. Lower schools’ environmental awareness.
Communities in the rural should be made active participants especially those
organized into formal groups.
