Walter R. Stahel at EECS Brussels · •is capital intensive, •trend to globalisation. 28/01/2016...

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The Circular Economy Package

EESC hearing, Jan 28, 2016 Brussels

Walter R. Stahel

Dr h.c. Walter R. StahelVisiting Professor, University of Surrey

Founder-Director, The Product-Life Institute, Geneva

www.product-life.org, [email protected]

28/01/2016 Walter R. Stahel at EECS Brussels

Objectives of the CE Package

• “to boost competitiveness, create jobs, and generate

sustainable growth”.

• The proposed actions will contribute to “closing the loop”

of product lifecycles through greater recycling and re-

use, and bring benefits for both the environment and the

economy. The plans will extract the maximum value

and use from all raw materials, products and waste,

fostering energy savings and reducing GHG emissions.

• “to maintain the value of products, materials and

resources for as long as possible”, from production

and consumption to waste management and secondary

resources.

28/01/2 016 Walter R. Stahel at EECS Brussels 2

The European Commission was

instrumental in the initial search

for a circular economy (CE)

• A 1976 report on the “Potential for

Substituting Manpower for Energy”,

for DG V Labour and Social Affairs,

by Walter R. Stahel and Geneviève Reday

at the Battelle Institute Geneva defined the

structure and nature of an “economy in

loops” as its conclusion.

28/01/2016 Walter R. Stahel at EECS Brussels 3


.

.

Innovation need:

recycling atoms

two CE parts of different nature

CE -- two loops with different impacts

Recycling materials • loses most embodied

energy (GHG) and

water,

• reduces waste volum

• has fixed cost and

purity disadvantages,

• is flow processes,

• is capital intensive,

• trend to globalisation.


Reusing goods • preserves most em-

bodied energy (GHG),

material and water,

• prevents waste,

• has cost (ev. quality),

advantage over new,

• is stock management

• is labour intensive,

• trend regional, SMEs

dog eats tail – the historic view


Dog b

itin

g its

tail

?

If this is the linear industrial economy:

resources production consumption waste

The CE is applied pre-

vention on a high level


Warehouse on wheels,

trucks at the Brenner Delivery drohnes ?

Logistics- and

Shopping Centers

Container ports, ships, trains

packaging


the era

of ‘R’

the era

of ‘D’

Production: flow,

value added

innovative

materials,

components,

concepts

the circular user economy

proper: value preservation,

quality & quantity of stock

from end-of-life to

as-pure-as-new

resources

Back-c

asting

vie

w f

rom

a tru

ly C

E

Point of Sale:

transfer of

ownership &

responsibility

product use

atoms

end-of-

service-life

business

opportunitie

value

preserved

Research & innovation in the era of ‘R’

Responsibility for reuse, repair, upgrade,

remanufacture, reprogramme facilitates • re-use and service-life extension of goods,

• remarketing used components for re-use.

(Eco)design for reuse, modular systems and

standardisation of parts increases the efficiency

of ‘R’ approaches (but not user motivation).

Research into the ROI of the era of ‘R’ needed.

Teaching CE knowledge and skills in academia

and vocational training is key to speed up change


end-of-service-life business opportunities

for value preservation: reuse or recycling?

a decision on value and ownership!

17/11/2015 Walter R. Stahel at Rotterdam 2015 10

“WASTE” “RESOURCES”

HIGH VALUE PRESERVED equal profit LOW

C.E. reuse repair remanufacture upgrade recycle

e.g. garments, bottles, EEE, furniture, aircraft seats, windows

to reuse or

to recycle?

sorted intact solid waste

Also: unsorted solid waste (food, packaging, paper, plastics, oils),

liquid waste, sewage (detergents, urea, Phosphorus, Nitrates)

non-destructive collection

exchanges

labour

Research & innovation in the era of ‘D’

The material sciences and technologies

needed to turn end-of-service-life goods into

as-pure-as-new resources do not yet exist: • split molecules, de-polymerise, de-alloy, de-

laminate, de-vulcanise, de-coat,

• de-construct infrastructure and high-rise.

Quantum leaps in competitiveness possible.

R&D results in this area can be protected and

licenced.


12

From ‘consumer’ to

‘user’: individuals

motivated by CARING,

a new stewardship rela-

tionship with goods,

and facilitated by such

cultural innovation as a

10/11/2015 Walter R. Stahel at Epsom 2015

sharing society,

giving ACCESS to

preowned goods, skills

and tools: markets &

exchanges, repair cafés,

both physical & digital

(eBay, ifixit.com).

ow

ners

hip

with

lia

bili

ty is k

ey


ooooooooooooooooooooooooooooooooo

vvvv

vvvv

vvvv

vvvv

vvvv

vvvv

vvvv

vvvv

vvvv

vvv

positive value of goods

negative value of goods

ownership

without liability

ownership

with liability

ex-waste managers

INDIVIDUAL USERS corporate users

fleet managers with

retained ownership

‘post-use’ goods

Ownership and Value determine the circular economy

DSS* internalising costs

Performance Economy

eco-design welcome

to reduce operation &

maintenance costs

design for sales

value preserving

business opportunities

eco-design ?

repairable is not repaired,

recyclable is not recycled.

*DSS Designing Sustainable Solutions, incl. systems and sufficiency

The business models of the

Performance Economy


Retained

ownership

OEM

skills O&M

skills

Fleet managers

selling goods as

services:

transport, hotels,

rental goods, real

estate, textile

leasing

Selling performance:

Michelin, RR, Xerox, PFI,

Space X, DuPont selling

painted car bodies,

Interface’s green lease

OEMs selling

molecules as

services:

rent a molecule,

chemical leasing,

licence to mine

(enables toxic

release inventory) Performance guarantees: commercial

freezers, lifts with service contract; Speno;

lifelong product guarantees, Industry 4.0 c Stahel, 2015

Buying performance as part of

green public procurement

Selling goods as services entails

• retaining ownership and liability of goods

and their embodied resources, and

• internalising waste, risk and liability costs,

which provides strong economic incentives

for loss and waste prevention,

• resource security – the goods of today are

the resources of tomorrow at yesterday’s

prices. 28/01/2016 Walter R. Stahel at EECS Brussels 15

11/09/2014 Walter R. Stahel 16

shifting from the present to the future

This really is an innovative approach,

but I’m afraid we cant’ consider it.

It’s never been done before.

for many experts , the CE may

be counterintuitive

“real wealth is based on use, not ownership” according to Aristotle

The trend from fashion to function is supply driven:

(a) selling performance, goods as services, through rent –

lease – share business models in order to

• directly reach the customer,

• achieve a high corporate resource security,

• reduce corporate costs (compliance, transactions) and

increase competitiveness,

• re-use components which outlive their goods (electric

motors, LED, microchips, VIP panels),

• reduce future corporate liability.

(b) selling digital wares: music and video streaming.

• Industry 4.0 (remote after sale services),

• Internet of Things (the client is the product). 28/01/2016 Walter R. Stahel at EECS Brussels 17

18 18 1

Thank you for your attention

Dr h.c. Walter R. Stahel, Visiting Professor, University of Surrey

Founder-Director, The Product-Life Institute, Geneva

www.product-life.org, [email protected]

28/01/2016 Walter R. Stahel at EECS Brussels

Walter R. Stahel at EECS Brussels · •is capital intensive, •trend to globalisation. 28/01/2016...

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