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Sustainable Consumption and Production and Circular Economy:
Eco-innovation drivers Arab Hoballah
Chief, Sustainable Lifestyles, Cities, and Industry Branch For « Delivering SCP »
Sustainable resource
management
Design for sustainability
D4S
Cleaner production &
Resource Efficiency
Sustainable transport
Eco-labelling and
certification
Sustainable procurement
Sustainable marketing
Sustainable lifestyles
Waste Management
Sustainable Consumption and
Production through circular
economy and eco-innovation
Delivering SCP
4th ICCM 28 Sep-2 Oct 2015, Geneva
SAMOA SIDS Pathway
10YFP and its Programmes
Post 2015 Framework on Disaster Risk
Reduction
2030 Agenda for Sustainable Development
10-year framework of programmes on sustainable consumption and production (10YFP)
A multi-stakeholder platform to deliver SCP and Contribute to the SDGs
10YFP Programmes
Demand to impact paradigm of current economy
Source: International Resource Panel infographics
Valu
e to
Soc
iety
Singular interventions to improve processes and products
rethinking business strategies and models which mainstreams sustainability throughout all business operations across the value chain
Value to Business
Eco-innovation
Tinkering around edges
Sustainability as source for innovation and value creation
Business model innovation through ‘R’
Refuse
Reduce
Reuse
Refurbish/Repair
Remanufacture
Redistribute/ re-gift
Recover
Recycle
RETHINK
Life Cycle Thinking– where are the opportunities?
80% Time Spent
20% Opportunities
Upstream Opportunities:
Building up better alliances, access to limited resources,
stability of supply, etc.
high
low
Value Chain •Source: Adapted from WWF-UK 2003
Downstream Opportunities:
Customer satisfaction and loyalty, improved
brand image, etc.
Disposal • Use Sale
Manufacturing
Transport Production/ Extraction
Source: Jim Fava presentation, 8th April 2013, UNEP/SETAC LCInit workshop, Paris
Critical role & needs of agents for Circular Economy
Consumers: Consumption, lifestyle and behavioural choices
Urban population: cities as critical hub for resource use and efficiency
SMEs: backbone of the economies but can be a critical gap in value chains
Business: manufacturing at the core of CE, business model innovation and scaling up
Finance sector: considerable investment from public and private sources
Policy-makers: sending coherent market signals through regulation and other instruments
Scientists and academics: Technology innovation and scientific evidence
International organizations: consensus building and cooperation, best practice promotion, capacity development
Working along the value chain towards integrated solutions and shared value
LCA data, methods and
tools
Sustainable food systems
Food processing
Sustainable product
information
Sustainable lifestyles and
practices
Food waste, in cities context
The Global Network for Resource Efficient and Cleaner Production (RECPnet)
RECPnet as a platform to deliver Circular economy and SCP
Facilitate knowledge, networks and resources
Strengthen capacity Measure contribution
to SDGs at national, regional and global level
Capacity building
Finance
Technology
Multistakeholder partnership Trade
Eco-innovation Project at a glace
Tools (9 tools) Partners/Networks Beneficiaries
Objective: Build local capacities for strategic business eco-innovation
Implemented with financial support of the European Commission
Duration: 2012 - 2016
Initial focus of the eco-innovation intervention is on sectors with highest potential for decoupling: Food processing, Chemicals manufacturing and use; and Metal processing
Delivery mechanism: development of tools, capacity development, national demonstration projects and cooperation
The Business Case for Eco-innovation
Available for download: www.unep.org/BCforEI
• To make convincing case for eco-innovation
• Overview of trends and indicators
• Examines the examples of 7 different companies from large to SMEs and start-ups
• Clear benefits for eco-innovation: av. annual growth around 15% in flat market
• Primary research: interviews • Target audience: businesses
and service providers
03-11-15 16
Why and how UNEP works in the chemical sector
Focusing on chemicals sector is important because:
Chemicals are central to consumer economy (products) and help to engage variety of market players: consumers, retailers and buyers, producers and policy-makers
Chemicals value chain spreads across many sectors some of the most damaging impacts to human health and the environment
How can CE and Eco-innovation benefit chemical sector?
Takes holistic approach, going beyond water/energy use and extending analysis to hazardous/harmful impacts
Helps to identify substitutes for hazardous/harmful chemicals, and their potential impacts
Helps to engage consumers thanks to strong link with health
Helps identify new business models, e.g. chemical leasing
03-11-15 17
Global Chemical Outlook
Circular economy and the chemicals sector
Holistic approach of circular economy and eco-innovation addresses the broad objectives of the SDGs and the wider 2030 Agenda for Sustainable Development
Sound chemical management and waste
addressed in at least 11 goals and associated targets of the SDGs – requires lifecycle approach to ensure their achievement
Standards, regulations and private sector active
engagement on hazardous chemicals help to promote SCP
Enabling policy framework
• Market is not always conducive to circular economy and eco-innovation adoption and diffusion due to a number of barriers
role of policy to remove barriers and create incentives and create context condition National and local level: focus creating enabling
conditions at both production and consumption side Global level: focus on creating level playing and
addressing asymmetries between the countries
Combine current policy instruments
Voluntary measures,
information and education,
science and R&D
Fiscal and economic
Regulation
• One instrument is not effective for significant change
• Their combination and design that makes their impact systemic
• Need to understand what and how instruments affect the change in behavior in life cycle and broader system
• Need to consider the context and specific setting
Adopt long term vision
• Measures with short term perspective incremental changes
• Long –terms vision and direction for the market where to focus
Need for strategic intelligence and foresight
Regularly review the selected measures for their relevance and stringency
Push towards continuous improvement
... using a mix of policy interventions to create incentives for transformative change at key stages
Policy integration
Build and Foster Collaboration
• An interactive and iterative process • need for interface for open and creative
exchange and collaboration
Finally, food for thought :
From Linear to Circular Economy, based on our understanding of demand and
consumption patterns drivers; (Triggered by recent Nobel Prize to Angus Deaton)
Thank you
Arab Hoballah
