ūüá™ūüáļ EU Member States approve Circular Economy Package (CEP)

The final legislative hurdle to creating a more resource efficient Europe has been overcome after the Council of the European Union approved the EU’s Circular Economy Package (CEP) in Brussels on Tuesday, 22 May 2018.

The final ratification by the Council comes a little over a month after MEPs in the European Parliament gave the set of revised waste directives their seal of approval, ratifying the targets agreed upon following the end of three-way discussions known as trilogues between the European Council, Commission and Parliament back in December, which were then approved by EU ambassadors in February this year. The announcement marks the end of a long journey through the institutions since the Juncker Commission put the current legislation forward in 2015, after withdrawing a draft CEP put forward in July 2014 that included a 70 per cent recycling and reuse target for 2030.

Progress on moving towards a circular economy has been steady since the start of the year, as a Monitoring Framework to measure the EU’s progress towards the CEP targets was also proposed by the European Commission in March, while a Plastics Strategy was agreed at the start of March, with an aim of making all plastic packaging recyclable by 2030.

The new legislation means that EU member states will be obliged to reach a 55 per cent municipal recycling rate by 2025, 60 per cent by 2030 and 65 per cent by 2035. Confusion over the headline target was apparent in the first few months of the year, with many reporting the 65 per cent figure as the 2030 target, as opposed to the 2035 target.

Specific targets for packaging for 2030 are also included for all packaging (70 per cent), plastic (55 per cent), wood (30 per cent), ferrous metals (80 per cent), aluminium (60 per cent), glass (75 per cent) and paper and cardboard (85 per cent).
In addition to material-specific targets, member states will have until 1 January 2025 to set up a separate collection for textile waste and hazardous waste from households and until 31 December 2023 to ensure that bio-waste is either collected separately or recycled at source (e.g., home composting).

A landfill reduction target is also included in the package, with member states expected to ensure that, as of 2030, all waste suitable for recycling or other recovery shall not be accepted in landfills, except waste for which landfilling is the best environmental outcome. In addition, member states will ensure that by 2035 the amount of municipal waste being sent to landfill is reduced to less than 10 per cent of the total amount of municipal waste generated.

Furthermore, the new legislation foresees more use of effective economic instruments and other measures in support of the waste hierarchy. Producers are given an important role in this transition by making them responsible for their products when they become waste. New requirements for extended producer responsibility schemes to improve their performance and governance are included in the CEP. In addition, mandatory extended producer responsibility schemes have to be established for all packaging by 2024.
Now that the Council has ratified the CEP, it will enter into force 20 days after its publication in the Official Journal, with 24 months allowed for the governments of member states to transpose the new laws into national legislation.

Despite the perpetual uncertainty surrounding Brexit and the form of the UK’s future relationship with the EU, the Department for Environment, Food and Rural Affairs (Defra) has indicated that the CEP will apply to the UK following Brexit, even going so far as to suggest that the UK would set even more ambitious targets than those contained in the landmark European agreement.

Commenting on the announcement, EU Commissioner for Environment, Maritime Affairs and Fisheries, Karmenu Vella, said: “The final approval of new EU waste rules by the Council marks an important moment for the circular economy in Europe. The new recycling and landfilling targets set a credible and ambitious path for better waste management in Europe. Our main task now is to ensure that the promises enshrined in this waste package are delivered on the ground. The Commission will do all it can to support Member States and make the new legislation deliver on the ground.”

Neno Dimov, Bulgarian Minister of Environment and Water, added: ‚ÄúI am very pleased that ministers have given their approval to the revised legislation on waste today. Europe is moving towards a circular economy. These new rules protect not only our environment but also the health of our citizens. Today we close the loop of product lifecycles, from production and consumption to waste management. This decision is about making our economies more sustainable and environmentally-friendly.‚ÄĚ

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McKinsey on retaining value – Podcast


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On 17 October 2016 McKinsey partner Eric Hannon (product development, Frankfurt office) and senior partner Clarisse Magnin (supply-chain management and retail, Paris office) explain in ‚ÄěThe McKinsey Podcast‚Äú what the circular economy is and how companies create loops throughout to recapture value that would otherwise be lost.

Major take-aways:

  • By 2030 the demand of approx. 3 billion uprising middle class consumers will put enormous pressure on our planet‚Äôs resources. To those will be reduced access and consequently price levels will rise to unexpected heights.
  • The shift of¬†consumer behaviour from owning towards accessing just as that governments and other stakeholders get more intensively engaged in reducing waste support the circular economy.
  • The tighter the loop the more of the original value is captured¬†(e.g., recycling is the least value capturing loop in the circular economy because it is only incrementally better than disposal).
  • Increased utilisation is one of the most value retaining concepts of CE¬†(e.g., cars – ride & car sharing increase utilisation of automobiles).
  • CE is all about collaboration, partnering, and levering your ecosystem to find creative solutions. Therefore, raising awareness, communicating and educating all stakeholders from employees over suppliers to clients about¬†your CE initiatives is vital. According to Eric this point cannot get emphasised enough. The CE necessary changes and creative solutions only can be reached with cross functional efforts.
  • The shift towards CE requires fundamental transformations¬†(questioning the¬†business model, supply chain practices, etc.). Top management must be fully supportive and¬†should include incentives to go circular.¬†Due to its transformational character CE should be a priority for management and one-time initiatives are just not sufficient. It¬†should be regarded as a value creation driver rather than an investment or image builder.
  • So far, some of the most successful implementations are when the business model is fundamentally changed and innovated (e.g., change from product to service ‚Äď instead of buying tyres, you buy kilometres). Those types of¬†business models then drive¬†rethinking your product and focusing more on durability and value maximisation. As a result you push the CE principles throughout the rest of the organisation.
  • Reverse logistics, the operation of returning the product back from the customer into the possession of the producer, is a huge operational hurdle.
  • Biggest near term opportunities for companies lay in cost reduction, material savings, and reduced need to duplicate value adding activities but also earnings from secondary sales, or closer¬†and more frequent relations with the customer. Especially the last point may have the impact that the customer in return becomes more sensitive about quality, origin, as well as company and sourcing practices.
  • In Europe the regulatory framework is tightening. We see a regulatory environment that is probably going to¬†lead to a much quicker adoption of CE than in any other areas¬†of the world, especially on the consumer side. Recently,¬†the European Commission set very specific directives that the industry will have to respond to and which¬†will further push CE on to companies.¬†Regarding B2B industries¬†China has pushed CE principles for a long time but have not yet really addressed the¬†consumer environment. In general, we see a varied legislative landscape that is may going to accelerate adoption of CE principles in certain regions faster than others.¬†

Which take-away was most interesting for you?

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Am 17. Oktober 2016 erkl√§ren McKinsey-Partner Eric Hannon (Produktentwicklung, Frankfurter B√ľro) und Senior Partner Clarisse Magnin (Supply Chain Management und Retail, Pariser B√ľro) in “The McKinsey Podcast‚Äú, was die Kreislaufwirtschaft ist und wie Unternehmen es schaffen k√∂nnen, durch Wiedereinf√ľhrungen Wert im Unternehmen zu behalten, der ansonsten verloren gehen w√ľrde.

Kernpunkte:

  • Bis zum Jahre 2030 wird die Nachfrage von ca. 3 Milliarden zus√§tzlichen Konsumenten einer aufstrebenden Mittelschicht enormen Druck auf die Ressourcen unseres Planeten aus√ľben. Es wird ein geringerer Zugang zu ihnen¬†geben und folglich wird das Preisniveau auf unerwartete H√∂hen steigen.
  • Sowohl die beobachtete Verschiebung des Konsumentenverhaltens von Besitz zu Zugang als auch Regierungen und andere Interessengruppen, die sich intensiver mit der Reduzierung von Abf√§llen besch√§ftigen, befeuern die Kreislaufwirtschaft.
  • Je enger die Schleife, desto mehr wird der urspr√ľngliche Wert erhalten (z. B. ist Recycling die geringste Wertsch√∂pfungsschleife in der Kreislaufwirtschaft, weil es nur inkrementell besser ist als Entsorgung)
  • H√∂here Auslastung ist eines der nutzbringendsten Konzepte (Wertsch√∂pfungsschleifen) der KLW zur Werterhaltung (Beispiel: Autos – Ride- & Car-Sharing erh√∂ht die Auslastung von Automobilen)
  • Bei der KLW geht es vor allem um Zusammenarbeit, Partnerschaft und sein Umfeld bestm√∂glich zu nutzen, um kreative L√∂sungen zu finden. Daher ist die Sensibilisierung und Aufkl√§rung aller Interessengruppen, von Mitarbeitern √ľber Lieferanten bis hin zu Kunden, √ľber KLW-Initiativen von entscheidender Bedeutung. Laut Eric kann man diesen Punkt nicht genug betonen. Die KLW notwendigen Ver√§nderungen und kreativen L√∂sungen k√∂nnen nur mit funktions- und industrie√ľbergreifenden Bem√ľhungen erreicht werden.
  • Die Entwicklung hin zur Kreislaufwirtschaft erfordert grundlegende Transformationen (Alles kommt auf den Pr√ľfstand: Gesch√§ftsmodell, Supply Chain Praktiken, etc.). Die oberste F√ľhrungsebene muss uneingeschr√§nkt unterst√ľtzen und sollte Anreize schaffen, um die Kreislaufwirtschaft im Unternehmen zu implementieren. Aufgrund des hohen Potentials tiefgreifende Ver√§nderungen in Gang zu bringen, sollte die Kreislaufwirtschaft eine Priorit√§t f√ľr die Unternehemnsf√ľhrung haben und sich nicht auf einmalige Initiativen beschr√§nken. Die Kreislaufwirtschaft sollte als eine M√∂glichkeit zur Wertsch√∂pfung wahrgenommen werden und nicht als ein Investitions- oder Reputationsprogramm.
  • Bisher sind einige der erfolgreichsten Implementierungen, wenn das Gesch√§ftsmodell grundlegend ver√§ndert und neu entwickelt wurde (z. B. der Wechsel von Produkt zu Dienstleistung – anstatt Reifen zu verkaufen, wird nur noch pro Kilometer abgerechnet). Diese neuen Gesch√§ftsmodelle zwingen zum Umdenken und setzen einen neuen Fokus auf Haltbarkeit und Wertmaximierung. Infolgedessen werden die KLW-Grunds√§tze auch im restlichen Unternehmen umgesetzt.
  • Die R√ľckf√ľhrungslogistik, die R√ľckbeschaffung des Produkts vom Kunden zum Hersteller, ist eine enorme¬†operative H√ľrde.
  • Gr√∂√üte kurzfristige Chancen f√ľr Unternehmen liegen in Kostenreduzierung, Materialeinsparungen, aber auch in zus√§tzlichen Ertr√§gen aus Sekund√§rverk√§ufen oder engeren und h√§ufigeren Beziehungen mit dem Kunden. Vor allem der letzte Punkt kann die Auswirkungen haben, dass der Kunde im Gegenzug einen gr√∂√üeren Wert auf Qualit√§t, Herkunft, sowie Unternehmens- und Beschaffungspraktiken legt.
  • In Europa versch√§rft sich der Regulierungsrahmen. Wir sehen ein regulatorisches Umfeld, das wahrscheinlich zu einer viel schnelleren Einf√ľhrung von der KLW f√ľhren wird, als in anderen Bereichen der Welt, insbesondere auf der Konsumentenseite. In j√ľngster Zeit hat die Europ√§ische Kommission sehr spezifische Gesetze erlassen, auf die die Branche reagieren muss und die die Kreislaufwirtschaft weiter vorantreiben wird. Im B2B-Bereich hat China schon seit l√§ngerem KLW-Grunds√§tze vorangetrieben, allerdings wird die Konsumentenseite dort noch vernachl√§ssigt. Im Allgemeinen sehen wir eine vielseitige Gesetzgebungslandschaft, welche¬†die Einf√ľhrung der KLW in bestimmten Regionen schneller vorantreiben wird als in anderen.

Welcher Punkt¬†war f√ľr Dich¬†am interessantesten?

Link zum originalen Artikel


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El 17 de octubre de 2016, el socio de McKinsey, Eric Hannon (desarrollo de productos, oficina de Frankfurt) y su socio principal, Clarisse Magnin (gesti√≥n de la cadena de suministro y distribuci√≥n minorista, oficina de Par√≠s), explican en “The McKinsey Podcast” lo que es la econom√≠a circular y c√≥mo las empresas pueden usar reintroducciones para que tener √©xito en mantener valor en la empresa, que de otro modo se perder√≠a.

Los puntos principales:

  • Hasta el a√Īo 2030 la demanda de alrededor de 3 mil millones de consumidores adicionales de una clase media emergente ejercer√° una enorme presi√≥n sobre los recursos de nuestro planeta. Habr√° menos acceso a los recursos y, en consecuencia, el nivel de precios se elevar√° a alturas inesperadas.
  • Tanto el cambio de comportamiento del consumidor de la posesi√≥n al acceso, as√≠ como los gobiernos y otros grupos de presi√≥n que se ocupan intensamente con la reducci√≥n de residuos, apoyan a la econom√≠a circular.
  • Cuanto m√°s ajustado sea el bucle, mayor ser√° el valor original conservado (p. Ej., El reciclaje es el ciclo de captura de menor valor en la econom√≠a circular porque es s√≥lo incrementalmente mejor que la eliminaci√≥n).
  • La mayor utilizaci√≥n es uno de los conceptos m√°s importantes de la conservaci√≥n de EC (p. Ej., Los coches – ride & car sharing aumentan la utilizaci√≥n de autom√≥viles).
  • En la EC todo es sobre la colaboraci√≥n, la asociaci√≥n y el aprovechamiento de su ecosistema para encontrar soluciones creativas. Por lo tanto, la sensibilizaci√≥n, la comunicaci√≥n y la educaci√≥n de todos los interesados, de los empleados sobre los proveedores a los clientes, acerca de sus iniciativas de EC es importante. Seg√ļn Eric, este punto tiene m√°xima importancia. Los cambios necesarios de la EC y las soluciones creativas s√≥lo se pueden alcanzar con esfuerzos transversales.
  • El cambio hacia la EC requiere transformaciones fundamentales (cuestionando el modelo de negocio, las pr√°cticas de la cadena de suministro, etc.). La alta direcci√≥n debe ser totalmente de apoyo y debe incluir incentivos para poner en pr√°ctica la econom√≠a circular en la empresa. Debido a su car√°cter transformador, el EC deber√≠a ser una prioridad para la gesti√≥n y adem√°s, iniciativas puntuales no son suficientes. La econom√≠a circular debe ser percibida como un impulsor de creaci√≥n de valor y no como un programa para aumentar inversiones o la reputaci√≥n.
  • Hasta ahora, algunas de las implementaciones m√°s exitosas son cuando el modelo de negocio es fundamentalmente cambiado e innovado (por ejemplo, el cambio de producto a servicio – en lugar de comprar neum√°ticos, usted compra kil√≥metros). Esos nuevos modelos de negocio impulsan a repensar su producto y se fijan la atenci√≥n m√°s en la durabilidad y la maximizaci√≥n del valor. En consecuencia, los principios de la econom√≠a circular se implementan en el resto de la organizaci√≥n.
  • La log√≠stica inversa, la operaci√≥n de devolver el producto desde el cliente a la posesi√≥n del productor, es un enorme obst√°culo operacional.
  • Las mayores oportunidades a corto plazo para las empresas son la reducci√≥n de costes, el ahorro de material, pero tambi√©n los ingresos adicionales de las ventas secundarias o las relaciones m√°s estrechas y m√°s frecuentes con el cliente. Especialmente el √ļltimo punto puede tener el impacto que en cambio el cliente se vuelve m√°s sensible sobre la calidad, el origen, as√≠ como las pr√°cticas corporativas y de abastecimiento.
  • En Europa el marco regulador apreta. Vemos un entorno regulatorio que probablemente va a conducir a una adopci√≥n mucho m√°s r√°pida de EC que en cualquier otra parte del mundo, especialmente en el lado del consumidor. Recientemente, la Comisi√≥n Europea estableci√≥ directivas muy espec√≠ficas que la industria tendr√° que responder y que impulsar√° a√ļn m√°s el EC a las empresas. En cuanto a las industrias B2B China ha empujado los principios de EC durante mucho tiempo, pero a√ļn no han abordado el entorno del consumidor. En general, vemos un paisaje legislativo variado que puede ir a acelerar la adopci√≥n de principios de EC en ciertas regiones m√°s r√°pido que otros.

¬ŅQu√© punto fue lo m√°s importante para ti?

Link al artículo orginial

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