Reducing resource waste and focusing on an economy of reuse which brings local production and services to the fore: these are some of the key objectives of a package of proposals recently launched by the European Commission with the aim of transitioning the Old Continent to“a more circular economy”. In the following interview granted to the Aspen Italia website, Renzo Tomellini, Head of the “Materials” Unit of the European Commission*, explains that this is a model which generates rather than destroys wealth, and carries the potential to create a significant number of new jobs.
What is meant by the term “circular economy”?
It refers to a system that enables the value of resources to be conserved as long as possible. The idea is based on a new “closed-loop” industrial system, which ideally produces zero waste and integrates well with other economic paradigms, like the green economy. Such an industrial system is necessarily based on greater resource efficiency and implies a radical change in business models. It is a process made possible thanks to the technological advances taking place and can only be implemented through a systemic approach.
Has the crisis been instrumental in bringing about this radical shift in paradigm?
During the period 2001-2011, resource productivity rose by 20% in Europe, and we can assume that the crisis played a role in driving this change. If we were to continue down this road, we could achieve a further increase of 30% by 2030. On its own, this rise in productivity could lead to an increase of 1% in European GDP and 2 million more jobs. These are significant improvements compared to what business as usual would have produced – improvements which, in a scenario characterized by mounting pressure on natural resources, should enable Europe to hold itself up as a model of sustainable development. This is a goal which the Commission is already pursuing through Environment Action Programs such as “Living well, within the limits of our planet”.
Could an economy of “reuse” slow down recovery?
It’s a model that creates wealth rather than destroying it. To understand this, however, we need to distinguish between the concept of development and that of resource consumption. Let’s take a commonplace example, such as an old car. The money needed to buy it goes towards paying for the resources used in its production. But the longer the car lasts, the more its running costs serve to keep the car in good working order, and hence to produce benefits for an economy that is not consuming new resources and is generating wealth and jobs at a local level.
Of course, the transition towards a circular economy might not necessarily be straightforward. Nevertheless, the indications coming from other economies such as the United States point to re-manufacturing as a potentially significant factor for recovery. Between 2009 and 2011, America experienced growth of 15% in this sector, with a turnover of at least 43 billion dollars and the creation of 180,000 new full-time jobs. In a nutshell, we should forget about a homogenized world where “one size fits all”, and focus on new markets that can be unlocked at a local level.
What approach would ensure that the circular economy takes off in Europe?
One of the corner stones of the Commission’s package of proposals is waste. A more effective use and efficient recycling of waste would not only generate 580,000 new jobs, but it would also help save a great deal of resources. One only need consider that there is a greater concentration of gold to be found in our electronic waste than in any goldmine. More generally speaking, in anticipation of the Commission’s legislative proposals passing to the Council of the European Union and the European Parliament, it is obvious that the greater the public awareness on this issue in a particular member state, the more chance there is of that country transitioning towards a circular economy. The targets set by the Commission and incorporated in the Europe 2020 strategy are not unachievable. Indeed, they were advanced because of the fact that they are perfectly feasible. However, there is no single recipe that will work forevery country: what’s required is an integrated approach involving all possible stakeholders.
Renzo Tomellini is Head of the “Materials” Unit of the European Commission. A graduate in Chemistry cum laude from the University of Rome “La Sapienza”, Tomellini joined the European Commission in 1991 to manage the ECSC-steel research program.
* The views expressed in this interview are exclusively those of the interviewee and do not necessarily represent the position of or in any way bind European institutions.
