Kurt Sciberras
Ever since the industrial revolution, global economies have developed a linear model of growth and consumption. The increasing demand and competition for finite and scarce resources have been automatically inflicting constant pressure on the environment, leading to fragility and degradation, making the "take-make-consume-dispose" mentality unsustainable. Moving towards a circular economy, in which "reuse, repair and recycle" become the norm, will increase resource efficiency and bring new economic growth and job opportunities.
The circular economy is a generic term used for an industrial economy that is restorative and maintains the added value in products while simultaneously eliminating waste. In this way, resources are kept within the economy and when a product has presumably reached the end of its life cycle, it is productively used over again.
However, the transition to a more circular economy requires various efforts and a full systematic change, not only in technology but also in organisation, society, finance methods and also policies.
In 2011, the European Commission proposed a framework of action within the Roadmap to a Resource Efficient Europe and later in 2014 in the Seventh Environment Action Programme, the need for an integrated approach across many policy areas and levels was highlighted. In a recent communication, Towards a Circular Economy: A zero waste programme for Europe, the Commission proposed a number of actions which are necessary in order to implement the circular economy, through measures which combine market-based instruments, incentives, research and innovation, among various others. This framework will contribute to the objective of sustainable industry in the EU and also the circular economy. With an estimate of 17% to 24% reduction in material inputs by 2030, improving resource productivity could represent an overall savings potential of €630bn per year for the European industry.
Even though some EU policies and instruments already provide tools and incentives in line with the circular economy model, the Commission will provide under Horizon 2020 - the EU's Research and Innovation Programme - possible opportunities for moving towards a circular economy at European level, with large scale innovation projects and also investments targeted at cooperation which foster skills development and also support the market application of innovative solutions.
The Commission's aim is to further integrate economic priorities into EU funding and also encourage member states so as to use available EU funds in projects on the circular economy, particularly through the European Structural and Investment Funds. With the aim of supporting business, in particular SMEs and also consumers, the Commission will apply the use of environmental impact measurement in product and process design and also provide consumers with better information on environmentally sustainable choices.
Together with the Communication on the circular economy, the Commission also adopted a proposal for a Directive to review the waste targets in the EU such as increasing the recycling of municipal waste to 70% by 2030; reducing food waste generation by 30% by 2025; improving the traceability of hazardous waste; simplifying the reporting obligations affecting SMEs and other similar targets.
To ensure that the circular economy becomes a reality, the Commission adopted various other initiatives, such as the green employment initiative, sustainable buildings and also green action for SMEs.
The Minister for Sustainable Development, the Environment and Climate Change, Leo Brincat, while addressing an EU-funded conference promoting the Zero Waste Programme for Action, stated that the circular economy is evidently centre staged in various environmental-related discussions. According to Minister Brincat, the new circular model does not only address resource scarcity and the inevitable price hikes that follow together with market volatility, but it also creates new opportunities by shifting and creating new business models. The Minister also stated that the circular economy is the "only logical way forward and the common sense approach that we need to adopt".
Minister Brincat will be addressing this and other environmental issues during a public dialogue being organised by Meusac tomorrow, 24 October. The public dialogue, themed Sustainable Growth - for a resource efficient, greener and more competitive economy, is the second of a series of public meetings with government ministers on the Europe 2020 targets.
For more information log onto www.meusac.gov.mt or phone on 2200 3300.