Exploiting the Potential of Public Procurement: Opportunities for Circular Economy

The objective of a circular economy (CE) is to maintain the value of products, materials, and resources in the economy by closing material loops and minimizing waste generation. In recent years, the role of public procurement has been recognized as an important, but as yet not fully exploited, opportunity by cities and municipalities in their transition toward circular societies. This study analyzed public procurement opportunities to promote CE. Different approaches and examples of circular public procurement were identified using case studies. In addition, opportunities to promote CE through sustainable and green public procurement policy were identified analyzing predefined sustainable or green public procurement criteria. The study concludes that public procurement can promote CE and related business models by setting criteria and requirements for the extension of product life spans, efficiency and/or intensity of use, and efficient cycling of biological or technical materials, as well as for the securing of clean and nonrisky cycles. Circular procurement can occur through the procurement of better‐quality products in circular terms, the procurement of new circular products, the use of business concepts that support the CE, and investments in circular ecosystems. Several sectors and product groups were identified as having potential for circular procurement, such as construction, waste, and wastewater management, transportation, food, and catering, furniture, and textiles. The study also suggests that the use of certain tools, such as performance‐based procurement, life cycle approach, and life cycle costing, as well as criteria concerning reuse and recycling of materials, could promote circular procurement. Market dialogue and cooperation between procurers and actors in the supply chains are important for the future development of circular procurement.     

A social panorama within the life cycle thinking and the circular economy: a literature review

Purpose

This literature review aims to present the current methodologies that have been developed to perform a social life cycle assessment (sLCA) and to display the main differences among them. In addition to that, to identify the nexus between sLCA and circular economy (CE) and to what extent this life cycle technique has been involved within CE studies.

Methods

An analysis of scientific literature using online databases was made. A total of 76 publications, including all industry sectors worldwide, were chosen spanning 11 years, from 2009 to 2020. Special attention was made to the methodology used to assess the social impacts, the impact categories analyzed, and whether there is or not a circular economy case. All the impact categories of both UNEP/SETAC and PSIA were taken into account when doing the review, and the top three of the categories are mentioned here.

Results and discussion

The leadership of the UNEP/SETAC methodology is clear with 58 cases. Almost 90% of the case studies are focused on products while the remaining ones are related with services. Workers are the most considered stakeholder when conducting an sLCA research, followed by local communities and society. Regarding the impact assessment, the performance reference point (PRP) was the most common method used. When considering the CE even when some cases included the end-of-life stage in the system boundaries, the studies did not consider the actors from that stage; excluding these cases, one out of four articles has a link with CE, a promising proportion taking into account the early stage of both concepts (i.e., sLCA and CE).

Conclusions

UNEP/SETAC guidelines seem to be the most promising methodology due to its reception among the scientific community. However, a more industry-oriented approach is proposed by the Roundtable for Product Social Metrics (PSIA) in a way to respond to manufacturing companies’ demand. Regardless of the type of methodology to be implemented, workers represent the key stakeholder when assessing social impacts. The change in usual patterns is leading to a change in the way how stakeholders interact and therefore new and more impacts may arise, and that is the reason why it is important to include the CE into the sLCA. A series of challenges such as the feasibility of aggregating all the life cycle techniques to one (life cycle sustainability assessment), data availability, and quality are still present for the moment.

     

Developing Regenerate: A circular economy engagement tool for the assessment of new and existing buildings

The transition toward a circular economy (CE) is key in decarbonizing the built environment. Despite this, knowledge of—and engagement with—CE philosophies remains limited within the construction industry. Discussion with practitioners reveals this to be contributed to by a lack of clarity regarding CE principles, with numerous organizations recommending implementation of differing and sometimes conflicting principles. In addition, a systematic assessment of how building designs consider CE is made difficult by the multiple design areas required to be considered and the large amount of design data required to do so. The absence of a systematic CE assessment causes a lack of comparability across designs, preventing benchmarking of CE practices in building design at present. This paper details the development of Regenerate, a CE engagement tool for the assessment of new and existing buildings, established in an effort to overcome the aforementioned barriers to the adoption of CE within the construction sector. A CE design workflow for the built environment is proposed, comprising four overarching circularity principles (Design for Adaptability; Design for Deconstructability; Circular Material Selection; Resource Efficiency) and contributing design actions. In addition to engaging stakeholders by enabling the assessment of building designs, the tool retrieves key data for further research. Information on completed design actions as well as recycling and waste metrics is collected to facilitate future CE benchmarking. “Bill of materials” data (i.e., material quantities) is also compiled, with this being key in material stock modeling research and embodied carbon benchmarking.     

EcoDesign and LCA survey of current uses of environmental attributes in product and process development

A survey of designers was carried out to determine to what extent environmental information was being used in the development of products and processes. Twenty-seven designers in five industry categories (process, manufacturing, electronics, construction and automobile) reported mean product design times varying generally from twelve to thirty months. “Ecodesign” generally focused on the manufacturing, use and disposal stages of the product life cycle with material selection, emissions, energy, and recyclability for the principal environmental information employed. Approximately one half of the designers also reported the use of a typical life cycle impact parameter in their product development, with another one-third utilizing stressors including groundwater pollution, ozone depletion and global warming. A full 85% of the designers considered environmental parameters in their work generally as the result of a corporate policy with larger firms able to influence designers to a greater extent. The willingness to combine technical and economic parameters with environmental attributes was greater for non-durable products and designs involving less than two years. Specific preferences of designers within certain product and process groups are discussed. Designers considered electronic tools, with written documentation, as the most appropriate means to implement Ecodesign. A strong minority of the design have been limited to less than two days for the consideration of environmental information, implying the need to integrate life cycle assessment with validated ecometrics, if significant advances are to be made toward sustainable development.     

A framework to open the black box of the use phase in circular economy life cycle assessments: The case of shell jacket reuse

Life cycle assessments of circular economy measures (CE LCA) of consumer products have been criticized for oversimplifying important aspects of the use phase such as user behavior and rebound effects, limiting our understanding of the environmental performance of circular economy measures. This study tests the usefulness of a framework designed to facilitate accounting for such aspects, by applying the framework to a case study of reuse of shell jackets enabled by “premium secondhand” outdoor stores. Methods for collecting use phase data were user surveys and interviews with store managers. Using the framework on this case study generated several novel insights which are interesting in themselves and as inputs to CE LCA. For instance, secondhand shell jackets have a significantly lower frequency of use during their first use span compared to the second and to shell jackets in the linear reference scenario. This implies that reuse in this case does not function as a mere use extension of otherwise similar use phases as is commonly assumed. The generation of such insights, which hitherto have been lacking in CE LCAs, points to the usefulness of the framework as a tool for opening the “black box” of the use phase in CE LCAs to improve understanding of the environmental performance of circular economy measures.     

Integrating life cycle cost analysis and LCA

The private sector decision making situations which LCA addresses mustalso eventually take theeconomic consequences of alternative products or product designs into account. However, neither the internal nor external economic aspects of the decisions are within the scope of developed LCA methodology, nor are they properly addressed by existing LCA tools. This traditional separation of life cycle environmental assessment from economic analysis has limited the influence and relevance of LCA for decision-making, and left uncharacterized the important relationships and trade-offs between the economic and life cycle environmental performance of alternative product design decision scenarios. Still standard methods of LCA can and have been tightly, logically, and practically integrated with standard methods for cost accounting, life cycle cost analysis, and scenario-based economic risk modeling. The result is an ability to take both economic and environmental performance — and their tradeoff relationships — into account in product/process design decision making.     

The effect of consumption and production policies on circular economy business models: A machine learning approach

The circular economy (CE) is attracting increasing interest, as it can bring environmental, social, and economic benefits. However, policymakers and scholars appear to concentrate more on the production side of CE, while consumption, and particularly policies that affect consumption have received less attention and their effect is ambiguous. This paper investigates the effect of CE consumption policies on circular economy business models (CEBMs) in firms, but also examines the interplay this type of policies have with CE production policies to have a broader picture of the circular economy policy framework and the relevance of each type of policy on firms. While previous studies assume rational and passive consumer behavior, this paper borrows from a natural resource-based view and stakeholder theory, arguing that consumers have a proactive attitude toward the consumption of environmentally friendly products. Moreover, we use institutional theory as an analytical framework for modeling the effects of a particular policy framework on the CEBM. Our analysis combines classical econometric methods with machine learning approaches, employing data from the EU. The results show that CE policies aimed at promoting consumption have a direct and positive effect on CEBMs. This paper also confirms that a wide portfolio of CE policies on production and consumption has a greater effect on the development of CEBMs, due to the complementarity of CE consumption and production policies. Moreover, we show that in interaction with CE production policies, CE policies on consumption have an even greater effect on CEBMs in firms than would have been anticipated.     

Adapting Stand‐Alone Renewable Energy Technologies for the Circular Economy through Eco‐Design and Recycling

Renewable energy (RE) technologies are looked upon favorably to provide for future energy demands and reduce greenhouse gas (GHG) emissions. However, the installation of these technologies requires large quantities of finite material resources. We apply life cycle assessment to 100 years of electricity generation from three stand‐alone RE technologies—solar photovoltaics, run‐of‐river hydro, and wind—to evaluate environmental burden profiles against baseline electricity generation from fossil fuels. We then devised scenarios to incorporate circular economy (CE) improvements targeting hotspots in systems’ life cycle, specifically (1) improved recycling rates for raw materials and (ii) the application of eco‐design. Hydro presented the lowest environmental burdens per kilowatt‐hour of electricity generation compared with other RE technologies, owing to its higher efficiency and longer life spans for main components. Distinct results were observed in the environmental performance of each system based on the consideration of improved recycling rates and eco‐design. CE measures produced similar modest savings in already low GHG emissions burdens for each technology, while eco‐design specifically had the potential to provide significant savings in abiotic resource depletion. Further research to explore the full potential of CE measures for RE technologies will curtail the resource intensity of RE technologies required to mitigate climate change.     

Environmentally Conscious Product Design: A Collaborative Internet-based Modeling Approach

This paper proposes a computer-based method for providing product designers with real-time environmental impact assessment. In this concurrent modeling approach, environmental experts build life-cycle models, define their interfaces, and publish them as distributed objects on the Internet. Traditional designers integrating these objects into their design models have access to the impact assessment methods provided by the environmental expert. In this paradigm, the focus shifts from providing techniques that let non-expert designers perform life-cycle impact assessments to tools that facilitate timely communication and information transfer between designers and appropriate environmental experts. Establishing real-time communication between the product design models and the environmental life-cycle models is the primary focus of this paper. Methods for establishing and maintaining the interaction between life-cycle and product design models are described. A beverage container design example illustrates how this collaborative approach can use environmental and traditional design goals to determine effective tradeoffs between design alternatives.     

Linking Industrial Ecology and Ecological Economics: A Theoretical and Empirical Foundation for the Circular Economy

The circular economy (CE) is a new model for the production and consumption of goods, which has attracted wide political attention as a strategy toward sustainability. However, the theoretical foundation of CE remains poorly structured and insufficiently explored. Recent studies have shown that the CE model draws on different schools of thought and that its origins are mainly rooted in fields such as industrial ecology (IE) and ecological economics (EE). In this article, we investigate the links between CE, IE, and EE and provide an overview of the similarities and differences between these fields. At the same time, we analyze to what extent the linkages between IE and EE can create a coherent body of knowledge for CE, and be used to identify further research opportunities. This paper shows that, until now, research on CE seems to be mainly rooted in the field of IE and based on concepts and tools that already exist in other fields, rather than inventing new ones. The reconciliation of IE and EE could provide a mechanism to extend beyond such a narrow focus, and increase knowledge of the theoretical and practical framework of CE to benefit sustainability.     

A matter of timing: System requirements for repair and their temporal dimensions

Research into repair within the circular economy (CE) typically focuses on technical aspects of design, policy, and markets, and often assumes simplified conditions for the user/owner and the product system to explain the barriers to scaling repair activities. However, factors occurring at pre-use stages of the product's life cycle can significantly influence whether, and to what extent, repair is viable or possible, that is, warranty duration, after-sale service provision, and access to necessities. The passing of time can directly and indirectly affect the ability, difficulty, and thus, the likelihood of repair activities being performed at each stage of the product's life cycle. Drawing from the literature and applying inductive systems-thinking tools, we propose a framework for considering the “System of Repairability.” We delineate how the passing of time (temporal dimensions) affects one's ‘‘ability to repair,’’ as a product progresses through different life cycle phases (i.e., breakdown vs. repair vs. disposal), and the point(s) at which the repair is considered or attempted (i.e., year of usage). By integrating life cycle and temporal (time-based) dimensions into a broad System of Repairability framework, we clarify relevant interconnections, iterations, sequences, and timing of decision points, stakeholders, and necessary conditions to facilitate an outcome of successful repair at the individual level, and thus intervention strategies for scaling repair within CE. We discuss how a policy mix can address the life cycle of products and the repair system more holistically. We conclude with a future outlook on how temporal dimensions can inform policy strategies and future research.     

Evolution of research on circular economy and related trends and topics. A thirteen-year review

Environmental concern has been on the rise in recent years and a proposal for a circular economy (CE) as a tool for sustainable development has received attention from governments, practitioners, and academics. In this sense, the literature on the topic has grown from 12 scientific articles published in 2008 to 2355 in 2020, which represents an almost two hundredfold increase in around a decade. However, CE is a relatively new subject, and much research remains to be conducted; it is therefore important to gain an adequate understanding of the subject to address more specific, related issues. The purpose of this review is to identify the main trends in CE and their evolution. It presents an advanced bibliometric method consisting of a combination of co-word analysis and social network analysis developed to identify the main topics and trends in this field. The results show the evolution of research, frequency, and relevance of the terms studied, links between them, and their density and network visualisation. Bibliometric tools have further been applied to obtain the research outputs of the main journals, as well as the authors and research topics that have been addressed during this period. New directions for future research lines are also proposed.     

Linking Industrial Ecology with Business Strategy: Creating Value for Green Product Design

As organizations practice environmental design, some discover green design positively impacts business performance. This article demonstrates how an organization can employ existing design methods and tools with the Kano technique to craft an environmental product design strategy that enhances its business strategy. These tools expand the toolbox of the industrial ecologist and enable the link between green design and business improvement. The Kano technique was developed in the 1980s to facilitate design of innovative products. We also introduce terminology and concepts such as “voices of the environment,”“environmental knowledge management,”“environmental profile,” and “environmental product attribute” in order to bridge the gap between industrial ecology and business concerns. To demonstrate how an organization can find the synergy between business value and environmental value, this article describes three activities and their corresponding tools and exhibits their use with industry examples. First, we present techniques by which designers can identify and prioritize customers and stakeholders who voice both environmental and business concerns. Second, we describe how voice‐of‐the‐customer translation techniques can be used to efficiently collect and translate data from these customers and stakeholders into critical environmental product and service attributes. Third, we discuss how the Kano technique can be used to connect green design to business strategy by making visible the variety of stakeholder and customer perceptions of these critical environmental attributes. Examples then demonstrate how those perceptions suggest appropriate approaches for integrating the critical environmental attributes into product and business strategy. Finally, we provide examples based on work done with General Electric Medical Systems (GEMS) to illustrate the design of products that improve environmental performance while adding greater perceived value for numerous customers along material‐flow value chains.     

Dematerialization and the Circular Economy: Comparing Strategies to Reduce Material Impacts of the Consumer Electronic Product Ecosystem

The rapid technological evolution and adoption of consumer electronics highlights a growing need for adaptive methodologies to evaluate material consumption at the intersection of technological change and increasing consumption. While dematerialization and the circular economy (CE) have both been proposed to mitigate increasing material consumption, recent research has shown that these methods may be ineffective at achieving net material use reduction: When focused on specific products, these methods neglect the effects of complex interactions among and increasing consumption of consumer electronic products. The research presented here develops and applies a material flow analysis aimed at evaluating an entire “product ecosystem,” thereby including the effects of increasing consumption, product trade‐offs, and technological innovations. Results are then used to evaluate the potential efficacy of “natural” dematerialization (occurring as technology advances or smaller products substitute for larger ones) and CE (closing the loop between secondary material supply and primary material demand). Results show that material consumption by the ecosystem of electronics commonly used by U.S. households peaked in 2000. This consumption relies on increasingly diverse materials, including gold, cobalt, and indium, for whom secondary supply is still negligible, particularly given low recovery rates, often less than 1%. Potential circularity metrics of material “dilution,” “dispersion,” and “demand mismatch” are also evaluated, and indicate that CE approaches aimed at closing the loop on consumer electronic material still face several critical barriers particularly related to design and efficient recycling infrastructure.     

Restorative and regenerative: Exploring the concepts in the circular economy

The most recognized definition of the circular economy is that it is a restorative and regenerative economy. Despite the wide use and importance attributed to the concepts of “restoration” and “regeneration,” they are rarely defined or explained in the circular economy literature. In this context, this study critically examines the two terms, while providing guidance on their future utilization and development. Specifically, the study investigates the origin of the concepts, their adoption in frameworks that anticipated the idea of the circular economy, and their connotations in the circular economy literature. The examination supports the need for clear and distinct definitions, combined with precision in usage. From a review of the literature, restoration is a better‐defined concept than regeneration, although it needs conceptual re‐enforcement relative to the biological/ecological aspects of the circular economy. This study suggests looking in the direction of restoration ecology, a well‐established branch of ecological research. Conversely, regeneration is a symbolic/evocative term with little practical application in the context of circular systems except in the case of certain agricultural practices. Until new conceptual developments intervene, regeneration does not seem to be applicable to the economy as a whole and because of this, might be abandoned as a guiding principle of the circular economy. Unlike regeneration, restoration can be considered a core principle because it has widespread application and can be a point of reference for circular applications. This does not preclude the possibility that other concepts may be needed to augment restoration.     

Development of an Environmental Assessment Method for Consumer Electronics by combining Top-down and Bottom-up Approaches (11 pp)

Goal, Scope and Background Ecodesign requires environmental assessment methods, which are often time consuming and cost intensive. In this paper we proposed a method that combines top-down (e.g. LCA) and bottom-up (e.g. UNEP) approaches that allows one within short period of time to generate ecodesign ideas by identifying what to improve, how much to improve, and how to improve within a short period of time. The proposed method incorporates an environmental assessment method for use in the ecodesign of consumer electronics that employs the top-down and bottom-up approaches simultaneously. Method The proposed method consists of five modules: A. a life cycle thinking for a product, B. environmental benchmarking, C. checklist method, D. ecodesign strategies, and E. environmental design information. A key life cycle stage with significant environmental impact is identified in module A. When the identified key life cycle stage is not product manufacturing, environmental benchmarking is used; however, a checklist method is applied if product manufacturing is identified as the key life cycle stage. Ecodesign strategies for consumer electronics are obtained in module D. Environmental design information is produced by linking both the top-down and bottom-up information in module E. Results and Discussion The applicability of the proposed method was evaluated using mobile phones. First, the key life cycle stage of the mobile phone was identified as the raw material acquisition stage. Next, environmental benchmarking was carried out for 10 parameters belonging to the raw material acquisition stage. Environmental target specifications for the 10 parameters were set, ranging from 14% to 60%. Finally, environmental design information for the mobile phone was determined by linking the target specifications of the environmental benchmarking parameters and the corresponding ecodesign strategies. The proposed method was also compared with the LCA and the UNEP/promising approaches, which are representative examples of the top-down approach and the bottom-up approach, respectively. Based on the results of this comparison, the proposed method was judged to be an advanced method in facilitating the generation of ecodesign ideas. Environmentally significant benchmarking parameters correspond to what to improve, target specifications to on how much to improve, and ecodesign strategies ton how to improve. It was found that the use of the proposed method minimizes the time and money expenditure by confining the identification of environmental weak points within the key life cycle stage. Conclusion and Outlook An environmental assessment method for consumer electronics in ecodesign was proposed and applied to mobile phones. The advantages of the proposed method are as follows: it is efficient and cost-effective, and it allows designers to generate ecodesign ideas more easily and effectively by simultaneously identifying the specific environmental weak points of a product and corresponding ecodesign strategies. The proposed method can be envisaged as a useful ecodesign approach when electronic companies identify the environmental aspects of their products and integrate them into product design and development process.     

Efforts for a Circular Economy in China: A Comprehensive Review of Policies

Circular economy concepts, practices, and policies are increasingly drawing attention as important means for the pursuit of sustainable development. This article uses a conceptual framework to catalogue and investigate policy efforts for the circular economy in China. Based on the framework, policy prototypes and specific examples are identified: resource‐oriented, production‐oriented, waste, and use‐oriented and life cycle policies. A comprehensive review of 280 related policies shows that China has a long history of resource‐oriented policies and implemented production‐oriented policies very quickly after the year 2000. China's policies toward the circular economy became more comprehensive through time, with a broad engagement of government agencies, an extensive and progressive coverage of recycling opportunities, production initiatives across multiple scales, and use of different policy instruments. The continuous progress has been driven by proactive state actors and their learning from the international society. The current policy framework, however, is concerned more with the means rather than the ends of the circular economy, and relies too much on direct subsidies and other financial incentives. Policy making can be improved by more explicit consideration of the whole production life cycle and use of market‐based policy design.     

Combining industrial ecology tools to assess potential greenhouse gas reductions of a circular economy: Method development and application to Switzerland

Industrial ecology (IE) methodologies, such as input/output or material flow analysis and life cycle assessment (LCA), are often used for the environmental evaluation of circular economy strategies. Up to now, an approach that utilizes these methods in a systematic, integrated framework for a holistic assessment of a geographic region's sustainable circular economy potential has been lacking. The approach developed in this study (IE4CE approach) combines IE methodologies to determine the environmental impact mitigation potential of circular economy strategies for a defined geographic region. The approach foresees five steps. First, input/output analysis helps identify sectors with high environmental impacts. Second, a refined analysis is conducted using material flow and LCA. In step 3, circular strategies are used for scenario design and evaluated in step 4. In step 5, the assessment results are compiled and compared across sectors. The approach was applied to a case study of Switzerland, analyzing 8 sectors and more than 30 scenarios in depth. Carbon capture and storage (CCS) from waste incineration, biogas and cement production, food waste prevention in households, hospitality and production, and the increased recycling of plastics had the highest mitigation potential. Most of the scenarios do not influence each other. One exception is the CCS scenarios: waste avoidance scenarios decrease the reduction potential of CCS. A combination of scenarios from different sectors, including their impact on the CCS scenario potential, led to an environmental impact mitigation potential of 11.9 Mt CO₂-eq for 2050, which equals 14% of Switzerland's current consumption-based impacts.     

How to monitor environmental pressures of a circular economy: An assessment of indicators

Understanding how a circular economy (CE) can reduce environmental pressures from economic activities is crucial for policy and practice. Science provides a range of indicators to monitor and assess CE activities. However, common CE activities, such as recycling and eco‐design, are contested in terms of their contribution to environmental sustainability. This article assesses whether and to what extent current approaches to assess CE activities sufficiently capture environmental pressures to monitor progress toward environmental sustainability. Based on a material flow perspective, we show that most indicators do not capture environmental pressures related to the CE activities they address. Many focus on a single CE activity or process, which does not necessarily contribute to increased environmental sustainability overall. Based on these results, we suggest complementing CE management indicators with indicators capturing basic environmental pressures related to the respective CE activity. Given the conceptual linkage between CE activities, resource extraction, and waste flows, we suggest that a resource‐based footprint approach accounting for major environmental inputs and outputs is necessary—while not sufficient—to assess the environmental sustainability of CE activities. As footprint approaches can be used across scales, they could aid the challenging process of developing indicators for monitoring progress toward an environmentally sustainable CE at the European, national, and company levels.