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PACE Releases Guidance for Circular Economy Transition in Five Sectors | News | SDG Knowledge Hub | IISD – IISD Reporting Services

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The Platform for Accelerating the Circular Economy (PACE) Secretariat has released five publications that outline how the electronics, textiles, food, plastics, and capital equipment sectors can increase their circularity. Comprising the ‘Circular Economy Action Agenda,’ the reports serve as a rallying call for businesses, governments, researchers, consumers, and civil society to work together.

Each publication outlines the objective for a circular economy and what circularity in that particular sector looks like, the impact on people and the planet if those objectives were to be achieved, the barriers that stand to hinder implementation, and actions that can optimize the sector’s transition towards a more circular economy.

The report, ‘Circular Economy Action Agenda: Electronics,’ authored in partnership with Accenture, notes that less than 20% of electronics are collected and recycled, despite the raw materials within e-waste being valued at approximately USD 57 billion per year. A circular economy for electronics, the report explains, would see products use more recycled and recyclable content, designed for longevity and collected for recycling when they are no longer suitable for use. However, barriers include, inter alia, production systems that depend on virgin materials, lack of industry-wide standards for circular design and inconsistent regulatory regimes, and lack of knowledge on the hazards wrought by e-waste.

The report’s ten calls to action to accelerate the transition to a circular economy for electronics include, inter alia, incentives for designing circular products, enabling easier sourcing of recycled content, increasing market demand for circular products and services, setting up effective collection systems, and encouraging customers to take back their electronics once they are no longer useable. For each call to action, as also done in the other four publications, the report outlines where governments, financial services institutions, consumers, and civil society actors can start.

Of note is a cross-cutting call to action to enable efficiency and transparency in compliance and responsible transboundary movement. It cites the relevance of the Basel Convention, which prohibits illegal trade and dumping of hazardous waste as end-of-life electronics are often classified. PACE recommends that competent authorities to the Basel Convention team up with trade ministries, private sector actors, and standard-setting institutions to develop certifications and “green lanes” for environmentally sound management of e-waste.

Used textiles trade should be managed with targeted efforts to ensure environmental benefits.

The report, ‘Circular Economy Action Agenda for Textiles,’ also produced with Accenture, flags that people throw away apparel worth an estimated USD 460 billion each year, and that the textiles industry consumes roughly 215 trillion liters of water annually. Recycling textile waste, the report notes, can unlock up to USD 100 billion per year, as well as natural resource and chemical use reductions.

The report envisions a future where inputs for textiles are safe, recycled, or renewable; where textiles are kept in use for longer; and where textiles are recycled at the end of their use, rather than incinerated or landfilled. Barriers to achieving this vision include high price sensitivity in the fibers market, short trend cycles (e.g. fast fashion), undeveloped collection and sorting infrastructure, and blended fibers and chemical additives that compromise the quality and safety of textile recycling.

The ten calls to action to accelerate the transition to a circular textile economy include incentivizing and supporting textiles’ design for longevity and recyclability, encouraging behavioral shifts, guiding new business models, increasing efficiency and quality in textiles sorting, and making the recycled fibers market more competitive. The authors note that (re)used textiles sent overseas can deliver environmental benefits, but it remains unclear how much imported textiles are actually reused, rather than downcycled or disposed of. Accordingly, a call to action emphasizes that the used textiles trade should be managed with targeted efforts to ensure environmental benefits and help preserve local industries, in part through matching countries’ desired levels of import and export.

The report, ‘Circular Economy Action Agenda for Plastics,’ also by PACE and Accenture, projects plastic packaging volumes to more than quadruple by 2050, to over 318 million tons per year. A circular economy for plastics, the report notes, starts with eliminating unnecessary plastics and shifting from virgin materials to recycled or renewable ones. Highlighting that just 14% of plastic packaging today is collected for recycling (and that an even lower percentage is actually recycled), several of the report’s ten calls to action point to a need for incentivizing reusing—and eventually recycling—plastics, in part through better-functioning collection systems and strategically-planned sorting and recycling facilities.

Fragmentation of the plastic waste trade globally can contribute to uncertainty around investments in reverse logistics and recycling infrastructure.

The report calls out fragmentation of the plastic waste trade globally as a barrier to a circular economy for plastics, which, beyond disincentivizing plastics’ collection and transport, can also contribute to uncertainty around investments in reverse logistics and recycling infrastructure. One of the calls to action outlines how actors can strategically plan sorting and recycling facilities in compliance with trade regulations. The call to action references the Basel Convention’s Plastics Waste Amendments, which came into effect in January 2021, to enhance control of transboundary movements of plastic waste.

The report, ‘Circular Economy Action Agenda: Food,’ developed by the PACE Secretariat and Resonance, notes that a third of all food is currently lost or wasted, despite the fact that 800 million people do not have enough to eat. The report highlights the value of a regenerative food system that goes far beyond the current production regime where 75% of food is derived from just 12 plant and animal species. Rather, a circular food economy would recycle the nutrients in food byproducts to make textiles and animal feed or drive innovations. Less than 2% of nutrients are recycled today.

The report calls for a transition to healthy diets based on regenerative practices that avert food loss and waste hotspots. Additional calls to action include reframing wasted food and byproducts as valuable resources, rather than trash, and facilitating secondary market development for these inputs. Nineteen barriers identified include perverse incentives such as ecologically harmful agricultural subsidies and lack of finance or assistance to more sustainable production methods, as well as poor coherence and logistics such as cold chains and proper storage.

The report, ‘Circular Economy Action Agenda: Capital Equipment,’ by PACE, Accenture, and Circle Economy, covers long-lived buildings, machines, and infrastructure, which consume 7.2 million tons of raw materials annually. A circular economy for capital equipment, the report notes, would primarily see products designed with reuse rather than recycling in mind, and delivered though “product-as-a-service” models that go beyond one-off sales. Calls to action, similar to other sectors, include incentives for circular product design, servitization, increasing end-of-use product return, and responsible reverse logistics systems, among other recommendations. One barrier of note is that some public organizations are not allowed to trade with private parties, which prevents capital equipment from being returned for refurbishing or reuse.

PACE notes that over 200 experts from more than 100 businesses, governments, and civil society organizations have contributed to the development of the Action Agenda. PACE was created in 2018 by the World Economic Forum (WEF). It is now hosted by the World Resources Institute (WRI). [Publication: Circular Economy Action Agenda: Electronics] [Publication: Circular Economy Action Agenda: Textiles] [Publication: Circular Economy Action Agenda: Plastics] [Publication: Circular Economy Action Agenda: Food] [Publication: Circular Economy Action Agenda: Capital Equipment] [PACE Circular Economy Action Agenda Landing Page]

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Toronto Stock Exchange rises 0.64% to 19,310.74

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* The Toronto Stock Exchange’s TSX rises 0.64 percent to 19,310.74

* Leading the index were Ero Copper Corp <ERO.TO​>, up 13.6%, Nexgen Energy Ltd​, up 12.6%, and Denison Mines Corp​, higher by 10.5%.

* Lagging shares were Kinaxis Inc​​, down 5.2%, Ballard Power Systems Inc​, down 3.9%, and Cominar REIT​, lower by 3.5%.

* On the TSX 132 issues rose and 93 fell as a 1.4-to-1 ratio favored advancers. There were 30 new highs and 1 new low, with total volume of 246.0 million shares.

* The most heavily traded shares by volume were Enbridge Inc, Suncor Energy Inc and Manulife Financial Corp.

* The TSX’s energy group rose 3.28 points, or 2.7%, while the financials sector climbed 2.69 points, or 0.8%.

* West Texas Intermediate crude futures fell 0.58%, or $0.38, to $65.31 a barrel. Brent crude  fell 0.29%, or $0.2, to $68.68.

* The TSX is up 10.8% for the year.

This summary was machine generated May 5 at 21:03 GMT.

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Merkel wants Europe, United States to aim for new trade deal

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BERLIN (Reuters) – A trade agreement between the United States and the European Union would “make a lot of sense”, German Chancellor Angela Merkel said in a speech in which she welcomed the United States’ return to the multilateral fold under President Joe Biden.

German enthusiasm for a trade deal and stronger transatlantic ties may have to contend with a more cautious approach in France, where President Emmanuel Macron has made a priority of reducing European reliance on rival superpowers.

Merkel said that while Germany had no interest in a world divided into camps as it was in the Cold War, it was good that the United States, Europe’s “most important ally”, stood alongside Europe in rivalries with China and Russia.

“I have always supported a trade agreement between the United States of America and the European Union,” she told a Berlin conference on the future of transatlantic ties.

“We have trade agreements with so many of the world’s regions. It would make a lot of sense to develop such a trade agreement here, similar to what we have done with Canada,” she added.

Merkel’s transatlantic coordinator Peter Beyer told Reuters in February that Germany and the new U.S. administration should “think big” and aim for an ambitious agenda including a trade deal to abolish industrial tariffs and a WTO reform to increase pressure on China.

The European Union has put reform of the World Trade Organization at the heart of its trade strategy for the next decade, saying global rules on commerce must be greener, take more account of state subsidies and be enforced.

The EU itself feels bruised by trade wars, Brexit and what it sees as unfair competition from China, which it perceives as a “systemic rival”, and is taking more assertive measures to enforce global trade rules and ensure a level playing field.

Merkel said that despite issues with its ratification in the EU, the bloc’s planned investment agreement with China, the comprehensive agreement on investment (CAI), is a “very important undertaking, because it gives us more reciprocity in market access”.

At the same time, it was necessary to address “the whole range of issues” with China, including its human rights record, she added.

The EU executive has hailed the CAI, struck at the very end of 2020, as a means to secure better access for European companies to Chinese markets and redress unbalanced economic ties.

But concerns over China’s human and labour rights record and scepticism from the United States had already cast doubt on the deal’s approval process even before Chinese blacklisting of five members of the European Parliament in tit-for-tat sanctions.

 

(Reporting by Thomas Escritt, Paul Carrel and Michael Nienaber; EDiting by Giles Elgood)

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Canadian dollar posts three-year high as risk appetite climbs

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Canadian dollar

By Fergal Smith

TORONTO (Reuters) – The Canadian dollar strengthened to its highest level in more than three years against its U.S. counterpart on Wednesday, supported by improved investor sentiment and the Bank of Canada‘s recent shift to more hawkish guidance.

The Dow Jones Industrial Average hit a record high as the market recovered from a steep tech sell-off, after investors were encouraged by U.S. Treasury Secretary Janet Yellen’s new comments on interest rates and a positive private jobs report.

“Risk-on conditions” and the recent move higher in commodity prices bolstered the Canadian dollar,” Ronald Simpson, managing director, global currency analysis at Action Economics, said in a note. “In addition, the BoC’s tapering of its QE program appears to have shifted USD-CAD’s trading range down a notch.”

Last month, the Bank of Canada cut the pace of its bond purchases and signaled it could hike interest rates in late 2022.

Further clues to the central bank’s policy outlook could come from Canada‘s April employment report, due for release on Friday.

The Canadian dollar was trading 0.2% higher at 1.2280 to the greenback, or 81.43 U.S. cents, having touched its strongest intraday level since February 2018 at 1.2252.

U.S. crude oil futures settled 0.1% lower at $65.63 a barrel as traders used weekly inventory figures as an excuse to pull back from the recent rally. Oil is one of Canada‘s major exports.

Home sales in Toronto, Canada‘s most populous city, fell nearly 13% in April from March. That bucked the regular spring trend, as demand began to ease after months of blistering growth.

Canadian government bond yields were mixed across the curve, with the 10-year little changed at 1.521%.

 

(Reporting by Fergal Smith; Editing by Kirsten Donovan and Nick Zieminski)

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