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Linda Godfrey - Circular Economy NCPC-SA

The document discusses creating a circular economy by transitioning to a more sustainable business model. It defines a circular economy as aiming to decouple economic growth from natural resource use by using resources more effectively through closed-loop systems. Governments and businesses are adopting circular economy approaches to realize cost savings, economic benefits like job creation, and reduce environmental impacts. Shifting to a circular business model involves designing products for longevity, adopting service-based models, and generating value across the supply chain through collaboration. South Africa faces challenges in implementing a circular economy but also opportunities to strengthen manufacturing and address unemployment through more sustainable practices.

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CREATING A CIRCULAR ECONOMY…. (WAIT YOU WANT US TO DO WHAT NOW?) Prof Linda Godfrey NCPC-SA Industrial Efficiency Conference - Industrial Symbiosis & Waste Thursday, 14 September 2017, Cape Town
2 “Sustainability is the innovation challenge of our lifetime” “Our ambition: Double our business, with half the impact. This audacious goal will fuel our creative design process, drive innovation to disrupt our business model and transform the industry. It’s more than a concept. It’s our vision “We believe it is not enough to adapt to what the future may bring – we’re creating the future we want to see through sustainable innovation” © CSIR 2017 www.csir.co.za https://www.youtube.com/watch?v=zxn-X5GCA3M http://about.nike.com/pages/sustainable-innovation?linkId=24352801 ~ Nike
3 So what is the Circular Economy? It’s NOT about doing this just more sustainably….. Circular Economy ≠ Recycling
4 “A Circular Economy aims to decouple economic growth from the use of natural resources and ecosystems by using those resources more effectively” Creating an economy that is restorative and regenerative by design – it’s a system change
5 © CSIR 2017 www.csir.co.za
6 Why are Governments and Businesses taking the Circular Economy seriously now? © CSIR 2017 www.csir.co.za
7 WHY ARE COUNTRIES ADOPTING CE? © CSIR 2017 www.csir.co.za • Introducing the Circular Economy in developed and developing countries • With a focus on maintaining the value of products, materials and resources • Would result in – - Savings for businesses (for EU equivalent to 8% of their annual turnover) - Bring national economies greater economic benefits than current path (for India US$ 624 billion in 2050) - Create jobs - Reduce total annual greenhouse gas emissions by 2-4%https://ec.europa.eu/commission/sites/beta- political/files/circular-economy-factsheet-general_en.pdf https://www.ellenmacarthurfoundation.org/publications/i ndia
8 WHY ARE BUSINESSES ADOPTING CE? • The drivers for Business/Industry to adopt a Circular Economy include – - Brand image (green washing?) - Legislative pressure and the cost of compliance - Cost savings – increasing costs (raw material and waste) - Corporate responsibility - Risk management – a future of resource scarcity • Ultimately it makes good business sense… © CSIR 2017 www.csir.co.za
9 • But, the Circular Economy is more than just business adopting resource efficiency and zero waste strategies (i.e. risk management and cost savings) • The Circular Economy will be disruptive for business – but this can create new business opportunities … © CSIR 2017 www.csir.co.za The new kid on the block – The “Sharing Economy” WHY ARE BUSINESSES ADOPTING CE?
10 © CSIR 2017 www.csir.co.za A SHARING / COLLABORATIVE ECONOMY
11 How do I shift to a Circular Economy Business? © CSIR 2017 www.csir.co.za
12 SHIFTING TO A CE BUSINESS • “Business must think of the resources in their products as assets rather than inputs and their customers as users rather than buyers.” • The question then becomes – - How can we design our products with asset recovery in mind to take into account the true cost of materials? - How can we develop product lines to meet demand without wasting assets? - How can we source material from within regenerative loops rather than linear flows? - How can we develop a revenue model that generates value at all parts of the value chain, and - How can we get our customers to change their consumption and ownership patterns? © CSIR 2017 www.csir.co.za
13 SHIFTING TO A CE BUSINESS • In other words, a Circular Economy company no longer sells a “once-off item” (designed for obsolescence to ensure repurchase), but sells a “service” • It moves from a “Consumptive model” to a “Service- and function-based business model” • When a business does this, it ensures best product design for longevity thereby increasing material productivity • For example, a CE Business, no longer – - Sells “car tyres”, but sells “driving miles” for their customers - Sells “cars”, but sells “mobility services” - Sells “washing machines”, but sells “pay-per-wash” © CSIR 2017 www.csir.co.za
14 Stop and think about that? How would a future service- based business model (Circular Economy) affect what your business does? © CSIR 2017 www.csir.co.za
15 What are the opportunities for South Africa? © CSIR 2017 www.csir.co.za
16 • Opportunities in CE exist for SA • Prevention – - Significant opportunity for businesses to reduce their waste generation • Reuse • Recycling – - where most of our activity is currently focussed, but opportunity for greater local beneficiation • Recovery THE “OPPORTUNITY” FOR SA • Maintain, remanufacture, refurbish • Sharing or Collaborative Economy © CSIR 2017 www.csir.co.za Prevent Reuse Recycle Recover Dispose Opportunities for WISP and NISP Opportunities for Cleaner Production
17 © CSIR 2017 www.csir.co.za Focus to date largely on recycling of paper and packaging - developed “organically” in response to large informal sector (collecting) and voluntary EPR (market) Some “refurbishment and reuse” happening, but often informally (behind the scenes), 60% of revenue of WEEE SMMEs generated through refurbishment. Some remanufacturing of parts in local automotive industry Collection remains one of (if not the) biggest challenges in SA – especially for organics (big country/logistics) Single largest general waste stream produced in SA (but diffuse source, large country). Surprisingly little happening on organic waste beneficiation despite GHG risk Only now starting to see some commercial activity in AD (slow, considering the opportunity),- can be a sensitive technology Variable success with composting – seasonal, geographic markets, risk of household hazardous (MSW) No high temperature WtE. Seen by some as threat to materials recovery – opportunity to leapfrog? Highlights of current SA activities aligned with the Circular Economy ±54% Paper & Packaging (2016) ±55% PET bottles (2016) ±11% WEEE (2011) ± 16% C&D (2011) Biomass use for energy generation (in- plant) Local initiatives emerging to support improved product design, e.g. packaging But what % of consumption is imported:locally produced? Remains largely at the R&D stage (biorefinery). Emerging discussion on bioplastics ±90% (2011)
18 THE CHALLENGES/CONSTRAINTS - The drivers of the CE for Europe, i.e. lack of access to primary resources; lack of space; access to end-use markets (specialist manufacturing), are not the same as for South Africa - Retaining material at highest value requires getting resources back into the value chain – needs effective collection systems (SA does not have separation-at-source) - We haven’t yet gotten the basics of solid waste management right (city cleansing, sanitary landfilling) – foundation for implementing IWM and CE - We need to correct the “economics of waste” – landfilling is too cheap in SA to drive the CE © CSIR 2017 www.csir.co.za
19 © CSIR 2013 www.csir.co.za Uncontrolled dumping, waste picking – Municipal dumpsite, South Africa © Linda Godfrey
20 QUESTIONS TO BE ANSWERED - In domesticating CESA, we need a better understanding of – - What the constraints are of future resource scarcity on the SA economy, i.e. what resources would SA need in a post-mining landscape, to structure our CE around? - What control SA has on product design, i.e. how much control do we have in designing waste out of the system? What % of products consumed in SA are imported (limited control) versus locally manufactured (control)? - What the impact of reduced (or changing) consumption is on SA’s economy (and reduced primary resource consumption) - How we integrate a large informal sector (already active) into a circular economy © CSIR 2017 www.csir.co.za
21 CONCLUSIONS • Some of the key drivers for SA to implement the circular economy – - Unemployment – greater job creation as one moves up the waste hierarchy (away from landfilling) - Strengthening SA’s manufacturing economy (local beneficiation) - Cost savings for business - Positioning SA for a post-mining economy © CSIR 2017 www.csir.co.za Type of Operation Jobs per 1000 T Product Reuse - Computer reuse 296 - Textile reclamation 85 - Misc. durables reuse 62 - Wooden pallet repair 28 Recycling-based manufacturers (average) 25 - Plastic product manufacturers 93 - Glass product manufacturers 26 - Paper mills 18 Conventional Materials Recovery Facility 10 Composting 4 Landfilling and incineration 1 Source: (CASCADIA, 2009) citing (Seldman, 2006) Table: Job creation for reuse, recycling and conventional disposal of waste in the USA
22 © CSIR 2017 www.csir.co.za • No doubt the Circular Economy creates social, economic and environmental opportunities • But, we need to carefully define the unique value proposition that the CE provides for South Africa • Need to ensure that we bring all on the journey so that we don’t create further disparity in resource management, i.e. need to implement CE on a stable foundation of good city cleansing and waste management (eliminate uncontrolled dumping) • We must get the economics of waste management right! CONCLUSIONS Circular EconomySA
23 QUESTIONS Thank you Prof Linda Godfrey Manager | Waste RDI Roadmap Implementation Unit | DST Principal Scientist | Waste for Development | CSIR Extraordinary Associate Professor | North-West University Email: LGodfrey@csir.co.za Web: www.csir.co.za and www.wasteroadmap.co.za © CSIR 2017 www.csir.co.za
24 © CSIR 2013 www.csir.co.za
WASTE RESEARCH & INCENTIVE PROGRAMMES TRANSITIONING TO A LOW CARBON, RESOURCE EFFICIENT ECONOMY SEPTEMBER 2017 INDUSTRIAL EFFICIENCY CONFERENCE 2017
BUREAU FINANCIAL ALLOCATIONS “Symbiotic relationships mean creative partnerships. The earth is to be seen neither as an ecosystem to be preserved unchanged nor as a quarry to be exploited for selfish and short-range economic reasons, but as a garden to be cultivated for the development of its potentialities of the human adventure. The goal of this relationship is not the maintenance of the status quo, but the emergence of new phenomena and new values.” – René Jules Dubos (1901 – 1982)
PRESENTATION OUTLINE • Current Outlook • Our Commitments • SMME Perspectives • Sound Waste Management Practices • Incentives vs. Disincentives • Recycling Enterprises Support Programme • Conclusion
CURRENT OUTLOOK 0.62% contribution to GDP1 111 Mt of waste generated per annum 75% of waste disposed in landfill2 60,000 – 90,000 informal waste pickers ~110,000 formal jobs in chemical sector ~10% annual job growth in the private waste economy ~35,000 formal jobs in the waste economy
OUR COMMITMENTS Transition to a low carbon economy in a manner that enhances economic growth, job creation, sector competitiveness and business profitability. National Development Plan • Government’s long-term development plan outlining its vision for 2030 to eliminate poverty and reduce inequality • Most relevant objectives for the Waste sector:  Economy & employment  Environmental sustainability & resilience  Transforming human settlements  Improving education, training & innovation Sustainable Development Goals • SDG 12 clearly speaks to the ensuring sustainable consumption and production patterns. • Targets include:  By 2030, achieve the sustainable management and efficient use of natural resources  By 2030, halve per capita global food waste  By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse
OUR COMMITMENTS New Growth Path (NGP) • Government’s vision for jobs and decent work at the centre of economic policy • The main target is to create five million new jobs by 2020 • Most relevant job drivers for the Waste sectors: • Job driver 2: Targeting more labour- absorbing activities across the economy • Job driver 3: Taking advantage of new opportunities in the knowledge and green economies. Mid Term Strategic Framework • Government’s medium-term strategic plan for the 2014-19 term. • Overall goals are to stimulate GDP growth, create decent work opportunities and attract investment • Relevant outcomes for the Waste sectors: • Outcome 4: Decent employment through inclusive economic growth • Outcome 8: Sustainable human settlements & improved quality of household life
SMME PERSPECTIVES • SMMEs are extrinsically motivated to participate in or adhere to sustainable manufacturing practices. • SMMEs view sustainable practices as potentially forming part of a long-term strategy, it is something they perceive to only be attainable should their businesses enjoy greater financial stability. • Finally, SMMEs indicated that they don’t as yet see sustainable practices as a competitive advantage, except in the instances where it is imposed upon them by valued clients or customers. 1 SMMEs and the Green Economy: Muddy waters and murky futures (GIBS, JP Morgan, Feb 2017)
SOUND WASTE MANAGEMENT PRACTICES Waste Minimisation Significant opportunities exists for enterprises to contribute towards resources efficiency by reducing the environmental footprint of waste while promoting SA economy and creating jobs Input & Design Production Distribution Use How can we improve product design to save costs and minimize non- recyclable waste? How can we minimize production and processing inefficiencies to reduce costs and minimize non- recyclable waste? How can we minimize waste generated through distribution of products? How can we reduce demand for unnecessary products and extend the lifetime of products?
INCENTIVES VS. DISINCENTIVES An incentive is anything (monetary or nonmonetary) that motivates a person/organisation to undertake a particular action or choose one alternative instead of another. e.g. reduced tariffs for sorted waste. DISINCENTIVES • Environmental Taxes (plastic bag levy, waste tyre levy) • Disposal Taxes (curb waste disposal, increase recycling e.g. landfill tax) INCENTIVES • Deposit Refund Schemes (incentive to return recyclable or reusable items) • Volumetric Tariffs (pricing on unit of waste collected) • Material Input Taxes (Increase relative prices of virgin materials) • Recycled Products (Subsidies for the use of recycled content)
RECYCLING ENTERPRISE SUPPORT PROGRAMME • At the Waste Summit, the Minister, Honourable Edna Molewa said “I have called this Summit today, to ensure that for the next two days the collective gathered here deliberate on the theme ‘war on waste: driving the recycling economy in South Africa’. We must answer the following questions; What is it that as government, industry, academia, private sector and general public, we can do to accelerate the recycling economy.” • It is against this background that the Department, through the Waste Bureau is working on the establishment of recycling companies in South Africa. • The Programme is intended to take forward the resolution of the MinMEC meeting that took place on the 22nd August 2015, regarding the establishment of the two recycling companies per province leading to 18 recycling companies in total.
RESP APPROVED PROJECTS Reduce & Reuse Recycle Recover 22 Waste Collection, Sorting Baling Centres & Awareness Campaigns 1 C&D Waste Recycling Project 2 Waste Recovery Parks 2 Waste to Energy Plants 1 Laminated Glass Recycling Facility 2 Material Recovery Facilities 1 Recycled Schoolbag facility 1 OTR Processing Plant 1 Waste Composting Facility 2 Hygiene & Health Care Facilities
CONCLUSION • The DEA welcomes collaboration with the NCPC and supports Industry’s commitment to realise a low carbon, resource efficient economy. As such we encourage:  Research, Development and Innovation  Industry feedback regarding the impact of policy interventions  Support and investment in recycling and energy recovery programmes
37 Thabo Magomola Research & Incentive Programmes (+27 12 399 9303 | (|+27 82 611 6839 + tmagomola@environment.gov.za
www.ncpc.co.za NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA Industrial Symbiosis Programme & Progress in South Africa An Introduction 14th Sept 2017 Henry Nuwarinda & Sarah O’Carroll Programme Team Leaders
www.ncpc.co.za • Introduction to industrial symbiosis o Definitions, examples and models • Industrial symbiosis in South Africa o History and motivations o WISP, GISP and KISP o Impact • Future of industrial symbiosis in South Africa Presentation Outline
www.ncpc.co.za In biology: ‘An interaction between two different organisms living in close physical association to the advantage of both’. Concise Oxford Dictionary, 8th Edition What is Industrial Symbiosis?
www.ncpc.co.za What is Industrial Symbiosis? (Cont.) Extended to industry: Industrial symbiosis is a resource efficiency approach where unused or residual resources of one company are used by another. Materials – wood, plastics, food waste, WEEE, metals. Expertise – ISO 9000, ISO 14000, OSHAS 18001, best practice. Capacity – under-utilised equipment, lab facilities. Logistics – transport, warehouse facilities, land. Water and Energy – waste heat, steam, borehole, process.
www.ncpc.co.za What is Industrial Symbiosis? (Cont.) LandfillRotten tomatoes Compost Fabric offcuts Underfelt for carpets Core principle: Industrial symbiosis aims to find reuse and recycling solutions for waste materials to divert waste from landfill, while at the same time creating real businesses benefits for members.
www.ncpc.co.za Industrial Symbiosis Advances Sustainability • Promotes development of circular systems within the industrial sector. • Uses the principles of the waste hierarchy. • Creates mutual economic, environmental and social benefits for companies involved. Economic benefits Increase profits. Increase sales. Reduce waste disposal costs. Create enterprise development opportunities. Reduce raw material costs. Environmental benefits Reduce CO2 emissions. Divert material from landfill. Reduce use of virgin resources. Reduce hazardous waste disposal. Social benefits Create jobs. Create opportunities for knowledge transfer and learning.
www.ncpc.co.za Two Models Exist Co-location Model Wider Network Model Companies do not have to be within the same location for resource exchanges to be viable. Two forms: (i) self-organised (ii) facilitated
www.ncpc.co.za Industrial Symbiosis in South Africa Pilot2010
www.ncpc.co.za Industrial Symbiosis in South Africa 46 2013 WISP Pilot
www.ncpc.co.za Industrial Symbiosis in South Africa 2014 Key objectives: Economic development. Landfill diversion. WISP GISP KISP
www.ncpc.co.za GISP, KISP and WISP are free services that connect companies so that they can identify and realise the business opportunities enabled by using unused or residual resources (materials, energy, water, assets, logistics, expertise). Connecting industry – Creating opportunity South Africa’s Facilitated Industrial Symbiosis Programmes
www.ncpc.co.za South Africa’s Facilitated Industrial Symbiosis Programmes 1. Build an industrial symbiosis network. 2. Facilitate the exchange of information through Business Opportunity Workshops and one – one site visits. 3. Record and upload resources onto SYNERGieTM, an online resource management system. 4. Support the implementation of resource matches, facilitating negotiations and providing technical expertise. 5. Develop summary reports and case studies for implemented synergies. 6. Measuring the impact of Industrial Symbiosis.
www.ncpc.co.za GISP and KISP Funded by Delivered through in collaboration with 50
www.ncpc.co.za WISP Funded by Delivered through in collaboration with
www.ncpc.co.za Impact of SA’s IS Programmes 105,000 Tonnes of waste diverted R28 million Additional revenue R24 million Cost savings >150 Jobs created
www.ncpc.co.za Impact of SA’s IS Programmes For every R1 government invests in us we return R3 to our network in economic benefits. It costs us about R200 to divert a tonne of waste from landfill.
www.ncpc.co.za Future of Industrial Symbiosis in South Africa • Embedding industrial symbiosis in industry. • Expanding industrial symbiosis activities in South Africa and beyond. • Analysing the SYNERGieTM database to identify enterprise development opportunities. • Working with incubators (SAREBI and Innovation Hub) to develop new enterprises. Some key opportunities: ash, e-waste, paper sludge, contaminated sands.
www.ncpc.co.za NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA THANK YOU EMAIL ncpc@csir.co.za EBSITE www.ncpc.co.za

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Linda Godfrey - Circular Economy NCPC-SA

  • 1.
    CREATING A CIRCULARECONOMY…. (WAIT YOU WANT US TO DO WHAT NOW?) Prof Linda Godfrey NCPC-SA Industrial Efficiency Conference - Industrial Symbiosis & Waste Thursday, 14 September 2017, Cape Town
  • 2.
    2 “Sustainability is theinnovation challenge of our lifetime” “Our ambition: Double our business, with half the impact. This audacious goal will fuel our creative design process, drive innovation to disrupt our business model and transform the industry. It’s more than a concept. It’s our vision “We believe it is not enough to adapt to what the future may bring – we’re creating the future we want to see through sustainable innovation” © CSIR 2017 www.csir.co.za https://www.youtube.com/watch?v=zxn-X5GCA3M http://about.nike.com/pages/sustainable-innovation?linkId=24352801 ~ Nike
  • 3.
    3 So what isthe Circular Economy? It’s NOT about doing this just more sustainably….. Circular Economy ≠ Recycling
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    4 “A Circular Economyaims to decouple economic growth from the use of natural resources and ecosystems by using those resources more effectively” Creating an economy that is restorative and regenerative by design – it’s a system change
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    5 © CSIR 2017www.csir.co.za
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    6 Why are Governmentsand Businesses taking the Circular Economy seriously now? © CSIR 2017 www.csir.co.za
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    7 WHY ARE COUNTRIESADOPTING CE? © CSIR 2017 www.csir.co.za • Introducing the Circular Economy in developed and developing countries • With a focus on maintaining the value of products, materials and resources • Would result in – - Savings for businesses (for EU equivalent to 8% of their annual turnover) - Bring national economies greater economic benefits than current path (for India US$ 624 billion in 2050) - Create jobs - Reduce total annual greenhouse gas emissions by 2-4%https://ec.europa.eu/commission/sites/beta- political/files/circular-economy-factsheet-general_en.pdf https://www.ellenmacarthurfoundation.org/publications/i ndia
  • 8.
    8 WHY ARE BUSINESSESADOPTING CE? • The drivers for Business/Industry to adopt a Circular Economy include – - Brand image (green washing?) - Legislative pressure and the cost of compliance - Cost savings – increasing costs (raw material and waste) - Corporate responsibility - Risk management – a future of resource scarcity • Ultimately it makes good business sense… © CSIR 2017 www.csir.co.za
  • 9.
    9 • But, theCircular Economy is more than just business adopting resource efficiency and zero waste strategies (i.e. risk management and cost savings) • The Circular Economy will be disruptive for business – but this can create new business opportunities … © CSIR 2017 www.csir.co.za The new kid on the block – The “Sharing Economy” WHY ARE BUSINESSES ADOPTING CE?
  • 10.
    10 © CSIR2017 www.csir.co.za A SHARING / COLLABORATIVE ECONOMY
  • 11.
    11 How do Ishift to a Circular Economy Business? © CSIR 2017 www.csir.co.za
  • 12.
    12 SHIFTING TO ACE BUSINESS • “Business must think of the resources in their products as assets rather than inputs and their customers as users rather than buyers.” • The question then becomes – - How can we design our products with asset recovery in mind to take into account the true cost of materials? - How can we develop product lines to meet demand without wasting assets? - How can we source material from within regenerative loops rather than linear flows? - How can we develop a revenue model that generates value at all parts of the value chain, and - How can we get our customers to change their consumption and ownership patterns? © CSIR 2017 www.csir.co.za
  • 13.
    13 SHIFTING TO ACE BUSINESS • In other words, a Circular Economy company no longer sells a “once-off item” (designed for obsolescence to ensure repurchase), but sells a “service” • It moves from a “Consumptive model” to a “Service- and function-based business model” • When a business does this, it ensures best product design for longevity thereby increasing material productivity • For example, a CE Business, no longer – - Sells “car tyres”, but sells “driving miles” for their customers - Sells “cars”, but sells “mobility services” - Sells “washing machines”, but sells “pay-per-wash” © CSIR 2017 www.csir.co.za
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    14 Stop and thinkabout that? How would a future service- based business model (Circular Economy) affect what your business does? © CSIR 2017 www.csir.co.za
  • 15.
    15 What are theopportunities for South Africa? © CSIR 2017 www.csir.co.za
  • 16.
    16 • Opportunities inCE exist for SA • Prevention – - Significant opportunity for businesses to reduce their waste generation • Reuse • Recycling – - where most of our activity is currently focussed, but opportunity for greater local beneficiation • Recovery THE “OPPORTUNITY” FOR SA • Maintain, remanufacture, refurbish • Sharing or Collaborative Economy © CSIR 2017 www.csir.co.za Prevent Reuse Recycle Recover Dispose Opportunities for WISP and NISP Opportunities for Cleaner Production
  • 17.
    17 © CSIR 2017www.csir.co.za Focus to date largely on recycling of paper and packaging - developed “organically” in response to large informal sector (collecting) and voluntary EPR (market) Some “refurbishment and reuse” happening, but often informally (behind the scenes), 60% of revenue of WEEE SMMEs generated through refurbishment. Some remanufacturing of parts in local automotive industry Collection remains one of (if not the) biggest challenges in SA – especially for organics (big country/logistics) Single largest general waste stream produced in SA (but diffuse source, large country). Surprisingly little happening on organic waste beneficiation despite GHG risk Only now starting to see some commercial activity in AD (slow, considering the opportunity),- can be a sensitive technology Variable success with composting – seasonal, geographic markets, risk of household hazardous (MSW) No high temperature WtE. Seen by some as threat to materials recovery – opportunity to leapfrog? Highlights of current SA activities aligned with the Circular Economy ±54% Paper & Packaging (2016) ±55% PET bottles (2016) ±11% WEEE (2011) ± 16% C&D (2011) Biomass use for energy generation (in- plant) Local initiatives emerging to support improved product design, e.g. packaging But what % of consumption is imported:locally produced? Remains largely at the R&D stage (biorefinery). Emerging discussion on bioplastics ±90% (2011)
  • 18.
    18 THE CHALLENGES/CONSTRAINTS - Thedrivers of the CE for Europe, i.e. lack of access to primary resources; lack of space; access to end-use markets (specialist manufacturing), are not the same as for South Africa - Retaining material at highest value requires getting resources back into the value chain – needs effective collection systems (SA does not have separation-at-source) - We haven’t yet gotten the basics of solid waste management right (city cleansing, sanitary landfilling) – foundation for implementing IWM and CE - We need to correct the “economics of waste” – landfilling is too cheap in SA to drive the CE © CSIR 2017 www.csir.co.za
  • 19.
    19 © CSIR2013 www.csir.co.za Uncontrolled dumping, waste picking – Municipal dumpsite, South Africa © Linda Godfrey
  • 20.
    20 QUESTIONS TO BEANSWERED - In domesticating CESA, we need a better understanding of – - What the constraints are of future resource scarcity on the SA economy, i.e. what resources would SA need in a post-mining landscape, to structure our CE around? - What control SA has on product design, i.e. how much control do we have in designing waste out of the system? What % of products consumed in SA are imported (limited control) versus locally manufactured (control)? - What the impact of reduced (or changing) consumption is on SA’s economy (and reduced primary resource consumption) - How we integrate a large informal sector (already active) into a circular economy © CSIR 2017 www.csir.co.za
  • 21.
    21 CONCLUSIONS • Some ofthe key drivers for SA to implement the circular economy – - Unemployment – greater job creation as one moves up the waste hierarchy (away from landfilling) - Strengthening SA’s manufacturing economy (local beneficiation) - Cost savings for business - Positioning SA for a post-mining economy © CSIR 2017 www.csir.co.za Type of Operation Jobs per 1000 T Product Reuse - Computer reuse 296 - Textile reclamation 85 - Misc. durables reuse 62 - Wooden pallet repair 28 Recycling-based manufacturers (average) 25 - Plastic product manufacturers 93 - Glass product manufacturers 26 - Paper mills 18 Conventional Materials Recovery Facility 10 Composting 4 Landfilling and incineration 1 Source: (CASCADIA, 2009) citing (Seldman, 2006) Table: Job creation for reuse, recycling and conventional disposal of waste in the USA
  • 22.
    22 © CSIR2017 www.csir.co.za • No doubt the Circular Economy creates social, economic and environmental opportunities • But, we need to carefully define the unique value proposition that the CE provides for South Africa • Need to ensure that we bring all on the journey so that we don’t create further disparity in resource management, i.e. need to implement CE on a stable foundation of good city cleansing and waste management (eliminate uncontrolled dumping) • We must get the economics of waste management right! CONCLUSIONS Circular EconomySA
  • 23.
    23 QUESTIONS Thank you Prof LindaGodfrey Manager | Waste RDI Roadmap Implementation Unit | DST Principal Scientist | Waste for Development | CSIR Extraordinary Associate Professor | North-West University Email: [email protected] Web: www.csir.co.za and www.wasteroadmap.co.za © CSIR 2017 www.csir.co.za
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    24 © CSIR2013 www.csir.co.za
  • 25.
    WASTE RESEARCH & INCENTIVE PROGRAMMES TRANSITIONINGTO A LOW CARBON, RESOURCE EFFICIENT ECONOMY SEPTEMBER 2017 INDUSTRIAL EFFICIENCY CONFERENCE 2017
  • 26.
    BUREAU FINANCIAL ALLOCATIONS “Symbioticrelationships mean creative partnerships. The earth is to be seen neither as an ecosystem to be preserved unchanged nor as a quarry to be exploited for selfish and short-range economic reasons, but as a garden to be cultivated for the development of its potentialities of the human adventure. The goal of this relationship is not the maintenance of the status quo, but the emergence of new phenomena and new values.” – René Jules Dubos (1901 – 1982)
  • 27.
    PRESENTATION OUTLINE • CurrentOutlook • Our Commitments • SMME Perspectives • Sound Waste Management Practices • Incentives vs. Disincentives • Recycling Enterprises Support Programme • Conclusion
  • 28.
    CURRENT OUTLOOK 0.62% contribution toGDP1 111 Mt of waste generated per annum 75% of waste disposed in landfill2 60,000 – 90,000 informal waste pickers ~110,000 formal jobs in chemical sector ~10% annual job growth in the private waste economy ~35,000 formal jobs in the waste economy
  • 29.
    OUR COMMITMENTS Transition toa low carbon economy in a manner that enhances economic growth, job creation, sector competitiveness and business profitability. National Development Plan • Government’s long-term development plan outlining its vision for 2030 to eliminate poverty and reduce inequality • Most relevant objectives for the Waste sector:  Economy & employment  Environmental sustainability & resilience  Transforming human settlements  Improving education, training & innovation Sustainable Development Goals • SDG 12 clearly speaks to the ensuring sustainable consumption and production patterns. • Targets include:  By 2030, achieve the sustainable management and efficient use of natural resources  By 2030, halve per capita global food waste  By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse
  • 30.
    OUR COMMITMENTS New GrowthPath (NGP) • Government’s vision for jobs and decent work at the centre of economic policy • The main target is to create five million new jobs by 2020 • Most relevant job drivers for the Waste sectors: • Job driver 2: Targeting more labour- absorbing activities across the economy • Job driver 3: Taking advantage of new opportunities in the knowledge and green economies. Mid Term Strategic Framework • Government’s medium-term strategic plan for the 2014-19 term. • Overall goals are to stimulate GDP growth, create decent work opportunities and attract investment • Relevant outcomes for the Waste sectors: • Outcome 4: Decent employment through inclusive economic growth • Outcome 8: Sustainable human settlements & improved quality of household life
  • 31.
    SMME PERSPECTIVES • SMMEsare extrinsically motivated to participate in or adhere to sustainable manufacturing practices. • SMMEs view sustainable practices as potentially forming part of a long-term strategy, it is something they perceive to only be attainable should their businesses enjoy greater financial stability. • Finally, SMMEs indicated that they don’t as yet see sustainable practices as a competitive advantage, except in the instances where it is imposed upon them by valued clients or customers. 1 SMMEs and the Green Economy: Muddy waters and murky futures (GIBS, JP Morgan, Feb 2017)
  • 32.
    SOUND WASTE MANAGEMENTPRACTICES Waste Minimisation Significant opportunities exists for enterprises to contribute towards resources efficiency by reducing the environmental footprint of waste while promoting SA economy and creating jobs Input & Design Production Distribution Use How can we improve product design to save costs and minimize non- recyclable waste? How can we minimize production and processing inefficiencies to reduce costs and minimize non- recyclable waste? How can we minimize waste generated through distribution of products? How can we reduce demand for unnecessary products and extend the lifetime of products?
  • 33.
    INCENTIVES VS. DISINCENTIVES Anincentive is anything (monetary or nonmonetary) that motivates a person/organisation to undertake a particular action or choose one alternative instead of another. e.g. reduced tariffs for sorted waste. DISINCENTIVES • Environmental Taxes (plastic bag levy, waste tyre levy) • Disposal Taxes (curb waste disposal, increase recycling e.g. landfill tax) INCENTIVES • Deposit Refund Schemes (incentive to return recyclable or reusable items) • Volumetric Tariffs (pricing on unit of waste collected) • Material Input Taxes (Increase relative prices of virgin materials) • Recycled Products (Subsidies for the use of recycled content)
  • 34.
    RECYCLING ENTERPRISE SUPPORTPROGRAMME • At the Waste Summit, the Minister, Honourable Edna Molewa said “I have called this Summit today, to ensure that for the next two days the collective gathered here deliberate on the theme ‘war on waste: driving the recycling economy in South Africa’. We must answer the following questions; What is it that as government, industry, academia, private sector and general public, we can do to accelerate the recycling economy.” • It is against this background that the Department, through the Waste Bureau is working on the establishment of recycling companies in South Africa. • The Programme is intended to take forward the resolution of the MinMEC meeting that took place on the 22nd August 2015, regarding the establishment of the two recycling companies per province leading to 18 recycling companies in total.
  • 35.
    RESP APPROVED PROJECTS Reduce& Reuse Recycle Recover 22 Waste Collection, Sorting Baling Centres & Awareness Campaigns 1 C&D Waste Recycling Project 2 Waste Recovery Parks 2 Waste to Energy Plants 1 Laminated Glass Recycling Facility 2 Material Recovery Facilities 1 Recycled Schoolbag facility 1 OTR Processing Plant 1 Waste Composting Facility 2 Hygiene & Health Care Facilities
  • 36.
    CONCLUSION • The DEAwelcomes collaboration with the NCPC and supports Industry’s commitment to realise a low carbon, resource efficient economy. As such we encourage:  Research, Development and Innovation  Industry feedback regarding the impact of policy interventions  Support and investment in recycling and energy recovery programmes
  • 37.
    37 Thabo Magomola Research &Incentive Programmes (+27 12 399 9303 | (|+27 82 611 6839 + [email protected]
  • 38.
    www.ncpc.co.za NATIONAL CLEANER PRODUCTIONCENTRE SOUTH AFRICA Industrial Symbiosis Programme & Progress in South Africa An Introduction 14th Sept 2017 Henry Nuwarinda & Sarah O’Carroll Programme Team Leaders
  • 39.
    www.ncpc.co.za • Introduction toindustrial symbiosis o Definitions, examples and models • Industrial symbiosis in South Africa o History and motivations o WISP, GISP and KISP o Impact • Future of industrial symbiosis in South Africa Presentation Outline
  • 40.
    www.ncpc.co.za In biology: ‘An interactionbetween two different organisms living in close physical association to the advantage of both’. Concise Oxford Dictionary, 8th Edition What is Industrial Symbiosis?
  • 41.
    www.ncpc.co.za What is IndustrialSymbiosis? (Cont.) Extended to industry: Industrial symbiosis is a resource efficiency approach where unused or residual resources of one company are used by another. Materials – wood, plastics, food waste, WEEE, metals. Expertise – ISO 9000, ISO 14000, OSHAS 18001, best practice. Capacity – under-utilised equipment, lab facilities. Logistics – transport, warehouse facilities, land. Water and Energy – waste heat, steam, borehole, process.
  • 42.
    www.ncpc.co.za What is IndustrialSymbiosis? (Cont.) LandfillRotten tomatoes Compost Fabric offcuts Underfelt for carpets Core principle: Industrial symbiosis aims to find reuse and recycling solutions for waste materials to divert waste from landfill, while at the same time creating real businesses benefits for members.
  • 43.
    www.ncpc.co.za Industrial Symbiosis AdvancesSustainability • Promotes development of circular systems within the industrial sector. • Uses the principles of the waste hierarchy. • Creates mutual economic, environmental and social benefits for companies involved. Economic benefits Increase profits. Increase sales. Reduce waste disposal costs. Create enterprise development opportunities. Reduce raw material costs. Environmental benefits Reduce CO2 emissions. Divert material from landfill. Reduce use of virgin resources. Reduce hazardous waste disposal. Social benefits Create jobs. Create opportunities for knowledge transfer and learning.
  • 44.
    www.ncpc.co.za Two Models Exist Co-locationModel Wider Network Model Companies do not have to be within the same location for resource exchanges to be viable. Two forms: (i) self-organised (ii) facilitated
  • 45.
  • 46.
    www.ncpc.co.za Industrial Symbiosis inSouth Africa 46 2013 WISP Pilot
  • 47.
    www.ncpc.co.za Industrial Symbiosis inSouth Africa 2014 Key objectives: Economic development. Landfill diversion. WISP GISP KISP
  • 48.
    www.ncpc.co.za GISP, KISP andWISP are free services that connect companies so that they can identify and realise the business opportunities enabled by using unused or residual resources (materials, energy, water, assets, logistics, expertise). Connecting industry – Creating opportunity South Africa’s Facilitated Industrial Symbiosis Programmes
  • 49.
    www.ncpc.co.za South Africa’s FacilitatedIndustrial Symbiosis Programmes 1. Build an industrial symbiosis network. 2. Facilitate the exchange of information through Business Opportunity Workshops and one – one site visits. 3. Record and upload resources onto SYNERGieTM, an online resource management system. 4. Support the implementation of resource matches, facilitating negotiations and providing technical expertise. 5. Develop summary reports and case studies for implemented synergies. 6. Measuring the impact of Industrial Symbiosis.
  • 50.
    www.ncpc.co.za GISP and KISP Fundedby Delivered through in collaboration with 50
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  • 52.
    www.ncpc.co.za Impact of SA’sIS Programmes 105,000 Tonnes of waste diverted R28 million Additional revenue R24 million Cost savings >150 Jobs created
  • 53.
    www.ncpc.co.za Impact of SA’sIS Programmes For every R1 government invests in us we return R3 to our network in economic benefits. It costs us about R200 to divert a tonne of waste from landfill.
  • 54.
    www.ncpc.co.za Future of IndustrialSymbiosis in South Africa • Embedding industrial symbiosis in industry. • Expanding industrial symbiosis activities in South Africa and beyond. • Analysing the SYNERGieTM database to identify enterprise development opportunities. • Working with incubators (SAREBI and Innovation Hub) to develop new enterprises. Some key opportunities: ash, e-waste, paper sludge, contaminated sands.
  • 55.
    www.ncpc.co.za NATIONAL CLEANER PRODUCTIONCENTRE SOUTH AFRICA THANK YOU EMAIL [email protected] EBSITE www.ncpc.co.za