Today we added data on circular jobs in 148 cities from across 30 countries across Europe, Africa, Asia and the Americas to the Circular Jobs Monitor. This includes cities from Quito (Ecuador), to Kampala (Uganda), to London (the UK). We hope this evidence will empower local decision makers, providing them with insights into the relationship between the circular economy and the labour market. It can be used to design evidence-based strategies and policies, based on which sectors have the most ongoing circular activity and potential.
This is the first time that data on employment generated in cities engaging in circular economy activities has been made available. This evidence can be used alongside other social, economic and environmental metrics to help cities build back better and chart a course towards a more sustainable future for their people and the planet.
Circle Economy and UNEP originally joined forces in 2019 to come together on an approach for measuring employment in the circular economy. You can now explore data on circular jobs in over 100 cities analysed using Circle Economy and UNEP's joint methodology. These insights are housed on the Circular Jobs Monitor, a digital tool that maps jobs that drive circular activities.
In the next phase of our work together, Circle Economy and UNEP are developing city typologies. By clustering cities, we aim to fill data gaps and develop transition pathways for groups of similar cities that can be used to share learnings and co-design transformative policies and strategies.
With the circular economy we have an opportunity to shift towards a world where people’s needs are met while being in harmony with nature. We still live in a take-make-waste world where we put pressure on people and our planet, and it is in our cities that these impacts are felt the most. To combat inequality and tackle resource scarcity, cities need to embrace change and ways to provide decent jobs for its people. Governments can no longer afford to continue with ‘business as usual’. We need solutions.
Do you want to know how many circular jobs there are in your city?
Or reach out to us with your data to have your city added:
In its new publication—Roadmap Circular Finance 2030—the Sustainable Finance Platform has developed four concrete actions that will promote cooperation within the financial sector, allowing this sector to become a driver of the circular transition.
The circular economy is a means to an end—our end goal being an ecologically safe and socially just space. And the financial sector plays a crucial role in realising the transition to a circular economy. But it's not easy to go circular in a linear world: companies and projects seeking financing still face many obstacles in transitioning to circularity.
Download the English summary of the study at the bottom of this article.
Circular companies must operate within the framework of a predominantly linear economy, in which negative externalities are not factored into the prices of products and services. And what's more: the risk and return profiles of circular business models are not yet well understood and estimated. The financial sector will have to invest in knowledge development about the dynamics of the circular economy. In the current system, linear investments are largely still prioritised.
The financial sector plays an important role in financing circular companies and thus in accelerating the transition to a circular economy.
Therefore, the Circular Economy working group under the Sustainable Finance Platform (of the Dutch central bank) states that in 2030, circular economy will have to be an integral part of the assessment of financing applications and investment decisions.
Linear risk—the risk incurred by continuing to do business under the unsustainable assumption of infinite resources—must be explicitly included in financing decisions. Circular risk needs to be assessed more realistically by focusing (risk) models on the future and seeking assurances in future cash flows, long-term stability, chain cooperation and contracts.
This can increase transparency, enable external verification and benchmarking, and reduce greenwashing. Standardised circular metrics will lead to a level playing field in which circular activities (or lack thereof) will become visible and accounted for in financing and investment decisions.
…and fine-tuning circular propositions for financing. Financing a company that explicitly pursues circularity and applies at least one new element of circular finance constitutes a landmark deal. Insights gained from the experience—like how best to measure circularity, how to weigh risks and opportunities and how financiers can structurally use this information—can be shared with the sector. This will produce standard and publicly available documentation to spur future deals.
…to make circular financing the new business-as-usual. This means developing appropriate financing with more risk capital for early-stage circular companies. Blended finance, government funding and financial innovation also all play an important role in accelerating the timeframe within which this shift can happen.
The financial sector depends on its customers, governments, regulators and supervisors. All these players will have to work together and share insights with each other so that circular financing is business-as-usual by 2030.
By following these actions, the financial sector can become a lever for and driver of the circular transition.
Are you a financial institution representative, a financial sector advisor or a policymaker? Would you like to accelerate your circular transformation?
Contact us at info@circle-economy.com
The Circular Economy working group was established in 2021 under the Sustainable Finance Platform. Members of the working group are representatives of financial institutions and various other organisations: Circle Economy, Invest-NL, Rabobank, ABN, Ministry of Infrastructure and Water Management, PGGM, ING, Bird&Bird, KPMG, Dutch Professional Organization of Accountants (NBA), NEN, European Investment bank, Nederlandse Waterschapsbank (NWB), Sustainable Finance Lab, Fair Capital Partners, Doen Participaties, Copper8, Nyenrode Business University
Download the English summary of the study below.
Accounting and financing are catalysts for circular change—and adapting them to work for circular businesses is crucial to drive the transition forward. This is according to a new report by the Coalition Circular Accounting*, a collaboration between Circle Economy and the Royal Netherlands Institute of Chartered Accountants (NBA), Financial accounting in the circular economy: Redefining value, impact and risk to accelerate the circular transition. Scaling circular business models is crucial to accelerating the circular transition, unlocking the profitability of businesses in a rapidly changing world and reaching key climate goals, such as net-zero. However, the current challenges associated with financing and accounting for circular business are major obstacles that prevent their wide-spread and successful adoption. This new launch explores practical guidance to overcome these challenges and capture the value of circular business.
Ten years to double global circularity
A circular economy is essential to preventing the worst impacts of climate breakdown—and if carried out on a global level by 2032, it provides the answer to limiting global warming to 1.5-degrees. Excessive pollution and waste, rampant resource extraction, biodiversity loss and fluctuating global temperatures are the markers of our time; but circular strategies and business models, which eliminate waste, keep products and materials in use and regenerate nature, offer solutions. Businesses have a key role to play in mitigating climate change by moving to circular models. They also stand much to gain: in the long term, circular businesses can be more profitable and are resilient to risks. But how can we ensure the transition runs smoothly?
It's hard to go circular in a world dominated by linear practices and mindsets: circular businesses often struggle to entice investors, who may be used to working with linear business models—yet financiers are increasingly searching for financially-safe, sustainable investments. Accountants are also grappling with new roles in corporate disclosure on sustainability and circular impact. Without a shift in financing and accounting practices that accommodate pioneering firms, circular progress may grind to a halt.
With generous support from InvestNL, the Coalition Circular Accounting embarked on a two-year-long research trajectory to begin to uncover and devise solutions. This latest launch—a collection of learnings from a series of four papers—explores the current arsenal of accounting and reporting solutions for circularity through the lens of real-life business case studies, providing guidance for new directions to support the circular economy.
Redefine value, impact and risk to push the circular transition forward and unlock business opportunities
The key to truly reaping the benefits of a circular economy for business? Measuring companies' social and environmental impacts—not just their financials. Doing so will capture the true positive impact of circular businesses. But it will require an overhaul of how we define value, impact and risk: rethinking existing approaches, shifting mindsets and transforming vocabulary to support circularity.
Changing the way we do business, for the better
Everyone has a role to play in making large-scale systemic change a reality: from accountants and auditors to financiers, businesses and regulators, all actors must embrace a shift in mindset to truly change the way we do business. And the time is now: in the wake of COP26, investments to mobilise climate action are more crucial than ever in limiting the impending crisis.
*The Coalition Circular Accounting has been founded by the Royal Netherlands Institute of Chartered Accountants (NBA) and Circle Economy to identify accounting related challenges in the circular economy. The coalition includes experts and scientists in the field of finance, accounting and law, who together create solutions to overcome barriers to circularity.
The Community of Practice (CoP) to ‘innovate finance for the circular service economy’ brought together experts from ABN Amro, Allen & Overy, ASN Bank, Avans Hogeschool, Circle Economy, EY, 4CEE, InvestNL, Rabobank, Startgreen Capital, Stichting DOEN, Sustainable Finance Lab, UncInc, Windesheim Hogeschool, and was supported by Finance and the Common Good.
The CoP looked at the role of the CISE platform, a tool that distributes payments and information to stakeholders that collaborate to co-provide a circular service, and how it could support the financing of circular businesses. CISE technology opens up tons of opportunities for circular finance:
The key learnings from the CoP are presented in this white paper:
But we are not there yet. To come to the radical financial innovation that the circular economy requires we need to join forces and start experimenting.
In a circular economy, revenue models are no longer based on selling as many products as possible but are instead tied to durability and optimal use of products. The user pays for the use of a product rather than for owning it. An incentive arises for de-materialization: material becomes inferior to function.
Whether a product is suitable for a long life of intensive use, however, largely depends on the durability and replaceability of all its parts and thus on the entire supply chain. In the CISE platform, payments are automated and distributed across all chain partners according to their performance. Responsibility for resource use and durability is placed on those that have the most influence on it.
Take Homie, for example, that delivers a circular laundry service. Homie charges the user per washing cycle and takes responsibility for the washing machine. Ideally, however, the company that provides the motor takes responsibility for its functioning and take back and is awarded accordingly. The longer it functions, the longer he earns from it.
Adapted from: Achterberg, Elisa. (2019). The Circular Service Platform [link].
“We believe that with a pay-per-use business model manufacturers are stimulated to design devices for long-term use. At the same, users can be incentivized to use the devices as economically as possible” – Nancy Bocken, Co-founder, Homie
The CISE platform changes the relationship between service providers, consumers, and financiers fundamentally. Users subscribe to a circular service, for example to a laundry service, such as that provided by Homie. In the CISE app, a digital wallet is created in their user accounts. All stakeholders that co-provide or co-fund the service, are connected to the circular asset, the washing machine. When the user consumes a unit of laundry, its wallet is charged. The payment is immediately distributed to all stakeholders involved without a central party coordinating.
Adapted from: Achterberg, Elisa. (2019). The Circular Service Platform.
But could CISE improve the financing of circular service companies? Are new forms of financing possible? This Community of Practice identified three ways that CiSe contributes to better financing options for the circular economy:
“We are thinking many years ahead with this. If you had asked a taxi driver what the (uber) app should look like, they could not imagine it then. For example, you cannot ask the market for the ultimate goal of CiSe, because it does not fit into an existing model. It doesn't do something that's already there. It's going to do something fundamentally different.” - Cees van Ginneken, lawyer, Allen & Overy
“I am excited by the innovative proposal that is presented in this paper. Especially about the design of the service ecosystem where everyone has a stake in successful functioning of an asset. This creates an enormous diversification opportunity: risks that are now treated per customer can be partly mitigated by the diversification.” – Taco de Boer, New Business Manager Vendor Lease at ABN AMRO
There is still a giant step to be taken to get there. Together with supervisors and regulators the necessary space needs to be created to experiment with new financial models and to change the way we value circular service companies and assess their riskiness. Encouraging circular service providers to start using the CISE platform is the first step. With the data that is generated, intelligence can be developed to accurately predict cash flow patterns and create the necessary certainty for finance providers to take the plunge. Subsequently, new financial models can be structured and piloted. Eventually creating the financial models necessary for a circular future. Will you experiment with us?
To learn more on how finance could be innovated for the circular future, download the whitepaper.
Lao PDR, 25 November 2021
Lao PDR’s most recent NDC aims to reach net carbon neutrality by 2050. A new report, led by Shifting Paradigms from The Netherlands in collaboration with Circle Economy, Earth Systems (Lao PDR), Rebel Group (the Netherlands) and DFDL (Lao PDR), now shows how supplementing the NDC with circular economy interventions can help to achieve or even raise that ambition. It also presents the business cases supporting these interventions for the private sector in Lao PDR. The report was realised thanks to the generous support of the UNDP NDC support programme.
We are thrilled to announce the following findings:
Lao PDR can become net carbon neutral by 2040 by adopting a circular economy approach. With the measures proposed in the NDC, it can reduce its GHG footprint from 106 to 58 million tCO2e/year in 2040. The circular GHG mitigation interventions can reduce it further to net zero. Most of the circular mitigation and sequestration potential lies in wood-based construction, improving livestock efficiency, prioritizing active, shared, public and electric transport and reducing food losses. By adopting circular economy strategies within Lao PDR, the country would also reduce the import of carbon-intensive products. This creates additional GHG emission reductions in other countries of approximately 2.2 million tCO2e/year.
These interventions can reduce solid waste disposal by 86 percent and reduce an additional 2.6 million tonnes of food waste and losses. The gross domestic product (GDP) from the circular economy in Lao PDR could reach $16 billion by 2050, while the number of jobs in the circular economy could reach 1.6 million by 2050. The Lao PDR workforce totaled 3.9 million in 2020, of which around 16 percent in circular jobs.
According to business case estimates, the circular economy is a viable business opportunity for Lao PDR. 89% of the circular GHG mitigation and sequestration potential has a positive net present value and 85% provides a payback in less than six years. When introducing a carbon price of $25 per tonne, 98% of the circular mitigation and sequestration potential has a positive return, or negative marginal abatement costs. Without a carbon price, that percentage is 89%.
The transition to a circular, net zero carbon economy requires an investment of $4.1 billion in the period 2022-2036. That is in addition to the $4.7 billion required between 2020 and 2030 to implement the NDC. In comparison, the new Boten-Vientiane railroad requires investment of $5.95 billion. To realize investments in a low-carbon and circular future, regulatory and institutional barriers must be overcome for circular ventures so that they have access to investment capital, for example.
Shifting Paradigms applies a systems’ or metabolic analysis with detailed data visualisation to place a company or jurisdiction in a broader system of material flows. That allows decision-makers to develop a joint vision of a circular, low-carbon future and define their own role in making that vision reality. Building on previous experience with modalities for international cooperation under the Kyoto Protocol and Paris Agreement, we can connect circular mitigation and sequestration opportunities with international climate finance.
Circle Economy is a global impact organisation with an international team of passionate experts based in Amsterdam. We empower businesses, cities and nations with practical and scalable solutions to put the circular economy into action. Our vision is an economic system that ensures the planet and all people can thrive.
UNDP’s work on climate change spans more than 140 countries and US$3.7 billion in investments in climate change adaptation and mitigation measures since 2008. With the goal to foster ambitious progress towards resilient, zero-carbon development, UNDP has also supported the implementation of the Paris Agreement on Climate Change by working with countries to achieve their climate commitments or Nationally Determined Contributions (NDCs).
As part of the three-day state visit of the Dutch royal couple to Norway, the Holland Circular Hotspot and Nordic Circular Hotspot formally signed a Partnership Agreement today. The signing ceremony took place in Trondheim in the presence of His Majesty King Willem-Alexander and Her Majesty Queen Máxima as well as His Royal Highness Crown Prince Haakon Magnus and Her Royal Highness Crown Princess Mette-Marit.
Circle Economy, a partner of both the Dutch and Nordic Circular Hotspots, warmly welcomes this new collaboration, which aims to accelerate the market transition for circular solutions and businesses in and between The Netherlands and the Nordics. Since the Nordic Circular during the World Circular Economy Forum in Helsinki in June 2019, the two Hotspots have worked closely together. The formation of the Nordic Circular Hotspot was inspired by the Holland Circular Hotspot and now the time has come to formalise this partnership.
“Signing a partnership with the Nordic Circular Hotspot comes at a moment that the world realises that it needs circularity more than ever,” said Freek van Eijk, Director, Holland Circular Hotspot, at the signing ceremony. “This is the century for circular entrepreneurs and frontrunners to have the biggest market potential.”
The Nordic economies combined make up the 12th-largest economy in the world. Accelerating the circular and sustainable transformation in this region has great potential and can have a significant ripple effect. The Netherlands is leading the transition to a circular economy, with a Circularity Metric of 24.5 per cent, according to Circle Economy's Circularity Gap Report for the Netherlands. By comparison, the Norwegian economy is only 2.4 per cent circular according to the Circularity Gap Report Norway. Through this collaboration, the Nordics could leapfrog some of the early barriers The Netherlands has gone through, and utilise innovation, resources and knowledge sharing in order to make the circular economy the new normal. Circle Economy was represented in Trondheim by Marc de Wit, Director Strategic Alliances.
“Circular value creation is key to sustainability in our markets for the time ahead,” said Einar Kleppe Holthe, Managing Partner, Nordic Circular Hotspot. “Nothing is better than formalising the partnership between our two Hotspots, connecting The Netherlands and Nordics in a more close and collaborative way.”
“Together we aim at leaving the wasteful, consumption-based and resource-intensive economy of the previous century,” said Cathrine Barth, Founder and Managing Partner, Nordic Circular Hotspot. “As partners we seek to evolve the circular economy and collaborate in view of establishing a healthier, safer and cleaner economy.”
To kick off their collaboration, the two Hotspots will this afternoon host a roundtable on circularity with 15 Norwegian and Dutch companies and organisations from different sectors. The roundtable will be held in collaboration with the Trondheim Centre for Sustainable Development and Nordic Innovation. Its purpose is to find ways to learn from each other, work cross-sectorally and holistically, and to germinate collaborative projects and initiatives.
The signing ceremony was part of the state visit, held from November 9-11 and accompanied by Dutch foreign minister Ben Knapen, affirming the outstanding relations between Norway and The Netherlands. Both countries share common values and jointly seek solutions to major international challenges. The main themes of the visit include bilateral and international co-operation, climate change, the energy transition and sustainability, with the circular economy being in the spotlight through the Partnership Agreement.
The Nordic Circular Hotspot is the leading resource on the circular economy in the Nordics. With partners in all the five Nordic countries plus The Netherlands, supported by the Nordic Council of Ministers and Nordic Innovation, its mission is to accelerate the transition to an inclusive, resource-efficient, regenerative and circular market in the Nordic region. The Hotspot aims to contribute in a meaningful way to reinvent how the Nordics design, produce and market products. It also wants to rethink how the Nordics use and consume goods and services, and redefine growth in the Nordics and what is possible through reuse, reduction, repairing, regeneration and, most importantly, systems change. The Hotspot’s goal is to achieve critical mass of circular and sustainable dynamics and transactions in all value chains, to reach transitional tipping points faster in all segments and sectors of the Nordic market. https://nordiccircularhotspot.org
The Holland Circular Hotspot Foundation aims to create and strengthen circular economy export and investment opportunities for the Dutch business community, and stimulate international exchange of circular economy knowledge and innovation. This is done in close collaboration with the Dutch national government and the Netherlands Enterprise Agency. By doing so, Dutch knowledge and expertise will contribute to the implementation of a circular economy in an international context, create mutually-interesting business opportunities and help to accelerate the realisation of theSustainable Development Goals and contribute to the climate objectives. https://hollandcircularhotspot.nl
Circle Economy is a global impact organisation with an international team of passionate experts based in Amsterdam. We empower businesses, cities and nations with practical and scalable solutions to put the circular economy into action. Our vision is an economic system that ensures the planet and all people can thrive.
The Growth Knowledge Partnership (GGKP) is the largest global network of experts and organisations dedicated to generating, managing, and sharing green knowledge. Circle Economy was approached to join the network to complement the existing community with circular economy specific content and expertise.
The platform is hosted and funded by Global Green Growth Institute, OECD, UNEP, UNIDO and the World Bank - to provide government and industry with the evidence needed to transition to an inclusive green economy.
Circle Economy will leverage the partnership's expansive global network - sharing knowledge and tools, participating in expert working groups, seeking funding opportunities and amplifying our organisational reach and impact.
For more information, visit the GGKP website.
Together with ICLEI - Local Governments for Sustainability, Metabolic and the Ellen MacArthur Foundation, Circle Economy is launching the Circle Lab for Cities programme, supporting cities in boosting their efforts toward a circular economy.
'With this programme, we are launching a digital platform for cities that offers knowledge, actionable insights and tools to support the implementation of practical circular economy solutions, helping them achieve their sustainability goals. This digital platform will continuously evolve and offer updated content and new features as more cities engage with it. We welcome user feedback so we can continuously develop content and release features based on cities' specific needs,' says Ivonne Bojoh, Head of Digital at Circle Economy.
Through the Circle Lab for Cities programme, cities can explore the circular solutions implemented by their peers, scan their urban metabolism, and act to advance their transition to a circular economy in priority sectors.
Specifically, the digital platform developed as part of this programme includes a wealth of tools, knowledge and actionable insights—allowing city practitioners to identify priorities based on a local assessment of resource flows and existing initiatives. City actors will also have the opportunity to explore and learn from the circular solutions their peers have already implemented. The programme also includes the development of tools and materials to support planning, stakeholder engagement and monitoring of the circular strategies implementation locally.
'The Circle Lab for Cities programme aims to provide each city with the right instruments to take the next step in their circular development journey. As a global network, we aim to develop tools with local governments, to ensure that they address practical needs and are adaptable to different local contexts. This is why we will be testing all tools with network cities from five world regions,' says Sunandan Tiwari, Director of Global Implementation at ICLEI.
Funded by the MAVA Foundation, the programme represents a powerful collaboration that brings together leading expertise on the circular economy and one of the largest networks of local and regional governments working towards a sustainable urban future.
The program is guided by the Circular City Actions Framework, developed by ICLEI – Local Governments for Sustainability, Circle Economy, Metabolic and the Ellen MacArthur Foundation to introduce cities to the range of strategies and actions available to them as they work towards a circular economy at the local level.
The framework is structured into five complementary strategies, the 5 Rs:
The 5 Rs are linked to 15 actions local governments can take that reflect the different roles local and regional governments play, from public service delivery to cooperation with local stakeholders, asset management, urban planning and regulation. They can be applied to all production, consumption and waste management processes influenced by the city, local businesses or residents. In addition, Circle Economy and ICLEI are launching a Cities Collection on the Circle Lab Knowledge Hub. The collection features city examples across the 5 Rs and diverse sectors cities can influence.
Local governments and city actors are invited to participate in the Circle Lab for Cities programme, which offers a hands-on, cost-effective and practical process equipping them with the strategies and tools their city needs to take the next step towards a circular economy.
From engaging in the programme and making use of the tools it offers, cities can expect:
Are you a city practitioner interested in testing tools to make your circular economy strategy more actionable? Register below and be among the first to test circular development tools which will help make your city more circular.
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