Measuring and monitoring the circular economy and the use of data for policy-making

Introduction: 

We are in the reality of a worldwide transition from linear to circular economy business models. While moving to a more circular economy will take time, monitoring the transition is essential to know where we are. Monitoring systems can distinguish between monitoring the transition process itself and monitoring the effects of a circular economy. Monitoring the transition can identify dynamics in groups of products, such as product design and proportion of circular products; it can also identify actions in government policies that accelerate the circular economy transition. Monitoring the effects looks at the transition results on natural resources consumption, environmental pressures, and socio-economic development. 
The UNECE global strategy on circular economy aims to bring its normative and policy expertise to support countries in their efforts, as highlighted during the 69th session of the UN Economic Commission for Europe. Therefore, in order to strengthen the national capacities of seven target countries in the area of the circular economy, the Second Regional Conference, that was organized within the framework of the UNDA project, focused on measuring and monitoring the circular economy and data use for policy-making. During the Conference, it was concluded that a circular economy must go hand in hand with sustainable development. For this, countries must set clear policy goals towards a sustainable circular economy. Besides, countries must collaborate for developing guidelines and sharing information. Finally, as a circular economy can encompass many focal areas, countries can start selecting important actions in their situation.

Science

Introduction

There is a trend of increasing pressures on the environment, and increased waste generation contributes to inequalities. This trend is related to the growth of the economy. Currently, little material gets back to the recycling or reuse level, calling for new economic models to reduce the amounts of waste. 

The circular economy is a model that can help to reduce natural resources use and to improve society and the environment, but it cannot happen in isolation: international cooperation is needed.

The European Union circular economy monitoring framework for example is essential in the transition to a circular economy, as it provides official data and indicators; however, there is in some areas still a lack of full implementation and complete understanding of the life cycle of products and services.

A circular economy requires the introduction of specific standards. Standardization in the field of Circular Economy is crucial to develop frameworks, common definitions, guidance, supporting tools and requirements for the implementation of activities of all involved organizations to maximize the contribution to Sustainable Development. The ISO is setting ISO TC 323 Circular Economy standard to provide a common global framework for the participating parties.

For more information, please see the presentation of the European Environment Agency and International Organization for Standardization.

Identified challenges

European Environment Agency	Lack of full implementation; Some particular aspects of the CE concept are not reflected (e.g. eco-design, new business models); A complete understanding of the life cycle of products and services is missing; No info on hazardous chemicals/clean material cycle; Waste aspects are only covered as material flows	European Environment Agency
International Organization for Standardization	Provide an answer to environmental and social emergencies with an economic alternative; Need for a new mind-set that promotes Circular Economy; Provide operational standards for users to implement the circular economy in organizations as soon as possible / Develop a standard to be implemented by SMEs from all geographies; Be collaborative within the TC: ensure convenorship for WGs with countries from 2 geographical areas;	International Organization for Standardization

For more information, please see the presentations on the right

 

Good practices

European Environment Agency	The European Green Deal It is a strategy for sustainable growth, which includes various measures and actions to make Europe a climate-neutral continent by 2050. It is focused on emission reduction, creating green jobs, reducing energy poverty and external dependency, and improving citizens' well-being. The European Green Deal as the new central policy agenda for sustainable growth provides a highly relevant role model for policies in the UNECE region, most relevant for EU accession-oriented Balkan and “deeply” EU-associated Caucasus countries, and also observed with interest from Central Asian countries aiming for economic and ecological modernisation.	European Environment Agency
Bellagio process	It is a set of principles, which were established in 2020. They guarantee the monitoring of the progress archived by the countries in their transition to a circular economy. Besides, this process ensures the participation of all interested stakeholders.	-
International Organization for Standardization	ISO TC 323 Circular Economy It was created in 2019, TC323 produces some transversal standards related to Circular Economy. These standards could be a basis for specific activities. In the framework of this standard, the definition of the circular economy is in the process of development. Furthermore, a Circular Economy package facilitates implementation, dialogue and communication between stakeholders.	International Organization for Standardization

For more information, please see the presentations on the right

Policy

Introduction

The transition to a more circular economy is closely aligned with policy goals reflected in legal frameworks and international agreements. 

Netherlands is one of the countries in an advanced stage of circular economy but even Dutch transition from linear to circular economy is still in an initial phase. Although numbers show an increased use of materials, 80% of the waste is recycled in the country. However, it is still a challenge to increase the quality of recycled materials and to measure other forms of circularity beyond recycling. Some material and impact trends are not moving in the right direction, for instance, the use of material resources has hardly changed, or supply risks for the Dutch economy have increased, especially in the manufacturing industry.  The national policy mainly uses voluntary instruments (knowledge development and coalition forming, Plastic Pact, Concrete Agreement, and more).

For example, the European Commission proposes a simple and effective monitoring framework to strengthen and assess the progress towards CE. The EU Monitoring framework includes ten indicators updated regularly, which can be accessed at the Eurostat website. In addition, there are new circular economy indicators under development with a new approach to be adopted for the monitoring framework. 

For more information, please see the presentation of the European Commission DG Environment and the PBL Netherlands Environmental Assessment Agency.

Identified challenges

PBL Netherlands Environmental Assessment Agency:

• Elaborate on vision and concrete goals
• Make more use of coercive measures, such as taxation and regulation
• Implement stepwise increases in the circularity requirements used in government purchasing and procurement and in the context of producer responsibility
• A government-wide approach is necessary

For more information, please see the presentation of the PBL Netherlands Environmental Assessment Agency.

Good practices

European Commission DG Environment - EU Monitoring framework for the Circular economy

It was established on January 16, 2018, and provides an overview of ten individual indicators in four main groups (production/consumption; waste management; secondary raw materials; competitiveness/innovation). These indicators measure EU self-sufficiency for raw materials, green public procurement, waste generation, food waste, overall recycling rates, recycling rates for specific waste streams, the contribution of recycled materials to raw materials demand, trade-in recyclable raw materials, private investments, jobs and gross value added and patents.

For more information, please see the presentation of the European Commission DG Environment.

Statistics

Introduction

In order to improve coordination of statistical activities in the UNECE region, to identify gaps, and to address emerging issues in the area of the circular economy and to avoid duplication of work, the Task Force on Measuring Circular Economy has been established  . There are many issues related to the measurement of the circular economy, therefore, the plans of the Task Force include drafting practical guidelines for measuring the circular economy, the coordination and collaboration of international organizations' related work, providing platforms for exchange of experience and knowledge.

For more information, please see the presentation of UNECE.

Identified challenges

UNECE:

• No single or internationally agreed-upon definition of a circular economy;
• Conceptual issues;
• Policy focus and approaches to measure the circular economy differs in countries and regions

For more information, please see the presentation of UNECE. 

Good practices

Colombia - Circular Economy Information System

As advanced practice example from South America, Colombia's Circular Economy Information System (SIEC) plays an essential role in measuring the circular economy in the country. The Circular Economy Information System is an articulated set of elements that interact with each other to compile, consolidate and disseminate statistical information related to the Circular Economy; to facilitate decision-making in public policy and evidence the country's transition towards this model of circular production and consumption. The general objective of the System is to integrate statistical information that meets quality requirements to make it available in an adequate manner so that it can be used as an input for decision making and in the evaluation of public policy on circular economy. Colombia is developing circular economy indicators, which are classified with compliance with the following components: demand for environmental assets and ecosystem services, preservation or loss of value of materials in the production system, pressure on ecosystems due to waste disposal, factors that facilitate the Circular Economy. Colombia has already produced two circular economy reports, and two others are under development.

First and Second Circular Economy Reports

The first report presents 44 indicators of available statistical information categorized into four components of the Circular Economy from the output or product perspective, the analysis is focused on the agent as a producer or generator of that output. It was published on August 5, 2020, and is available at this link. The second report presents 23 indicators of available statistical information categorized into four components of the Circular Economy. In addition, this version publishes for the first time six Sankey Diagrams based on data from the Environmental Satellite Account. It was published on December 11, 2020 and is available via this link.

For more information, please see the presentation of Colombia.

Science, Policy and Statistics

Introduction

The analysis of these three axes (Science, Policy and Statistics) leads to the identification of a set of environmental indicators following the Bellagio principle and data availability. These indicators can be used to measure the transition to the circular economy. It also suggests how to measure the circular economy given the regional specificity of the target countries.
Outputs from presented cases clearly show:

- Countries and regions must ensure a policy approach of sustainable circular economy, with a clear vision and concrete goals. 
 - Coercive measures, such as taxation and regulation, may ensure a faster transition to a circular economy.
 - No single indicator can give the picture of the circular economy, but a monitoring framework can be a way to measure a systemic change

For example, the case study of Georgia shows that the EU-Georgia Association Agreement requires Georgia to harmonize legislation and administrative practices, including efforts in waste management. Georgia can build on a Waste Management Code that provides a legal base for implementing measures aiming at prevention of generation of waste and increased re-use, environmentally sound treatment of waste. There are also a Waste Management Strategy (2016-2030) and Waste Management Action Plan (2016-2020) that include nine objectives and envisage "Georgia to become a preventing and recycling society".

For more information, please see the presentation of Georgia and UNECE.

Identified challenges

Georgia:

• Lack of capacity for EPR Implementation in all stakeholders;
• Waste Management Data;
• Environmentally sound Management Technology for Recycling;
• Municipal waste separation at source (recyclable and biodegradable) and tariff policy for municipal waste management (based on the polluter pays principle);
• Awareness-raising;
• Incentives for proper waste management.

UNECE:

• There isn't a widely accepted framework for measuring the circular economy
• Policy goals can give direction on the selection of indicators
• Existing indicators can provide an initial overview of the circular economy
• Aspects of circular economy can be measured
• Information is much aggregated
• Some indicators need to be country-specific

For more information, please see the presentation of Georgia and UNECE.

Good practices

Georgia – Extended Producer Responsibility (EPR)

The Extended Producer Responsibility has been introduced into the Waste Management Code of Georgia. Four regulations dealing with EPR have been adopted in June 2020. Packaging waste and EoLV draft regulation are at the stage of final discussion with stakeholders. Deposit Refund System for packaging is going to be implemented. There is still a need for capacity development for all stakeholders for implementation of  EPR legislation. The key elements of effective EPR implementation should bring the achievement of two main environmentally-related goals: 1) Design improvements of products – the EPR system should provide incentives for manufacturers to improve products and systems surrounding the life cycle of products; 2) High use of the product and material quality through effective collection and re-use or recycling – this goal can be sub-divided into three sub-goals, which are a) effective collection, b) environmentally-sound treatment of collected products and c) high use of products and materials in the form of re-use and recycling.

For more information, please see the presentation of Georgia.