Sustainable Consumption and Production

o Definition of Circular Economy (CE)

o Drivers to CE (Five Business Models)

o CE Benefits

o CE Implementation

o Enablers & Barriers of CE

o Green Business of CE

o CE in Industrial Processes (CE & Industrial

Symbiosis)

What is Circular Economy?

o CE is an alternative to a traditional linear economy (make, use, dispose). In CE, we keep

resources in use for as long as possible, extract the maximum value from them whilst in use,
then recover and regenerate products and materials at the end of each service life.

o A circular economy entails markets that give incentives to reusing products, rather than
scrapping them and then extracting new resources. In such an economy, all forms of waste,
such as clothes, scrap metal and obsolete electronics, are returned to the economy or used
more efficiently.

o A close loop of material flow in an economy, based on a circular concept was introduced by
Pearce and Turner in 1990

o CE refers to restorative system through a careful management of materials flows

From Cradle-to-Grave to Cradle-to-Cradle (C2C)

When you waste your product at the end of its life, your LCA model is cradle to grave. And if you
recycle/upcycle your product at the end of its life, your LCA model is cradle to cradle.

Cradle-to-cradle is about material management;

• Design product that’s not harmful to health and environment and does not produce waste

• Greening the global supply chain

• Adding value
Linear Economy Vs Circular Economy

Raw Material
Flows

Circular Economy
Primary
Biosphere
Water and
Processing Wastes
Energy
Raw Material Bio Resources
Flows Water and Manufacturing
Recovery
Energy Wastes

Primary
Consuming
Processing

Manufacturing
Recovery
Flow of Wastes
Re-use

Recycling

Consuming
Recovery of Non-
Renewable Resources
Principles of CE

CE is designed to efficiently recirculate the raw material and used to produce goods through;

o Product-life extension

o Eco-design

o Long-life goods

o Reconditioning, reuse activities

o Renting service system instead of owning product

o Waste prevention

o Industrial Symbiosis

CE focuses on three objectives

o Economy: Accelerate growth

o Social: Job creation & employment

o Environment: Reduce pollution & GHGs emission

Benefits of CE

1. Adopting circular models creates opportunities for business

 The circular approach can potentially reduce an organizations environmental footprint by 85%

 Companies when shift their operations from a linear model to a circular model, can enjoy benefits:

o Minimize the use of inputs and eliminate waste and pollution

o Maximize the value created at each stage; add profitability

o Manage flows of bio-based resources from and back into the biosphere, and recover and
retain flows of non-renewable resources in closed loops

o Establish mutually beneficial relationships between companies within each circular (value)
chain: eco industrial cluster

o Create a goodwill/green image

2. Technological Innovation/Green Technologies/Eco design

Circular economy opens a wide array of new innovative technologies to close the loop.
 3. CE help to achieve Resource Efficiency

(CSR- Corporate Social Responsibility)

Circular Economy Implementation: Ricoh Copier

 Ricoh, provider of managed

document services, production
printing, office solutions and IT
services, established the Comet
Circle™ in 1994
 The Ricoh Comet Circle™,
embodies the belief that all
product parts, for example for
copiers and printers, should be
designed and manufactured such
that they can be recycled or
reused.
o Timberland, tire manufacturer and distributor-Omni United have teamed up to produce a line of tires
meant to be recycled into footwear outsoles once they reach end-of-life on the road

o With the tire and footwear industries being two of the largest users of virgin rubber, this collaboration
ensures that fewer tires are used for fuel or end up in landfill through a new tire return chain of
custody process.
Drivers to Circular Economy

Closing the Material Loop: Philips Lighting

 Design for Recyclability/Eco Design

• Recyclability – including designing for disassembly

• Green Innovation is the Research & Development spend related to the development of new
generations of Green Products and Green Technologies.

• Introduced in 1994, EcoDesign procedures deal with all phases of product development to create
products that can help reduce costs, energy consumption and CO2 emissions.

• Philips Green Logo: clearly identifies products that have a significantly better environmental
performance, and helps consumers to make informed choice

 Reuse

Philips Healthcare’s Diamond Select program

• A large amount of the system’s parts is reused contributing to a high percentage of recycled materials
in Philips products.

• Depending on the system type up till 98% of the system parts are reused and tested

 Recycling

• Philips aims to double the collection and recycling of its end-of-life products, as well as the amount of
recycled materials used in Philips products by 2015.

• Philips supports the setup of recycling infrastructures together with industry partners, creating
sustainable financing schemes which guarantee the effective and environmentally sound collection
and recycling of WEEE.
How to Become a Green Business in a CE?

o Improving Processes (Cleaner Production)

o Improving Design (Design for Sustainability)

o Improving Supply chains

o Reverse Logistics (take-back mechanism)

o Functional Economy (Rent or Lease than Sell the products)

o Industrial Ecology

 “Circular economy” is described in terms of industrial system that replaces the ‘end-of-life’ concept by
restoration and regeneration through intention.
 By redesigning products, services or processes in order to transform a waste or discarded material
(unvalorised) resource into a productive one that can be reused in closed-loop systems.
o Industrial symbiosis is the sharing of services, utility, and by-product resources among industries

o Industrial symbiosis focuses on material and energy exchange for resource efficiency in a closed cycle

o Eco-industrial cluster development is one of the practical case of industrial symbiosis

o Some common features of industrial cluster are:

 Centralized waste and wastewater treatment plant

 Waste exchange (one industry’s by-product residual is another industry’s resource/raw

material/energy source)
o Industrial symbiosis is just NOT about material re-use, it
can equally be applied to energy, water, asset utilization,
knowledge transfer, and expertise

o The industrial symbiosis engagement model can aid other

circular economy tools, such as design for environment
(DfE), cleaner production, remanufacturing, etc

o Industrial symbiosis requires, a facilitated cross sector

engagement model, bringing together producers and users
of waste resources with innovators, the research
community and entrepreneurs

o Industrial symbiosis also opens new business opportunities,

as most industrial symbiosis transactions occur between
partners outside traditional supply chains

• Eco-Industrial Cluster formation is one of the strategies to implement the concept of industrial
ecology by inter-company collaboration

• Waste of one company can be utilized by another company to increase the resource conservation
which results in “Upstream Resource Efficiency” and “better environmental performance”

• Inter-firm connectedness works collectively to fight the pollution through waste exchange, technology
sharing, or common waste treatment plants, etc.
Sustainable Production: Cleaner Production Theory and Applications

Multimedia Waste Emissions from Industries

Conventional Production Systems

• End-of–pipe treatment

• Traditional method to control pollution or disposal of wastes

o Corrective approach rather than a preventive approach

o Does not focus on pollution prevention

o No waste utilization
 • Sustainable Production is the creation of goods and services using processes and systems that are:

 Non-polluting (environmentally responsible)

 Conserving of energy and natural resources (Energy and resource management)

 Economically viable

 Safe and healthful for workers, communities, and consumers

 Socially and creatively rewarding for all working people

• Sustainable Production is a comprehensive approach to meeting sustainability objectives in all facets

of your production, usage and end of use phases;

 Product design: using sustainability to guide design approaches to products from the earliest
stages of conception and development

 Consumer engagement: influencing what and how people consume

 End-of-use: recapturing products at the end of their useful lives and converting them to serve as
raw materials for other purposes

Cleaner Production

• The initial concepts of Cleaner Production were brought together during the mid-1980s, (the
establishment of UNEP’s Cleaner Production Programme in 1989)

• Cleaner production is an effective method to achieve business benefits such as lower costs, increase
profitability, reduce waste and improve the image of the business environment and social
responsibility

• It is intended to minimize waste and emissions and maximize product output

 • Cleaner production has been a (green) technology promoter

“Cleaner Production is the continuous application of an integrated preventive environmental

strategy applied to processes, products and services in order to increase overall efficiency
and reduce damage and risks for humans and environment”
• Improved efficiency
• Lower costs
• Conservation of raw material and energy
• Market requirements
• Improved environment
• Better compliance with environmental regulations
• Working environment of laborers
• Public image
Housekeeping:

better inventory management, better monitoring and scheduling of the production process,
reducing loss from leaks, spillage, and drag-out, and making sure equipment is m

Process optimization:

changing the manufacturing process to minimize waste, conserve raw materials, and capture and
reuse waste materials maintained properly

Raw material substitution:

find ways to substitute greener materials for hazardous materials, chemicals with high
environmental or health impacts, materials that are non-renewable, or those that are scarce

New (Green) Technologies:

incorporating more environmentally responsible technologies

New Product Design:

Manufacturing green product using recycled and renewable materials, designing for easy
disassembly, for recycling, or for remanufacturing, using less packaging and more recycled or
recyclable packaging
Cleaner Production Practices

Detoxification

• By soughting alternatives to the well (avoid) recognized toxic substances in the production processes

• This precautionary approach is taken to avoid risks of pollution/toxicity

Dematerialization

• By focusing attention on the materials of production and the constituents of products

• Cleaner productions employ life-cycle approaches to evaluate the environmental impacts of a product
from “cradle to grave”, and

• Promote “cradle to cradle” approach or closed-loop through recycling in the case of materials

Decarbonization

• By energy conservation and energy utilization efficiency in both production processes and product
design

Good housekeeping example:

• Repair all leaks and avoid losses by closing water taps

• Turning off equipment when not needed

• Timely cleaning of nozzles, piping network, ducts, etc.

• Proper cleaning of the floors, operating rooms to keep the atmosphere pollution free
• Preventive maintenance of plant and machinery

• Repair leakages, close taps when not in use

• Raw material conveyor to reduce material handling losses

CP Approach- Raw Material Substitution- Microbeads

• Many consumer products sold in around the world contain microplastic particles as abrasives and
exfoliants.
• Over the years, microbeads have replaced traditional, biodegradable alternatives such as ground nut
shells, and salt crystals.

• Other natural alternatives, like apricot shells and cocoa beans are being used successfully by many
companies.
CP Approach: Equipment Modification

Cleaner Production Audit

• To identify the opportunities for improvement through various CP options, an audit is critical.

• An Audit is

• A thorough account of the waste and energy in an industry, a plant, a process or a unit operation.

• A problem identification and proper solving approach.

• A derivation of material / energy balance for each scale of operation

• A balance sheet of “WHAT IS DONE” Vs “WHAT SHOULD BE DONE”

CAP Audit: A Walk-through Inspection

Energy Audit

1. Energy consumption measurements

2. Energy efficiency measurements

3. Operation / Maintenance measurements