Renewable Matter 25 by Edizioni Ambiente

RENEWABLE MATTER INTERNATIONAL MAGAZINE ON THE BIOECONOMY AND THE CIRCULAR ECONOMY 25 | January-February 2019 Bimonthly Publication Edizioni Ambiente

IPCC: We Are Still in Time to Fight Climate Change. Interview with Sabine Fuss

Euro 16.00 – www.renewablematter.eu/en – Poste Italiane S.P.A. – Postal Subscription – 70% LOM/MI/00670__Tax Paid/International Postmail

•• Keep CO2 Underground. Naturally •• Jennifer Holmgren: Extracting Ethanol from Recycled Carbon

Jyrki Katainen. A Recipe for Europe •• Ellen MacArthur: We Must Network with Universities •• Dossier France: 50 Measures for Circularity

Focus Mining •• Mines: When There is Nothing Left to Extract •• Cobalt Shortages Ahead

Greece Dossier/Bioeconomy: A Way Out of the Crisis •• Sustainable and Circular: The Bioeconomy According to Brussels •• Solaris Tobacco: A New Hope for Aviation Biofuel

Partners

ADI Design Index 2015 Selection

Patronages

RENEWABLE MATTER Networking Partners

Supporters

arbon Tracker

Initiative

Technical Partners

Printed by Geca Industrie Grafiche using mineral oil free vegetable-based inks. Geca production system does not produce exhaust and all waste of our manufacture is introduced into a process of collection and recycling. www.gecaonline.it

Printed on Crush ecological papers by Favini, made using process residues from organic products to replace up to 15% of virgin pulp: cover Crush Mais 200 gsm, text Crush Mais 100 gsm. www.favini.com/en

Editorial

by Emanuele Bompan

Decarbonise Now The economy cannot be circular if it does not find a way to act as the foundation for the decarbonisation of our planet. 2018 has been one of the hottest years on record. The Mauna Loa observatory, in Hawaii, has found the average concentration of carbon dioxide, the main greenhouse gas, to be above 410 parts per million (ppm), the highest level seen in the last 800,000 years. Scientific reports from the IPCC continue to reassert one thing: stopping climate change is becoming ever more urgent and the window of opportunity keeps getting smaller. Renewable Matter believes that climate change is the biggest challenge humanity has ever had to face. It requires an even greater industrial transformation than the one which was undertaken for the Second World War, a transformation which must articulate political vision, audacity, wide social participation and technological ingenuity. We have seen how, in France, raising taxes on diesel triggered a middle class revolt. A middle class that is unwilling to come to

any kind of compromise that will damage its prosperity. In Italy, a measure introducing bonuses and penalties for vehicles based on their emissions, one of the first pro-environment measures adopted by the current government, caused widespread and almost universal criticism. In the United States, Trump has revoked many of the decarbonisation laws enacted by the Obama administration. Emissions rose by 2.7% in 2018. However, no significant behavioural changes have occurred, even though the Eurobarometer reports that 85% of citizens agree on the fact that the fight against climate change ought to be a priority. Global warming is a dark and complex enemy. The causes of inaction in ceasing emissions are varied: indolent conservative governments, large corporations with profit driven interests, misinformed small businesses, uneducated citizens (sometimes wellinformed but often victims of their own laziness, this author included). Inaction is primarily cultural and psychological, well before it becomes political. The circular economy concept is gaining traction all over the world, from Europe to China, from the US to South America. It is essential, however, to work on an extended concept of circular economy that includes a central vision of the circularity of energy and of zero-carbon, or better yet “carbon-smart” circular economy (see interview with Jennifer Holmgren). What is to be done? On the one hand, research and eco-design have to be encouraged, so as to aid the creation of electric batteries, solar panels, wind turbines, electrical appliances and electronics that are completely circular. Support for renewable energy and energy-saving practices is a key element for the European Commission, and therefore closed loops are required to manage all relevant materials (cobalt, lithium, rare earths, copper, etc.) that must then be reused once a product reaches its end of life. On the other hand, circular industrial processes must always aim for the ‘lowest-carbon solution,’ which means always choosing the least carbon-intensive option. Finally, technologies that aim to help with CCU (Carbon Capture and Usage) must receive strong support, be they large bio-refineries that produce bio-polymers and ethanol for biofuels derived from captured CO2, or large reforestation plans that promote the forest-bioeconomy, using trees and wood as lasting carbon sinks for at least 300 years (giving the go-ahead, for example, to retrofitting wood-based prefab buildings). This latest issue of Renewable Matter is a starting point for these kinds of reflections, which will continue in the coming months. The fight to stop climate change has only just begun.

The Future Demands Ambitious Goals by Manuel Pulgar-Vidal

This year has brought many reasons for pessimism when it comes to climate change. Ever more stark warnings from climate scientists. Wildfires across California. And 2018 on course to be the fourth warmest year on record. But, as the latest round of the UN climate change talks begin in Katowice, Poland, it is worth remembering that we have, in the 2015 Paris Agreement, the framework we need to build a common response to this global challenge. Paris Set the Scene

Manuel Pulgar-Vidal is the leader of the WWF’s global climate and energy programme. He is based in Lima, Peru.

WMO Provisional statement on the State of the Global Climate in 2018, tinyurl.com/y85hnrte AR5 Synthesis Report: Climate Change 2014, www.ipcc.ch/report/ar5/syr The Lima-Paris Action Agenda, https://unfccc. int/news/the-lima-parisaction-agenda-promotingtransformational-climateaction Green Climate Fund, www.greenclimate.fund/ home Talanoa Dialogue, https://talanoadialogue. com IPCC, Special Report Global Warming of 1.5 ºC, www.ipcc.ch/sr15 The Doha Amendment, https://unfccc.int/process/ the-kyoto-protocol/thedoha-amendment

Paris was built on four important elements: a robust scientific basis, namely the 5th Assessment Report of the Intergovernmental Panel on Climate Change (IPCC), released in 2013; a broad coalition of non-state actors, including business, local government and non-profits, mobilised through the Lima-Paris Action Agenda; effective financial support, primarily but not exclusively through the Green Climate Fund; and bottom-up plans put forward by both developed and developing country governments. These Nationally Determined Contributions (NDCs), as they are known, gave governments the confidence to propose emissions targets and actions without taking on legally binding commitments. The process has focused minds, uncovered opportunities, and set a process in motion to translate the global goals of Paris to the national level. However these first NDCs are not, collectively, equal to the task: if they are implemented as written, they would lead to 3.4°C of warming by the end of the century, more than double the limit of 1.5°C Parties agreed to strive to stay below in the Paris Agreement, and also far more than the well below 2°C backstop goal. For negotiations to be successful it is essential to establish a solid normative package that regulates the update of NDCs established in 2014-15. Rules are needed on transparency around NDCs, governments’ accountability for them and, ultimately, how they can be made more ambitious in line with the climate science. Again, the groundwork has been laid.

The Talanoa Dialogue has allowed parties to share experiences and, hopefully, will give them confidence to enhance their targets. The IPCC’s 1.5°C report has vividly set out the scale of the problem, and provides the scientific basis for decisive action. Finance, as always, will have an important part to play. The most climate-vulnerable countries are also the poorest: they need to see solidarity and financial support as they adapt to climate change while seeking to develop in a low-carbon manner. The Paris Agreement enshrined the goal, set in 2009, of mobilising $100 billion each year in climate finance by 2020, and maintaining at least this level until 2025. However, there is no clarity as to what happens after that date. More Ambition Necessary It will also be crucial to increase ambition regarding emissions reductions before 2020, when the NDCs come into effect, and further accelerate the needed transformations in our energy, transport and industrial systems, and protect and restore forests and other natural systems. Those countries that haven’t yet done so must ratify the Doha Amendment to the Kyoto Protocol, which establishes a second commitment period (covering 2013-20); while 120 parties have done so, it remains 24 signatures short of entering into force. Notwithstanding the results obtained in Katowice, it shouldn’t be forgotten that there is a fifth element that underpins the Paris Agreement: strong popular support for taking action on greenhouse gas emissions. In the face of such worrying scientific evidence, and despite the best efforts of those who seek to profit from the status quo, we must mobilise ever-greater public support for negotiators in all climate change talks so that they have clear mandates for aggressive and ambitious climate action.

R M RENEWABLE MATTER INTERNATIONAL MAGAZINE ON THE BIOECONOMY AND THE CIRCULAR ECONOMY www.renewablematter.eu/en ISSN 2385-2240 Reg. Tribunale di Milano n. 351 del 31/10/2014 Editor-in-chief Emanuele Bompan Editorial Director Marco Moro Contributors Irene BaĂąos Ruiz, Mario Bonaccorso, Ilaria Nicoletta Brambilla, Rudi Bressa, Emanuele Del Rosso (cartoon page 5), Sergio Ferraris, Daniele Lettig, Giorgia Marino, Ray Mwareya, Francesco Petrucci, Manuel Pulgar-Vidal, Eleonora Rizzuto, Antonella Ilaria Totaro, Veronica Ulivieri, Silvia Zamboni

25|January-February 2019 Contents

Emanuele Bompan

Decarbonise Now

Manuel Pulgar-Vidal

The Future Demands Ambitious Goals

NEWS

Veronica Ulivieri

We Are Still in Time Interview with Sabine Fuss

Irene BaĂąos Ruiz

Towards a Sustainable and Prosperous Europe Interview with Jyrki Katainen

Daniele Lettig

Circular Economy Academies Interview with Ellen MacArthur

Rudi Bressa

Are Universities Ready for the Circular Economy?

Mario Bonaccorso

Sustainable and Circular: This is How Brussels Envisions the Bioeconomy

Marco Moro

Regenerating Local Territories with the Bioeconomy

Mario Bonaccorso

Dossier Greece A Way Out of the Crisis

Editorial Staff

The Chemical Industry Says Goodbye to Fossil Fuels

Sergio Ferraris

Keeping CO2 Underground. Naturally

Emanuele Bompan

Carbon Smart Circular Economy Interview with Jennifer Holmgren

Francesco Bicciato, Elisabetta Bottazzoli

How to Redirect Capital Towards Circularity

Editorial Staff

Think Thank

Managing Editor Maria Pia Terrosi Editorial Coordinator Paola Cristina Fraschini Editing Francesco Bassetti Paola Cristina Fraschini Design & Art Direction Mauro Panzeri Layout & Infographics Michela Lazzaroni Community manager Antonella Ilaria Totaro Translations Patrick Bracelli, Erminio Cella, Laura Coppo, Franco Lombini, Mario Tadiello

Policy

Executive Coordinator Anna Re

Silvia Zamboni

Ilaria Nicoletta Brambilla

Dossier France France Turns Towards the Circular Economy Dossier France Occitania, a Positive Energy Region

World Giorgia Marino

Irene Baños Ruiz

Eleonora Rizzuto

The Museum of the Non-discarded

Focus Mining and Carbon Capture The Life of Mines After Mining

Focus Mining and Carbon Capture Being Sustainable in the Coloured Gemstone Business

Focus Mining and Carbon Capture Cobalt Shortages Ahead

Mark LaPedus

Ray Mwareya

Solaris Tobacco Crop, a New Hope to Power Africa´s Biofuel Jetliners

Irene Baños Ruiz

Fighting Cholera with Waste

IoT and Intelligent Waste Collection with Nordsense

Chakr, Capturing Pollution to Make Ink

Subscription Clothing with Le Tote

Aeropowder: Insulating Materials Made From Feathers

Circular by Law Single-use Plastics and the Automotive Industry: Upcoming Commitments for the EU

External Relations Manager (International) Federico Manca External Relations Manager (Italy) Anna Re Press and Media Relations press@renewablematter.eu Contact info@renewablematter.eu Edizioni Ambiente Via Natale Battaglia 10 20127 Milano, Italia t. +39 02 45487277 f. +39 02 45487333 Advertising marketing@materiarinnovabile.it Annual subscription Subscribe on-line at www.renewablematter.eu/en/ subscription This magazine is made in Dejavu Pro by Ko Sliggers Published and printed in Italy at GECA S.r.l., San Giuliano Milanese (Mi) Copyright ©Edizioni Ambiente 2019 All rights reserved

Startup Antonella Ilaria Totaro

Columns Francesco Petrucci

Cover 1.5 degrees Composed in TRSMillion By Typodermic Fonts Inc., 2011.

renewablematter 25. 2018

NEWS

by the Editorial Staff

Amazon? Amazing! Thanks to the project Frustration-Free Packaging, Amazon also launches its European guidelines on sustainable packaging for sellers. Sellers who want to be included in this project will have to be certified and follow all the American colossus’ requirements. On 31st October 2018, Amazon extended its incentive programme to sellers in France, Germany, Italy, Spain and the UK. Estimated time for this transition: 1 year. Brent Nelson – Amazon’s Senior Manager, Customer Packaging Experience – Sustainability, explains that the new Vendor Packaging Initiative is not compulsory but offers sellers the opportunity to review and redesign their e-commerce packaging, thus reducing a lot of the packaging currently used in retail. Since the beginning of the programme, Amazon has eliminated, thanks to its sustainability policies, 244,000 tonnes of packaging and 500 million boxes. However, it has also contributed to the sale of anything but circular products. Will a green marketplace be the next step?

Kickstarting the Circular Economy

Filling up with CO2 The University of New Hampshire’s researchers have identified new readily available materials that are able to convert sunlight and carbon dioxide (CO2) into elementary components for liquid fuels to heat homes and power electric cars. “We are currently able to convert sunlight into

Clever Cup Sold by the British coffee shop chain Costa, “Clever Cup” is a reusable coffee cup that, thanks to a removable (through Engadget) NFC chip, also doubles up as a payment method. While the idea of branded cups was popularised by Starbucks (but ignored by the majority), Costa tries to educate its customers to reusing by offering 25 pence (€0.28) off per coffee when customers use clever cup; and they can even pay with it. The project has been created in partnership with Barclays. Less than 1% of billions of coffee cups used in the UK each

electricity thanks to solar panels,” states Gonghu Li, associate professor of chemistry and materials science. “However, electricity is not easy to store on a large scale and energy production stops when the sun sets. We wanted to look for something more effective.”

year are actually recycled due to a polyethylene plastic coating used to waterproof them. Clever Cup has been on sale in Costa shops since November. Price tag: £14.99. (€17.00)

The crowdsourcing platform for innovative products, Kickstarter, has decided to encourage designers to incorporate GPP and sustainability criteria in their industrial planning, thanks to the Environmental Resource Centre – an advisory hub that offers suggestions and best practices to designers. Four criteria should be taken into account: durability (long-lasting and easily-maintained materials as well as strict stress tests should be preferred); modularity (so that components may be exchanged or updated and products repaired more easily); availability (not readily available materials, for instance due to environmental constraints making them more costly in the future); circularity (business models working in a loop, reusing already existing materials). “In this way, upstream models can be influenced,” states Heather Corcoran, in charge of Kickstarter design and technology.

News

The USA are discovering the circular economy. GreenBiz will organise the first Made-in-USA conference open to the public to showcase the American circular economy and its business potential: $4.5 trillion. The event called Circularity 19 will gather over 500 leading thinkers and professionals to define and accelerate the transition to a circular economy. The event will take place

Surrounding Trump

Photo by Michael Vadon/wikimedia commons

Washington DC passed a law mandating PEPCO utility to supply citizens with 100% renewable energy by 2032: double current levels. The pro-coal Trump administration will then have to govern in a city that has stepped up the pace on sustainability

Call for International Cooperation There is a need for extra international cooperation to develop a circular economy at a national level. This is what Chinese entrepreneurs requested during the China Council for International Cooperation on Environment and Development’s Annual General Meeting held in Beijing at the end of the year. During the conference, Liu Dashan – Chairman of the China Energy Conservation and Environmental Protection Group – stated that the world has still got to find a sustainable modality geared towards a circular economy market. “To this end, countries should strengthen cooperation so as to make their respective advantages complementary to one another, thus promoting the development of the circular economy.”

Harbouring the Future

in Minneapolis (18th-20th June 2019) with plenary debates, interactive breakouts, practical charrettes and networking events. Moreover, as per all Greenbiz events, there will be a fair focussing on circular solutions. Six main topics will be adressed: business and innovation strategy, circular cities, design & materials, logistics and infrastructure, nextgeneration packaging, as well as standards and metrics.

Valencia, photo by Goodnighmoon/wikimedia commons

Circularity 19

measures. The District has set a very aggressive target, higher than other 99 cities that have declared war on fossil-fuel energy. Washington DC even beat San Jose and San Diego – California – aiming for 100% by 2050 and 2035 respectively.

Here comes LOOP-Ports – Circular Economy Network of Ports, a network coordinated by Fundación Valenciaport and funded by the European Institute of Innovation and Technology (EIT) through the EIT Climate-KIC initiative. The project involves six EU member states: Spain, Italy, France, Germany, Denmark and the Netherlands. It will develop over two years and facilitate the transition towards the circular economy of the port sector. It aims at creating a network to facilitate the exchange of expertise and good practices, providing recommendations and strategies to manage circular materials and strategies, promoting training of staff and, last but not least, setting up new business initiatives both in port clusters and other industries linked to this sector. To start with, it will focus on high-energy materials, mainly metals, plastics, cement and biomaterials.

World Energy Outlook 2018 In energy markets, renewables have become an obvious choice, representing almost ⅔ of global added capacity by 2040, thanks to dwindling costs and favourable government policies. The growth of renewables has been highlighted in

the new Report by the International Energy Agency (IEA) where a transformation of the global energy mix clearly emerges, which will see energy production from renewables soar from today’s 25% to over 40% by 2040. Unfortunately, though,

it’s not all good news. Over the next decade, coal will still remain the main source of energy and gas will still rank second. According to Fatih Birol, IEA’s executive director “governments will play a pivotal role with their energy policies.”

renewablematter 25. 2018

Credit: MCC Thomas Koehler

We Are Still in Time Interview with Sabine Fuss Scientist Sabine Fuss is one of the authors of the latest UN report on climate change. To curb global warming – she explains – ambitious commitments to reducing emissions will have to go hand in hand with carbon dioxide removal from the atmosphere. by Veronica Ulivieri

Sabine Fuss leads the working group Sustainable Resource Management and Global Changes for Berlin’s Mercator Research Institute. She has dealt with international economy, sustainable energy development and ecosystem services.

MCC – Mercator Research Institute on Global Commons and Climate Change, www.mcc-berlin.net

In October, the IPCC – that under the auspices of the United Nations studies the effects of climate change – published a special Report deemed of utmost importance. On the one hand, because the Special Report “SR15” reminds us that keeping global warming within 1.5 °C – the highest ambition of the signatory countries to the 2015 Paris Agreement – is still achievable; and on the other because it confronts all adhering governments with the fact that if this target is exceeded, consequences for humans and ecosystems alike, should even half a degree average temperature increase occur, will be very serious indeed. So far, the actions that have been implemented will lead us to a 3.2 °C warming by 2100: “By 2030, emissions must be reduced by almost half and by 2050 they will have to be zeroed,” explains Sabine Fuss, expert economist in ecosystem services, and one of the leading authors of the fourth chapter of the Report on reinforcing and implementing global responses to climate change threats. According to the German scientist – head of the working group Sustainable Resource Management and Global Change for Berlin’s Mercator Research Institute

– the challenge is so complex that it even calls for CDR solutions. The acronym stands for Carbon Dioxide Removal and includes currently available systems as well as those still being researched, to remove CO2 from the atmosphere, thus acting on those emissions that cannot be avoided. In answer to Renewable Matter’s questions, Fuss ponders the role of such technologies and how their use can be balanced in a cost-benefit perspective, both from an economic as well as an environmental viewpoint. One of the key results to emerge from the SR15 is that the target to keep global warming within 1.5°C is still achievable. “The coming years will probably be the most important in our history,” claims Debra Roberts, co-chair of IPCC Working Group II. Is SR15 the last port of call before catastrophe? “By 2030, emissions will have to be reduced by almost half and by 2050 they will have to be zeroed. The Special Report clearly shows that current commitments to reducing emissions in compliance with the Paris Agreement are not enough to reach such targets even if ambitions should rise after 2030, the 1.5 °C goal will still be unattainable.”

Think Tank

Soil Carbon Sequestration (SCS) Carbon is the essential building block for life on Earth: plants absorb it and store it in their tissue through photosynthesis, animals assimilate it through food. From living beings, carbon is then released into the soil where it is stocked. Through Soil Carbon Sequestration, soil currently represents the third largest carbon sink after oceans and fossil fuels. Increasing organic substance concentration, which has been depleted over the years due to unsustainable agricultural practices, could enhance such amounts. A solution that not only would reduce CO2 in the atmosphere, but would also guarantee benefits for farmers. Indeed, more carbon means less soil degradation, more fertility and better crop yield. For this very reason, SCS helps food security.

Veronica Ulivieri, journalist, mainly deals with economics and enquiries on environmental issues. She writes for, amongst others, Repubblica Affari & Finanza, La Stampa and Il Fatto quotidiano. it. In 2015 she won UGIS prize – Union of Italian Scientific Journalists.

What technologies and measures should policy makers favour? “We weighed up a wide range of actions towards the 1.5 °C target, based on portfolios of extremely varied mitigation options. The IPCC does not mandate any of these but it assesses all of them to let policy makers build their own strategies according to the current state of knowledge, taking into consideration their specific situation and their preferences. Dramatic reductions in the consumption of products requiring huge amounts of soil, energy and other resources, changes of lifestyle, increases in energy efficiency and rapid adoption of low carbon solutions, for instance, can reduce our reliance on CDR technologies.”

as the report clearly shows. So, we undoubtedly need CDR systems in addition to our utmost efforts to reduce emissions as much as possible in the short and medium term, and not the opposite.” In your opinion, what CDR solutions should be preferred? “Not all CDR options are about large-scale technologies. There is a lot of experience in afforestation, recovery of ecosystems and CO2 soil carbon sequestration via sustainable land management and agroecology, for instance. According to the Report assessments, these are relatively cheap options, so they can be accessed in the short term. However, worries associated with stability of such solutions (due to human influence such as deforestation or natural interference such as forest fires) indicate that other options must also be considered. The Direct Air Capture with Carbon Storage (DACCS), for instance, is still expensive but it uses up less land compared to Bio-Energy with Carbon Capture and Storage (BECCS). In short, the assessment shows that each CDR option has its limits, so we will have to resort to portfolios of options while monitoring side effects.” And what are the most cost-effective? “Amongst the assessed CDR options in the Special Report, Soil Carbon Sequestration manages to sequester a tonne of CO2 at the lowest cost and can also have co-benefits in terms of improvement to crop yield. However, soil carbon sequestration is prone to saturation and it is reversible; its development can be limited by land surface on which the various practices can be implemented.”

As for CDR systems, what is their role in mitigation and adaptation strategies? “The role of CDR is twofold: in the DACCS analysed 1.5 °C strategies they and BECCS offset residual emissions, and they can take us back to 1.5 °C DACCS (Direct Air Capture with Carbon Storage) after temporarily exceeding this systems consist in capturing carbon in the atmosphere target.” and storing it or using it in new industrial processes. Through chemical processes, CO2 is separated from the Could excessive reliance air and injected into underground sinks or – for instance – on CDR technologies used to produce synthetic fuels. However, there are still a few lead Countries to not cut hurdles to overcome, for instance high energy consumption emissions enough? Is there and geological storage sites: possible contamination of a threshold that should not water tables, CO2 leaks, earthquakes, pipelines. In BECCS be exceeded while using (BioEnergy with Carbon Capture and Storage) CO2 is also CDR technologies? captured and stocked: here, though, the “target” carbon “I don’t believe that a delay is not in the air, but that which is generated through in mitigation is due to the fact the production of energy from biomass. that policy makers know that eventually we would be able to resort to CDR. There are other important drivers in this debate that should not be overlooked. The greater the target excess, the more severe the impacts on climate,

renewablematter 25. 2018 Estmated Costs and 2050 Potentials

300

Costs in $ tCO2 -1

DACCS

200 BECCS

Enhanced weathering

100 Soil Carbon Sequestration

Biochar

Afforestation and Reforestation 0 1

Potentials in GtCO2 year -1

What are the pros and cons of BECCS and afforestation? The SR15 also recommends policy makers consider people’s needs before deciding to invest in CDR solutions. In what kind of situations could CDR options prove negative for individuals and the environment? “The obvious advantage is CO2 removal from the atmosphere, but both BECCS and afforestation require vast portions of land to achieve large scale CO2 removals. This can lead to conflicts with other Ocean sustainable Fertilization development targets such as Ocean fertilization consists in dumping food security iron or other nutrients in the upper layers of for a growing the oceans in order to stimulate phytoplankton population growth, thus improving CO2 absorption in the or the oceans. In theory, phytoplankton, once it has safeguard of absorbed carbon dioxide, should die and sink to the terrestrial the seabed. However, experiments highlighted that biosphere. So, the amount of carbon actually sequestered is low a smaller scale because a great amount of CO2 is released into implementation, the food chain. Furthermore, risks associated by benefitting with marine ecosystem health have also wherever possible been identified. from synergistic benefits (for instance, BECCS supply energy, afforestation can be carried

IPCC, Special Report Global Warming of 1.5 ºC; www.ipcc.ch/sr15

out in a way that restores habitats) is a less risky strategy.” In what way will deforestation impact on the amount of CO2 in the atmosphere? “Deforestation causes about 10% of global emissions, thus significantly contributing to CO2 concentration in the atmosphere. So, avoiding deforestation is an important mitigation strategy that can lead to more substantial benefits depending on how it is implemented.” What role could solutions such as biochar (charcoal obtained from plant matter pyrolysis), or ocean fertilization have? “It has been estimated that biochar has significant potential at a reasonable cost, but ocean fertilization is limited not only by uncertainties associated with side effects, but also by a de facto moratorium on its large scale implementation included in the London Protocol in order to prevent sea pollution.”

Think Tank

Towards a Sustainable and Prosperous Europe Interview with Jyrki Katainen The circular economy and bioeconomy have huge potential in terms of employment: it is estimated that bio-based industry will create around one million new jobs by 2030. However, the skills required of this new labour force will change, thus making training important. by Irene Baños Ruiz

Born in Finland, Jyrki Katainen has been the European Commission’s Vice-President for Jobs, Growth, Investment and Competitiveness since 2014. He has also held office as the Prime Minister of Finland (20112014), Finance Minister (2007-2011) and chairman of the Finnish National Coalition Party (20042014).

2018 has been a turning point for the transformation of Europe into a more sustainable and circular society. The year started with good news for innovation frontrunners in the form of the first-ever coordinated European Strategy for Plastics. This was soon followed by negotiators agreeing new targets for the use of renewable energy resources in the EU and wrapped up in October with the publication of the updated EU Bioeconomy Strategy. It has also been a busy year for the European Commission (EC), particularly for commissioners such as Jyrki Katainen, responsible for jobs, growth, investment and competitiveness. This is because a sustainable society is not only about making processes circular and using biological resources as raw materials, but also about caring for everyone’s welfare. Hence, jobs and growth play a crucial role in the process and represent an important challenge when transforming economic models. We discussed the role of the EC in facilitating this transition and creating new opportunities for all European citizens with Commissioner Katainen.

According to the EC, both the circular economy and the bioeconomy have great potential for generating new jobs. How will they contribute to economic growth? “The circular economy will be a source of new jobs in the coming years because it will increase productivity and help the EU import fewer resources from other countries. Basically, we’ll spend less money on imports and at the same time try to maintain the value of raw materials in Europe for as long as possible, by recycling products and secondary raw materials over and over again. Furthermore, the bioeconomy also has great potential for creating jobs and growth. Most of the feedstock used for bioeconomy products comes from our own farms, forests and coastal areas, so the bioeconomy provides an important source of income diversification for these sectors. It is estimated that bio-based industries could create around one million new jobs by 2030.” How does the EC plan to deal with potential job losses that might occur because of this transition? “In some sectors, where raw material demand is about to decline because of the circular economy, we have to create mechanisms to help people find new jobs. There are various

renewablematter 25. 2018

Irene Baños Ruiz is a freelance journalist who focuses on environmental topics. She is currently based in Bonn, Germany, where she regularly collaborates with Deutsche Welle.

EC, “Bioeconomy Strategy” October 2018, tinyurl.com/y9w6qjfg

member states with plenty experience in these kinds of transitions. For instance, when in Finland companies from the ICT (Information and Communications Technology) sector, such as Nokia, were laying off lots of people, the country created a mechanism to help people find new jobs, receive training or become entrepreneurs. It means that we already have social funds in place; which is the way to help member states obtain financing for their projects. However, each individual case is different and financial support must be tailored according to specific needs. So, a bio-based and circular economy is a source of growth and job creation, but, at the same time, some of the jobs may be different than the ones we have today. This leads to the second point which needs our attention: skills. The Commission has very little power in the field of education and training. However, since we are witnessing an evolution where jobs, carriers and working places are changing, member states have to react and provide adequate training.” We have addressed the circular economy and bioeconomy as separate concepts. However, merging both concepts seems necessary if we are to achieve greater sustainability. Is the EC working towards a circular bioeconomy? “The bioeconomy is the renewable leg of the circular economy. The circular economy is not always about renewable resources, even though it can be, but the bioeconomy encourages replacing the remaining fossilbased raw materials. Also, as I said before, it’s good for Europe because we can use our own feedstock instead of importing raw materials such as oil. One of the concrete measures that we are carrying out at the moment for the bioeconomy to become a sustainable part of the circular economy is to create quality standards for bio-based plastics. There are plenty of bioplastics on the market, but they are not necessarily fully sustainable. Even though they are better than oil-based plastics, some of these products don’t biodegrade. Or, even if they degrade, they break down into microplastics, which then enter our food chains. We want to reduce the amount of oil used for plastics, but we also need to make sure that we can get rid of microplastics. That’s why we need sustainable criteria: establishing quality standards is one of the most important measures. Another example is our target increase for using new generation biofuels. Forestry practices must be sustainable so that biofuels are sustainably produced. This will significantly improve the biofuel market in the coming years, once the new targets are in place.”

In terms of biofuels, do you think there has been a lack of concrete proposals within the new Bioeconomy Strategy for the sustainable achievement of EU bioenergy targets? “Yes, that is true. And we have to take this seriously, because even if biological feedstocks are better than the use of fossil fuel based feedstock we still have to make sure that the whole value chain is sustainable. For instance, if we increase the use of forest-based biomass, we have to make sure that forest management is sustainable, meaning that the forest is being replenished more rapidly than it is being consumed. The circular economy, as the EC sees it, is the industrial leg of climate protection whose entire value chain must be sustainable. We know that there are plenty of opportunities for the use of forest-based biomass, certainly more than we are using at the moment, but we have to make sure that forests are being managed adequately.” Some environmental campaigners argue that efforts must focus on reducing the use of plastic rather than looking for alternatives such as bioplastics. To what extent does the European Strategy for Plastics really focus on prevention? “Actually, the more we recycle plastics, the less we need virgin plastic. In that sense, the overall production of virgin plastic will decrease. Therefore, recycling is an important part of preventing the consumption of plastics. Secondly, the more we can produce and recycle bio-based plastics, the less we will need the fossil-based equivalent. Plastic is also a good material because it is very light if compared to other materials such as glass. Glass can appear to be more sustainable if you only look at the feedstock aspect, however the footprint of a heavier material can actually be bigger than that of a lighter product (as it takes more energy to transport editor’s note). At the same time, when reducing the use of virgin plastics, we also try to prevent the increase of food waste. Food waste is a huge problem and plastic can help us prevent food waste. In this area we need to create more standards for plastic packaging in order to make sure that we can recycle it over and over again, which, to a large extent, is unfortunately not the case. As a concrete incentive for member states to improve circularity, we introduced a levy as part of the Multiannual Financial Framework proposal (MFF) 2021-2027. It is a levy, not a tax, but it will be directly proportional to the quantity of non-recycled plastic packaging

Think Tank

waste generated in each member state (0.80 € per kilo).”

EC, “A European Strategy for Plastics in a Circular Economy,” January 2018; ec.europa.eu/ environment/circulareconomy/pdf/plasticsstrategy.pdf

Large companies such as Coca-Cola and Danone have recently signed a voluntary commitment to tackle plastic pollution (the New Plastics Economy Global Commitment). To what extent can such pledges contribute to tackling plastic waste? “We need a whole range of measures, however these campaigns are good examples that demonstrate how companies can really change their business models and become more sustainable in terms of plastic use. It’s a good example for other companies that have not yet acted on this opportunity. As a European regulator, we must enable a new sustainable recycling market to emerge, and that is why the proposals to which I referred before, namely creating quality standards for plastic packaging, are very important. Pledging campaigns are important to create peer pressure on companies. However, they must be followed up with regulation. For instance, the bioplastics market needs regulation so that it can become profitable and so that there is a market logic behind it. Otherwise, we’ll always be in a situation where cheap oil prices dominate the plastic market, and we really have to get rid of this unhealthy and vicious cycle.” The updated Bioeconomy Strategy introduced a €100 million Circular Bioeconomy Thematic Investment Platform. To what extent will this boost private sector investment in the bio-based industry? “This €100 million is mostly aimed at innovation. We need innovation. We really have to invest in new business models, but also in new products that are more sustainable. In that sense, the EU support for innovation is very important. However, I also want to mention that the EC is currently helping member states where waste recycling is not developing as effectively. In concrete terms, DGs (EC’s directorate-generals) are organising events in those states that are lagging behind. During these events industrial players, companies and local authorities are invited to look at the potential opportunities. Therefore, we are providing technical advisory services for member states, and we show examples of how other countries or regions have managed to improve waste management systems to become more circular. Once again the private sector plays an important role because not all regions and municipalities know what kind of technology is already available. The more the public sector is able to

modernise waste management, the better the opportunities for the private sector to invest in those areas and technologies. We are in the middle of a very robust and fast transformation. I’ve had lots of feedback from recyclers saying that their business is booming at the moment. In certain countries, they are on the edge: they have to hire more and more people and produce more and more equipment for recycling purposes. This is a positive sign, but we have to make sure that the whole of Europe stays on course and we don’t create divisions around this issue.” Finally, what project would you highlight in terms of jobs and growth for 2020? “Since Renewable Matter is based in Italy, I will give an Italian example. Italy has been an extremely active user of the European Fund for Strategic Investment (EFSI), which is part of the Juncker Plan (Investment Plan for Europe), especially for small and medium-sized enterprises (SMEs). To date, Italy has already mobilised over €444 billion in fresh investments throughout Europe and supported almost 800,000 SMEs. Out of these 800,000 SMEs, Italy has used EFSI so actively that almost 400,000 Italian SMEs have already obtained financing. This is very significant as Italy is a very entrepreneurial country. All those entrepreneurs who have obtained EFSI financing will most probably hire new people or at least become more competitive in the market. This is just one tool that we have used quite successfully throughout Europe, but especially in Italy. The investment plan for Europe, the Juncker Plan, is set to create 1.5 million jobs by 2020. That is also a significant number.”

renewablematter 25. 2018

Circular Economy

Academies Interview with Ellen MacArthur by Daniele Lettig

Ellen MacArthur Foundation, www.ellenmacarthur foundation.org CE100, www.ellenmacarthur foundation.org/ce100

Daniele Lettig has written for Prima Communicazione, Il Foglio, TuttoGreen and a number of local papers. He specialises in economics, current affairs and themes related to communication, occasionally writing about foreign affairs.

To change the current economic paradigm and abandon the linear model, education will play a key role. For this reason, collaborations with universities across the globe are an essential part of the Ellen MacArthur Foundation’s work. The former British sailor discusses this with us.

“We will all become ‘circular’ because it is the right thing to do, but I don’t think it is necessary for every person to know in detail what the circular economy is: it will be sufficient for products and services to be created and offered to them as such. Conversely, for those working in the education sector it is absolutely necessary to have knowledge of the entire process: it is the future, and a different way of thinking.” Ellen MacArthur’s calm voice and deep, clear eyes project the determination that led her to establish, in 2005, the world record for circumnavigating the globe in a sailboat, solo and without stops: a feat that led to her being awarded the title of Dame of the British Empire. And, it is in a simple and convincing tone that MacArthur explains the importance of the university system in accelerating the transition from a “classical” linear economy to a circular model, founded on the pillars of sustainability, renewable energy, reuse and the regeneration of materials: a change in paradigm that drives all of the MacArthur Foundation’s endeavours. Since 2010, the Ellen MacArthur Foundation (EMF) has collaborated in its campaigns with international institutions, public administration organisations and financial and industrial giants. Among these is the Italian banking group Intesa Sanpaolo, which, alongside Fondazione Cariplo, a few months ago created the first laboratory for the circular economy in Italy, the Milan-based Circular Economy Lab. At the Lab’s inauguration last September, held in the Cariplo Factory spaces (in the former Ansaldo factory), Renewable Matter caught up with MacArthur and asked her to recount the relationship between her foundation and academic institutions all over the world. What is the attitude of the academic world with regards to the circular economy? How did

the EMF start collaborating with universities and research institutes? “When we started this was a very new field. We sought to foster a very deep relationship with a small number of design engineering and business universities to begin with, to understand how to teach circular economy, how circular economy is then taken forward by the student, but also to embed circular economy within the university. So, if you came on our fellowship programme you had to have an academic from the university work with you for a week-long summer school, and then for a year-long innovation project. That helped embed circular economy within universities.” Aside from this, what are the current partnerships between EMF and university institutions? “We have network universities and we have partner universities which we work with on various programmes. The fellowship programme is going up to another level next year, so we’re making it much broader and we’re working with a much, much greater set of universities. We have teaching courses with universities all over the world, [in] the fellowship programme here in Italy we had the Politecnico di Milano, we had MIT, Yale, Berkeley, Crownfield Imperial, London Business School, the Indian Institute of Design, Tianjin University, and those are just the partner universities for the fellowship programme.” The eight ‘Pioneer Universities’ also take part in your CE100 (Circular Economy 100) project? How does this work? “CE100 is an accelerating programme, so the idea is to help share the latest thinking around the circular economy and to develop projects in which organisations can collaborate using this thinking. This means research institutions, companies and businesses or cities and regions all coming together, increasing the scale of projects and the scale of the

Think Tank idea of circular economy. All we are trying to do as an organisation is promote the circular economy.” What are the themes for which research – both academic and private – is most urgently needed to develop the circular economy? “There are so many. On the economics side there’s research needed everywhere so as to develop different business models, a really new topic that is absolutely vital for the circular economy. On the materials side we need to look at design in a broad sense, so we are designing with the circular economy in mind: for example, creating products that can be more easily disassembled and reassembled. Marketing is another important area: understanding how to market the circular economy is challenging because you probably don’t sell products but you provide products as a service.” Is it possible to measure the circularity of a business? Is there anyone that is moving in this direction?

“There are many conversations on the subject of how to measure circularity, and some companies that we’ve worked with have developed and implemented their own measurement tools, but overall the issue is very complex. Consider, for example, a resource: you could look at how that resource is used, at how much raw material goes into a product when you make it, and see that as a measure. But then you also have to look at how a product is situated within the economy, and, if that product has a cyclical journey before being decommissioned, or indeed remanufactured, should it be measured differently? How so?” Which are the countries where the circular economy is making the most progress? What role might Italy have? “I think there’s a massive opportunity for emerging markets to leapfrog the linear economy we’ve built. We recently divulged the results of a study that shows the huge economic benefits that the circular economy would entail for China. The same is true for India and other developing nations. As for Italy there is great potential: already we see examples such as municipal food waste collections in Milan, as well as other similar programmes all over the country; or the forward thinking companies and start-ups exploring different fibres and materials for fashion. Also, Italy is at the forefront of design, it is world-renowned for it: circular economy is intelligent design, design for the future. A product has to be beautiful but also has to fit within a system: who if not Italy can find the best design for this?”

Commitment to Learning and Education Further education and adult learning constitute one of the most important fields of activity for the Ellen MacArthur Foundation. According to an estimate by the organisation, educational projects that have been organised in the past eight years have reached 7.68 million people all over the world. The programmes range from Business Learning – whose purpose is to support practical application of the circular framework within businesses – to collaborations with high schools and universities all over the world that aim to develop and integrate the circular economy model into courses and study plans. Notably, in 2016 the EMF entered into agreements with United World Colleges (UWC, an international higher education network connecting 17 schools across 4 continents) and with International Baccalaureate, an organisation with 5.000 participating institutions in 150 countries.

Additionally, the Ellen MacArthur Foundation collaborates with the “Network Universities” (including Pavia University and Milan’s Bocconi): a group of institutions that have started research programmes on the circular economy within a number of specific courses. Finally, other universities, such as MIT in Boston, Tongji University in Shanghai and the Politecnico in Milan are partners in some of the Foundation’s specific projects in which students and tutors take part, such as the Schmidt MacArthur postgraduate scholarship programme, which aims to create a global innovation platform for researchers and academics in the fields of design, engineering and business, in order to redirect the economy towards a circular model.

Are Universities Ready for the Circular Economy?

While businesses, foundations and international institutions have already laid the groundwork for a transition to the circular economy, the academic world has only just started on this path. And the future is still to be written. by Rudi Bressa

1. www.clubofrome. org/wp-content/ uploads/2016/03/TheCircular-Economy-andBenefits-for-Society.pdf

Looking at the numbers and expectations regarding the development of a circular economy in Europe and in the rest of the world, there is good reason to be enthusiastic. Numerous studies published in recent years show that the transition to a circular economy could bring about a positive transformation even in the world of work. According to â&#x20AC;&#x153;The circular economy and benefits for society. A study pertaining to Finland, France, the Netherlands, Spain and Sweden,â&#x20AC;? drawn up by the Club of Rome in 2016, the number of new jobs could surpass 75,000 in Finland, 100,000 in Sweden, 200,000 in the Netherlands, 400,000 in Spain and half a million in France. This would mean the reduction by a third of unemployment rates in Sweden and the Netherlands, and 1.5% growth in GDP for all the countries analysed.

This translates to several billion euros a year for Finland, over five billion euros a year for Sweden, approximately 15 billion euros for the Netherlands, 20 billion euros in Spain and 50 billion euros in France.1 However, to ensure a system-wide transition, it is essential for the academic world to fuel research in all sectors where a circular economy might intervene. And the ground has never been so fertile given that this model can be applied to almost all aspects of society. Energy, planning, business management, engineering, and chemistry, to cite but a few. There are already many universities that offer courses, Masterâ&#x20AC;&#x2122;s degrees, remote learning programmes, and postgraduate certifications. This ferment seems to be present mostly in

Think Tank 2. www.ellenmacarthur foundation.org/our-work/ activities/universities/ network-universities

University of Bradford. ©Tim Green aka atouch/Wikimedia Commons/cc-by-2.0

Rudi Bressa is a freelance journalist and naturalist who writes about the environment, science, renewable energy and the circular economy for various Italian newspapers.

Circular Economy Centre of the Cambridge Judge Business School, www.jbs.cam.ac.uk/ faculty-research/centres/ circular-economy

3. https://environment. yale.edu/profiles/ expertise/circulareconomy

Europe,2 although the United States, China, Brazil and India have already experienced fruitful collaborations. The Ekonnect Knowledge Foundation, based in Mumbai, is a good example of this, and in January 2018 it signed a commitment memorandum with Green Industries South Australia to develop a programme called “Circular Economy Leadership.” The goal is to educate, remotely and in person, those people that are trying to improve their credentials and competences in matters related to the circular economy, resource efficiency and resource recovery, thus preparing them to assume leadership positions in the field. The programme, which will last for five years, foresees an intensive exchange of best practices and online courses covering many topics, from the management of wastewater to the recovery of construction materials. This is also confirmed by Laura Badalucco, course director for the degree in Industrial Design and Multimedia at IUAV University in Venice, who emphasises how the concept of circular economy is not a new one, “but what is undoubtedly new is the way it is being confronted and presented concretely to the economic and productive world. The focus is aimed primarily at economicmanagerial and technical-scientific aspects. Design, in this sense, has delved into these aspects for a long time, but I believe it still has much to say on the matter,” with lots of room for manoeuvre in “further deepening its scope, potentiality and criticality.” To develop these themes and criticalities the Ellen MacArthur Foundation has initiated the CE100 Programme, a sort of international collaboration to give vitality to the development of the circular economy. It unites industrial groups, governments, cities and academic institutions so that the latter are better able to network, and thus aid the academic development of tomorrow’s leaders. “As one of eight globally distributed Ellen MacArthur Foundation ‘Pioneer Universities,’ the triple-accredited School of Management at the University of Bradford leads the way and continues to provide a wholly online, distancelearning, specialist MBA in Innovation, Enterprise and Circular Economy in 2008,” explains the course director Amir Sharif. “A postgraduate certificate programme version is also available. In addition, the University has been developing and leading research in the field of material flows for construction and more recently in developing research in the area of food, plastics and ‘smart waste’ – combining digitally disruptive technologies with management concepts. Many universities and institutions are now developing similar postgraduate as well as executive education programmes in the area and are also collaborating and combining research strengths across a range of public and private sector organisations, tackling challenging problems such as: financing for the

circular economy, reverse logistics, design science for products and services, solutions for packaging, and water and food management systems, amongst others.” However, according to Sharif, we are still in virgin territory: “Although research in the circular economy is now becoming more established throughout the world, there is still much to be done, and existing areas of research need to mature further. Given that the circular economy has its roots in concepts relating to biomimicry, industrial ecology, the so-called ‘blue economy’ and systems thinking [...] the core challenges for the circular economy at present clearly revolve around the elimination or mitigation of waste streams so that these ‘irrecoverable’ material flows and resources can be looped back into reuse and regeneration cycles. Thus addressing key issues around plastics, food, energy and water waste that both developed and developing nations are faced with.” The circular economy impacts entire sectors of society that will have to be conceptualised in a new way and re-modulated. “The key issues which still require greater attention relate to socio-economic impacts, and how governments, local authorities, as well as the private sector, can actually make a visible change and difference to the transition to a circular economy.” This, for example, is the mission of the Circular Economy Centre (CEC) at Cambridge Judge Business School, which aims to become one of the main international sources of research, experience, and knowledge for the circular economy, and the politics and the business contexts in which this system operates. The Centre states that it aims “to become a leading hub on the circular economy, synthesising shared research objectives and initiatives by academic inputs, as well as practitioners.” One of the various projects in which the CEC has taken part is “Circular Defence,” undertaken in collaboration with the European Defence Agency, which has identified a series of areas as potential opportunities to apply circular economy mechanisms for defence purposes in the near future. But, there’s also a lot of innovation: the Centre is involved in an exchange of “expertise on the circular economy and the Internet of Things (IoT) with other two European academic institutions and three industry partners,” with the aim “to develop an interplay framework between the circular economy and IoT, to explore novel ways in which this interaction can change the nature of products, services, business models and ecosystems.” Circular Economy in Academia Across the Atlantic Even across the pond there are plentiful examples. The prestigious Yale University, for instance, within its School of Forestry and Environmental Studies3 department, offers numerous courses that examine

renewablematter 25. 2018 macro-areas of the circular economy: from waste management to the handling of post-consumption materials, from business management to more complex themes like those related to industrial ecology and the resilience of urban systems in relation to climate change. “There is more movement in Europe than the US as the circular economy is less recognised in the US,” explains Dr Nabil Nasr, a professor at the Rochester Institute of Technology (RIT), in New York state, a man with over 25 years’ experience in the field of sustainable production. “The challenge with the academic coverage of the circular economy is that in most cases the coverage is at high level only. There is a need for coverage of business models, enabling technologies, supply chains, and market transformation. The above issues are the area that the RIT is very active in developing. In the enabling technologies area remanufacturing is one of the major areas of focus at RIT.” Large Industrial Groups and the Academic World 4. www.enel.com/content/ dam/enel-com/media/ document/cities-oftomorrow_it.pdf

Such a complex change requires the collaboration of all actors involved: civil society, politics, research and academia, and, last but not least, the world of business. Large industrial groups, in fact, are the ones leading the way; dictating the agenda by investing capital and resources. With the recent publication of a position paper entitled “Circular Cities,” Enel Group has made its position clear, spelling out its vision for tomorrow’s cities: places where technological innovation and all its aspects will be fully integrated with resource and energy flows and with production and consumption models, taking into consideration not only economic and performance impacts, but also social and environmental ones.4 The document examines the “five pillars” of a circular economy, which then produce a model for measurement of circularity,

termed CirculAbility Model. “One of the first things to emerge was the need for a metric,” explains Luca Meini, head of Circular Economy at Enel. “For this reason we developed the CirculAbility Model, through which we can quantitatively understand the five pillars of a circular economy that are detectable throughout the use-life of a product. The application of this model has allowed us to share a common language within the group, and has also had national and international relevance.” In short, industry has overtaken research, for once. “The circular economy is a theme that has been developed at the level of institutions and businesses before having had the same prominence in the academic world, although there have been relevant publications. Perhaps what has been missing so far has been a complete vision and approach to the issue, while more specific sectors, such as material recovery, have been developed,” Meini continues. In order to develop viable models, it will nevertheless be essential to undertake research and prepare detailed figures. “As with every new issue, in this first phase a vision of the whole was more important than specialisation. This is also due to the fact that the circular economy issue is extremely varied. Circular businesses undoubtedly hire people, and will continue to do so, even if so far it has been hard to talk about one profile rather than another, because there’s no baseline figure.” It is true, however, that economics, engineering and a quantitative view of systems remain as primary reference points. “It is evident that the entire normative structure of many areas will have to be rethought, taking into consideration sociological aspects and new labour dynamics, because the adoption of this type of economy will create new professional figures. Depending on what phase is underway, all areas and aspects will be addressed.”

Interview

by R. B.

The First Master’s Course in Circular Design Runs at the IUAV University Laura Badalucco, director of the Bachelor’s degree in Industrial Design and Multimedia at the IUAV University of Venice

Product planning and design will be essential in the transition to a circular economy. Thus, designers who are able to perform these tasks need to be educated in a relevant way. We spoke about this with Laura Badalucco, the director of the degree in Industrial Design and Multimedia at IUAV University in Venice. How was the course created: what were the starting points and ideas, and how did they evolve? “The Master’s in Design for the circular economy was born from an idea that I had together with Alessio

Franconi, a designer and doctoral candidate in Circular Design. The two of us began by reflecting on the contribution that design can offer to the transition towards a circular economy and how this influences the education of future designers. We realised that in Italy there are several excellent examples of advanced education in circular economy aspects, however these were either addressing the issue from an economic/managerial perspective, or related to chemistry and biotechnologies; there wasn’t a postgraduate course dedicated specifically to design. In certain Italian universities there are experiences of circular design, but these are usually temporally

Think Tank

www.mastercirculardesign.it

assistant or consultant, project development manager, green procurement advisor, assistant for waste management in procurement, marketing, distribution, private or public institutions and environmental services.”

limited (as in workshops or seminars) so we thought that the moment had come to offer a more structured education for future designers. This Master’s course, the first of its kind in Italy, aims to instil in its participants a new circular vision to contribute to redesign our society’s consumption and production models, lending special attention to people and businesses. It will provide connections, visions, methodologies, instruments and many practical activities that will have a strong impact on planning and design, offering a new perspective that will suit the ‘project-based approach’ which is characteristic of our country and recognised internationally.”

www.master circulardesign.it

What are the objectives and employment opportunities for the relevant professional sector? “The Master’s course focuses on the innovation of products and services capable of fulfilling the needs of a circular economy and is aimed at those involved not just in the design, but also in the processes of evaluation, choice and purchase of products. The course will not just address product design, but also communication design, given its strategic importance for businesses. The activities offered are structured around seminars, active lessons, workshops, role-playing, project work and case studies. The course syllabus will also contain notions related to business models, norms and regulations, fundraising systems useful for the correct management of transformative processes required by the circular economy, with the goal to improve competitiveness and industrial innovation. We will have international guests such as David Peck, from the University of Technology at Delft, and Chris Grantham from Ideo, one of the most important design companies in the world. Successful students who obtain the Master’s degree will be able to work both on the design of products and communication technologies, and in the selection/ evaluation of products within the framework of green procurement and management. Potential job roles will include: product designer, visual and multimedia communication designer, packaging designer, project manager, design engineering process

What are the themes that require more urgent research? “The circular economy requires a paradigm shift, and this means questioning our production and consumption models, not just with the aim to diminish them, but to find new and different ways to create and use resources. This requires a cross-sectoral and multi-disciplinary approach, and a comprehensive vision of the entire process that considers not only quantitative, but also qualitative aspects. For this reason I believe that it is essential to think of designers not only in their role as developers of single elements, but also for their ability to coordinate and direct the different competences. I think that, from Italy, we will offer a perspective that also considers the aesthetic, symbolic and cultural value of products, which are not always considered when reflecting upon these issues. This could be an important aspect of our specific intervention. As far as research areas are concerned, we will undoubtedly have to work hard on themes such as the use-life of products and the relationship between products and services, as well as the remanufacturing process, without ever losing sight of the fact that the excellence Italy has achieved in recycling processes has to be consolidated and improved upon. There is also another area of study and research that is very close to my heart, and that we will try to address in the Master’s course, and has to do with bio-mimicry, i.e. the use of nature as a model and guide for innovation.” How important is collaboration with the business world going to be in developing adequate courses, and thus prepared professionals? “This collaboration is fundamental, vital. The paradigm shift required by the circular economy will only be possible if there is collaboration between all the subjects connected to the production and consumption of products, and thus working with businesses is indispensable. The collaboration, additionally, is completely cross-sectorial, so the scope of the Master’s is not limited to certain market sectors and has gained consensus amongst a wide variety of sectors. We are supported by Conai along with many companies, particularly in the Triveneto area, in areas ranging from lighting to furniture, from paper production to packaging, to quote a couple examples. For this reason we have set up various activities with different businesses: from visits to plants and design workshops, and apprenticeships lasting up to 375 hours that our students will undertake in Italy or abroad. A fantastic chance for future designers and a moment of contact where the coherence of education with the needs of business can be evaluated.”

renewablematter 25. 2018

Sustainable and Circular:

This is How Brussels Envisions the Bioeconomy Tackling global challenges – such as climate change as well as soil and ecosystem degradation – is the aim of the new strategy launched by Brussels. Three areas of action have been identified: strengthening bio-based sectors by unlocking investments; developing the bioeconomy at a local level; and understanding ecological limits. Without forgetting the key role of communication in showing that the bioeconomy is a “way of creating solutions.” by Mario Bonaccorso

“A turning point, a milestone.” This is how Carlos Moedas and Phil Hogan – respectively European Commissioner for Research, Science and Innovation, and Commissioner for Agriculture and Rural Development – defined the updated European bioeconomy strategy, A sustainable Bioeconomy for Europe: Strengthening the connection between economy, society and the environment. Published on 11th October and officially presented in Brussels on the 22nd during an event that gathered around 600 people in the capital, the update comes six and a half years after the first strategy. Even the very

title spells out the direction taken by parties at the Berlaymont building: the bioeconomy must be sustainable and circular. “A sustainable bioeconomy – reads the new strategy – is a renewable segment of the circular economy. It can convert bio-waste, residues and discarded materials into valuable resources, it can create innovation and incentives that are able to help retailers and consumers cut up to 50% of food waste by 2030. It has been estimated that the soil – currently used to produce animal feed – that could be protected by these innovations could feed an additional three billion people. Cities should become the main centres

Image from: A sustainable Bioeconomy for Europe: Strengthening the connection between economy, society and the environment

Carlos Moedas

Phil Hogan

Think Tank

Mario Bonaccorso is a journalist and creator of the Bioeconomista blog.

of the circular bioeconomy. Circular urban development plans could lead to extremely significant economic and environmental benefits.” There is more: it is also clear that agriculture could go beyond its simple role of raw material provider by becoming the real protagonist in the decarbonisation process that, according to Hogan’s statement, with the new strategy, could not only help achieve greenhouse gass emission reduction objectives but above all create up to one million jobs by 2030 with important benefits for rural areas. We are talking, to cite Carlos Moedas again, “about the next step in the industrial evolution.” “We cannot carry on consuming in the same linear way without consequences,” highlights the Portuguese Commissioner. “Somehow, we must maintain the same quality of life while protecting our planet. The bioeconomy is the way to achieve this objective.” The aim of the strategy update – following the revision published in November 2017, which in itself was a summary of the reflections emerged from the Bioeconomy Stakeholders Conference held in Utrecht in April 2016 – is to tackle global challenges such as climate change as well as soil and ecosystem degradation through fourteen concrete actions to be launched in 2019 at the latest. To this end, an action invoked by many during the conference on 22nd October concerns communication. For some time now, in Brussels, they have understood that to decarbonise we

need to have citizens (alias consumers) and big businesses on our side. “The bioeconomy is the food we eat, the clothes we wear, the products we use. Show European citizens that the bioeconomy creates value,” Moedas urged attending businesses. “If we don’t shout what the bioeconomy can do, then its potential will stay the same. The future success of our strategy depends on how we show citizens that the bioeconomy is the way of creating solutions,” carried on Moedas. However, the Commissioner did not witness the launch of the plastic bottle by Sveinn Margeirsson, CEO of Icelandic research company Matís and speaker in the session devoted to local development of the bioeconomy. During his speech Margeirsson even reprimanded the Commission for its lack of consistency, whereby in a conference devoted to the circular bioeconomy water was still being offered in fossil-fuel derived bottles. Communication aside, the strategy identified three main areas of action: strengthening and enhancing bio-based sectors, unlocking investments and markets; rapid development of the bioeconomy at local level all over Europe; and understanding its ecological limits. “The communication of this update is timely, given the recent urgent call to action by the Intergovernmental Panel on Climate Change (IPCC). In particular, we would like to welcome the focus on scalability of bio-based sectors through the support for innovation

renewablematter 25. 2018 and the unlocking of investments and markets, and on the spreading of the bioeconomy throughout the whole of Europe,” stated BIC, Bio-Based Industries Consortium, the driving force behind the public-private partnership Bio-based Industries Joint Undertaking (BBI JU). It is no coincidence that the topic of investment and support for the growth of new businesses is another pillar of the new strategy. “Moving from pilot scale to the demonstration one is still very hard in Europe. We want to close this gap,” states Andrew McDowell, Vice-President of the European Investment Bank (EIB). Mathieu Flamini also expressed his opinion along these lines: the former Arsenal and AC Milan football player, co-founder of the biochemical company GFBiochemicals, asked for better support by investors for bioeconomy start-ups and youth entrepreneurship. In this perspective, the Commission launched an investment platform for the circular bioeconomy that will put on the table €100 million. “The selection of a fund manager is on,” said John Bell, Director for the

Bioeconomy in Research & Innovation, European Commission. However, the big business crux still remains. Jos Peeters, partner of the Belgian fund Capricorn Venture, highlights how “relations with big companies are not simple.” This is demonstrated, according to Peeters, by BASF’s decision to abandon the joint venture Synvina created with Avantium to develop new PEF (polyethylene furanoate) based bioplastics. “We need more integrated projects in local areas, ambitious targets and more success stories,” pointed out Catia Bastioli, Novamont CEO. The message coming from Brussels is that the path towards the circular bioeconomy is a one-way road if we really want to reconnect the economy, society and the environment. Undoubtedly, it will not be simple since there is no shortage of obstacles and opponents, but Tiago Pitta e Cunha, CEO of Oceano Azul Foundation, has no doubts: “decarbonisation will be the key to the 21st century.”

The Strategy Europe has come a long way since the European Commission presented its first bioeconomy strategy Innovating for Sustainable Growth: A Bioeconomy for Europe, in February 2012. “Europe must move to a ‘post-oil’ economy. A greater use of renewable resources is no longer just a choice but a necessity. We must promote the move to a bio-based rather than a fossil-based society, using research and innovation as driving forces. This is a positive move for the environment, for food and energy security and the future competitiveness of Europe,” stated Máire Geoghegan-Quinn, Commissioner for Research, Innovation and Science in the Barroso Commission. Over the last six and a half years, there has been COP21 in Paris, Agenda 2030 (UN Sustainable Development Goals) indicating 17 sustainable development goals, and the EU Circular Economy Package. It is only natural that the strategy needs updating, above all to further integrate it with the circular economy and sustainable development principles, which are not always applied in some bioeconomy cases. “Our planet’s limited resources and biological ecosystems,” concludes the EC communication updating the strategy, “are essential to feed people, to provide

clean water as well as clean and accessible energy. A sustainable bioeconomy is essential to tackle climate change and soil and ecosystem degradation. It will deal with the increasing demand for food, feed, energy, materials and products caused by the world population growth and it will reduce our dependence on non-renewable resources. Implementing a sustainable and circular bioeconomy will increase the competitiveness of bioeconomy sectors and will support the creation of value chains all over Europe while improving the overall status of our natural resources. Such a bioeconomy will be mainly based – and capitalise – on renewable resources available at national level and on scientific and technological advances and innovations combining the physical, digital and biological worlds in some of the EU’s most important sectors and industries.” Just a few months away from the European elections, the trail is already blazed. However, in order to tackle the global challenges for sustainable economic and social development we will need an increasingly united and cohesive Europe. A condition that in the current political context does not seem easily achievable.

European Commission, A sustainable Bioeconomy for Europe: Strengthening the connection between economy, society and the environment, October 2018; https://ec.europa. eu/research/bioeconomy/ pdf/ec_bioeconomy_ strategy_2018.pdf#view= fit&pagemode= none

Policy

Regenerating Local Territories with the Bioeconomy It is in the relationship with localities that the bioeconomy can become a successful matrix for sustainable innovation in Europe’s economy and society. by Marco Moro

C. Bastioli, Bioeconomia per la rigenerazione di territori, Edizioni Ambiente 2018; www.edizioniambiente.it/ libri/1223/bioeconomiaper-la-rigenerazione-deiterritori

The new European Strategy for the bioeconomy places emphasis on the territorial dimension: rapidly developing local “bioeconomies” throughout the continent. The geographical focal points are cities, rural and coastal areas. What is left out? Certainly not the mountainous areas of Europe, with their particular interest in forestry, representing another focal point. According to the wording of the new Strategy, all European citizens should reap the benefits of an expanding bioeconomy, regardless of where they live. It may seem like just another catchy slogan. The feasibility of a “territorial bioeconomy” can be measured only according to what is actually being done in a meta-sector, aggregating economic sectors that are sometimes characterised by opposite relationships with space: extensive distribution for agriculture, fishing, forestry; versus concentration of highly localised hubs for chemistry. To create connections amongst the hubs represented by plants or industrial sites and their urbanised or rural territories, an inclusive model is required

– i.e. a networking model – one of the pillars of the circular bioeconomy. With the opening of the Mater-Biopolymer plant – a Novamont subsidiary – on 19th of October 2018, Italy can now boast an exemplary networking model integrating chemistry and agriculture, that not only promotes the use of renewable resources as a replacement of fossil-derived raw materials, but also plays a role in local regeneration. In Patrica as well – the little town near Frosinone where the Mater-Biopolymer integrated biorefinery is based – Novamont has performed the reconversion of a facility born in 1992 and dedicated to the production of PET. With this acquisition and reconversion towards the production of highly renewable Origo-Bi biopolyester, Novamont has guaranteed the employment of the production site and kindled a virtuous and long-lasting development process. As well as 90 new jobs, there are local benefits, which will generate indirect employment and satellite activities that are necessary for the plant to function.

renewablematter 25. 2018 But this is not all. Consistent with the company’s vision, in her latest book Bioeconomia per la rigenerazione dei territori (Bioeconomy for territorial regeneration), Catia Bastioli, Novamont’s CEO, states that the conversion and regeneration of Patrica’s chemical site has been carried out focussing on increasingly sustainable production processes and the reduction of overall environmental impacts.

Mater-Biopolymer is equipped with a system enabling cost and wastage minimisation through waste recovery in a sustainability and circular economy approach. An approach aimed at using waste that leads to the development of a wastewater treatment process to obtain tetrahydrofuran (THF) – a strategic intermediate chemical for the chemical and pharmaceutical industries – for the first time from renewable sources (bio tetrahydrofuran). THF can be used as a chemical solvent or in the pharmaceutical sector. The reconversion of the second production line and the recovery of THF has engendered a reduction in CO2 emissions and road transport quantifiable as: 246,000 tonnes of CO2 per year and 1,296,000 kilometres travelled for the transport of waste containing THF treated and disposed of outside the plant. Patrica is the sixth node of the network wholly made of reconverted, regenerated and interconnected sites. Different parts of the system have been modified and in some cases completely renovated; always applying innovative technologies developed by Novamont. These technologies can use raw materials from the Novamont supply chain – biobutanediol and azelaic acid, bio-based monomers – for the production of Origo-Bi® biopolyesters. These polyesters are essential components for the production of compostable Mater-Bi bioplastics. “Novamont’s industrialisation effort over the past year has been great and is unmatched at a European level,” declares Catia Bastioli, Novamont’s CEO. “We must be aware, though, that what we have achieved so far will be worthless unless we can make site regeneration cases prevail on degradation. In conclusion, we must work together towards a regenerative approach with natural resources, which must not be seen as a limitation but rather as a great opportunity to sustainably redesign our society at a local level, making it more inclusive and sharing: where small and big players find a fair playing field. In all this the realm of agriculture and soil, its preservation and regeneration, are crucial.” The six nodes of the network, scattered throughout six Italian regions, give a precise and tangible meaning to the European aim of a local bioeconomy that is able to respect the environment while promoting its specific needs.

Policy

Dossier Greece

A Way Out of the Crisis With a €27 billion turnover and employing 500,000 people, the bioeconomy in Greece can represent a key factor for economic growth without neglecting sustainability and the fight against climate change. Urban, agricultural and food waste as well as marine biomass are the sectors with the greatest potential.

by Mario Bonaccorso

Greece’s rescue package amounts to €290 billion over the last eight years. However, for Athens it mainly boils down to blood and tears. According to the Organisation for Economic Cooperation and Development, public spending cuts and higher taxation have come hand in hand with poverty for over one-third of the population. Household income has dropped by over 30%, 25% of GDP has vanished and unemployment reached a record high of 27% in 2013. Today, things seem to be getting better: GDP is once again growing, thanks mainly to the tourist industry, and unemployment has dropped to 19.5% (although it is still the highest in the Eurozone). However, the light at the end of the crisis tunnel is still quite far off in the distance. Against this backdrop the development of a Greek circular bioeconomy could become a key factor in combining a return to economic growth with environmental sustainability and the fight against climate change. Businesses, researchers and all stakeholders are very much persuaded and are requesting an action plan to bolster this meta-sector that the European Union continues to support vigorously with measures such as the recent

update of the Bioeconomy Strategy, launched in 2012. A National Strategy Although there is still no Greek national strategy on the bioeconomy, in May 2018, the Mediterranean country set up an early strategy for the circular economy, thanks to the Ministry for the Environment and Energy. SEV Business Council for Sustainable Development, a non-profit association created by SEV (Hellenic Federation of Enterprises), reckons that at least €100 billion investment is needed by 2020 to close the gap of disinvestments that occurred between 2010 and 2016 in Greece. Together with the on-going brain drain that has affected human capital and innovation potential; prolonged disinvestments represent a huge hurdle to Greece’s future growth opportunities. “The circular economy model – as stated in a study on the circular economy in Greece carried out by EY in May 2016 and commissioned by SEV – could promote a leap forward for an ensuing transformation phase, allowing Greece to go back to sustainable growth. By tackling technological and biological product lifecycles, both upstream and downstream through key

renewablematter 25. 2018 industrial sectors, the circular economy could contribute to change the way the entire economy works, spur the creation of jobs and promote investments.” “Meanwhile – continues the EY report – in Greece, the circular economy could promote the necessary dialogue for the resolution of chronic conflicts such as in waste management, including issues of reuse, stocking and treatment. A dialogue with national, regional and local authorities as well as businesses, industries and civil society is necessary for mindset changing on the issue of waste, both urban and industrial, on its treatment and landfill locations, in order to avoid EU sanctions due to either inadmissible or dysfunctional deposit or landfill facilities.” The Bioeconomy in Numbers

EY Study on the Circular Economy in Greece, May 2016; www.ey.com/Publication/ vwLUAssets/EY-studyon-the-circular-economyin-greece/$FILE/ EY-study-on-the-circulareconomy-in-greece.pdf

According to the Greek Ministry for Rural Development & Food the bioeconomy generates approximately €27 billion in turnover and employs 500,000 people in the country. 80% of such figures are directly or indirectly connected to agriculture, which alone contributes 4.1% of GDP. Currently, only part of agricultural waste is used as raw material to develop bioproducts or bioenergy. This is why insiders believe its potential could be really interesting, together with marine biomass, urban and food waste. A detailed analysis is outlined in the paper published in July in The EuroBiotech Journal entitled “Bio-economy in Greece: Current Trends and the Road Ahead,” underlining how in Greece almost 500 kilograms of waste per capita are produced every year, with an annual cost for collection standing at one billion euros. Most of such waste (81%) ends up in legal or illegal landfills, 17% is recycled and only 2% is composted. Illegal landfills – fully in line with the EY study – are regarded

as an economic scourge for the Country, which from 2014 to 2018 was forced to pay €48 million in fines. In Greece, food waste amounts to 80 kilograms per capita per year over the entire supply chain. The food industry is one of the most developed sectors, representing over one quarter of Greece’s industrial system. The study reminds us that, to assess the possible use of food waste as raw material for new bioproducts, the Municipality of Halandri in Athens is implementing a project funded by the Horizon 2020 Programme (Waste4Think) to develop the necessary infrastructure for efficient waste management. A Bioeconomy Forum To encourage widespread debate and pressure on the government, in order to set up an early national strategy on the bioeconomy, a Forum on the Bioeconomy has been created and acts as a sort of think tank providing all Greek stakeholders with the chance to meet up, share information and network. One of the Forum’s key objectives is to raise public and legislator awareness with regards to the huge opportunities offered by the bioeconomy and the circular economy. The Forum singled out a few barriers hindering the spread of a Greek bioeconomy, namely: excessive fragmentation of agricultural estates that in turn leads to the absence of a reliable logistical network and long-term supply of raw materials; the high price of raw materials; and the low-level education of farmers and their advanced age (60% of farmers are over 45). Furthermore, there is the instability of environmental taxation, excessive red tape, absence of appropriate financing mechanisms and incentives to create a green market, and most notably poor citizen awareness of the economic and environmental benefits of the bioeconomy. The Prime Minister of Greece Mr. Alexis Tsipras is informed by Ms Electra Papadopoulou / CHIMAR HELLAS SA on hemp and kenaf particle boards and Mr. Panagiotis Stathopoulos / University of Athens on oils and cosmetics made from hemp oil, at the 82nd Thessaloniki International Fair (2017)

Policy Items made with dead leaf from the vascular sea plant “Posidonia Oceanica” by PHEE/Greece

The Role of the Sea Greece boasts over 13,000 kilometres of coastline. Mediterranean waters can thus represent a massive resource for the Hellenic bioeconomy. According to a survey carried out in September 2017 by ELSTAT (Hellenic Statistical Authority), in 2016 the volume of fishing and aquaculture reached about 198,000 tonnes, thus generating an income in excess of €780 million. Greece possesses the largest fishing fleet in Europe (18% of the total) and fish processing creates up to 70% of liquid and solid waste. Pelagic fish filleting alone generates 44% of solid waste, which has great potential since the biomass is extremely rich in components with high biological added value. One of Europe’s leading marine centres is the Hellenic Centre for Marine Research. It is a government research centre dating back to 1912 that is supported by the Ministry for Research and Education and supervised by the General Secretariat for Research and Technology. It also includes the Institute of Marine Biology, Biotechnology and Aquaculture – one of the partners of the BlueMed Initiative – coordinated by the CNR (Italian Research Council). BlueMed is a research and innovation initiative for the promotion of the blue economy in the Mediterranean area, through cooperation and a framework strategy for Mediterranean Countries to work together for a healthy, safe and productive Mediterranean. BlueMed aims to create new “blue” jobs, social wellbeing and sustainable growth in the marine and maritime sectors through the implementation of its strategic agenda for research and innovation, BlueMed Sria. “Amongst Europe’s seas – as the project’s

partners write in the first update of the strategic agenda in April 2017 – the Mediterranean is unrivalled with regards to biodiversity and links between human activities and environmental characteristics. It is rapidly reacting to both natural and anthropogenic pressures. Climate change, growing maritime traffic and pollution, overexploitation of fish stocks and invasion of exotic species are amongst the stress factors undermining the region. Meanwhile, the Mediterranean’s unique characteristics offer important local opportunities for blue growth and employment, from fishing to tourism.” Towards a Greek Bioeconomy George Sakellaris founded the “Bioeconomy in Greece” initiative in 2012 with the aim to map out the Greek bioeconomy players and promote their collaboration, he is also currently a consultant for the bioeconomy at the University of South Bohemia in the Czech Republic. He highlights a few simple measures that Greece should adopt so as to become a competitive player in Europe’s bioeconomy: “First of all, it is necessary to carry out a systematic analysis of the existing potential in terms of resources and processes and to be able to transform these in economic terms, starting from the energy, agribusiness production and waste exploration sectors.” According to Sakellaris, to achieve a full development of the bioeconomy in Greece, education and raising public awareness are key factors. “Greece is already involved in actions regarding bioeconomy education on a European level.” However, without a national strategy and a relevant action plan it will be tricky to go down the right path.

“Bio-economy in Greece: Current trends and the road ahead,” The EuroBiotech Journal, v. 2, n. 3, July 2018; https://content.sciendo. com/view/journals/ ebtj/2/3/article-p137.xml

renewablematter 25. 2018 Interview

by M. B.

Agriculture is the Main Actor Constantinos Vorgias, University of Athens

One of the protagonists of the Greek Bioeconomy Forum, Constantinos Vorgias, tells us about the great potential for a Greek bioeconomy; whilst not shying away from its weaknesses and describing the need for increased public awareness.

Constantinos Vorgias is a Biochemistry Professor at the National and Kapodistrian University of Athens. He is one of the main players in the Greek Bioeconomy Forum.

What are the strengths of the Greek Bioeconomy? “Greece is slowly recovering from a financial, political and structural crisis. My personal impression is that 2019 will be a very positive and important year, even if by mid 2019 we have an election at the National and European level. Many people in Greece facilitate the bioeconomy concept, however they have not yet defined themselves as part of the Greek bioeconomy operational network. This is because they are overwhelmed by terms such as sustainability, circular economy, environmental protection and waste recycling. From my perspective, the strengths of the Greek bioeconomy can be briefly described as: (a) unexplored potential at all levels, with plenty of room for new activities; (b) very low exploitation of our natural resources, particularly due to the high biodiversity in the terrestrial and marine environments; (c) manpower: many well educated young people are unemployed and probably ready to reconsider their professional profiles; (d) structures in primary production and related industries exist either at a family or small operational level, therefore a clustering initiative is more than essential; (e) the geographical location of Greece is of particular interest since Greece is a stable and safe country with good access to the Middle East and the Arab World and can therefore become the natural gateway to these markets; and (f) the mild climate and existing infrastructure are major economic assets.” What about the weaknesses? “The weaknesses are also worth considering: lack of political willingness; lack of specific education at all levels; very weak participation in major European networks; absence of feasibility studies; low perception of the sustainability potential; lack of public awareness; lack of substantial efforts to create a framework for the marketability of ‘green’ innovations; instability in the institutional and taxation environments; disorganised and costly supply chain of raw materials; bureaucratic licensing difficulties; low technical training of farmers; and reduction of employment in the primary sector. Converting this information into numbers, the Greek bioeconomy sector has a turnover of around 27 billion euros and half a million employees of

which around 80% work in the agricultural sector. Only around 3% of the currently available biomass is being exploited (mostly as fuel), whereas unexploited agro-industrial residues can yield about 10.2 PJ (Petajoule). It is estimated that waste generation in Greece is 57,983,751 tonnes per year, including agricultural and industrial waste (53%) and livestock manure (47%). Based on an anaerobic treatment scenario, 21.9 TWh of electricity could be generated, accounting for 39% of the gross electricity consumption in Greece.” Who are the major Bioeconomy players in Greece? “The major bioeconomy player, in terms of production, is the dispersed agricultural sector. In 2017 the agricultural sector contributed to 4.1% of GDP, of which 70% was constituted by agricultural products and 30% animal products. On top of the 25-biogas plants, 12 biodiesel plants are operating in Greece producing around 130,000 m3, which accounts for 93% of the biodiesel consumed in the country’s transport sector. At the academic and research levels, besides the agricultural universities, several research organisations prevail, such as: the Hellenic Centre for Marine Research; Centre for Renewable Energy; Hellenic Agricultural Organisation (HAO) DIMITER; Centre for Research and Technology-Hellas (CERTH); and The Agricultural University of Athens. In terms of higher education, over the last few years 2 Master’s degree courses have been established. The International Hellenic University (web based education) with an MSc in Bioeconomy: Biotechnology and Law; and the Master’s in Bioeconomics, which is established as a collaboration between the National and Kapodistrian University of Athens (Biology Department) and the Piraeus University (Department of Economics). The Bioeconomy Laboratory is linked to the Master’s in Bioeconomics and is the instrument for academia and bioindustry cooperation. Two major think tanks/clusters are active: the Greek Bioeconomy Forum, the Greek platform where individuals and stakeholders interested in bioeconomy and circular economy come together; and the cluster of Bioenergy and Environment of Western Macedonia.” Greece is still without a national bioeconomy strategy. Are there plans to implement a strategy in the short term? “Unfortunately, Greek politicians, just like many European ones, are not familiar with the bioeconomy concept and its potential. They mostly care for waste recycling and therefore about the circular

Policy economy. However, there are some developments: this year Greece has established a National Strategy for forests and the circular economy, and many new initiatives are on the way. Generally, we have the impression of unwillingness of the government to adopt a national strategy, although the country has signed the UN sustainability protocol launched in 2015. Therefore, it should be a mandatory bottom-up initiative. A group of experts must convene and draft a report on the potentialities and their impact on the national economy. This would be an essential step towards persuading decision makers to formulate a national strategy. To my knowledge, other EU countries are facing the same problem. In fact, so far only a few countries in Europe have a concrete National Strategy. We are considering undertaking that initiative soon, since the general picture is still blurred.” You claim there is a lack of public awareness in Greece. What exactly is the public perception of the bioeconomy in your country? “The general public is mainly unaware and uninformed. Furthermore, there is a negative public perception that is based on a bad precedent created by a combination of lack of accurate information and activist propaganda (e.g. the GMO issue). This pressure has forced the government to adopt extreme measures against modern biotechnology that in turn has had fatal effects on Greek agriculture and the economy. The Greek Bioeconomy Forum is a private initiative, that started about 2 years ago, their scope is to inform the general public about the bioeconomy and to support public authorities in its dissemination and establishment throughout the country. From public response we see that participation is increasing constantly and more and more people want to learn and contribute to the various aspects of the bioeconomy. A comprehensive action plan could

include: design and organise more awareness raising activities and events around the bioeconomy; inform people about the issues that they are interested in regarding the bioeconomy; showcase examples of bio-based products, to offer a hands on experience of the bioeconomy concept; use appropriate tools for each target group exploiting knowledge assets already developed such as the Bioways toolkit; target children and young people by involving education providers in the communication loop; facilitate people in voicing their views and interests; and increase the impact of public-funded projects through collaboration among projects and active involvement of all possible stakeholders.” You are a professor. What role does the education system play in the Greek Bioeconomy? “At the secondary school level, a lot of work has been done over the last 20 years and the attitude of young people with regards to environmental issues has changed positively. At the University level, the Technical Universities and the Agricultural Universities are relatively active in their syllabi. However, the bioeconomy does not yet exist as a standalone course, although there are some postgraduated programmes (Master’s degrees), which I mentioned earlier. I think the critical mass point has been reached and needs to be organised under a national strategic body. I am very glad that next semester I will start the first pre-graduate course in Bioeconomy at the Piraeus University. It is also essential to have some educational material. The European initiative for Bioeconomy Education, proposed last year in Lodz, needs to gain ground so that a European Educational Consortium can provide a solid and conceptual education programme for the coming generation. The major bottle-neck for the bioeconomy at the moment is the lack of young bioeconomists. We have to work on this aspect together with the stakeholders.”

Bioeconomy Laboratory, www.bioeconomylab.gr Greek Bioeconomy Forum, bioeconomyforum.gr Bioways, www.bioways.eu

©Ermioni Raftopoulou

Bioeconomy Photo Competition organised by the Bioeconomy Forum. First prize Mrs Ermioni Raftopoulou

renewablematter 25. 2018

The Chemical Industry Says Goodbye to Fossil Fuels A new paper by the nova-Institute sets out the path towards sustainability for the chemical industry. by the Editorial Staff

nova-Paper #10 M. Carus, A. Raschka, “Renewable Carbon is Key to a Sustainable and Future-Oriented Chemical Industry,” http://biobased.eu/nova-papers Nova-Institute, http://nova-institute.eu Christophe McGlade and Paul Ekins, “The geographical distribution of fossil fuels unused when limiting global warming to 2°C,” Nature January 2015; www.nature.com/articles/ nature14016

Michael Carus, in his latest paper on the process of industrial change from a fossilfuel-based system to one founded on renewable energy, cites the concept of “creative destruction,” taken from the work of Austrian economist Joseph Schumpeter. Rather than being seen as an error, destruction is necessary in bringing about a new functional order. According to Carus, leader of the nova-Institute based in Huerth: “in order to stop climate change we need a new and comprehensive economic structure of raw materials supply towards renewable carbon.” The position paper, co-written by Carus and his colleague Achim Raschka, is entitled “Renewable Carbon is Key to a Sustainable and FutureOriented Chemical Industry,” and can count amongst its supporters important figures such as Rafael Cayuela, head economist of the American chemical giant Dow Industrial; Marcel Lubben, President of Reverdia; the Roquette-DSM joint venture; Jean-Luc DuBois, scientific director of the French chemical company Arkema; and Jim C. Philp from the OECD. The paper is a manifesto promoting a sustainable chemical industry capable of fully and completely embracing the circular bioeconomy. “The chemical industry,” Carus and Raschka write, “may only develop into a sustainable sector once it bids farewell to fossil fuels such as crude oil, natural gas and coal, and uses nothing but renewable carbon as a raw material in organic chemistry.” The aim, therefore, is not for decarbonisation like it occurs in the energy sector, but a transition towards sourcing carbon from renewable sources for the chemical and plastics industries. This will mean leaving fossil fuels in the ground, the only option if an excessive increase in emissions and global temperatures is to be avoided. The paper’s authors cite an article by Christophe McGlade and Paul Ekins published in Nature in 2015, according to which a third of oil reserves, half of gas reserves and over 80% of coal reserves that are currently available should remain untouched between 2010 and 2050 if the 2°C target is to be achieved. Considering that industry estimates predict a 3 to 4% annual rise in demand for chemical products caused by growth in population and standards of living, it becomes clear that the path to sustainability in the chemical industry,

will inevitably require a switch to renewable carbon. But what are the sources of renewable carbon? The authors identify three: 1. mechanical or chemical recycling of plastics or other chemical products already in existence; 2. all types of biomass; 3. direct use of CO2 from fossil sources, as well as from permanent biogenic sources and direct-air-capture. Carus and Raschka place stronger emphasis on the latter source, because “direct CO2 utilisation is an inexhaustible and sustainable source of carbon for the chemical industry.” Of course, this is true as long as processes for obtaining carbon from CO2 are themselves sustainable and use renewable energy. “Our own calculations – the German researchers write – demonstrate that a size of just 2% of the world’s desert areas would suffice to cover the chemical industry’s entire 2050 carbon demand by means of photovoltaics and CO2 utilisation.” In terms of jobs, the conversion from chemical to biochemical industry could multiply by between 5 and 10 times the number of workers, which in the EU28 area equates to 65 thousand units. Therefore, what is needed? The answer is politics. The authors’ plan is clear, even though it certainly won’t be easy to implement in the current European context. Among other things, it is based on: the implementation of a carbon tax on a continental level; the interruption of financing programmes for fossil fuels (which currently amount to 100 million US dollars, in the G7 countries alone, for the production and consumption of oil, gas and coal); higher costs for CO2 emissions from fossil fuel sources in the Emissions Trading System; certificates and labels being required to show the percentage of renewable carbon in products; and a system that rewards plastics and chemical products with lower greenhouse gas emissions. This is the time for political choices. However sustainability analysis is needed, not political dogmas. The strong message sent by Carus and Raschka is to follow all three ways of obtaining renewable carbon, whereas – the authors complain – the European Union seems more oriented towards the recycling of plastics and other chemical products in the context of the circular economy. The key for a sustainable future in Europe should instead involve integration between the circular economy, bioeconomy and the so-called “CO2 economy.”

Policy

Keeping CO2 Underground. Naturally

It is possible to put CO2 back underground with agriculture, even organic, while producing more food, renewable energy and using fewer resources, all of which with a 100% Italian model.

by Sergio Ferraris

Sergio Ferraris, scientific journalist, Editor-in-Chief of QualEnergia.

Two pieces of news – and not just one as the media have chosen to focus on – emerged from the latest IPCC report published last October. Indeed, everybody concentrated on the 1.5 °C threshold by 2100, which in 2015 was regarded as a “sop” for Pacific Islands, has now become essential to avoid huge damage, while few have noticed that to achieve this target, not only climatechanging emissions have to be reduced and a zero-emission economy started, but CO2 must even be removed from the atmosphere. That is to say we must become a carbon-negative society that reduces, returning to sender and hence underground, the CO2 extracted with fossil fuels. Carbon sinks as well as plants, oceans and soils would be the natural systems for this purpose, while the artificial ones include the

controversial Carbon Capture Sequestration (CCS) using the same fossil fuel extraction technology and whose use has always been endorsed by oil companies. So much so, that one of the leading enterprises, the day after the Paris Agreement, declared its readiness to implement CCS, since CO2 can be used for Enhanced Oil Recovery (EOR), which otherwise would only be extracted with injection systems in fields. In short, a very expensive kind of fossil circular economy, since the second law of thermodynamics still applies. Alternative Sequestration However, there is another viable way to “sequester” CO2 and confine it to the soil: a made in Italy approach that combines with

Carbon sequestration from the atmosphere

MARKET More profitability and competitiveness for the farm

Optimal management of agricultural machinery

Fewer costs to purchase chemical fertilizers

BY-PRODUCTS AND AGRICULTURAL WASTE LIVESTOCK WASTE

DIGESTATE, BIOFERTILIZER

BIOMETHANE

BIOGAS PLANT

GRID Renewable energy production

ENERGY

Circular farm and sustainable agriculture of Biogasdoneright at Ecofuturo.

Production of renewable biofuels

FA R M

SECOND HARVEST

HEAT

TRANSPORT LONG-DISTANCE Heat use and HEATING recovery

renewablematter 25. 2018 ANAEROBIC DIGESTER SYSTEM

BIOMETHANE TO THE GRID

Digestate Animal Waste

Energy Crops & Residues

ELECTRICITY TO THE GRID

Feed ANIMAL PRODUCTS

DOUBLE CROP

PRINCIPAL CROP

Foo

Circular Approach

FOOD

one of Italy’s excellences, food. It is not the discovery of the century that breaks the second law of thermodynamics, but rather an energy optimisation with regards to crops, by using solar energy utilised through the oldest of methods: photosynthesis. “Mitigating climatechanging emissions with just renewables will not be enough,” states researcher Bruce Dale to Renewable Matter during Biogas Italy 2018. “Many academic papers indicate that the most significant CO2 reduction in the atmosphere will occur through carbon negative technologies, i.e. all those combining renewable energy production with carbon sequestration in the atmosphere.” Enter the technological, methodological and agricultural model of Biogasdoneright, developed by the Italian Biogas Consortium (CIB), and emerging from Italy. Its validity has been verified using data supplied by the CIB and with field analysis conducted on Italian farms, with a study carried out by the Dutch consultancy firm Ecofys (see box). Basically, it is a method using crop waste, manure and double crops – none of which affect food crops at all – to produce biogas. Everything revolves around the integration of an anaerobic digester in farms, where biomass – which is homogeneous, selected and of a high-energy standard – generate biogas. An energy source that can be used to produce electricity or biomethane – with an extra refining stage taking place on the production site – useful for

The Ecofys Study on Biogasdoneright potential and advantages commissioned by CIB, is significant because it examines environmental sustainability from the perspective of production processes, in this case agricultural ones, combining them with innovations that are spreading rapidly in the sector. This is a study on the process method, combining agricultural and energy production with environmental protection, which is why it is so important. The research analyses questions such as availability and saving of water resources, indirect land use change (ILUC) risks precisely defined in the latest EU directives on biofuels, sequential cropping and connected business model, soil quality, CO2 reduction and biodiversity indicators. All verified in situ at a number of Po Valley farms.

increasing the sustainability of transport that is more difficult to shift to electric power, such as heavy-goods vehicles and maritime transport. But this is not enough. The regular use of digestate as locally-sourced biofertilizer on any soil avoids having to resort to chemical fertilizers; stops soil depletion by inputting organic matter that helps combat desertification – an issue of particular importance as this will affect 21% of the Italian territory by 2100, with a peak of 41% in the South (NRC data); and fixes substantial percentages of CO2 in the soil. The comparison between Biogasdoneright methodology and the French equivalent Afterre2050 Project demonstrates similar levels of CO2 sequestration in the soil; the growth rate of carbon sinks in the soil would be 0.4% a year. And the French data is provided on a less specific energy scenario. By widely implementing such a system throughout the French territory, between 130 and 150 TWH of biogas-derived power could

IPCC Special Report, Global Warming of 1.5 ºC, www.ipcc.ch/sr15

Policy Direct Comparison

Consorzio italiano biogas, www.consorziobiogas.it/en Afterre2050, https://afterres2050. solagro.org

CO2 Emissions for the production of energy: On the left fossil fuels and on the right four case studies gCO2eq/MJ

The Italian Biogas Consortium, in collaboration with the Animal Production Research Centre and Michigan State University, has carried out a study to calculate the carbon footprint of electricity produced with the Biogasdoneright method. The study examined four types of biogas plants. One is a conventional plant using shredded maize; the second plant mainly uses double crops, slurry and agricultural by-products; the third plant runs on manure; whereas the fourth runs on manure and agricultural by-products. Compared to electricity produced with natural gas (72 gr of CO2eq emissions per MJ of electricity produced), electricity produced by a biogas plant using 100% maize generates 34 gr of CO2eq per MJ. Plants built according to Biogasdoneright rules offer great emission reduction potential, moving from 10 gr of CO2eq per MJ to negative emissions of less than 36 gr of CO2eq per MJ.

115

Marginal fossil fuel

Fossil Part of Petrol & Diesel in EU

Natural Gas in EU Conventional Biogas

BiogasdonerightTM

72 10 Fossil Fuel

be produced by 2050, slashing CO2 and NOx emissions by 55% in the agricultural sector, while reducing the use of water and fertilizers by 70% and that of energy by 40%. The same can be said for Argentina where the National Institute of Agricultural Technology has observed that the adoption of sequential cropping and the use of livestock waste and agricultural by-products on 9 million hectares would cut the country’s import of natural gas by 50%, replacing it with renewable gas. The same applies to the USA where Tom Richards, a Pennsylvania State University researcher, after analysing numerous pieces of research on the topic, estimated that sequential cropping can be used in the USA on 35 million hectares, thanks to the fact that precision and conservative agriculture is widespread (by comparison, in Italy 12.4 million hectares are devoted to agriculture) and when combined with livestock waste and agricultural by-products, would guarantee a biomethane production amounting to 21% of the USA’s national consumption. “The Biogasdoneright approach, besides being adaptable to several contexts, is also a conservative system able to link programmable renewable energy with food production synergistically and with a high environmental sustainability rate,” states Jeremy Woods of Imperial College London. In Italy, the potential for biomethane production for 2030 has been estimated at 8 billion cubic metres per year, which would enable the country to hit the target set by the new EU directive, RED II, establishing that in the transport sector 12% of fuel should come from renewables by 2030. As well as those of the National Energy Strategy (SEN) setting a target of 30% and 50% from renewables for heavy goods vehicles and maritime transport respectively. Furthermore, it isn’t just a question of overriding environmental problems that find solutions in

Maize

CRP +MAN

-4 -36 MAN +CRP

BYPR +MAN

these methodologies. In fact, the benefits are substantial thanks to the integration of agriculture with the production of energy and innovation. Selling energy enables income differentiation, exploitation of waste which therefore goes from being a cost to becoming a resource, leading to an increase in agricultural production to which we must add energy efficiency resulting from the onsite use of cogenerated heat. Therefore, there are all the elements of circularity, to which we must add the innovation derived from precision agriculture. If on the one hand we have the question of double cropping in a year, one crop used for food and one for energy, from another point of view, thanks to precision agriculture, liquid digestate can be injected in precise points through GPS memorisation. This information is then used to sow a single seed with a state-ofthe-art seeder, exactly where the digestate is. This will avoid the inefficient spread of digestate on soil and excessive ploughing causing the release of CO2 present in the soil and loss of organic matter. Thanks to sod or no-tillage seeding we can achieve better environmental and production results compared to what we have been used to for centuries, thus consigning ploughing to the history books. And the outlook for the medium term looks even more promising for energy production. New processes have been developed for the production of aviation liquid fuels from biomethane, so biorefineries using this gas will be able to manufacture products similar to current petrochemical products, thus improving the circularity of the process.

renewablematter 25. 2018

Carbon Smart Circular Economy Interview with Jennifer Holmgren LanzaTech uses special microbes in a gas fermentation process that enables ethanol to be produced from residual gases that contain carbon monoxide and hydrogen. By re-using waste streams industrial companies can reduce carbon dioxide emissions. Jennifer Holmgren is the CEO of LanzaTech. She has over 20 years of experience in the energy sector, including a proven track record in the development and commercialisation of fuels and chemicals technologies. Prior to joining LanzaTech, she was Vice President and General Manager of the Renewable Energy and Chemicals business unit at UOP LLC, a Honeywell Company.

by Emanuele Bompan

A carbon-proof circular economy? For Dr. Jennifer Holmgren this is not an impossible task. LanzaTech is working to create a large scale industrial Carbon Capture and Usage project (CCU). With two goals: increase profits and save the planet. Renewable Matter talks with Dr. Holmgren to understand LanzaTech’s carbon smart circular economy philosophy and discuss their projects for curtailing CO2 emission. What is the concept behind carbon recycling? “The concept is to reuse all the carbon you can. LanzaTech takes waste carbon emissions from steel mills and refineries and reuses them to make other products. Carbon Recycling means always using carbon ‘one more time,’ ‘one more time,’ ‘one more time,’ for as many times as possible.” Why is it important to create CCU projects? “The latest IPCC reiterated the importance of reducing our fossil dependence to basically zero by 2050. The only way we’re going to continue to have a vibrant carbon economy is if we don’t use fresh fossil carbon every time we want to do something. What we need to do is learn to recycle and create a secondary market for carbon and use that as many times as possible. In this way you don’t have to always start with a fresh carbon molecule.” What is the potential market for carbon recycling? “We believe we can produce 25 to 30 percent of today’s transportation fuel needs using recycled carbon emissions. We could be making hundreds of billions of gallons of fuel just from recycled carbon that is available today. Therefore, we think it’s not a niche market. At LanzaTech we see it as a huge opportunity. We are the first ones, but we hope we won’t be the only ones. I believe we have a carbon crisis and my goal is to inspire other

companies who are doing carbon recycling to really focus on it and become very serious about it.” What projects have you created so far? “We already have a commercial plant running in China, producing 16 million gallons of ethanol with around 45% carbon monoxide emissions. This is LanzaTech’s first commercial plant that recycles carbon into ethanol. We are also building a commercial plant in Europe at a steel mill owned by ArcelorMittal. In this case it will be a lower CO2 emissions content steel mill. Therefore, it will be a harder project. However, it will show the extensibility of that technology. Furthermore, LanzaTech has a project in India where we are building a commercial plant with the Indian Oil Corporation. We are also in the process of implementing a project in the U.S. where we are recycling the carbon in agricultural residues, such as almond waste. We are developing multiple projects which will all be based on the China plant model because they will employ the same technology extended to different situations.” What is the process behind making CO2 into ethanol that can then be used as a biofuel? “The way we do this is we have a bacterium that eats carbon monoxide, hydrogen and carbon dioxide. And that is all it does. It doesn’t need sugar or anything else. It eats these three gases and converts them into ethanol. Therefore, what we have to do is optimise the bacteria, through evolution selection like you do with plants, without genetically modifying our bacteria. Then we developed a special bioreactor to make them work. If you compare LanzaTech bioreactor with classical sugar fermentation, where sugar is soluble in water and yeast can just swim around and capture it, in our case we had to develop a bioreactor able to solubilise these gases. Carbon monoxide is not soluble in water so we had to

Policy develop a unique bioreactor that could handle this. In summary: the technology is basically a bug swimming in water in a special bioreactor, eating carbon monoxide and converting it into ethanol. We have been working on this since 2005 and have spent 250 million dollars in research. In particular, we had to focus on acetogenic bacteria such as Clostridia. It has been a lot of work over a lot of years, focused on one bacterium that we knew we could optimise for this purpose.”

LanzaTech, www.lanzatech.com

What other research is LanzaTech undertaking? “What we want to do is spread this technology to all sorts of industrial locations, all over the world, whether it be a steel plant or ferroalloys or anything else. The second priority regards the technology we have developed to adapt ethanol to jet fuel. We have already performed a demonstrative flight with Virgin Atlantic on October 2nd 2018. Therefore, we want to build a plan to commercialise ethanol jet fuel because we think making low carbon jet fuel, whether it is from our ethanol or other ethanol sources, will be a very important step towards decreasing CO2 emission in the aviation industry. The third area of focus is to design a genetic modification platform so that we are able to make chemicals directly. This would allow us to make other products like propanol or acetone, rather than just making and using ethanol; we also want to focus on other chemicals. However, to do this we have to genetically engineer the organisms. Therefore, we have spent a lot of resources investigating this process, because nobody has really modified a gas-eating organism before. People already know how to modify sugar-eating bugs. We have gone further: since around 2010 we have been working on learning how to modify bacteria that only eat gases.” Besides biofuels, what other products can be derived from CCU? “We are also focused on materials. We are learning how to recycle carbon from waste emissions into chemicals so as to produce isopropyl alcohol and then convert the isopropyl alcohol into polypropylene so that plastics can be made from recycled carbon. Hence, we imagine producing plastics, rubber for tyres, or nylon like the one used in yoga pants. We think we can make chemical precursors to a lot of these types of materials. Someday hopefully we will make traditional chemicals starting with gases, rather than sugar and rather than fossils. Imagine a steel mill: its by-product is carbon monoxide and you take that carbon monoxide and you use it to make 1,3-Butadiene, which gets converted into nylon or rubber. We can create so many products, not just plastics and packaging, but we will also recycle carbon into many other products. These are some of our biggest goals.”

Who is investing in LanzaTech? “We have investors from all over the world. Our first investor was K1W1 from New Zealand. Then we got investments from Khosla Ventures, Qiming Company and became strategic partners with Mitsui, Indian Oil Corporation, BASF, Suncor and others. We have Venture Capital and strategic investors.” You promote the clever concept of a “Carbon Smart Circular Economy.” What exactly does this mean? “Today you can go into a store and buy Fair Trade coffee or Organic Certified products. I hope that some day we will be able to go into a store and buy a pair of yoga pants ‘made from recycled carbon’ or even branded as ‘Carbon Smart,’ and hence based on CCU instead of being made from a virgin fossil molecule. And the reason I call it carbon smart is because I want consumers to become carbon smart. I want consumers to ask the question ‘where does my carbon come from?’ If you start asking that question then you might be a carbon smart consumer and will walk into stores and buy products made from recycled carbon. That is what I call carbon smart.” In the future will we be able to absorb CO2 from the atmosphere and use it? “In our atmosphere there is only 407 part per million (PPM) of CO2. This seems like a lot due to the impact that it has. However, the concentration is low and therefore pretty hard to extract. So, what we’re doing is focusing on concentrated sources. Our source plants have 40-50% hydrogen and CO2 concentrations. So it is much easier to capture. For this reason, we are not developing technology to remove carbon from the air. That is a completely different problem. And, to be honest, a much harder problem to solve.” How can we make CCU popular? “We have to link carbon to pollution. The health impacts of high carbon concentrations in the air we breathe are becoming so documented that we really have to focus on how we dispose of carbon, how we use carbon, how we secure carbon. I think that is what will define our generation and it is not just because of greenhouse gases. That’s my message to the world. I really hope we get busy solving this and CCU is just one remedy in a sea of potential solutions that can help solve this problem.”

How to Redirect Capital

Towards Circularity by Francesco Bicciato and Elisabetta Bottazzoli

Finance has a key role to play in the transition towards a circular economy. In Italy, research carried out by CONAI and the Italian Sustainable Investment Forum provides some useful guidelines that can help improve dialogue and initiate partnerships between finance and companies active in the circular economy.

Francesco Bicciato, Secretary General of the Italian Sustainable Investment Forum and board member of Eurosif, has worked as a Programme Manager at the UN and other international bodies. Promoter of the movement for sustainable finance, he has directed microcredit and social finance organisations.

The potential role of sustainable investments in the transition to a circular economy is the focus of a study undertaken in 2018 by the Italian Sustainable Investment Forum and CONAI, the Italian National Packaging Consortium. The objective of the study, aimed at financial operators and industries in the packaging recycling sector, is to suggest new possibilities in terms of collaborative channels: starting from a better understanding of expectations and mutual requirements.

An expert on the circular economy, Elisabetta Bottazzoli is a former project leader in what is now the Foundation for Sustainable Development and has been Head of Green Economy and Sustainability at CONAI (the Italian National Packaging Consortium).

After a first analysis that brings to light critical issues and common interest themes between two sectors that, so far, have had very little contact, the CONAI-ItaSIF study centres around a series of interviews aimed, on the one hand, at financial subjects already engaged in interventions in favour of sustainable development, and on the other at agents in the packaging recycling sector. Thanks to these interviews, existing findings on relevant issues have been investigated further, highlighting different key points, especially in relation to interventions seen as necessary and desirable and to development prospects for sustainable finance in accordance with the expectations of the recycling sector. The results of the study include some guidelines for investors who aim to integrate Environmental, Social and Governance (ESG) themes in their investment policies and business strategies, as well as subjects – both institutional and private – that are interested in starting pilot projects to develop sustainable investments in support of the transition to a circular economy, with the goal of directing capital flows towards initiatives and

projects capable of strengthening the recycling industry. The publication of “Sustainable Finance and the Circular Economy. Guidelines for Investors and Businesses,” was presented to the Milanese financial audience during the “Sustainable Finance and Circular Economy” conference that took place during the Sustainable and Responsible Investment Week. Being a signatory of the Paris Accord and the UN’s 2030 Agenda, Italy has placed sustainability at the forefront of its financial and economic policies, committing to the completion of a transition to an inclusive model of economic growth with low environmental impact. In a European and international context, the circular economy paradigm takes on a crucial role because it advocates an economic model that is able to regenerate, and in which activities are organised to transform and reuse waste with positive consequences in terms of energy efficiency and reduced CO2 emissions. The recycling sector, pivotal instrument for resource management and reuse, constitutes a fundamental building block for an efficient integrated waste cycle. The Role of Sustainable Finance in the Recycling Sector “The starting point is quite simple: the prosperity of today has little meaning if it compromises the prosperity of tomorrow. Investments are the vehicle through which we build, design and maintain the goods on which future prosperity depends.” Tim Jackson’s words, in his recent essay Prosperity Without Growth (Edizioni

Policy The Italian Sustainable Investment Forum The Italian Sustainable Investment Forum (ItaSIF) was founded in 2001 as a non-profit multi-stakeholder association, including financial actors and organisations interested in the environmental and social impacts of financial activities. The Forum’s mission is to promote awareness and strategies linked to sustainable investments, with the aim to encourage the integration of environmental, social and governance criteria into financial products and processes. ItaSIF is a member of Eurosif, the association for the promotion of sustainable investment in the European market.

Sustainable finance and the circular economy. Guidelines for investors and businesses, http://finanzasostenibile. it/wp-content/ uploads/2018/11/ manuale-CONAI-perWEB.pdf

http://finanzasostenibile. it/forum-finanzasostenibile-eng www.settimanasri.it www.investi responsabilmente.it

Ambiente, 2017), clearly define the role that finance has to fulfil. An essential in the transition to a circular economy and directing capital towards businesses and projects that adopt eco-innovative solutions to make resources more efficient and minimise climate-altering emissions. The SRI division (Sustainable and Responsible Investment) is set to support the recycling sector thanks to distinguishing characteristics such as: integration of ESG criteria in the analysis of businesses, the need to conjugate financial yield with positive socio-environmental impacts, and a longterm oriented approach. Interesting and fruitful collaborations are likely to happen between SRI investors and businesses that have fully embraced the values of sustainable development, capable of leading to real cultural and economic/financial change: CONAI and the Italian Sustainable Investment Forum began their strategic partnership with the precise aim to develop this potential for collaboration. The Importance of SMEs

www.conai.org/en

The CONAI-ItaSIF research concentrates mainly on the work of small and medium-sized enterprises, which constitute Italy’s economic and productive backbone, and in particular on the packaging sector, covering the entire lifecycle of a product. Given their high exposure to scarcity and the rising prices of raw materials, SMEs have higher incentives to invest in energy efficiency and the optimisation of the productive cycle, minimising waste. However, difficulties in accessing technical know-how and the capital necessary for research and development weaken these businesses, given that they struggle to be included in the criteria for receiving grants established by financial institutions. From this perspective, SRI can intervene by facilitating access to credit and equity investment, developing products and services specifically adapted to the needs of SMEs involved in the packaging sector. These solutions will have to be designed so as to reward businesses that

transform their productive processes so as to increase sustainability and act in accordance with the circular economy paradigm, whilst at the same time incentivise change in those businesses that have negative environmental traits. In terms of increasing sustainable investments in the circular economy, research suggests two key areas so as to improve intervention. On the supply side, the introduction of specific financial instruments for activities relating to the circular economy will be essential, especially if they are created with SMEs in mind. For example green bonds and themed stock indices. Additionally, in relation to both supply and demand, the goals of businesses and investors need to be aligned so that this relationship does not become imbalanced – as often occurs – in favour of the financial side. To this end, businesses can take action in several ways, for example: by introducing governance models that are more transparent and open to “active and participative” contributions from investors; by improving the quality and efficacy of the way social and environmental impacts are measured; by collaborating with other businesses in the same sector to minimise the negative effects of fragmentation; by adopting a mid-to-long-term framework in the development of industrial plans. Finally it is important that both investors and businesses share the ESG approach in their corporate policies. While substantial progress has been registered in recent years – both on the normative-policy level and at the economic-financial level – the transition to a circular economy is far from complete. With this in mind, the diffusion of a new cultural attitude and the strengthening of dialogue between recycling businesses and investors regarding the common themes of social and environmental sustainability, are both crucial.

CONAI (National Packaging Consortium) CONAI is a private non-profit consortium. Consortium systems in Italy arise as management models by private companies for the tackling of public problems of collective interest, i.e. the environment, in accordance with collective responsibility principles. Around 900,000 companies which produce or use packaging have joined the Consortium. Founded on the basis of the Ronchi Decree of 1997, the Consortium marks the transition from a management system based on landfills to an integrated system based on the prevention, recovery and recycling of six packaging materials: steel, aluminium, paper, wood, plastic and glass.

Dossier

FRANCE

ÂŠmacayran_PixabayCC0_1

It is not enough to reduce waste, we need a new global vision for the use of resources that promotes a societal transformation, decoupling increases in wellbeing from environmental impacts. This is the real challenge faced by the French Circular Economy Roadmap.

Policy

France Turns Towards the Circular Economy Fifty precise measures detailed within the “Feuille de route de l’économie circulaire” set out fixed times, instruments and a philosophy for the transition. Among the first objectives: achieve a 30% reduction of resource consumption in relation to GDP, halve the amount of non-hazardous waste sent to landfills, and reach 100% recycled plastic. by Silvia Zamboni

Silvia Zamboni is a journalist specialised in energy and environmental issues. She has authored books on good practices of the green economy, mobility and development.

Feuille de route pour l’économie circulaire, www.ecologiquesolidaire.gouv.fr/ sites/default/files/ Feuille-de-routeEconomie-circulaire-50mesures-pour-economie100-circulaire.pdf

Following an intense consultation phase with stakeholders (businesses, councils and citizens), in April 2018 the French government licenced the roadmap that will guide the country’s transition towards a circular economy (Feuille de route de l’économie circulaire). The ambition is clear: after becoming world-leaders in climate defence, the new target is to achieve primacy in the promotion of the circular economy, placing French businesses amongst the strongest ‘circular’ performers in Europe thanks to an increase in competitiveness, which is to be achieved by “closing the loop” in terms of resource use. “Today there is a need to adopt a global vision for the use of resources that goes beyond simply fighting waste and promotes a complete societal transformation, in a spirit of increased resilience and with an aim to decouple the increase in wellbeing from environmental impact.” These are the words of Christophe Debien, Director General of the Institut national de l’économie circulaire, which in essence set out the need to achieve higher levels of welfare and prosperity while consuming less resources and creating less waste. “The coherence of the government’s action [is to be guaranteed] through the institution of an inter-ministerial delegate for the circular economy,” says Debien. Will the system, and the country more generally, be able to rise to the challenge and benefit from the opportunities that the government’s actions have created? In the path toward consolidation of the circular approach in France, Debien positions at the forefront “local administrations, followed by large scale industry – particularly the recycling sector – while consumers and smaller businesses are in a more difficult position. The former because there is a lack of information on the very nature of the circular economy and on the behaviours to be adopted, and the latter because they struggle to change their business models in a circular sense.”

Among the productive sectors, “the least advanced are the plastics, construction, textile and clothing industries. For the latter one, however, Debien points out that communication channels are already in place to reduce their impact.” Furthermore, the roadmap itself has no qualms in underlining the fact that the country has a lot of room for improvement. Every year, 22 million tonnes of organic waste end up in rubbish bins and are never recovered or properly processed. Generating 247 million tonnes a year, the construction and demolition sector is responsible for over two thirds of waste produced in France. Recovery figures for solid urban waste in 2014 hovered around 39%, with half of the remaining 61% made up of organic waste that ended up in landfills or incinerators, “creating problems for the surrounding territory and a waste of energy that was incompatible with the Plan Climat objectives.” The percentage of recycled plastic packaging was stuck at 20%, way below the 30% EU average, whereas the collection of plastic bottles was 55%. A situation defined as “mediocre,” and prompted the government to intervene “to both construct an economic framework promoting recovery rather than destruction of waste, and bring about the conditions to come close to 100% collection of recyclable waste.” The objectives that define the French circular strategy can be synthesised as follows: drastic reduction of the use of raw materials; increased taxes on the use of landfills and incinerators, and, concomitantly, decreased VAT rates for activities related to waste production prevention, separate collection of recyclables, selection and recovery; total recycling of plastics; increased use in industry of recycled materials; and increased use of recycled products by public administration bodies, ranging from paper (at least 50%) to tyres and refurbished cell phones. A set of objectives

renewablematter 25. 2018 that explicitly pushes the country to be less dependent on imports of raw materials, and thus less susceptible to the instability of global markets. If the spotlight is aimed at percentages, quantitative data and timeframes, it emerges that the government hopes to achieve the following objectives: a 30% reduction, by 2030, of the 2010 levels of resource consumption in relation to GDP; to halve, by 2025, the 2010 amount of nonhazardous waste that ends up in landfills; to reach 100% recycling of plastic by 2025, thus eliminating 8 million tonnes of climate-changing emissions a year, considering that “the production of a recycled plastic bottle allows for a 70% reduction of greenhouse gas emissions compared to one made from virgin plastic”; to collect, by 2025, 100% of recyclable waste. “Starting from 2021, taxes on landfill disposal and incineration will increase, respectively, by 12 and 5 euro per tonne, and by 15 euro per tonne in cases where energy recovery exceeds 65% (included),” announced Brune Poirson, undersecretary for the Ministry for the Ecological and Inclusive Transition (Ministère de la Transition écologique et solidaire), in November 2018. Last but not least, with the predicted measures it is expected that 300,000 stable green jobs will be created. These will not be relocatable, and will be centred around the new roles that will emerge from the so-called “functional economy,” i.e. the market of shared services that will replace the individual possession of goods; a solution that allows for intensive use while reducing the amount of products on the market. The path set out in the Feuille de route de l’économie circulaire is articulated across fifty

Identikit of the Institut Nationale de l’Économie Circulaire Founded in 2013 by François-Michel Lambert, a member of the National Assembly and promoter of the bipartisan parliamentary group for the circular economy, the French National Institute for Circular Economy has over 200 partners, both public and private – businesses, professional associations, universities, and NGOs – that guarantee the institute’s autonomy and self-financing through membership fees. Its mission includes promoting activities ranging from study, research and education to advocating good practices and organising events. It was heavily involved in the production of the circular economy roadmap, both by identifying measures and by involving its members in workgroups, particularly the one devoted to determining voluntary commitments for companies in the use of recycled plastic. This collaboration will continue even after the expected approval of the circular economy law in April 2019.

Institut national de l’économie circulaire, https://institut-economiecirculaire.fr

precise measures that establish time frames, instruments and the philosophy behind the circular transition. A process that, according to the French government’s plans, is fully integrated with the social and inclusive transition, with the Plan Climat (the national energy plan) and with the Sustainable Development Objectives (Objectifs du développement durable - ODD) of the 2030 Agenda for France. In this climb towards circularity, a crucial role is ascribed to the development of eco-design, and to the process of digitisation which will allow, among other things, to create platforms to manage the demand and supply of recycling materials, to publicise available repair services and to raise awareness of good domestic practices. The fifty measures are grouped into four thematic groups: improving production; improving consumption; improving waste management; raising awareness and mobilising all those involved, from businesses and industries to local bodies and consumers. To increase the lifespan of products and combat planned obsolescence (France was the first country to make this practice illegal back in 2016, whereby failure to comply can lead to two years in prison and up to 300,000 euros in sanctions), starting on January 1st 2020, a label will have to be placed on appliances, electronics and electrical equipment stating the reparability index of the product and the availability of replacement parts, or lack thereof (which cannot be omitted). A measure which France would like to have extended across the EU, and which has great potential to be effective: according to a survey conducted by the French Ministry for the Ecological and Inclusive Transition, only 38% of French citizens send electrical and electronic appliances to be repaired, but 88% state that knowing the predicted lifespan of a product would influence their buying choices. The French government also plans to bring the issue of extending the length of the legal guarantee of conformity, which is currently at two years, to the EU’s attention. The roadmap, first and foremost, asks the automotive sector, as well as the packaging, construction and electrical and electronic equipment industries, to voluntarily increase targets for the use of secondary raw materials, particularly in relation to plastics. To support the transition towards the use of recycled raw materials the government will activate public and private financial instruments such as green bonds. Two thousand businesses will be assisted in the path towards the reduction of material consumption and waste. A support system which has already helped 80% of the businesses that benefit from the scheme save over 180 euros per employee per year. As far as Extended Producer Responsibility (EPR) is concerned, in connection with the application of the “polluter pays” principle, new groups have been added to the fifteen existing sectors

Policy A Circular and Participative Roadmap The stakeholder consultation process for the circular economy in France began at the end of October 2017 and ran until March 2018, with the involvement of over 200 subjects. The government instituted four workgroups – dedicated to territories, plastic, sustainable production and consumption, and economic instruments – all of which met five times. Running parallel to this, through an online platform between November and December, over 1,800 citizen contributions were collected. After the presentation of the synthesis of the first proposals made by the workgroups, a second series of workshops began in January to allow local bodies, businesses, organisations and NGOs to exchange views and define instruments to help achieve their objectives. At the beginning of February a draft of the roadmap was circulated, and online consultation was reopened, gathering over 3,000 contributions and almost 30,000 citizen votes before closing on February 25th. Finally, in April, the government approved the roadmap, which will be made into law next year.

Starting on January 1st 2020, a label will have to be placed on appliances, electronics and electrical equipment stating the reparability index of the product and the availability of replacement parts.

In terms of advantages to citizens, separate collection of waste will be radically simplified: by 2022 the protocol for dumpster colours will be made homogenous across the entire country.

that handle post-consumer management of fifteen refuse types (packaging, paper, WEEE, furniture, clothing and shoes, used batteries, paint for domestic use, tyres, vehicles to be scrapped, recreational vessels, medical waste, unused pharmaceuticals, gas canisters, waste oils, and agricultural waste). The new groups will cover waste from the hospitality industry, toys, sporting and leisure goods, home improvement, gardening and cigarettes. EPR sectors will be handed reuse, repair and recycling objectives for recovered products, a portion of which will be donated to subjects within the remit of the social and inclusive economy. By 2019 an economic incentive will also be introduced for the promotion of collection and reuse of old mobile devices. Other specific measures will affect the collection and recycling of construction materials derived from demolitions. In five pilot sectors (furniture, textiles, hospitality, electronics and food) an environmental label will be trialled on a voluntary basis, with the aim to inform consumers about packaging and its final destination, the recyclability of products and environmental impacts; in the hope that a more sustainable and environmentally friendly market will be promoted. In terms of advantages to citizens, separate collection of waste will be radically simplified: by 2022 the protocol for dumpster colours will be made homogenous across the entire country. “In places where collection happens door-to-door, all packaging will be disposed of in yellow bags,” says Debien. “Additionally, to incentivise collection

of cans and plastic bottles reaching 100%, a cautionary deposit will be introduced, that will be returned to the consumer through the so-called ‘inclusive delivery.’ Following the example of Sweden, citizens who return cans or bottles to recycling centres or to automated machines in supermarkets will receive a bonus that can be exchanged for cash or purchases,” or even donated to environmental, health or social interest projects. In cities where, thanks to this mechanism, 100% collection has come close to being achieved, environmental attitudes have also improved: if they have a monetary value, bottles and cans no longer get thrown away in the street. Finally, councils that adopt a points-based tariff for the collection of domestic waste, with the well-known purpose of reducing undifferentiated waste, will receive incentives for three years through a reduction of state responsibility taxes. Food waste will be confronted according to the guidelines set out in the national food policy (Feuille de route 2018-2022 politique de l’alimentation. États généraux de l’alimentation), for example with educational pathways dedicated to young people and consumers, and with the imposition for the operators of collective food provision to make donations of food to charitable organisations, an obligation that is already in place for supermarkets whose floor space is over 400m2. Similarly, the textile industry will be urged to follow the principles of the fight against food waste, to avoid unsold clothing being thrown away. In order to fill the information gap and increase consumer sensibility the government has instructed the Institut de l’économie circulaire to create a series of TV productions to be broadcasted at primetime: “These infomercials will each be a minute long,” explains Debien, “like capsules of ecology and domestic ‘circularity’ that will address waste management, mobility and energy use within the home.” The Feuille de route de l’économie circulaire, having now been clearly defined, is on the path towards legislative approval. The provisions that will turn it into law will be scrutinised by the cabinet in February 2019, and then voted upon by the Assemblée Nationale in April. According to Debien, four legislative pillars will uphold the various measures: “Implementation of EU directives on waste; reform and enlargement of EPR sectors; measures for the management of plastics; and marketing measures” all aimed at promoting sustainability, reparability and longer product life for consumers. Once the law has been approved, the challenge for France to become ‘top of the class’ in circular economy terms will officially begin. One thing, however, is still unknown at the time of writing: whether the gilets jaunes revolt will put a spanner in the works of the government’s plan.

Dossier France

Occitania,

a Positive Energy Region by Ilaria Nicoletta Brambilla

Southwest France has inaugurated a set of policies aimed at the circular transition, with none other than the Vicepresident of Occitania having taken on the mandate. Whilst institutions have only started dealing with the circular economy over the last few years, a few local companies have been involved in this sphere for a long time, especially with regards to natural capital and artisan traditions.

Ilaria N. Brambilla is a geographer and environmental communicator. She collaborates with research institutes and communication agencies, as well as Italian and foreign newspapers on sustainability issues.

Toulouse – the Occitania region’s capital – is a lively and historically rich city that has developed along the Garonne river. Known for being home to the Airbus headquarters and thus linking its economy to an industry that is anything but light, over the last few years it has turned its attention to the circular economy through a set of ambitious regional policies. We met with Agnès Langevine, Vicepresident of Région Occitanie, the person in charge of ecological and energy

transition, biodiversity, the circular economy and waste. Langevine explains that: “Since Regions have been delegated authority over waste management planning, Occitania Region set a goal towards ‘Zero Waste Zero Rubbish.’ Not only that, we want to encourage the rise of the circular economy through a ‘Positive energy Region’ programme and a regional strategy for biodiversity.” When asked what actions are planned for the circular

Policy economy, Langevine responded: “Our action plan is divided into six thematic lines, including: governance and information exchanges; research and innovation; waste collection and recovery; economic systems to change production and consumption patterns; public spending; and local synergies. We are working on developing more virtuous solutions for resource consumption thanks to local authorities, chambers of commerce, consortia and associations. To promote projects, the Region has implemented a support scheme for collective activities, backing up strategic studies and project financing. Furthermore, we opened two calls for tender for projects on priority themes of construction and organic waste sorting at source.” As for pinpointing the sectors particularly active with regards to the circular economy in the region, Agnès Langevine points out that, “From a report of material flows which we drew up, it has emerged that the main issues concerning resources revolve around food and construction material flows. We are helping structure a regional network to support the many private initiatives that, albeit pioneering still have economic models that need to be consolidated, by improving a separate waste collection service and a breakdown for reusing, recycling or recovering. In addition, last October, in Occitania, the first regional Forum on the circular economy gathered together over 250 players, thus displaying

enthusiasm for the model, above all among the younger generations of entrepreneurs.” “Occitania – continues Langevine – can count on leaders in the field of research and an important network of social and solidarity economy players and innovative start ups. The Regional Plan for Prevention and Waste Management brings visibility to material deposits and flows and envisages a transformation of jobs towards creating new local services with high added value. Our territory has all it takes to make waste a precious resource, to reduce reliance on cost of raw materials, to develop a new found cooperation at a local level and include local development in the virtuous cycle of the circular economy.” From Toulouse we moved East, in the Tarn department, to get acquainted with two different situations from the point of view of size,

renewablematter 25. 2018

Occitania region, www.laregion.fr

but both equally committed to transitioning towards a circular economy. We met Laboratoires Pierre Fabre, a pharmaceutical and cosmetic group created by the samename pharmacist and botanist that, despite its international scope, manages to turn the paradigm of the circular economy into a reality. The company, created in 1962, starting from a few successful galenical preparations originally made within the laboratory of Fabre’s chemist’s shop, now belongs to a group headed by the Pierre Fabre Foundation, a publicly-useful institution recognised by the French government for its mission – to allow access to quality drugs and treatments in developing countries and in territories ravaged by wars and natural disasters. For the company, Amory Lovins’ idea of natural capital is about as real as it gets:

70% of income comes from the transformation of natural products of which 40% is directly derived from plants. The investment in research amounts to €174 million a year and is aimed at the development of drugs, ranging from over-the-counter medicines to those for cancer treatment (where the Madagascar Periwinkle is used, whereby abandoned pieces of land were recovered and jobs given to local people), as well as cosmetic products, sold on international markets by a variety of brands such as Avène, Klorane, Galénic and others. This is the very core of the company, an added value which has led it, thanks to a research centre in Toulouse with 18,000 plant samples, to produce about 300 new plant-based extracts a year and to pay close attention to production waste, the lifecycle of its own products and ultimately the entire supply chain. As for production waste, flax can be used as an example: an extract from this plant is used as natural film for a volumizing shampoo, the stem is sold to manufacturers of insulation boards for buildings, while unused parts supply nutrients to company-owned fields (200 hectares of organic crops in the region alone). The reverse process, instead, occurs with apples, whose extracts for creams are derived from the pulp and fibres from the production of local companies’ fruit juices. Moringa oleifera is instead grown to use seeds in cosmetics, while leaves are transformed by the company into a highly nutritious food that is used to fight malnutrition, especially for malnourished children in the same agricultural areas. And there is more: waste from some of the plants used in the production is used in the biomassfuelled boiler present on the Saoul production site and, together with loppings from local woods, manage to cover 60% of plant requirements.

Policy

Laboratoires Pierre Fabre, www.pierre-fabre.com/fr Filatures du Parc, www.filatures-du-parc.com

The ensuing ashes are then disposed of with a local compost producer. Particular attention is also given to product biodegradability. Indeed, the company guarantees the biodegradability of the entire formula for products carrying such labels and it has reduced the use of solvents by 98%, reselling the used ones to the local recovery consortium. Lastly, with regards to product packaging, Pierre Fabre manufacture high-quality recycled PET containers (bottles, tubes, etc.), buying secondary raw material from the Italian used-plastics market. Moving inland, within the Department of Tarn, we bumped into Filatures du Parc, a Brassac-based company that has been dealing with third-party yarns since 1975. Their production ranges from clothing and furniture to industrial yarns. It began its transition to the circular economy in 2007 when it filed a patent for a new transformation system of textiles (sweaters, jeans, etc.) into long fibres, so as to recreate quality yarns derived from recycled materials. Through this technique and thanks to the development of two purposebuilt machines, unlike classic unravelling that crushes and deteriorates fibre, the ensuing fiberisation manages to keep the fibre length, thus avoiding lint and pilling on the finished item. The push in this direction has been brought about by two main factors: long-standing collaboration with sportswear brands such as Billabong, Element, Quicksilver and Patagonia which were beginning to demand special attention to these issues; and the fact that carded yarn production has traditionally been characterised by a yarn making system suitable

for recycling raw materials. More collaborations with the company have followed after this transition. In particular with a few institutional players, such as RATP – French public transport company – the Gendarmerie and the fire brigade, for which they have developed yarns starting from post-consumer uniform items, and with a few companies (including Ralph Lauren, Zara, Volcom) which send them their used items or defective garments collected in-shop so that they may be fiberised and re-spun. Moreover, Filatures du Parc is a partner of Renault Group’s recovery and reuse system of secondary raw materials, for whom they manufacture a 100%-recycled yarn from car seatbelts, which is then woven by Adient Fabrics France, also based in the same region. With 45% of the turnover deriving from recycled yarns, the company reckons the market is expanding and therefore requires investments in this direction: over the last few years, they have actually purchased new machinery to introduce lycra in denim yarn, a winder for skeins and a last-generation fiberising machine. The transition has also created jobs. Currently, the company employs 45 people, all local residents, and has opened up new recycling markets for various fabric types. The company has also joined the French consortium for fabric and shoe recovery, EcoTLC (Textiles, Linge de maison et Chaussures), in particular with regards to research and development of textile material recycling: a sign of further commitment. If southwest France carries on endorsing this both traditional and innovative push, it will be able to achieve its goal and actually become “a positive energy region.”

renewablematter 25. 2018

Photo by Mauro Davoli

The Museum of the Non-discarded In Ozzano Taro, a small village near Parma, the Guatelli Museum is home to thousands of everyday-life objects that have resisted the throwaway imperative. Art, history, ethnography, anthropology, and ecology are only a few facets of what is, above all, an astounding tale. by Giorgia Marino

Fondazione Museo Ettore Guatelli, www.museoguatelli.it

Graduated from the University of Turin in Communications, Giorgia Marino – freelance journalist web/social editor – writes about culture, innovation and environment. She was the director of Greenews.info and now writes for various magazines, including La Stampa.

Some define it as the Sistine Chapel of the poor, a humble Louvre, a Divine Comedy of work tools, of waste and worn out shoes. Famous critics regard it as an extraordinary and unique contemporary art installation. Directors and artists including Werner Herzog, Costa Gravas, and Christian Boltanski were overwhelmed and mesmerised by it. The Guatelli Museum in Ozzano Taro, near Collecchio, in a remote area in the Parma countryside, is one of Italy’s most original and amazing museums. And yet, its creator never wanted to be called an “artist.” Ettore Guatelli – primary school teacher and brilliant outsider – shied away from labels and definitions. The grand storytelling through objects, which he devoted half his lifetime to, is simply (and perhaps defiantly?) the “Museum of the Obvious.” The obvious consigned to oblivion, at the bottom of a wardrobe, to mould in the cellar or covered in dust in the attic. The obvious that does not get framed, that is not kept in a safe and that (today) is used and thrown away in a landfill where it

perishes. The obvious that is a big chunk of our lives. All objects that are often disregarded, Guatelli, an anthropologist by nature, chose to enshrine in his countryside cathedral instead. It May Come in Handy… The rooms, barn and porch of the farmhouse where Ettore Guatelli lived are literally “embroidered” with objects, like a giant mosaic. Amongst its irregular tiles, a more careful observer can spot kitchen tools, scissors, knives, hoes, shovels, blacksmith’s tongs, shoes, tins, baskets, boxes, ploughs, crockery, toothpaste tubes, toys… “There is hardly a spare inch – says Vittorio Delsante, Chairman of Associazione Amici di Guatelli and guide to the museum – Ettore suffered from horror vacui, he wanted to be surrounded by things.” Indeed, the museum hosts 60,000 objects. He used to stick them to the ceiling and doors, staircases, in every nook and cranny, making up geometrical and ornate patterns, playing with repetition, combinations

Photo by Mauro Davoli

All images: photos by Mauro Davoli

52 renewablematter 25. 2018

World and excess in a methodical accumulation, quite the exact opposite of consumerism. A frugal collection bringing awareness to the value of even the most humble of objects. It is not the build-up of goods that go out of fashion within a season, but the painstaking salvage of what has been kept, mended, repaired, transformed, patched up to last forever (or at least for a lifetime). “Guatelli comes from a historical period characterised by a subsistence economy, the so called bread age,” explains Mario Turci, an anthropologist and the museum director. “Farmers would not throw away anything: recovery and reuse were introjected values and necessary for survival. Objects were never discarded, because they might ‘come in handy’ and most of the time they were indeed used again and again.”

For over thirty years, until his death in 2000, Ettore Guatelli worked on his museum. “He would collect objects here, there and everywhere,” continues Turci, “From secondhand dealers clearing lofts and cellars, to jumble sales; or by visiting houses in person when he discovered that somebody was moving out.” The outcome is a medley collection ranging from a 19th-century carillon to a Commodore C64. On top of the items on show, there are 20 containers crammed full of things, plus the warehouses in the courtyard: “the treasure troves,” as the Guatelli aficionados call them, where so many unknown gems are yet to be discovered. In this rather bizarre maze, the collection occasionally seems to display a few paths, a sort of uncharted territory visible to those armed with enough time and patience to browse. “There are – as Turci explains – certain categories of objects that Guatelli used to absolutely adore. Migrant objects is one of them.” The term, invented by Turci himself, identifies all artefacts linked to creative reusing, i.e. migrating from one function to the next, thus adapting in the spirit of resilience to the needs of the moment. For example, a soldier’s helmet, once a war is over, becomes a brazier or with an added handle mounted on one side, it can become a ladle for sludge; whereas a bayonet acts as a knife for slaughtering pigs; and an old accordion case, with a few alterations, rises to new life as a carrier for homing pigeons. Then, there are resistant objects, “patch-ups” as Guatelli would define them. “Those that have been heavily maintained up to the limit of their existence. For instance, the worn out sickle turned into a table knife, then into a razor and eventually when there is almost nothing left, into a nail. Or a bed sheet so heavily darned that the fabric is almost unnoticeable: a true monument to bodging.” Come to think of it, the attribute “patched up” is always associated with a shoddy job, carried out

Ettore Guatelli

Migrant, Resistant and Resilient

with no commitment or criterion. But patching up, recovering, transforming and recycling were an actual art form resulting from techniques that had been refined over time and employing outstanding skills. A kind of pre-scientific technology and peasant engineering which the Russian painter Vladimir Arkhipov named, in one of his recent books, “People’s Design.” That same ingenuity of the humble to which Guatelli devoted his monument and that, as a teacher, he tried to pass onto his students for them to treasure as reasons for dignity and pride in their origins. Learning from (Used) Objects There is a pedagogical and educational aspect to Ettore Guatelli’s work on top of the narrative one. Vittorio Delsante, who got to know him in a small town primary school, describes him as a charming storyteller. “When Professor Pietro Clemente would invite him to the Department of Anthropology to give a lecture, he would carry with him a suitcase full of his objects which he would then start to talk about. The classroom was teeming with people wishing to listen to him as he pulled out his objects, one by one, like a magician. The suitcase-museum is a way to disseminate knowledge still used today by the Association when we organise workshops in schools.” After all, the Ozzano Taro farmhouse is first and foremost a storytelling museum. “Guatelli’s work – points out Turci – is neither an ethnographical collection nor a ordinary rural life eco-museum. It is a museum of stories. The collected objects are here because they are culturally meaningful for the existence of those who owned them.” For instance, the briefcase made by a soldier with

renewablematter 25. 2018

Red Strand and Second Lives by G.M.

There is a metaphorical and material common thread connecting Leonardo Dingi’s works. A fine sewing thread meandering through the cracks of an old off-key cowbell, as if to darn it, which then runs through the burnt pages of a book conjuring up old religious bloodsheds; it wraps around the waist of Christ on the cross, crossless and headless; it holds to the nooks of a cabinet, the limbs of a broken doll in a disturbing scrambled collage. It fastens to new wrought-iron props small sealing wax crucifixes, shoe trees, candelabra deprived of their candles. Everything is missing something: a piece, an order, a function, a complement. But in such dearth, they find a meaning and tell a story.

student. Fire, melting, cracks and breakages are thus recurrent images in his art work and are the result of a well-established artisan activity, while candelabra and crucifixes are ever present because churches and religious bodies have always been important customers at the store and also because they are a sort of fetishised cultural objects that have been handled, overused, lived; that have received sighs, prayers, tears and perhaps curses. They have now lost their “practical” function, but Dingi’s common thread raises them to a new life.

www.dingi.it

Bologna-born artisan Leonardo Dingi, just like Ettore Guatelli, is interested in the stories attached to objects. And, just like the Ozzano Taro teacher, he is reluctant to utter the word “art”: “I create ‘things’ with recovered pieces and discarded things that I come across,” he explains. It is no coincidence that the first exhibition of his “things” was hosted right at the Guatelli Museum. “I have always liked to recover scrap materials to make objects. I used to keep them at home, but then a few years back I started to sell them in the workshop as well: small accessories, mainly lamps, making up the Era collection. However, only a few months ago I tried to move away from object functionality in order to create things with a purely aesthetical value” explains Dingi. Dingi’s workshop in Bologna has a long history of restoration of metal objects and reproduction of old door handles and latches. His father Silverio opened it in 1961, whereas Leonardo started to work in it when he was still a university

Images: work by Leonardo Dingi. Photos by Vittorio Delsante

World

In an era of planned obsolescence and death, where goods are quickly consigned to oblivion, heavily patched-up and memory-loaded things collected by Ettore Guatelli are a moving and hard lesson. Before there was talk about the circular economy and encouraging people to save resources, the proto-ecologist and anti-waste message by this countryside teacher was already underway. Above all, as a warning to respect the value of every object, because even the humblest thing is the fruit of somebody’s hard work and therefore has a story to tell.

All images: photos by Mauro Davoli

welded tins tells a story of poverty, necessity, departures and even eating habits. “Even the artful way with which he displayed his collection pieces (‘organising things properly’ as he would put it), was for him another way to attract visitors’ attention and channel it into the stories told by the objects.” Such stories would become part and parcel of his teaching method. Drawing on Don Milani and Gianni Rodari’s pedagogical activism, Guatelli taught his pupils the importance of doing and the value of things, well beyond their mere purchase and use. “Objects were, according to countryside teacher Guatelli, books that show the world to those that saw very little of it. An object – continues Turci – embodies the work of those that have made it, the state of technologies of a particular historical period, the economy, societies, fashions, habits. And, last but not least, human stories still attached to it.” In short, A Life Cycle Assessment of its soul.

Focus Mining and Carbon Capture

The Life of Mines

After Mining

Mining is still a booming business all around the world, but as resources become scarcer and laws stricter, mines close down. They leave behind thousands of hectares of eroded land deprived of biodiversity. Looking at rehabilitated mines helps showcase their future once there is nothing left to extract. by Irene Baños Ruiz

Mining is an increasingly hot topic in the global community. Germany, a country traditionally considered to be a green leader, is just one example of the struggles faced when enacting a rapid and fair coal phase-out. Undoubtedly, the main challenge lies in offering employment solutions to the many miners that will lose their jobs. However, a second question also arises: what will happen to the giant mining areas once they are no longer used for resource extraction? The question is pertinent to all types of mining, from copper in Peru to diamonds in Australia or zinc in Canada. A mine’s lifecycle goes through different stages. For gold mining, which occurs in open pit mines, the World Gold Council identifies five different phases: exploration, development, operation, decommissioning and post-closure. The decommissioning starts once the ore body has been exhausted or is no longer economically interesting. It includes

dismantling and rehabilitating the land. In other words, returning the mine to a state that allows the land to be reused for other purposes including wildlife habitat, recreational areas and industrial land. The last step, post-closure, implies monitoring the decommissioned area over the years, so as to ensure the successful rehabilitation of the land in question. Usually, the rehabilitation phase, also known as mine reclamation or remediation, aims to return the land to its original environmental state, or as close to it as possible, which includes the safe disposal of hazardous materials and waste, ensuring water quality, and restoring indigenous vegetation. Although reclamation is the last part of a mine’s life, mining companies such as the US-based Newmont Mining Corporation, one of the world’s largest gold producers, say it should be an integral part of initial planning: “Planning for closure begins with the design

World

Faro Mine. Credit: Government of Canada

Rough diamonds, Argyle

provided the Indonesian Government with 443 hectares of re-vegetated land. Once a giant hole surrounded by deforestation, Newmont now describes the area as the future site of Indonesia’s new botanical garden, with an already thriving forest of mahogany, teak, nyatoh and sengon trees.

Europe is also home to many open pit mine rehabilitation projects. In Spain, several coal mines have been converted into “wild” areas or adapted for agricultural and recreational uses.

of the operation, well before construction. Reclamation activities start during production and continue long after mining has ceased, until our closure objectives have been met,” Omar Jabara, Group Executive with Newmont, tells RM. In fact, in most countries mining companies are obliged to establish a rehabilitation plan before the extraction activity begins, or at least set aside funds for this purpose, and many companies initiate progressive rehabilitation processes whilst still mining in other areas. For instance, the German company RWE and Spanish Endesa began converting active mining sites into wildlife and recreational areas while the mine continued to expand in other directions. In the case of As Pontes in Spain, Endesa said that this progressive rehabilitation has been the key to their success. Therefore, initial planning is an essential factor in converting old mining sites into environmentally friendly areas. However, this is not always possible. On the one hand, thousands of old mines in the world are still abandoned; on the other, unregulated mining activities make it impossible to demand ownership of responsibility. Back to the Wild Returning mining sites to their condition prior to when mining activities began is a very common practice among mining companies. Some of the world’s largest open pit mines have already undergone this kind of transformation. In 2011, PT Newmont Minahasa Raya (PTNMR), Newmont’s Indonesian subsidiary, planted hundreds of thousands of trees in an old mining site in southeast Minahasa. The company

Teck, is one of the world’s leading producers of steelmaking coal, copper, zinc, specialty metals such as germanium, indium and cadmium, and gold and silver. Few markets escape this company. Its broad scope of activities makes ambitious environmental plans even more crucial. In the same line as Newmont, the company says that it works on the rehabilitation of mines throughout their entire operational lifecycle and in cooperation with local communities. Furthermore, they make sure to “achieve a net-positive impact on biodiversity in the areas where we operate. This means that the ecosystem and biodiversity of the mining area and its broader surroundings will be better off than before the mining occurred.” To reach this goal, they use a technique that involves salvaging soil to help in the re-vegetation of degraded areas. For instance, in a section of the Greenhills operation in southeast British Columbia, the company recovered a large area of soil to a depth of nearly one meter and stored it for later use in reclamation activities. During the course of the project, they managed to save around one million cubic meters of earthy material. The stockpiled soil is now being used to cover the areas where mining activity has been completed through progressive reclamation, which will occur from now until 2035. Freeport-McMoRan, which runs some of the largest mines in the world, including the Grasberg mine in Indonesia, is also undergoing efforts to bring its mining sites back to sustainable use. The company is finalising plans for the construction of tailings recovery test plots for the Cerro Verde copper mine in Peru, one of the ten largest copper mines in the world. The test plots will be studied to confirm the long-term effectiveness of the proposed closure methods, which have been described in the most recent update of the Cerro Verde Closure Plan. Australia’s largest diamond mine, the Argyle Diamond Mine, owned by Rio Tinto, will soon run out of its rare and precious resource. The mine is both the largest supplier of natural coloured diamonds in the world and one of the largest diamond suppliers in general. The impact that its expected closure in 2020 may have on the world diamond market is a very worrying aspect, and the fate of the mining site itself is of equal importance. Located in the remote East Kimberley region of western Australia, the mine has been operating since 1983: first as an alluvial mine, then as an open pit mine, and finally as an

renewablematter 25. 2018

Ground Truths: Taking Responsibility for Australia’s Mining Legacies, www.mpi.org.au/2016/06/ grond-truth-takingresponsibility-foraustralias-mininglegacies

underground mine since 2013. Before mining began, the area was home to indigenous people who have, to some extent, benefited economically from the mine, but have also seen the biodiversity they depend on decrease sharply over the years. Aware of this, Rio Tinto emphasises its intention of “working with local Aboriginal people to rehabilitate areas disturbed by mining in ways that will be directly advantageous to them. Native plant species that are important to their culture, health and diet – and that have been in short supply or in near-extinction in recent times – are being reintroduced to the landscape.” The company claims that the planning for closure and consultation has been ongoing throughout Argyle’s lifecycle. However, the plan remains unclear. Rio Tinto is still preparing decommissioning and rehabilitation proposals that will be presented to Argyle’s traditional owners, Australian aboriginal people, and will be followed by a formal consultation with them before making a decision. The mine closure plan will cover issues such as land use, water management, waste rocks reshaping and biodiversity.

human consumption. Even more surprisingly, native wildlife is back without having been reintroduced by humans: including 217 plant species and 205 vertebrate animal species identified by Endesa in the area. Endesa has also done an impressive job in the old mine of Puertollano in southern Spain, where 560 hectares are now used for agriculture with very high productivity. Here, nearly 30,000 olive trees provide an average of 250,000 kg of olives for oil. In the case of Puertollano, Endesa told RM that the conditions for wildlife are even better than they were before. While the area used to be mostly desert, it has been turned into a Mediterranean forest where wildlife can settle in even greater numbers than before. In both cases, the company began to rehabilitate the areas while the mines were still active. During the process, both the external and internal landfills were given wavy shapes, similar to those of the surrounding environment. After that, they were covered with topsoil and then fertilised and sowed with native vegetation. The final phase involved the recovery of the mining hole, filling it with water.

Europe is also home to many open pit mine rehabilitation projects. In Spain, several coal mines have been converted into “wild” areas or adapted for agricultural and recreational uses. Spain’s largest lake, located in As Pontes, Galicia, with 865 hectares and 547 cubic hectometres of water, was a dirty coal mine only a decade ago. Now, people enjoy the lake as a recreational area, which even has a sandy beach. When RM asked about the potential toxicity of the water, a representative from the owner company Endesa said that the water is so clean that it is even suitable for

Time for Fun Not everything is about wildlife and greenery. Many other mines around the world become event centres, museums and take on a variety of other imaginative uses. The Salina Turda mine in Transylvania, Romania, is a giant salt mine that turned into an amusement park. After its closure in 1932, it was used as a bomb shelter during World War II and later as a warehouse for cheese storage. Today, the impressive 122-meter-deep hole hosts an underground playground, where

As Pontes, Spain

Essen. Photo by Irene Baños Ruiz

Abandoned Holes

people can go bowling, play mini-golf and pingpong, or sail across the lake. In Dalarna, Sweden, former opera singer Margaret Dells and culture editor Asa Nyman made of an unused limestone quarry an amphitheatre. After the first concert in 1993, artists as famous as Led Zeppelin, Patti Smith and Norah Jones have stepped onto its stage. Essen, in Germany, was one of the greyest cities in the country, where everything used to revolve around mining. In 2017, the city was recognised as the European Green Capital for its transformation. Now it attracts a large number of tourists to its former mines, which have been turned into museums and places

Unfortunately, not all old mines end up being environmentally friendly, beautiful or fun sites. In Australia alone, there are about 50,000 abandoned mines throughout the country. The report Ground Truths: Taking Responsibility for Australia’s Mining Legacies, commissioned by the Australian Conservation Foundation, showed that about 75% of the country’s mines had been closed without proper planning. The Faro mine is one of them. This lunar landscape, located 15 km north of the Town of Faro, in Yukon Territory, was once the world’s largest open pit lead and zinc mine, but was abandoned for nearly two decades, after its owner went bankrupt in 1998. Its late remediation project is considered one of the most complex ever carried out in the country. The Canadian Government is committed to ensuring a thorough clean-up that considers the needs of the environment and local people. Located across an area of 25 km2, mining operations have left behind 70 million tonnes of tailings and 320 million tonnes of rubble, from which heavy metals and acid has begun to flow into land and water bodies

Espiel, Spain

for other leisure activities, including a giant ice skating rink. A walk through its buildings, designated by UNESCO as a World Heritage Site, is both frightening and fascinating. It invites visitors to get lost and explore, bringing back their childhood curiosity.

Faro Mine. Credit: Government of Canada

such as nearby rivers. Some ponds in the area already show a reddish brown colour. Julia Duchesne, outreach and communications director of the Yukon Conservation Society (YCS), a local environmental group, told RM that “YCS is encouraged that the remediation is finally beginning, after many years of costly inaction.” However, the society also notes that “the effort to clean up the mine over the past 18 years has become a symbol of waste and bungling for frustrated residents in the Yukon. At least $250-million has already been spent maintaining the mining site […] and yet not a handful of dirt has been cleaned up. Instead the government is burning through $40-million annually to run pumps to prevent the tailings from breaching the dams.”

Indeed, Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC), the government department that coordinates the remediation project, told RM that the remediation plan prioritises the stabilisation of pollutants at the site rather than removing them from the area. They will collect and treat polluted water to prevent it from leaking further into the surroundings; place covers across ore, rock and tailings waste; and, of course, monitor the process closely to avoid any unexpected events that could lead to disastrous pollution. It will take another three decades, at least, to ensure that the site is safe for both the local population and the environment. Environmental groups also raise the criticism that the recovery of mining sites will rarely compensate for the harm caused to the environment. In Germany, for example, there is great controversy surrounding the clearing of the Hambach Forest. The last 1,000 hectares of this ancient forest in western Germany still resist being replaced by the Hambach open-pit mine, Europe’s single largest CO2 emitter. The energy company RWE says it will take care of the mine once coal is phased out, as it has already done with nearby mines. But activists argue the biodiversity of the forest will simply be lost, especially endemic species such as the Bechstein bat and the middle spotted woodpecker. They use the example of nearby rehabilitated areas as the basis

World

Credit: CINCIA

for their argument. Of the more than 32,000 hectares used for lignite mining in the area, almost 23,000 had been reused by 2015. About 12,000 hectares were reused for agricultural purposes, 9,000 hectares were reforested and 800 were filled with water and often became recreational lakes, which are very popular in the summer. This seems like a success, but the picture isn’t complete. According to Friends of the Earth Germany (BUND), information is lacking on the extent of the losses that haven’t been compensated, such as the dry up of rivers and the disappearance of rich wildlife habitats. Moreover, the group says, the reforested areas will never offer the same quality of biodiversity or agricultural purposes as the original soil.

Small-scale gold mining has destroyed about 700 km2 of primary rainforest in the Peruvian Amazon in the last five years, an area roughly the size of San Francisco.

Another case that has raised criticism is that of the Twilight mine in Arizona, US. More than 900 hectares of brown mining areas look green again, but not even the colour matches with the original heavily-forested mountains, not to mention the enormous loss of biodiversity. It is not an isolated case in the country. Climate Home News conducted in-depth research on the subject to conclude that, in most cases, mine reclamation does not return land to pre-mining levels of wilderness or productivity, and often ends up as low-value grassland. Only 18% of reclaimed land in the US has been converted into farming, housing, industry or recreational areas, whereas 16% was left in a wild state. All the rest was covered mainly with grassland. Small Scale, Large Damage Artisanal and small-scale gold mining consist of small actors, mining small areas, rather than large companies. However, although it could be associated with more sustainable practices, there is also a lack of accountability and responsibility. In places like Madre de Dios, in the Peruvian Amazon, thousands of small-scale miners extract gold from the same area, without any of them taking responsibility for the environmental damage. Many of them work illegally, which makes it even harder to establish liability. According to the Wake Forest University’s Centre for Amazonian Scientific Innovation (CINCIA), small-scale gold mining has destroyed about 700 km2 of primary rainforest in the Peruvian Amazon in the last five years, an area roughly the size of San Francisco. Scientists from CINCIA are working on a very new approach to help the Amazon rainforest recover from the impact of gold mining. Luis Fernández, Executive Director of the CINCIA, lists the different challenges related to their endeavour. Mining in Madre de Dios involves a fairly primitive mining system that doesn’t use heavy machinery and only removes

the first five meters of soil sediments. Although it may seem more sustainable than digging galleries and tunnels, it actually leads to the deforestation of a much larger area. Miners get about one gram of gold per tonne of sediment, explains Fernandez. “So, to bring back the forest, you don’t only need to put trees there, you need to generate soil,” he elaborates. The team divided their work into three stages. First, they monitored the state and characteristics of the area with drones and satellite technology. “You can’t assume that all the mining zones are the same, because there are different soil types, different elevations, whether they’re close to a river or in the mountains…” Fernandez explains. Once they identified the testing area, they had to decide which species it would be better to use. Therefore, they’ve planted a series of 50 native tree species in the selected area to figure out what grows best. It is of particular importance in the Amazon due to its high diversity: most of the animals depend on trees and, thus, the species planted in the reforestation project will be determining for the future of all biodiversity. “You don’t want to use Caribbean pine or African Acacia, which grow really fast and are used a lot for reforestation. You’re not trying to restore any old kind of forest, but rainforest.” One of the main challenges remains how to reforest with native Amazonian species in an affordable way. The third stage is the restoration of soil, for which they use so-called biochar, charcoal produced from vegetable matter. It is mostly a reproduction of a method developed by Amazonian native populations about a thousand years ago. The team creates biochar from agricultural waste such as sawdust or the remains of cacao and nut production, and uses it to improve the soil quality in the planting process. “Biochar has very unusual characteristics: it provides carbon for the soil, which is essential, and has the ability to hold nutrients and absorb water. And, potentially, it can even absorb mercury.” Mercury leaks into the soil from the mining activities and may end up in agricultural products. The team expects to publish the results of the test plots by mid-2019 at the latest. The conclusions will allow for the first assessment of how we can give back to the Amazon a little bit of the life we have stolen from it. The next step is to avoid causing damage in the first place.

renewablematter 25. 2018

Focus Mining and Carbon Capture

Being Sustainable in the Coloured

Gemstone Business Projects and initiatives for a sustainable coloured gemstone industry. Including increased traceability along the entire supply chain, something that consumers and investors are particularly interested in. A way of putting an end to corruption, armed conflict, loss in biodiversity and environmental risks. by Eleonora Rizzuto

Eleonora Rizzuto, author and consultant. An expert in the fields of supply chain sustainability and Corporate Social Responsibility.

The multibillion-dollar coloured gemstone industry is active in nearly 50 countries; contributing to the livelihoods of millions of people worldwide. Although it is difficult to obtain the exact number of coloured gemstone mines it is believed that there are between 200 and 300 globally, with approximately 80% of mined production attributed to Artisanal and Small-Scale Mining (ASM). Key gemstone mining countries, where many varieties of these gemstones can be found, include India, Myanmar and Sri Lanka, which are the historical centres of the global gemstone industry and have well established networks for processing and trading. Other regions that have recently emerged as key players in the industry include Kenya, Zambia, Tanzania, Mozambique and Madagascar. The coloured gemstone trade plays a crucial

role in the economies of many developing countries. However, the supply chains are extremely complex, often emerging out of countries with weak governance and engaging many different actors before reaching the end consumer. This complexity can obscure environmental, social and governance issues that occur along the supply chain. When problems are exposed they quickly attract media attention and are subject to increased scrutiny by environmental and human rights advocacy groups, investors and consumers. The Myanmar Case Myanmar produces some of the finest rubies, sapphires and jades in the world. However, the mining industry fuels the countryâ&#x20AC;&#x2122;s controversial military, thus raising ethical

World concerns around its gemstones. In fact, a recent media campaign has been launched against the trade of gemstones coming from Myanmar. The uncertainties surrounding the reform of the Myanmar Gemstone Law (2017) has proven particularly harmful for the country. The current framework is far from perfect: lack of transparency; failure to consider local communities; and an abundance of licenses that are often obtained in obscure ways. Furthermore, last July the new civil government suspended licensing until the completion of the reform, which in turn created instability for local traders and pushed many into the black market. Private foreign companies have only one way to engage in ethical business: contribute to reform efforts in Myanmar. Partly because of the Rohingya crisis, the world has lost sight of the reform momentum that was building in the gemstone sector. In fact, the civilian administration has used membership of the Extractive Industries Transparency Initiative (EITI) to push for greater transparency in reporting. The move towards EITI reporting on beneficial ownership could be a game changer. Although the new Gemstone Law leaves much to be desired it is a step in the right direction. Companies have to be aware that individual and non-coordinated private initiatives from non-official institutions, rather than helping solve potential issues, often backfire, creating other issues such as illegal trading and increased poverty. Responsible investments are key requirements in this process and are drivers of effective sustainable development. The Jewellery Manufacturing Industry When a gemstone is purchased in certified auctions, it comes from a specific supply chain where practices and potential social and environmental risks differ. Some of these risks include: corruption, armed conflict, money laundering, child labour, forced labour

and slavery, human rights abuses, infectious diseases, loss of biodiversity, and threats to ecosystems. These risks are difficult to monitor because gemstone consumers do not have access to supply chain information. Yet, all actors in the supply chain from the retailer to the miner, wish to create products that have not harmed any child, financed any war, contaminated any river, or cut down any tree. Furthermore, they want their purchases to support livelihoods, develop economic and cultural exchanges and educate people to look after their communities, rivers and trees. This is the backbone of notions on extended producer responsibility. To achieve this jewellery manufacturers have to work in the same direction as their partners towards enhanced transparency and traceability; ethical, social and environmental excellence; strong collaborative improvement (as opposed to exclusion); and last but not least towards fostering initiatives that unite luxury brands, large scale mining companies and small-scale producers with a common interest in catalysing positive change in the responsible sourcing of coloured gemstones. This collaboration has led to the creation of assessment tools with which to verify and monitor whether different actors in the supply chain respect common standards. The Responsible Jewellery Council (RJC) This high-level international association includes 1,100 member companies and is a recognised standards and certification organisation for the jewellery supply chain. Positive talks with the diamond industry have led to the inclusion of due diligence

Extractive Industries Transparency Initiative, https://eiti.org Responsible Jewellery Council, www. responsiblejewellery.com Ocse, Due Diligence Guidance for the Responsible Supply Chains of Minerals from ConflictAffected and High-Risk Areas, www.oecd.org/ daf/inv/mne/OECD-DueDiligence-GuidanceMinerals-Edition3.pdf

renewablematter 25. 2018 requirements in the Codes of Practice (COP) of RJC members, and a small panel of experts has worked closely with the Organisation for Economic Cooperation and Development (OECD) in the establishment of Due Diligence Guidance for the Responsible Supply Chains of Minerals From Conflict-Affected and HighRisk Areas. The RJC has recently moved into the coloured gemstone sector, starting with emeralds, sapphires and rubies and plans to expand to all stones within 2 years. The Supply Chain Gemstones are minerals formed by geological processes that happen deep within the earth’s crust and mantle. These processes shape how gemstones are formed, determining their individual characteristics, such as colour, structure, and durability. These features vary widely, resulting in over 130 different varieties of gemstones that can be categorised into several groups. One broad distinction is between those considered “precious” and those considered “semi-precious.” Diamonds, rubies, sapphires and emeralds are considered to be precious stones whereas the rest are deemed to be semiprecious, including some gemstones which are not “stones’” at all but other organic materials, such as corals or pearls. Over millions of years, gemstones formed within the earth’s crust move gradually closer to the

earth’s surface. How close they are to the surface determines how they are mined. In fact, gemstones are found either in “primary” or “secondary” deposits. A primary deposit means that they are still located within the original host rock where they were first formed. Extracting these gemstones from their host rock is an energy, labour and capital intensive process. Such mines are found either underground or in open pits and often involve the use of explosives to shift large volumes of rock. A secondary gemstone deposit is where the gems have already been extracted from their host rock through natural water or wind erosion processes and are later deposited in the gravel accumulations of river beds or in soft sedimentary rock. In contrast to primary deposits, these accumulations are easily accessed with low technology and small investments. Local communities can take advantage of these mineral resources using simple tools and processes such as hammers and picks to extract the gemstones. Zambian emeralds come from an example of “primary deposits,” whereas rubies from Mozambique come from “secondary” ones. The nature of the coloured gemstone supply chain means that there is a lack of publiclyavailable, verifiable and comparable data on coloured gemstone production, processing and trading at global and national levels, making the supply chain one of the most complex. Contributing factors to this complexity include weak regulatory oversight of the industry and limited communication between upstream and downstream ends of the supply chain, which in turn limits visibility and understanding of operational challenges and needs. A gemstone may change hands as many as fifty times after leaving the mine, passing through traders, sorters, graders, cutters, polishers, other value-adding processes, brokers, manufacturers and retailers before eventually reaching the end customer. At times it is even difficult to certify the country of origin of a gemstone. This characteristically decentralised and informal nature of the ASM gemstone industry, traditionally founded in trust-based personal relationships rather than in transparent and accountable systems, is what hides many of the negative externalities of gemstones. An Outlook on Some Mining Countries Sri Lanka The Ratnapura region of Sri Lanka.

World From Gemstone to Jewellery A typical gemstone supply chain is the following: Production (mine)Cutting & Polishing-Trading-Jewellery Manufacturing-Retail. Once a coloured gemstone leaves the mine it is traded and undergoes multiple processes that include: cutting, which is the process that transforms a rough gemstone into a sparkling gem; polishing, mainly performed by specialised workers who are trained in very specific aspects of the cut and polish processes and use more advanced manufacturing technologies; trading, involving commercial actors that play an intermediary role by bringing rough and cut gemstones (often directly from mines and processing facilities in remote areas)

As illustrated in the images published in this Focus, mining activities are taking place in former productive agricultural land and near still productive rubber plantations. In early 2014, Conservation International (CI) and the Responsible Ecosystems Sourcing Platform (RESP) initiated informal consultations on potential collaboration under CIâ&#x20AC;&#x2122;s Stewards Programme and in particular, on the development and implementation of Conservation Agreements. Furthermore, the images published in this focus give an idea of the process behind the extraction of soil from the ground and how it is then put back as part of the current mine closure and restoration initiative. Through improved restoration practices it is expected that soil productivity can be regenerated and thus provide sustainable uses and long-term socio-economic opportunities for local communities. Zambia A spectacular emerald mine, Kagem, supplies more than 25% of global emerald production. The mine of Kagem is full of craters, where, over a 5 year period, enormous tubs have been dug using explosives. The business model is a win-win solution both for the private foreign investor and for local government. In fact, a private investor takes on all the investment risks with 75% of profits, whilst the remaining 25% remains with the local government. The foreign investor receives a 25-year licence for an area of 41 km2 with 890 workers, 80% of which are local people. Furthermore, the company commits itself to a long-term local Corporate Social

into the market; jewellery manufacture, performed by large retail chains that have manufacturing facilities with assembly-line style production that utilise high tech tools and equipment to facilitate the mass production of jewellery; and finally retail, where finally the gemstone reaches the consumer who demands more and more traceability across the entire supply chain.

Responsibility (CSR) strategy with a specific focus on education, health, agriculture, and recreational activities. Mozambique The Montepuez ruby mine is one of the biggest in the world and serves 2/3 of global ruby supply. Located 200 km from Pemba, here it is possible to find more than 500 qualities of rubies. The business model is the same as the one used in the Zambian mine where a private investor takes on all investment risks and 75% of the profits, whereas the remaining 25% remains with the local government. The foreign investor receives a 25-year licence for an area of 336 km2 with 1000 workers, 80% of which are local. The company seeks to enhance local CSR programs and spends up to 1.7 million USD on building hospitals and gynaecological clinics, providing mobile hospital cars in the villages, and building government recognised schools.

All actors in the supply chain from the retailer to the miner, wish to create products that have not harmed any child, financed any war, contaminated any river, or cut down any tree.

Focus Mining and Carbon Capture

Cobalt

Shortages Ahead For electric vehicles and batteries more cobalt is needed: this is causing supply problems that could impact the market for electronics. by Mark LaPedus

makers, that then sell rechargeable batteries to electric car makers like BMW, Nissan, Tesla, Toyota and others. A smartphone contains 5 to 20 grams of cobalt, compared to 4,000 to 30,000 grams, or 9 to 66 pounds, of cobalt per vehicle, according to Fortune Minerals (a Canadian mining company that deals with the development phase of mines).

Mark LaPedus is Executive Editor for manufacturing at Semiconductor Engineering. He has covered the semiconductor industry since 1986, including five years in Asia where he was based in Taiwan. He has held senior editorial positions at Electronic News, EBN and Silicon Strategies. In Asia, he was a contributing writer for Byte Magazine. Most recently, he worked as the correspondent on semiconductors for EE Times.

The rapid growth in electric vehicles is creating an enormous demand for cobalt, causing high prices and supply chain issues for this critical material. Cobalt is a ferromagnetic metal and one of the key materials used in lithium-ion batteries for cell phones, notebook PCs, battery-electric cars and hybrids. It is also used in alloys and semiconductors. Although the IC industry consumes a tiny percentage of the world’s cobalt supply, that supply is dwindling. The big growth market for cobalt is the electric car business, which requires millions of tonnes of cobalt each year. Along the supply chain, metals are mined and processed into cobalt. Refined cobalt is sold to lithium-ion battery

Cobalt provides high energy density and thermal stability in a battery. Lithium-ion batteries are made up of an anode, cathode and other components. Graphite is used for the anode. In one example of the cathode, Tesla uses a nickel-cobalt-aluminium-oxide (NCA) chemistry. In simple terms, lithium ions move from the anode to the cathode and back, causing the battery to charge or discharge. All battery materials have an assortment of supply chain issues, but cobalt is arguably the biggest concern. For some time, cobalt supply has been tight and prices have skyrocketed as a growing number of carmakers are introducing and shipping the next wave of electric vehicles. China, for one, is making a major leap into the arena. Today, there is just enough cobalt produced to meet demand for electric cars, but it might be a different story in the future. “Generally speaking, there should be enough refined supply to meet demand over the next few years if capacity expansions continue, as expected,” claims Jack Bedder, an analyst at Roskill,1 a metals/minerals research firm. “After around 2022, we will need to see much more capacity expansion if supply is to meet demand.”

World Canada and other nations and “Most nickel nickel sulphide and laterite deposits do contain cobalt as a by-product,” he explains. Generally, copper and nickel mining are capitalintensive businesses. Mining these metals and then refining them into cobalt isn’t a new process, but it’s a complex one with various challenges.

EV Sales and Cobalt Demand Forecast

Cobalt Supply Issues

EV Sales

Undoubtedly, the automotive industry will require more cobalt to meet future demand, even if the amount of cobalt used in each battery is reduced.

“Electric vehicles are taking off. Today, we are on track for 100 million passenger vehicles by 2020. That number is growing at around 3%,” says Mike Rosa, director of strategy and technical marketing for Applied Materials. “Of that number, there will be maybe 5 million that will be electric. That’s growing at about 4.6%.” By 2025, the electric car market is expected to reach 25 million units, according to Frost & Sullivan. Other projections aren’t so optimistic, as Cobalt27 projects 15 million units by the same year. While original equipment manufacturers (OEMs) face an assortment of technical challenges, for demand planners the problem lies with raw materials. Cobalt itself resides in the Earth’s crust and ocean floor, but it isn’t mined in its pure form. “Cobalt is a by-product of both copper and nickel. Not every copper deposit contains cobalt and not every nickel deposit contains cobalt,” explained Robin Goad, President and Chief Executive of Canada’s Fortune Minerals, that is developing a cobalt-gold-bismuthcopper mining and refinery project in Canada. Goad clarifies that: “The primary by-product of copper production comes from a unique style of material deposits that are found in the east African copper belt. This goes up from Zambia through the Congo and up into Uganda.” Nickel deposits are found in Australia, Cuba,

16 14

EV Sales (million)

BEV

PHEV

8 6 4 2 0

2016

2017

2018

2019E 2020E 2021E 2022E 2023E 2024E 2025E

Cobalt demand per EV 80 Cobalt demand (thousands of tonnes)

In total, electric vehicles, including batteryelectric cars and hybrids, represent around 1% of the world’s cars sold today. However, China and others are driving the market. In fact, the electric vehicle market is projected to grow from 1.2 million units in 2017, to 1.6 million in 2018, to 2 million in 2019, according to Frost & Sullivan.

1. Roskill has been a leader in international metals and minerals research since starting life as one of the UK’s first management consultancies in 1930 and is famed for providing independent and unbiased reporting.

60 8

Cobalt demand

Cobalt per EV

20 2

10 0

2016

2017

2018

2019E 2020E 2021E 2022E 2023E 2024E 2025E

Cobalt content per EV (kg)

The problem is that around 67% of the world’s cobalt supply is mined in the Democratic Republic of the Congo (DRC), a politically unstable nation with questionable business practices. “Many end-users, namely car companies, will need a lot of cobalt, perhaps thousands of tonnes each year to make their products,” says Bedder. “Cobalt demand is increasing and there are concerns about the availability of future mine supply. There are real child labour issues in the DRC, and thus responsible end users want to procure ethically sourced material.”

Source: Cobalt 27, www.cobalt27.com/_ resources/presentations/ KBLT-corporatepresentation.pdf

15 million

electric vehicles by 2025

Approximately 12% of global car sales

68,000

tonnes of cobalt

renewablematter 25. 2018 The supply chain is also problematic. DRC is the world’s largest cobalt producer, and the DRC’s government recently increased royalties on mined products, including copper, cobalt and gold, from 2% to 3.5%. According to Roskill, the royalties on cobalt could hit 10%, although some mining companies are exempt from the royalties for the next 10 years. It’s unclear how this will impact pricing. Generally, cobalt prices have surged in conjunction with booming demand. According to Roskill prices hovered around $13 per pound between 2012 and 2016, only to then skyrocket to $32 per pound last year and rise still further to above $42 per pound in early 2018 (one pound is equal to 0.45kg editor’s note). The supply/demand picture is also a worrisome issue for battery producers. Today, several DRC-based cobalt mining projects are ramping up or have restarted, so as to meet demand. The two most notable examples are mines operated by Eurasian Resources Group and Katanga Mining. Glencore, the world’s largest cobalt mining company, has a major stake in Katanga. In 2017, the worldwide supply of refined cobalt production reached 114,700 tonnes, while demand was at 117,700 tonnes, according to Roskill. “The market is broadly in balance,” claims Roskill’s Bedder. “Again, we forecast that there will be sufficient levels of cobalt mine supply until around 2022, but thereafter we will need to see substantial increases.” Semiconductor Engeneering, semiengineering.com

Here’s another way of looking at the broader picture: In 2017, electric vehicles consumed about 9% of the world’s production of cobalt, 15.6% of lithium, 1.3% of nickel and less than 1% of manganese, according to the U.S. Department of Energy (DOE). The DOE projects that lithium-ion batteries “will dominate the total cobalt and lithium markets within a few years.” To meet cobalt demand, the mining industry is developing a number of new projects. In fact, there are roughly 185 cobalt mining projects on the drawing board. However, many projects are still in the development phase, and may not move into production anytime soon. “These are mines that could theoretically enter production. Most are at very early stages. Lots of projects are taking advantage of the recent hype around cobalt and EVs,” clarifies Roskill’s Bedder. “For now, it’s important to focus on the more developed projects, while keeping an eye on the various early-stage projects to see how they progress.” Meanwhile, once the metals are mined and processed, cobalt is refined. The materials are shipped to refining companies, many of which are in China. In fact, China controls

60% of the world’s cobalt refinery business. “You have complex supply chains. These are quite complex issues,” states Michèle Brülhart, director of innovations for the Responsible Business Alliance (RBA), a non-profit group that focuses on the global electronics supply chain. “The risks that are being reported on or raised in the materials supply chain are concentrated at the very end of the supply chain, mostly what we call the upstream. This is where the materials are extracted, where the first processing takes place, and where they are exported and find their way into the international value chain,” clarifies Brülhart. The RBA spearheads several programmes, including the Responsible Minerals Initiative (RMI), which addresses issues related to the responsible sourcing of minerals. To help navigate the supply chain and develop best practices, RMI recently released the Risk Readiness Assessment Platform (RRA), a self-assessment tool that addresses risk management practices across 31 issue areas. It also lists downstream and upstream companies involved in tin, tungsten, tantalum, gold and cobalt. Tantalum, tin, tungsten and gold are considered conflict minerals, which by definition are extracted in conflict zones. RMI also recently launched the Cobalt Reporting Template (CRT). “This is essentially a mapping tool. It allows companies to identify what we call choke points in the supply chain,” explains Brülhart. Battery Trends For electric vehicles, the largest lithium-ion battery makers include companies such as BYD, CATL, LG, Panasonic, Samsung, SK and Tesla. According to Fortune Minerals, there are a total of 41 lithium-ion battery mega-factories in production or under construction worldwide. Each plant requires tonnes of cobalt. For example, CATL is building a new facility that requires up to 23,000 tonnes of cobalt per year. Generally speaking, there are several types of lithium-ion batteries. For example, batteries that are based on a lithium-cobalt-oxide (LCO) cathode chemistry are used in cellular phones and notebooks. On the other hand, electric vehicle makers use different types of lithium-ion cathode technologies, namely nickel-manganese-cobalt-oxide (NMC) and nickel-cobalt-aluminium-oxide (NCA). Tesla is in the NCA camp, whereas others use NMC. The first round of NMC batteries contain equal concentrations of nickel, cobalt and manganese, which is referred to as NMC111.

World In an NMC111 cell, the cathode material represents 40% of the cost of the battery, according to Benchmark Mineral Intelligence, a consultancy firm. According to Goad, from Fortune Minerals, “There is an initiative to reduce the amount of cobalt contained in the batteries because of cost and supply chain concerns.” So NMC battery makers are now developing and shipping products with less cobalt. In these batteries, the nickel, cobalt and manganese content come in ratios of either 5:2:3 or 6:2:2. Most call it NMC532 (5 parts nickel, 3 parts manganese and 2 parts cobalt). Generally, this reduces the cobalt by 20%, but it also increases the nickel content. Nickel helps to boost the energy densities in batteries. This, in turn, impacts lithium-ion battery costs. “The cost is coming down because of the economies of scale. But more importantly, the batteries are delivering more power with less material. So you are getting more efficient batteries,” says Goad. The industry is taking this a step further. Now it’s developing batteries with a cathode chemistry ratio of 8:1:1. Due out in 2019, the 8:1:1 batteries reduce the cobalt content and the associated costs. However, the 8:1:1 batteries also face some challenges: as you move to a lower cobalt cell, the volatility increases and the probability of a flammable event is greater. “The energy density is superior with greater nickel concentrations. But you do so at the expense of safety and there are some charging issues. The performance is impacted with lower cobalt,” Goad said. “You cannot eliminate cobalt below 5% or the structure of the lithiumion battery breaks down. All of the major battery manufacturers will tell you that cobalt is going to be part of the chemistry of batteries at least for the next decade, if not two decades.” Even with a lower cobalt content in batteries, the market will still require about 240,000 tonnes of cobalt per year by 2025, according to Exane BNP Paribas. What Comes Next? Regardless, the battery still remains the stumbling block for electric vehicles. They lack enough range to satisfy many consumers, particularly outside of urban areas. This is the challenge being addressed by nextgeneration battery technologies. Some have little or no cobalt content, such as lithiummanganese-nickel-oxide (LMNO). Also in R&D we can find solid-state batteries. A battery consists of an anode, cathode, electrolytes and a separator. The electrolytes

For some time, cobalt supply has been tight and prices have skyrocketed as a growing number of carmakers are introducing and shipping the next wave of electric vehicles. China, for one, is making a major leap into the arena.

are liquids that transport the ions from the anode to the cathode through a separator. “The separator keeps the anode and cathode from touching each other. If they touch each other, there is a short,” Ionic Materials’ Terjesen explains. Solid-state batteries replace the liquid electrolyte and separator with a solid material. This technology “will compact the materials in the cell and increase the cell voltage, both leading to an increase in the energy density,” says Imec’s Vereecken. There are several ongoing initiatives in the solidstate battery arena. Ionics, for example, has developed a polymer material that replaces the liquid electrolyte in the battery. A battery maker would still require an anode and cathode, both based on various chemistries. Imec, meanwhile, is developing a solid nanocomposite electrolyte. These technologies are promising, but they are not expected to appear until 2025. Until then, the industry will continue to use traditional batteries and cobalt will continue to haunt the supply chain, at least for the foreseeable future.

renewablematter 25. 2018

Solaris Tobacco Crop, a New Hope to Power Africa´s Biofuel Jetliners

Two years ago, for the first time, a Boing 737 flew 1,300 kilometres – from Johannesburg to Cape Town – using biofuel derived from Solaris tobacco. Here are the South African projects aiming to use this crop, as well as agricultural waste and biomass derived from the removal of invasive plant species, for aviation biofuel production. by Ray Mwareya

Ray Mwareya is an international journalist. He covers the topics of immigration, renewable energy, climate change and public health. He is the winner of the UN Correspondents Association Media Prize, The UN Global Migration Fair Reporting Award and has been shortlisted for the EU Lorenzo Natali Media Prize.

Solaris is a humble crop, largely ignored by farmers across Africa because it contains none of the lucrative nicotine found in other tobacco varieties. Solaris is a non-GMO rop that is harvested yearly with high yields in seeds and biomass. However, in South Africa this largely ignored crop is making a giant leap from feeding livestock to powering a Boeing 737. Two years ago, in July 2016, a Boeing 737 jet operated by South African Airways and its lowcost subsidiary Mango airlines made the 1,300 km journey from Johannesburg, South Africa´s commercial capital, to Cape Town, its second largest city, running on Solaris crop biofuel. The first African passenger flight ever to be fuelled with sustainable aviation biofuel. The flight took place on the same day as Boeing International’s 100th anniversary celebrations. The flight carried 300 passengers on a Boeing 737800 using biofuel made by SkyNRG and Sunchem SA from the nicotine-free tobacco plant Solaris. The 737-800’s engines were powered by a fuel blend made up of 30% aviation biofuel. Observers have praised these developments in “socially responsible” flights. Solaris crop, the main biofuel ingredient, is cultivated by small scale rural farmers in South Africa. This tackles issues of food, health and poverty and creates jobs at a time when cigarette crop sales are decreasing due to global anti-smoking health guidelines. In fact, Boeing is now partnering with the World Wildlife Fund (WWF) in South Africa to increase investment and training for environmental solutions, decent jobs and creating long-lasting

value chains for rural farmers who are growing Solaris for jet biofuel projects. As far back as 2013, Boeing and South African Airways launched their sustainable aviation fuels collaboration. In 2014, Project Solaris became the first focus project to convert oil from the Solaris plant seed into biofuel for jets. In 2015, farms in Limpopo Province of South Africa (a dry climate province), from which the biofuel for flights was sourced, achieved certification from the Roundtable on Sustainable Biomaterials (RSB), one of the strongest sustainability standard setters in the world. RSB certification provides a model for expansion of Project Solaris to large scale production. By increasing production of Solaris and other feedstocks on unused land, the initiative bolsters South Africa’s objectives for public health, rural economies and food security for farmers. A consultation forum called the Southern Africa Sustainable Fuel Initiative (SASFI) has been put in place by the partners. Its mandate is to ensure a long-term domestic fuel supply for South African Airways and other regional fuel users with new biofuels coming on-board. If successful, farmers will be able to tap into local and global demand for certified feedstock without adverse impacts on food supply, fresh water or land use. Studies have shown that sustainably produced aviation biofuel generates 50% to 80% less carbon emissions throughout its lifecycle when compared to its fossil fuel equivalents. Airlines around the world have conducted more than 2,500 passenger flights using various forms of aviation

World biofuel since it was approved for commercial use in 2011. Apart from their Southern African endeavours, Boeing has active biofuel development projects in the United States, Middle East, Europe, China, Japan, Southeast Asia, Brazil and Australia. South Africa´s biggest budget airline, Mango airlines, is fully supportive of the initiative. Their recent CEO, Nico Bezuidenhout, says, “Over time, we have taken several measures to reduce fuel consumption and, as a positive consequence, the reduction of emissions through the installation of lighter seating and removal of excess aircraft weight […] It is a privilege to participate in the South African Airways biofuel programme and it represents the next step in the aviation sector’s active participation to not only reduce reliance on fossil fuels in the long term, but to actively seek solutions for ongoing environmental challenges while positively contributing to up and downstream social developments at the same time.”  Tjasa Bole-Rentel, Bioenergy Programmes Manager and an energy economics and policy specialist for the WWF, one of the groups involved in the biofuel push, adds that: “South Africa produces a large amount of agricultural waste, as well as waste from plantation forestry and waste biomass from alien vegetation clearing programmes,” adding that, “so far the effort is limited to the production of jet biofuel for one more flight.” If the technology works, production could be scaled up. 15% of the aviation fuel used

SWITCH Africa Green Programme, www.switchafricagreen. org/index.php?lang=en Fetola, https://fetola.co.za

at South Africa´s biggest airport could be sourced from biofuels. Furthermore, this trial has also highlighted another important aspect: creating biofuel in South Africa, and hence not importing fuel from overseas, is extremely important. “If there is no manufacturing here, the feedstock must be shipped out of the country and then returned after refining. This makes aviation biofuel expensive and pointless,” Bole-Rentel elaborates. Therefore, a local project is taking shape. The European Union through its SWITCH Africa Green Programme has made available $1.4 million dollars to boost agriculture and protect forests in South Africa by encouraging use of waste to make biofuels. “Waste to Wing” is the catchy name of the project. There is a local South African social venture called Fetola that is uniting with WWF and SkyNRG to build a clean jet fuel supply chain in South Africa. Fetola means “change” in South Africa’s native Sotho language. Over two dozen community owned businesses will collect and submit waste material needed to make the biofuel. There is also another alternative: using invasive plants that are blocking waterways and affecting farmland in South Africa. Such invasive plants can be harvested and dried to feed biofuel factories, claims Amanda Dinan, Fetola’s project manager. In this way, trash can help solve South Africa´s employment problem through, “harvesting, collection, pre-treatment and transport,” she continues. “The Waste to Wing project will focus on waste biomass,” including leftovers from food and livestock feed production, paper making and furniture production, explains Bole-Rentel. This is particularly interesting as agricultural waste in South Africa is normally burnt. However, the food supply chain must also be protected now that climate change is putting increased strain on food security. The Waste to Wing project ensures that food-producing land isn’t used to make fuel. “South Africa still has vast acres of invasive plants that can be cut down,” says Dinan. The jet biofuel project could be of tremendous help in fighting invasive plants. Sampson Mamphweli, Director of the Centre for Renewable and Sustainable Energy Studies at Stellenbosch University, also confirmed that South Africa has plenty of organic waste that can be put to use, “This project is worth pursuing. Whether they use organic waste, or they plant the biomass for energy doesn’t matter.” However, he also explains that there is a caveat: “The cost of the actual biomass material and transporting it is also a big factor.” Bole-Rentel says it is too early to judge South Africa’s aviation biofuel outcomes. “Our trial and research point out that there could be enough biomass to meet 100% of our aviation fuel needs in the future. However, right now normal jet fuel must continue to be blended with recycled biofuels.”

renewablematter 25. 2018

Fighting Cholera with Waste In Yemen waste is part of the urban fabric, resulting in over one million people being affected by cholera. However, the solution being proposed by a Yemeni engineer, namely installing small-scale biogas plants in homes, could reduce the problem and provide energy for households. by Irene Baños Ruiz

Young Champion of the Earth, web.unep.org/ youngchampions

Yemen is suffering from a devastating humanitarian crisis. In the midst of civil war, most people no longer have access to energy and organic waste piles up in the streets. This allows fatal diseases such as cholera to spread easily. Yemeni engineer Omer Badokhon, winner of the United Nations Young Champion of the Earth award, has come up with an idea to face these two challenges: turning organic waste into biogas. Since 2015, a bloody civil war has been ravaging Yemen, the Arab world’s poorest country. It isn’t only bombings that kill thousands of civilians, but also the lack of food and hygiene. Save the Children estimates that around 130 children die every day from extreme hunger and disease. Infectious diseases are spreading at an increasing rate, due to the disruption in public services caused by conflict. Garbage is now part of the urban setting and even open defecation is common, while water management and sanitation infrastructures are not operational. This has led to the largest cholera outbreak in modern history, with over one million people affected, according to the World Health Organization. Meanwhile, the country also suffers from more silent but also deadly misfortunes, such as household air pollution. More than three million people in Yemen still

cook over an open fire, constantly exposed to harmful smoke. Young Yemeni chemical engineer Omer Badokhon knows the situation first-hand and hopes to contribute to improving the lives of his compatriots: he wants to install smallscale biogas plants in individual homes to convert organic waste into energy and fertilizer. Although the project requires huge funding, he is one step closer thanks to the UN Young Champion of the Earth Prize, which awarded him $15,000 – enough to build 50 to 80 units of small-scale biogas plants. Badokhon explains that: “The small biogas plants will help solve two major problems Yemen faces: inadequate organic waste management, and shortage of energy supply.” The project will help reduce waste found on

Despite the country’s situation, Badokhon has obtained promising results with the first prototypes. “It shows we are going in the right direction,” he celebrates. The raw materials he needs to build the small plants – fiberglass or plastic – are readily available and he plans to build them in Southeast Yemen, within the Governorate of Hadhramaut, a relatively safe area. “The main challenge is still funding,” a home biogas plant can cost up to $300 and

Badokhon aims to provide them free of charge to families, “but I hope to solve that by next year,” he says optimistically. Badokhon’s solution could help reduce the current waste and health problems in Yemen, as well as provide people with clean and affordable energy. However, Badokhon stresses the importance of a proper waste management system to avoid similar scenarios in the future. “To solve such problems we must start thinking in a sustainable way from the very beginning.” Unfortunately, for now, the only circular system in Yemen is that of terror and destruction.

the street, which poses health problems and emits methane. It will also provide households with a sustainable source of energy, both for lighting and clean cooking fuel. Right now, Yemen produces only 750 megawatts of electricity, but has a potential capacity of about 1,300 megawatts. The waste produced in the fermentation process can be used as organic liquid fertilizer.

renewablematter 25. 2018

Startup

Name: Sector: Pros: Characteristics:

IoT and Intelligent Waste Collection with Nordsense Nordsense New technologies and platforms Smart waste-management system based on the IoT A sensor, installed in dumpsters and bins and connected to an online platform, provides optimised collection paths for garbage collectors, reducing the number of vehicles on the road and the amount of overflowing dumpsters

by Antonella Ilaria Totaro

www.nordsense.com

Founded in Copenhagen in 2015, and already active in the USA, Nordsense is a start-up that offers a simple and complete solution that optimises refusecollection processes by monitoring waste levels in every dumpster through the Internet of Things. Thanks to advanced data analysis, Nordsense creates instructions for garbage collectors to optimise travel paths and efficient waste collection. Founded by Søren Christensen and Manuel Maestrini, Nordsense is thus able to reduce the number of vehicles on roads, as well as their fuel consumption, whilst avoiding overflowing dumpsters that constitute a health risk. A sensor, called NS Pod, is installed on every dumpster, and this measures the amount of waste while also collecting other data, for example on the type of waste. Thanks to their technological value and small size – the largest being smaller than a smartphone and weighing 310 grams – NS Pods can be used in any dumpster or bin, regardless of shape, size or the type of waste it is used for. The device, which requires less than a minute to be installed, comes with a battery that lasts for 7 to 10 years, depending on use and model. Once the sensor has been installed, any device can connect to the platform in real time and monitor which bins need to be emptied, thus creating optimised collection paths so that collectors only go to dumpsters and bins that are full. In this way garbage collectors receive daily plans when they log in to their smartphones or tablets, and instructions are updated, with navigation prompts available in several languages. The use of the system doesn’t require a large initial expense, as the service is offered on the basis of a monthly subscription. The only commitment required is to try out Nordsense for at least twelve months.

Startup

Name: Sector: Pros:

Chakr, Capturing Pollution to Make Ink Chakr Innovation New technologies and materials A retrofitted device that captures polluting particles emitted by diesel generators at the source

Characteristics:

The patented ‘Chakr Shields’ technology captures smoke emitted by generators and converts it into a substance that can be used for ink and paints

by Antonella Ilaria Totaro

Capturing emissions at the source is essential if air quality in Indian cities is to improve. Currently, pollution levels in urban centres in India are among the highest in the world. As a consequence of this, Chakr Innovation, founded in Delhi, has created the first technology capable of capturing emissions from diesel electricity generators; then using the derived product to make POINK (a portmanteau of pollution and ink).

https://chakr.in

The hardware technology that is applied to the generators, which is called Chakr Shields (chakr is the Indian word for circle), employs a solvent to “block” 90% of the polluting particles emitted from the exhausts of diesel generators. This patented technology collects, transforms and converts smoke

into a substance that can be used for ink and paints, all without causing damage to the engine. Chakr Shields have been deployed across 60 different sites in the Delhi, Chennai, Bangalore and Hosur regions, and are used by manufacturing companies, residential complexes, teaching institutions, oil companies and many more that unfortunately are still dependent on diesel generators. POINK is used, for example, to print information on packaging. But this is not its only function. “With the creation of POINK, we have been able to make the problem of air pollution real and tangible for more people. When ‘polluted air’ can be seen and touched, people’s curiosity fosters an important debate about air quality.

renewablematter 25. 2018

Startup

Name:

Subscription Clothing with Le Tote Le Tote

Sector:

Circular Business Model

Pros:

Subscription service for women’s clothing

Characteristics:

Allows customers to rent women’s clothes and accessories, which, following payment of a monthly fee, are delivered to their doorstep to be kept for a limited amount of time, before being returned and used by other subscribers

by Antonella Ilaria Totaro

www.letote.com

Le Tote, one of the first “Netflix for fashion” businesses, was created in 2012 by Brett Northart and Rakesh Tondon. Today, it is one of the foremost women’s online fashion services, which, instead of offering garments for purchase, gives its users access to a customisable wardrobe that can be rented on a temporary basis. Monthly subscription rates start at 69 dollars (79 for the maternity range) and customers can choose how many outfits and accessories to rent, and for how long. After subscribing and choosing outfits online, these are delivered for free to the required address. Sending clothes back after use is also cost-free. The Le Tote algorithm, by collecting data on previously saved or chosen clothes, as well as sizes and style choices, creates a profile for every subscriber and the website’s search engine is able to offer ever more customised styles. Subscriptions can be temporarily suspended, or even cancelled, at any time without further costs as long as all rented clothes are returned within five days of the conclusion of one’s membership. If customers wish to buy some of the clothes they have rented, this can be done with discounts of up to 50% on retail price. There is also an option to purchase insurance that covers damage such as stains or missing buttons. Customers need not even worry about washing the clothes: Le Tote suggests that users let the company itself perform this task, having developed an efficient process that uses biodegradable detergents, 43% less electricity, 11% less gas and 50% less water compared to washing at home. Having gained popularity across the entire United States, Le Tote has recently been launched in China. The company has grown by over 300% in the past two years, and received over 60 million dollars from investors. The Le Tote business model, which popularises collaborative and shared consumption practices in the clothing sector, is an attempt to counter fast fashion. It is also an answer to the fact that, on average, an item of clothing is worn 36% less times than it would have been 15 years ago.

Startup

Aeropowder: Insulating Materials Made From Feathers

Name:

Aeropowder

Sector:

New materials

Pros:

Thermally insulating material for packaging and construction, made from poultry-industry waste

Characteristics:

Making use of keratin, a protein present in chicken feathers, Aeropowder creates a biodegradable substance with high insulation performance

by Antonella Ilaria Totaro

www.aeropowder.com

Aeropowder, winner of several prizes including the Green Alley Award, is a start-up based in London that transforms feathers, a waste material derived from the poultry industry, into a new biodegradable material that can be used as insulation in packaging. The company’s founders, Elena Dieckmann and Ryan Robinson, with backgrounds in industrial design and engineering (Dieckmann) and biological sciences (Robinson), have spent years

researching for the creation and continuing improvement of Aeropowder, a substance whose base component is keratin, a chemically resistant protein found in chickens’ plumage. The feathers, which are usually incinerated or made into low-quality animal feed, are actually high-performing thermal insulators thanks to their molecular structure, in addition to being one of the lightest natural fibres. Founded in 2016, the start-up has put its first product on the market: Plummo, compostable packaging made up of waste plumage (95%) and bio-binders (5%), formed from an organic polymer. The feathers, transformed into an insulating fabric, are covered with a compostable lining ready to be used as food packaging. Plummo is intended to be a packaging solution for perishable foods, that might replace the polystyrene currently used to package deliveries and online purchases of foodstuffs. “Even though the materials are produced in Denmark,” Elena Dieckmann explains, “requests come to us from all over Europe, not only from consumers but also from poultry producers who have a surplus of waste plumage. The production of meat from poultry generates an enormous amount of waste, which in the UK alone amounts to 2,000 tonnes of waste feathers a week.” Another sector where Aeropowder sees significant opportunities for the use of its products is construction, because the feathers, thanks to their thermally insulating properties, could be used as substitutes for polyurethane, a chemical substance that is neither renewable nor biodegradable.

renewablematter 25. 2018

Columns Circular by Law

Single-use Plastics and the Automotive Industry: Upcoming Commitments for the EU Francesco Petrucci in collaboration with the Magazine “Rifiuti – Bollettino di informazioni normativa” and Observatory for environmental norms on www.reteambiente.it

In order to keep the global increase in temperature under 2° C, swift, decisive and wide-ranging actions will have to be taken. This is the conclusion reached by the United Nation’s Intergovernmental Panel on Climate Change (IPCC). A report presented on October 8th 2018, offered a useful contribution to the 24th session of the Conference of Parties (COP 24) of the United Nations Framework Convention on Climate Change, which was held this year in Katowice, Poland, between December 3rd and 14th. Following the report from the UN experts, on October 9th the European Council requested decisive action aimed at realising the Paris Accords, and was joined in this by the European Parliament on October 25th, demonstrating the important role of the European Union in motivating legislative and political decisions regarding the fight against climate change. Furthermore, the European Commission approved an update to the Strategy for Bioeconomy, which stipulates 14 concrete actions to be initiated in 2019 in order to combat climate change and ecosystem degradation. According to the Commission, a sustainable bioeconomy is necessary to bring about a carbon-neutral future. The directives on renewable energy and energy efficiency, that were definitively approved by the European Parliament on November 13th, will undoubtedly lend a helping hand to the fight against climate change. The next steps in this regard will be the approval of the European Council and publication in the Official Journal of the EU. The texts set out a binding objective of 32% for renewable energies by 2030, and an optional one of 32,5% for energy efficiency by 2030. In terms of energy, significant progress was achieved with the publication of the new international “Energy Management Systems” norm (ISO 50001:2018), which in 2021 will substitute the previous ISO from 2011, following a three-year transitional period. Meanwhile, there has been rapid progress in the approval of the directive on the reduction of single-use plastics. After the measure was approved by the EU Parliament on October 24th 2018 and by the EU Council on October 31st,

a dialogue began between the various parties with the aim to create a commonly agreed-upon text for a law that is destined to bring profound changes to the production of plastics across the continent. The automotive world is also heading for a series of changes that will impact the entire production process. On October 3rd, the European Parliament approved a proposal to regulate the reduction of the CO2 emissions of light vehicles such as cars and vans, stipulating strict limits (a 35% emissions reduction for cars). The European Council voted on the same legislative proposal on October 9th, though with less severe limits. Now discussions will begin in the hope of finding common ground. Subsequently, on November 14th, the European Parliament approved a proposal for regulation concerning CO2 emission limits for heavy vehicles (aiming for 35% by 2030) with an obligation for manufacturers to introduce a percentage of zero-emission vehicles into the market. As in the previous cases, the EU Council and Parliament will begin a dialogue aimed at reaching a commonly agreed-upon legislative text. In matters of licensing, an important development is the update of the criteria for the EU Ecolabel certificate for lubricants (European Commission Decision no. 2018/1702/ Ue, November 8th, 2018). The new standards that must be met for the Ecolabel certificate will be valid until 2024 and will help introduce products that have less impact on water resources and reduced quantities of hazardous substances into the market. Existing Ecolabel criteria for paper, mattresses, hygiene products and cosmetics have been extended. In conclusion, some news regarding companies that produce and trade in chemical substances. Regulation no. 2018/1513/Ue, which came into effect on November 1st 2018, has limited the use of substances such as cadmium, lead and benzopyrene in clothing, textiles and footwear. Regulation no. 2018/1480/Ue has instead established new harmonised rules for the classification, packaging and labelling of 35 hazardous substances, starting from May 1st 2020. Finally, “decaBDE” (decabromodiphenyl ether) will be banned as a substance from March 2nd 2019, whereas it has been established that its use during production of other substances or products will have to cease by March 2nd, 2027.