Circular Economy NL-BR by lluken

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CIRCULAR ECONOMY NETHERLANDS - BRAZIL NL BR

The BRopportunities for collaboration NL and trade between the Netherlands and Brazil in the field of Circular Economy

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Circular Economy Netherlands - Brazil

The opportunities for collaboration and trade between the Netherlands and Brazil in the field of Circular Economy

Author: Lodewijk Luken Supervision: Maarten Rusch

Rio de Janeiro, February 2018

CIRCULAR ECONOMY NL-BR

SUMMARY OF FINDINGS The current linear economy of ‘take-make-dispose’ has put pressure on the environment. Raw materials are extracted and waste is generated. The concept of Circular Economy (CE) has come up as an alternative for the current system. It refers to a system in which resource input and waste are minimised through maintenance, repair, reuse, remanufacturing, refurbishing and recycling.

between the Netherlands an Brazil is found yet, but on the long term they might arise, considering the global concerns and the potential of the CE approach in this sector. 4. Built environment and construction. No interest in the implementation of the CE concept has been identified.

In the Netherlands, a growing environmental awareness and the believe in this CE concept has led to many innovations, projects and start-up companies. Also the Dutch government embraced the concept and came up with the plan ‘A Circular Economy in the Netherlands by 2050’. From an economic perspective, research institute TNO has estimated that implementation has a huge potential positive impact on the Dutch economy of 7,3 billion euros and 54.000 jobs.

Three steps In general, the main difference between CE in Brazil and the Netherlands is the level of organization and collaboration to make the transition to a circular economy. Furthermore, a stimulating government (by implementing enabling policies for example) and awareness about the CE concept still lack in Brazil. Also research and knowledge development is still required. For this reason, the focus of the Netherlands in Brazil is not only on direct export of CE expertise. A three step strategy consists of:

I. CE NETHERLANDS - BRAZIL All expertise that is being acquired in this area is identified as an opportunity for export. Therefore, the Dutch governmental network in Brazil has started various initiatives, such as the publication of the book ‘Economia Circular Holanda Brasil’ and the organization of several missions and events.

1: CE AWARENESS RAISING INFORMATION 2: CE KNOWLEDGE DEVELOPMENT INNOVATION

A more focused approach started in September 2017. The research question was:

3: CE BUSINESS AND POLICIES IMPLEMENTATION

What are the opportunities for the export of Dutch Circular Economy expertise to Brazilian industries and what steps have to be taken to enable this? Focus Certain sectors were selected to map the current state of CE, the involved actors and the opportunities to implement Dutch CE solutions. Based on the five focus areas for CE in the Netherlands (biomass and food, plastics, manufacturing, construction and consumer goods) four sectors were chosen. These are prioritized in the following order: 1. Textile and clothing. A large number of small, innovating start-up companies aims for implementation of the CE concept in the industry. But what makes this sector mostly interesting, is the presence of several bigger companies (fashion brands) that have real ambitions to implement the CE concept in their businesses. 2. Electronics. Several Brazilian e-waste recycling companies have shown interested in the broader Dutch CE approach, which is more than only recycling. However, for real implementation of these models (product to service for example), the involvement of manufacturing partners is important. 3. Plastics. No starting point for CE collaboration or trade

Activities Related to this strategy, the following activities are undertaken: •

Circular Economy profiling and promotion:

Presenting the Dutch CE approach to industries, participate in missions and events, visit companies. •

Living lab Circular Economy:

The Living Lab Circular Economy is a way to establish contact between the Netherlands and Brazil and to bridge the gap between research and the industry. On the long term, this could lead to trade between the Netherlands and Brazil, since partnerships and collaborations are developed during the process. The first focus is the clothing industry, with involvement of specialized design and business universities from the Netherlands and Brazil. Student mobilization will start in September 2018.

4 •

CIRCULAR ECONOMY NL-BR CIRCO Circular Economy workshop:

In the three-day workshop ‘Creating business through circular design’ (focused on the manufacturing industry), CIRCO helps companies to identify opportunities for circular business and design. At the same time, FIRJAN trainers are educated as future teachers of the workshop. The workshop will be organized in August 2018.

•

Apply new focus: - different sector (electronics, plastic or other) - focus on a certain CE (business) model

•

Continue identifying opportunities for potential CE solutions, also outside the focus

•

Create conditions: policy making, social inclusion, knowledge development

Next steps •

Textile and clothing: Connect with Dutch CE partners

ROADMAP CIRCULAR ECONOMOMY ROADMAP CIRCULAR ECONOMY NETHERLANDSNETHERLANDS - BRAZIL AC T I ON S AN D AC T IVITIES

T H RE E STE P STR ATE G Y 1

- BRAZIL

AWARENESS RAISING OF CE INFORMATION

social inclusion

CREATE CONDITIONS 2

CE KNOWLEDGE DEVELOPMENT INNOVATION

CE BUSINESS AND POLICIES IMPLEMENTATION

OLYMPICS

CE MISSION TO NL

Business event: a seminar about CE, followed by round tables about specific CE topics

Innovation mission about CE with the Brazilian core stakeholders: FIRJAN and FIEMG

stimulate rules and regulation

support knowledge development (CE Nucleus)

CIRCO TRAINING

CIRCO HUB BRAZIL

‘Creating business through circular design’ with FIRJAN and associated companies

to coordinate, stimulate and identify the necessary system changes and the development of Circular Economy strategies

LIVING LAB CIRCULAR ECONOMY Applied research in the field of CE, in a collaboration between Dutch and Brazilian universities, working with real cases from the industries. Activities: student exchanges, internships, joint applied research, knowledge sharing.

BOOK PUBLICATION ‘Economia Circular NL - BR’

universities

governments

companies network organizations

CE BUSINESS NL-BR 2016

2017

SEC T OR O R THE M E SPE CIFI C C O N CR E TIZ ATIO N*

TEXTILE (CONSUMER GOODS)

2018

2019

BUILD NETWORK

DEVELOP CE SOLUTIONS

CE BUSINESS IN TEXTILE

Mapping the Brazilian textile industry and identification of the relevant stakeholders (innovators, established companies, governments)

Collaboration with the Dutch network organizations Circle Economy and Modint + associated companies on mature CE solutions (business models, technologies)

Dutch-Brazilian solutions are applied in the textile industry, such as: - a commercialized defibration technology

ELECTRONICS (MANUFACTURING)

FROM E-WASTE TO CE

Start with the willing: find the right moment in time to accelerate

DEVELOP CE SOLUTIONS

CE BUSINESS

PLASTICS CONSTRUCTION

*it must be noted that in a Circular Economy a strict sector-approach does not serve, since new connections and sectoral crossovers are an essential part of a Circular Economy

II. CE IN THE CLOTHING INDUSTRY What are the opportunities for the export of Dutch Circular Economy expertise to the Brazilian clothing industry? Considering the focus on the clothing industry, a more in-depth analysis to the current state of CE in this sector is made. As a basis, six main themes to make the transition to a circular clothing system are defined, based on reports by Ellen MacArthur Foundation (2017) and Modint (2016). From here, Brazilian and Dutch CE-related projects are mapped and catagorized per theme. Also, the maturity

and (potential) impact on the chain of the projects are indicated. The following trends are identified: • •

There is a great diversity of CE initiatives in both countries. Some focus on product design, others on new business models or recycling options. Maturity vs. impact: Most projects that have a small (potential) impact on improvement of the chain are often in research/plan/pilot phase. Example: chemical recycling (SaXcell). Projects that have small influence on the chain are often more matured. Example: reuse of old shirts to make boxershorts (Van Hulley).

CIRCULAR ECONOMY NL-BR

A CIRCULAR CLOTHING SYSTEM fibre, yarn and fabric production

clothing production

retail

raw material

waste-to-textile

5 3

4 landfill or incineration

1: NEW PRODUCTS AND MATERIALS

2: THE PRODUCTION PROCESS

1A: Make the fabrics and clothes suitable for recycling 1B: Avoid microplastic release of the clothing 1C: Substitute raw material with alternatives, such as biodegradable materials or plastic waste

2A: Reduce or recycle water 2B: Phase out pollutants 2C: Run on renewable energy 2D: Reduce solid waste generation (cut-offs etc.)

3: CLOTHING UTILIZATION 3A: New business models (product to service, lease models) 3B: More durable clothing

5: RECYCLING OPTIONS 5A: Fabric recycling 5B: Yarn recycling 5C: Fibre recycling (mechanical recycling) 5D: Polymer recycling (chemical recycling) 5E: Monomer recycling 5F: Align clothing design and recycling processes â&#x20AC;˘

â&#x20AC;˘

In both the Netherlands and Brazil, there is great willingness in the sector to make the chain circular. Brazil is, however, behind on governmental and institutional level. In both countries, also bigger fashion brands are starting their own initiatives in post-consumer collection and collections made of recycled products.

4: COLLECTION AND SORTING 4A: Collection 4B: Seperate fabrics from buttons, zippers etc. 4C: Sorting by fibre type

6: ENABLING TOOLS 6A: Information and evidence base 6B: Chain approach: alignment industry players, collaboration 6C: Policy 6D: Transparency

Real business opportunities for Dutch companies in Brazil are not identified. From the potential supply side (the Netherlands), it must be noted that many innovations, such as the recycling technologies, are not sufficiently matured yet for export. From the demand side (Brazil), certain problems in the industries, such as excessive waste generation in the production process and govermental

CIRCULAR ECONOMY NL-BR

pressure to reduce waste, request any kind of solution. An example of this was found in the Nova Friburgo lingerie confection industry. Dutch CE innovators have to be made aware of these opportunities. Living Lab Circular Economy - clothing Where no mature CE models and technologies are available, it is an option to collaborate on the development of such a CE solution. The Living Lab is a tool to get the Dutch and Brazilian side in contact with each other, potentially leading to collaboration and trade on the long term. In this Living Lab, BR and NL universities with different expertises and research agendas are involved: both design and business. The next step is to connect these acadamic partners to the industries. Companies (fashion brands) have to be requested to formulate specific research questions to generate content in the LLCE for the students to work on. This report, with the six themes of innovation in the transition to a circular chain, could help the involved partners to formulate specific research questions that connect to a certain theme.

III. CASE: NOVA FRIBURGO INDUSTRY By focusing on clothing and getting to know the sector, the following challenge in the Nova Friburgo lingerie confection industry could be identified. Problem and opportunities for CE innovation In the production process, on average 10-20 percent of the fabric is lost as cut-offs. Currently, waste processing companies collect these cut-offs to discard them to landfills. Considering (1) the pressure from the Nova Friburgo municipality, (2) the interest of the confection industry to cut on the costs of discarding their residues and (3) the environmental concerns, the right conditions appear to be in place to push innovation and develop circular strategies. Apart from the implementation of recycling options, two other opportunities for CE innovation were identified (see scheme below). The role of the Netherlands could be either providing a ready to implement solution or to develop a solution in collaboration with the industry (Living Lab).

NOVA FRIBURGO LINGERIE CONFECTION` 3

material

stock

fabric cutting

defibration?

confection

final product

FROM CHALLENGE

80-90%

10-20% cut-offs

landfill

TO NEW BUSINESS THROUGH CIRCULAR DESIGN

1. Cut-off waste from production Around 20% of the imported fabrics is wasted as cutoffs, which pollutes the environment (landfills) and costs money for the companies to discard.

Recycling options In collaboration with the right partners the defibration technology can be developed in the Living Lab to circulate this part of the chain. Waste is then turned into a valuable product.

2. Unused material stocks Unused stocks of fabrics, yarns, buttons and laces are stocked in all Nova Friburgo production facilities, not valued as resource.

Trading platform Making the information on stocks available for everyone, supply and demand can be matched. Unused materials are revalued.

3. Use of material blends Currently, lingerie is made of a material blend with materials that are part of the technical cycle, complicating the recycling process.

Substitute material for recyclable input By anticipating on recycling, different choices can be made regarding the used matierial. For example, material blends could be avoided, or biobased material could be used.

CIRCULAR ECONOMY NL-BR

PREFACE This report was written during my internship at the Dutch Consulate in Rio de Janeiro (CG Rio), where my task was to map the potential of applying (Dutch) Circular Economy practices in Brazil. The Dutch expertise in Circular Economy is seen by the government as an export product to generate value for the Dutch economy. The Dutch network in Brazil is one of the first to map opportunities for applying this expertise in Brazil, through the organization of several missions and events since 2016 and the publication of a book in Portuguese about Circular Economy in the Netherlands and Brazil in 2017. In September 2017 I was hired as an intern to follow up on these initiative. Since then, I have been working fulltime on the topic. The objective was to give the CE initiative a more specific direction and to set up more concrete projects, aiming to trigger business activity of Dutch companies in Brazil on the long term.

ABBREVIATIONS CE CG EMF LLCE R&D

Circular Economy Consulate-General Ellen MacArthur Foundation Living Lab Circular Economy Research & Development

CIRCULAR ECONOMY NL-BR

CONTENT SUMMARY OF FINDINGS

PREFACE

ABBREVIATIONS

PART I - A STRATEGY

1. INTRODUCTION

2. ANALYSIS

3. A THREE STEP STRATEGY

4. ACTIVITIES

5. CONCLUSIONS

6. RECOMMENDATIONS AND NEXT STEPS

PART II - THE CLOTHING INDUSTRY

1. INTRODUCTION

2. ANALYSIS: THE GLOBAL CLOTHING INDUSTRY

3. ANALYSIS: CE IN THE NETHERLANDS AND BRAZIL

4. CASE STUDY: LINGERIE CONFECTION IN NOVA FRIBURGO

5: CONCLUSIONS ON CE IN CLOTHING INDUSTRY

6. NEXT STEPS IN CLOTHING INDUSTRY

REFERENCES

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PART NL I - A STRATEGY BR

ABR strategy towards Dutch-Brazilian NL collaboration in the field of Circular Economy and a first exploration of the sectors electronics and urban planning

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PART I: A STRATEGY

1. INTRODUCTION 1.1 CIRCULAR ECONOMY: DUTCH BRAZILIAN COLLABORATION The concept of Circular Economy refers to a regenatives system in which resource input and waste are minimised through maintenance, repair, reuse, remanufacturing, refurbishing and recycling. In the field of Circular Economy, the Ellen MacArthur Foundation (EMF) is a non-profit organization that builds a framework to accelerate the transition to a Circular Economy (Ellen MacArthur Foundation, 2012). In one of the first EMF reports, ‘Towards the Circular Economy’ (2012), the current ‘linear’ economy is rejected and a future circular economy is envisioned. A distinction is made between a biological cycle and a technical cycle. Biological nutrients (like food and beverages) are irreversably altered during their useful life and can’t be reused in the same way, but they do re-enter the biosphere safely and rebuild natural capital. Technical nutrients circulate without entering the biosphere (McDonough & Braungart, 2010). Therefore, manufacturers have to retain ownership of their products, selling the performance instead of the consumption. The concept of Circular Economy is based on natural principles (Ellen MacArthur Foundation, 2012): • • • • •

design out waste build resilience through diversity shift to renewable energy sources think in systems think in cascades

What distinguishes the idea of a Circular Economy from many other sustainability approaches is the emphasis on the economic opportunities it has for economies,

companies and consumers. Employment possibilities will emerge (mainly in the service sector, as a result the need for leasing and reverse logistics models). Elimating waste from the industrial chain results in lower production costs and less resource dependency (Ellen MacArthur Foundation, 2012). 1.1.1 Circular Economy in the Netherlands The growing desire for a more sustainable society has led to the emergence of many CE initiatives and projects by early adopters of the CE concept. Company ‘Closing the Loop’ started collecting scrap phones to recover the materials, resulting in social, economic and environmental benefits. The architects of Superuse Studios in Rotterdam developed the online platform ‘Harvestmap’, to facilitate the reuse of waste materials (for construction). Also city residents started small scale neighborhood initiatives, like organic waste collection for composting. From there, first local governments embraced the concept of Circular Economy (developing ‘circular city’ ambitions) before the Dutch government published the plan ‘A circular economy in the Netherlands by 2050’ (The Ministry of Infrastructure and the Environment, 2016). This was supported by a report by TNO (2013), which identifies the opportunities for a Circular Economy in the Netherlands. The impact on the Dutch economy was estimated to be 7,3 billion euros and 54.000 jobs. The plan prioritizes the following five chains and sectors: • • • • •

biomass and food plastics manufacturing construction consumer goods

In January 2018 the five ‘transition agendas’ were presented. 1.1.2 Circular Economy in Brazil In Brazil, the concept of Circular Economy is not widespread yet, despite of some smaller projects and initiatives in some sectors. Policy making or any other kind of governmental support to make the transition is absent. However, EMF became active in 2015, when the Circular Economy 100 programme was launched in Brazil (Ellen MacArthur Foundation, 2015). A network was set up with several companies (and some other organizations) that undertake initiatives in the field of CE. Among them are the Dutch subsidiaries of Philips Lighting and Unilever.

Figure 1.1: The circular economy, an industrial system that is restorative by design (Ellen MacArthur Foundation, 2012)

Simultaneously, there are also several projects and initiatives initiatied by Brazilian stakeholders themselves, which can be related to Circular Economy. The muncipality of Rio de Janeiro has made plans for a ‘resilient city’ (Rio Prefeitura - Resiliente, 2016), the idea of ‘smart cities’

PART I: A STRATEGY

is spreading and the ‘fourth industrial revolution’ often touches upon the same topics as the CE concept. For example, the industry federation CNI published a report specifically about Circular Economy in the context of the ‘industry 4.0’ (CNI, 2017).

The aim of this research is to develop a strategy on how to export Dutch CE expertise to Brazil, contributing to the transition from a linear to a circular economy. Furthermore, involved stakeholders are identified and current and future steps and activities are defined.

1.1.3 Collaboration NL-BR

In the following chapters, the following research questions will be answered:

In the same period that EMF started to focus on Brazil, the Dutch consulate-general became active by organizing events, missions and other activities to stimulate collaboration, knowledge exchange and trade between the Netherlands and Brazil in the field of Circular Economy. The Dutch governmental network in Brazil is one of the first that has chosen Circular Economy as a focus and as an opportunity for export product of Dutch companies. The general objective of CG Rio for Circular Economy is to stimulate trade between the Netherlands and Brazil in the field of Circular Economy. Since CE is a new, innovative concept, missions, events and other activities were organized to familiarize Brazilian stakeholders with Circular Economy. During the 2016 Olympic Games an event with Dutch speakers was organized in Rio de Janeiro, with presentations and discussions. In 2017 a Portuguese-written book about CE was published and a delegation of industry federation FIRJAN went on a mission to the Netherlands to study real examples of CE in practice (Luz, 2017). Over these years, FIRJAN has become the main partner in all Circular Economy efforts by CG Rio. After these more general, reconnaissance missions, the next step is to do a more in dept research in a certain area to be able to identify business opportunities in this area. Understanding the industry and getting to know the network of stakeholders contribute to this identification and business between the Netherlands and Brazil on the longer term. This research report is the result of this more focused approach.

1.2 RESEARCH OBJECTIVE The general objective for Circular Economy of the Dutch consulate in Rio de Janeiro is as follows: Identifying business opportunities in Brazil for Dutch companies in the field of Circular Economy and to make Brazilian subsidiaries of Dutch companies more aware about and active with the CE-concept, for which they might need other Dutch companies to help them do this.

What are the opportunities for the export of Dutch Circular Economy expertise to Brazilian industries and what steps have to be taken to enable this? • • •

What is the current state of CE implementation in Brazil? What stakeholders are currently involved in the transition to a Circular Economy in Brazil and what are their roles? In what areas and sectors do stakeholders show most interest in CE innovation?

1.3 SCOPE The starting point is the Dutch expertise and the five focus areas from the plan ‘Netherlands Circular in 2050’. However, ‘biomass and food’ was disregarded in this stage, considering that this area is already covered by the Living Lab Biobased in Belo Horizonte (Minas Gerais). ‘Manufacturing’ and ‘Consumer goods’ are two aggregations of several different sectors and products. For both areas, one more specific chain was chosen to focus on, based on the Brazilian interest in CE for the specific products. For ‘manufacturting the focus is on electronics and for ‘consumer goods’ on clothing. The textile and clothing industry has become the major focus. This is on one hand based on the amount of small scale CE related projects in the Brazilian textile and clothing industry and interest of some medium/large sized fashion brands. On the other hand there is much knowledge and expertise being built up about CE in textiles in the Netherlands It must be noted that such a ‘sector-approach’ is only a starting point. In a Circular Economy many new connections are made, including sectoral crossovers. Examples are the exchange of raw materials of residues between different industries. Geographically, the scope is entire Brazil, but considering the accessibility to information and available network, the focus is on the state of Rio de Janeiro.

PART I: A STRATEGY

2. ANALYSIS In this chapter, overviews (per sector) are provided of the actors and their roles that are involved in the transition from a linear to a circular economy in Brazil.

2.1 CE STAKEHOLDERS What stakeholders are currently involved in the transition to a Circular Economy in Brazil and what are their roles? In this chapter, an overview is provided of the stakeholders that are involved in Circular Economy in Brazil. This is done for (1) Circular Economy related stakeholders in general, (2) textile and clothing, (3) built environment and construction, (4) plastics and (5) the electronics industry. It must be noted that these overviews are works-in-progress and not necessarily complete. A complete, more elaborate stakeholder analysis of the clothing industry is presented in part II of this report. A power-interest grid will part of this analysis, based on Bryson (2004). Considering the incompleteness of the stakeholder analyses as presented in this chapter, a power-interest grid will not be provided here. To be able to still indicate the importance of involvement of a certain stakeholders, scores from 1 to 3 are assigned to all stakeholders.

2.1.1 General CE Stakeholders The overview below consists mainly of network organizations and research institutes that have a general interest in Circular Economy without a specific focus on a certain sector, product or business model.

A distinction is made between four kinds of stakeholders: • • • •

network organizations and governments companies - innovators companies - CE efforts universities and research institutes

Three different kinds of companies are defined, to distinguish: 1. small scale start-ups (often built upon one single CE idea or innovation) 2. mature businesses that try to implement the CE approach in their business Table 1.1: Scores of 1 to 3, assessing the importance of involvement of the stakeholders Importance 1

keep informed (minimum effort)

keep involved

crucial actor

Companies that are included are mostly designers and consultants that can not be catagorized in the four focus sectors. The only university that is included is USP, because this EMF pioneer university has a general focus on CE, independant from faculties or specific research programs.

Table 1.2: General CE stakeholders in Brazil Stakeholder

Role

Importance

Network organizations and governments Ellen Macarthurfoundation

Big international network; established the CE100 network in Brazil; aim is to create momentum around a certain theme or sector and involve all relevant stakeholders

FIRJAN

Industry federation with nearly all companies from all sectors in it’s network; able to spread messages

PART I: A STRATEGY

Stakeholder

Role

Importance

Casa FIRJAN

Department of FIRJAN, focused on creative industries and innovation. Able to facilitate events and activities

SENAI

Research institute, associated with FIRJAN. In general, research is demand driven (by the industry), but also research to (sustainable) innovation without direct commercial benefits is part of the work

SEBRAE

Supports small enterprises (98% of all Brazilian companies) in sustainable innovation

FINEP

Public organization that (financially) supports public and private organizations for social and economic development of Brazil

CEPID/FAPERJ

Foundation that supports research (financial)

NUFFIC NESO

Dutch higher education promoter, with a department in SĂŁo Paulo; able to connect with universities and facilitate mobilization of professors and students

BNDES

Finance and development bank: long term financing for the sustainable development of the Brazilian econonomy

Municipality Rio de Janeiro

The previous administration made the plan Rio Resiliente, with sustainability ambitions that touch upon the idea of Circular Economy. The new administration is not active at all, but is an important actor with its legislative power.

Museu do AmanhĂŁ

Museum that organizes events and expositions, envisioning the future of the planet. Sustainability (and CE) are important themes

Empresa B

Worldwide network that certifies companies, based on social and environmental sustainability; promoting sustainability (big Brazilian network)1

Triciclos

Sustainability consultant; emerging from solutions to waste issues, the company now envisions a broader approach (CE related)

Materia Brasil

Consultancy and design company; collaborates with partners on innovation and sustainability, often related to CE principles

Zebu

Designers, inspired by nature; development of new products and services to solve human problems

Exchange4Change Brazil

Independent consultant; awareness creation and network building

Instituto E

Innovation projects in sustainable human development

BVRio

Promoting the use of market mechanisms to enhance green economy development in Brazil; reverse logistics

Courreiros

Urban logistics company: delivery of products by bycicle

Philips Lighting

Brazilian subisidiary of Dutch company; product to service model

Randstad

Brazilian subisidiary of Dutch company, the future labour market in a Circular Economy

Companies - innovators

Stakeholder

PART I: A STRATEGY

Role

Importance

USP

Pioneering university of the Ellen Macarthurfoundation, strong focus on Circular Economy

PUC

Private university; CE related research, from (product) design perspective

UFRJ

No specific research program/focus on CE, but recognized as topic of interest

Parque Tecnológico

Related to UFRJ, including industry-related research

FGV

Private university; specialized in economics and law. Interest in CE.

Knowledge institutes

2.1.2 Textile and Clothing Thanks to the pressure from society, governments and environmental protection agencies, many brands are taking more and more responsibility to improve the clothing system. In the Netherlands, for example, bigger brands like C&A, Zeeman, G-star en HEMA have started various initiatives. These range from post-consumer clothing, production of collections partially made of recycled yarns and using more sustainable inputs (like organic cotton). In Brazil, the brands are generally less active in this area, but often have an interest in the CE approach.

Lojas Renner and Farm (and the Brazilian subsidiary of C&A) have already started working with the CE concept, focusing on fibre recycling and post-consumer collection systems for example. The majority of the identified actors, however, are designers and small start-up companies that have little impact. The main observation is that in the textile and clothing industry there is, generally speaking, awareness about the environmental impact of the sector and willingness to implement CE solutions. Also in the bigger companies (brands). This makes the textile and clothing industry a possible market for CE solutions.

Table 1.3: CE related stakeholders in Textile and Clothing Stakeholder

Role

Importance

Network organizations and governments International Apparel Federation

Platform for the international clothing industry. Exchange of market info, technological developments, innovation, etc.

C&A Foundation

Globally active, with departments in both NL and BR. Bring together brands, initiatives, etc. that want to create a fair and sustainable fashion industry. Strong focus on CE.

Ellen MacArthur Foundation

Published report ‘The new textiles economy’, to create a solid evidence base for CE in textiles, create momentum

FIRJAN - moda

Department within FIRJAN, focused on textiles and clothing, with dependance located in Nova Friburgo. Aware of developments in the (local) industries.

SENAI CETIQT

National research institute, demand driven by the industry. Located in Rio de Janeiro, but focus on whole Brazil. Focus on Industry 4.0. Setting up a fablab currently.

SENAI moda

Research institute, subdivision of FIRJAN, focused on the state Rio de Janeiro and the industries there.

PART I: A STRATEGY

Stakeholder

Role

Importance

Casa TEAR

Spreading the best sustainability practices, developed by companies that strive for a better, more ethical world

Abest

Brazilian association for fashion designers

Malha

Incubator for innovators in fashion design. Partnership with C&A Foundation Brazil. Start-ups: Acorda, Holyfancy, Jupe, The lilled small town, Lumilab, Zรณia, Ripa, Thnk Blue, Movin, Matter

Banco de Tecidos

Business fully based on the platform that was developed to facilitate the exchange of fabric excess

Renovar

Company specialized in mechanical defibration

Retalhar

Business based on social and environmental sustainability: recycling of uniforms and other products

Ecotece

Collaborates with various partners (Banco de Tecidos, Flavia Aranha, Retalhar, etc.) to develop new products of sustainable (biodegradable) materials and waste

Insecta shoes

Makes shoes, made of residues from plastic and textiles

AHLMA

Branch of Reserva, selling unique clothes, made of residues from production

Flavia Aranha

Fashion brand, projects in slow fashion, natural painting,

ByZahira

Brand of beach fashion and acessoires, partially made of biodegradable material

Lojas Renner

Brand with strong efforts to develop more sustainable clothing, using sustainable raw material in 130 pieces of its collection, such as yarns from recycled material.

Reserva

Brand with some sustainability efforts

Companies - innovators

Companies - CE efforts

Universities and knowledge institutes PUC Rio

(Fashion) design faculty of private university

IED

International private design institute

PART I: A STRATEGY

2.1.3 Built Environment and Construction This group is an aggregation of several kinds of actors that work in relation to the built environment: material producers and constructors, but also contracters, project developers, architects and urban planners are grouped in this category. Construction: So far, no interest in Circular Economy is identified in this subgroup. Companies that work close to the actual construction of buildings, such as concrete producers or builders, have no economic incentive to innovate. Furthermore, some actors blaim policy making and legislation for the conservative character of the sector. Legislation does not allow cycling of debris for new construction materials, for example. The only sustainabilty efforts that are visible are the aim for green building certifications, such as LEED and BREEAM. Consultancy

firm Casa do Futuro is driven by this demand and advises project developers how to get certified. Urban (re)development: in Rio de Janeiro, the previous municipality developed the ‘Rio Resilient’ plan, which created the right conditions for CE projects in the built environment (Rio Prefeitura - Resiliente, 2016). However, the new muncipality has not continued these plans and no money is available to invest. It must be noted though, at the same time, several actors are in place that aim for a more sustainable (circular) city. FINEP has ongoing calls related to ‘Smart cities’, the C40 network is active and Rio is part of the ‘Circular Cities Network’ of Ellen Macarthurfoundation. But as long as real investments and a willing local government lack, CE projects will not be realized and turning Rio de Janeiro in a ‘Circular city’ is still far away.

Table 1.4: CE related stakeholders in Built Evironment and Construction Stakeholder

Role

Importance

Network organizations and governments FIRJAN - Construção Civil

FIRJAN department, specialized in the construction industry (material producers and suppliers, contractors, constructors)

C40

Rio de Janeiro is part of the international C40 network, which is focused on tackling climate change

CDURP

Public organization (municipality), responsible for the redevelopment of Rio de Janeiro’s harbor area

Green Building Council

Network organization aiming for a more sustainable construction sector. No direct CE focus, more on certification (LEED)

Architecture office, led by Pedro Rivera, which has a strong innovative character

New Inc

Project developer of compounds, with a focus on sustainability

Casa do Futuro

Consultant in construction industry; demand driven by project developers that want their buildings LEED certified for example

TC Urbes

Urbanism office; focus on mobility and social sustainability, interest in ‘Circular City’ idea

Precon Engenharia

Construction company with some sustainability goals (residues)

Ssiacon

Construction company only starting with sustainability efforts

UFF

Faculty of Architecture and Urbanism has a focus on social housing and informal uban settlements (possible LLCE partner)

UFRJ

Faculty of Architecture and Urbanism

Companies - innovators RUA Arquitetos Companies - CE efforts

Universities

PART I: A STRATEGY

2.1.4 Plastics

sustainable packaging is a promising future market.

Plastics form a global environmental problem and have become one of the main focus areas improvement. Reduce the consumption, design reusable or recyclable packaging and replace plastics with other (biodegradable) materials are examples of solutions that all contribute to improve the system and reduce the environmental impact.

So far, only a few of these initiatives have been identified. CBPAK replaces plastic with casave to make coffee cups, Meu Ecocopo makes reusable cups and Clever Caps designed bottle caps that have a second life as toys.

Considering this movement and the fact that the Brazilian packaging market is the fifth-largest in the world,

The overview of stakeholders is incomplete and further investigation of the sector is required to identify opportunities for CE collaboration between the Netherlands and Brazil.

Table 1.5: CE related stakeholders in Plastics, Biobased and Green Chemistry Stakeholder

Role

Importance

Network organizations and governments ABIPLAST

Association of the Brazilian plastic industry; supports and incentivates innovation, new technologieis and sustainability

EMBRAPA

Public research institute in mainly agriculture, involved in development of biodegradable plastics for example.

SENAI Green Chemistry

Department of research institute SENAI, focused on chemistry. Mainly demand driven by the industry, but open for collaboration with universities to work on innovation

CBPAK

Biodegradable cups from cassave

Meu Ecocopo

Reusable plastic cups (for festivals and events for example)

Clever Caps

Plastic bottle caps with a second life as a toy (Lego)

Okena

Industrial wastewater treatment, strong commitment to be part of a Circular Economy

Unilever

Brazilian subisidiary of Dutch company; focus on packaging

Polymer Science and Technology (possible LLCE partner)

Companies - innovators

Companies - CE efforts

Universities UFRJ

2.1.5 Electronics

Recicladora Urbana which mainly focuses on laptops.

Caused by the fact that the value of recoverable materials (metals) is high, recycling of electronics is a matured industry. Potentially, this forms the basis for a (broader) CE approach in the electronics industry.

Especially Natgenius and Recicladora Urbana have shown interest in Dutch CE expertise, such as new CE business models. Contact with Dutch foundation Wecycle was established, which is responsible for the coordination of e-waste recycling in the Netherlands (driven by EU legislation. Dutch companies that have real knowledge about the recycling processes are Renewi (previously named Van Ganzewinkel), HKS metals and SIMS recycling.

Three main recyclers are identified in Brazil. Natgenius is the waste recycling branch of Embraco, focused on fridges. Embraco is a Brazilian multinational with around 10.000 employees, which produces compressors for fridges. Abrin is another recycling company that is specialized in material recovery from old televisions.

PART I: A STRATEGY

Table 1.6: CE related stakeholders in Electronics Stakeholder

Role

Importance

Network organizations and governments Ministry of Science, Technology, innovation and communication

Stimulating e-waste recycling

Embraco - Natgenius

E-waste recycling: focused on fridges

ArcelorMittal

Reprocessing of metals (from e-waste) into new products

Abrin

E-waste recycling of mainly old televisions

Recicladora Urbana

E-waste recycling, focused on laptops, desktops, etc.

Polymer Science and Technology (possible LLCE partner)

Companies - CE efforts

Universities UFRJ

2.2 CE IN BRAZIL What is the current state of CE implementation in Brazil? The transition from a linear to a circular economy is a huge paradigm shift for Brazil. Not only for companies, that are used to a ‘take-make-dispose’ economy, but also public policies and knowledge institutes have to adapt. A complicating factor is the economic crisis that hit the country. This makes the companies less likely to adopt CE approaches that might benefit them only on the long term. Illustrative is that even a bigger organization and solid CE partner, FIRJAN, had to cut budgets and put some CE follow-up activities on hold. 2.2.1 Who is involved? Two main stakeholder groups can be distinguished that showed most initiatives towards CE transition: Bottom-up: plenty designers, architects and entrepreneurs come up with all different kinds of ideas that are often based on CE principles. Biodebradable paint, coffee cups from the cassave root and clothing from plastic waste are only few examples of these initiatives. In the CE stakeholder overview, these were grouped in the catagory ‘companies - innovators’. The number of these initiative reveals that also in Brazil a movement has started of (often young) ‘sustainability fighters’ that work with CE ideas. Geels (2002) developed a framework, the ‘multi-level

perspective’, describing technological transitions and the interrelations between three levels: niche (micro), regime (meso) and landscape (macro). The described bottom-up CE innovations in Brazil on micro level rarely make it to meso or macro level in this stage of the transition. Top-down: organizations (from abroad) are recognizing the size of the Brazilian market and the potential for CE approaches. Ellen Macarthurfoundation, for example, started its initiatives in 2015 and published a CE exploration for Brazil two years later (Ellen Macarthurfoundation, 2017b). Furthermore, industry related Brazilian institutes like FIRJAN, FINEP and SEBRAE stimulate and finance projects, research and start-ups in CE-related themes. For a successful transition to a circular economy, all actor groups have to be involved: governments (policy makers), businesses, knowledge institutes (universities) and enabling organizations (network organizations and NGOs). In the current situation, mainly the government and bigger businesses are lacking. 2.2.2 Brazilian informal economy The informal Brazilian economy should be seen as a strength in the CE transition. These practices (the collection of cans for example) are often based on the reuse, repair, remanufacture or recycle market. Human labour, which is crucial in a circular economy, is the element that drives this informal economy.

PART I: A STRATEGY

3. A THREE STEP STRATEGY Considering the infancy of the Circular Economy concept in Brazil, a focus on only direct trade opportunities with the Netherlands would not be effective. Spreading awareness and information about the concept as well as knowledge development is still required. In a round table discussion with FIRJAN in June 2016, Dutch Circular Economy expert Douwe Jan Joustra emphasized that businesses and governmental institutions still need to learn and understand the concept of CE better and make the step to implementation in business models. An activity that fits well with this idea is the organization of the training ‘Creating business through circular design’, oranized by Dutch transition advisor CIRCO (see next chapter). In general, the following three steps are needed to make the transition from a linear to a circular economy in Brazil: 1. CE awareness raising: information 2. CE knowledge development: innovation 3. CE business and policies: implementation In the next chapter, previous and future activities are described that contribute to this three step strategy. It is important to note that no fixed order exists; most probably the activities will intermingle.

1: CE AWARENESS RAISING INFORMATION

Further diffusion of the CE concept is required in Brazil. Little awareness about CE exists and the concept is often confused with recycling. Therefore, the involvement of network organizations is important. FIRJAN, for example, is a big organization that has thousands of companies in its network. Involvement of this kind of organizations could contribute greatly to raise more CE awareness.

2: CE KNOWLEDGE DEVELOPMENT INNOVATION

Considering the novelty of CE in Brazil, knowledge still has to be continuously developed for a successful implementation in the industries. The establishment of a CE Nucleus at a university in Brazil can become a framework to enhance research. USP in São Paulo is one of the pioneering universities of Ellen Macarthurfoundation and is already taking steps to contribute with CE research. Multidisciplinary education programs, like ‘Industrial Ecology’ at Delft University of Technology, develop general knowledge from several perspectives (governmental, societal, business). Integration of the CE concept in more specialized education programs, such as engineering studies or bussiness related studies, is also possible. In all areas and from all perspective, knowledge development is required.

3: CE BUSINESS AND POLICIES IMPLEMENTATION

In Brazil, both in the industries and on governmental level the implementation of the CE concept is not far developed. In the private sector, companies have to rethink their own practices and consider, for example, new product and service desing, business models, reverse logistics, etc. In the public sector has the ability to accelerate CE implementation by changing rules and regulations and by developing stimulating policies, such as take-back legislation or taxation. The first two steps, information and innovation, could contribute greatly to this step (by providing a solid evidence base for example).

PART I: A STRATEGY

4. ACTIVITIES In this chapter, an overview is provided of the current and planned activities in Brazil that fit in the strategy that was presented in the previous chapter.

fabric production facility was familiarized with the CE concept and how it’s applied in the textile and clothing industry. The main challenge of the facility is the use of pollutants in the colouring process, but no (Dutch) CE solutions were connected to this issue yet. Werner showed interest in future collaboration on research (in the Living Lab for example) and implementation.

4.1 CIRCULAR ECONOMY PROFILING AND PROMOTION •

Participation networking event + company visits: São Paulo. Encontro B is a yearly networking event in Latin America, which took place in São Paulo in 2017. Companies that are ‘Empresa B certified’ are invited to share ideas and discuss several topics around the theme of social and environmental sustainability. Considering the participation of companies from the chosen focus sectors for CE in the event, the opportunity was taken to expand the network of CG Rio and to familiarize them with the Dutch CE approach: - Textile and clothing: Retalhar, Renovar (company visit), Banco de Tecidos (company visit), Ecotece (company visit) - Built environment: TC Urbes (company visit), Abissal, Casa do Futuro, Ssiacon - Electronics: Recicladora Urbana

•

Participation networking event: Brasília. Ellen Macarthurfoundation organized a two day event with lectures and workshops for all CE100 companies in the network, for all different kinds of companies. The opportunity was taken to expand the network and meet all relevant CE companies in Brazil.

Changing from a linear to a Circular Economy is a huge paradigm shift. Often, the difference between recycling and CE is hardly understood by most stakeholders (knowledge institutions, policy makers and companies). To enable the transition to a Circular Economy, the concept has to be seen as a business opportunity and a much broader approach. Also, the Circular Economy concept is often understood as a waste solution. It must be understood by the industry that CE is broader, including the complete design of material cycles, the preference for dematerialization and new business models. Materials are incorporated into the economy in such a way that they can be cycled at continuous high value. During missions and events in 2016 and 2017 some important Brazilian stakeholders are already familiarized with CE and are activated to take action, such as Rio’s industry federation FIRJAN. Furthermore there is a continuous dialogue about CE in a small network of stakeholders, including all Ellen Macarthurfoundation associated companies (the so called ‘early adopters’). Diffusion of CE in the industries can only be achieved if more specific actions are undertaken, in close collaboration with the companies. Awareness of these companies about CE can be raised in events, seminars, meetings and visits, emphasizing on the business opportunities that may arise from taking a CE approach. In the second half of 2017, awareness raising about CE has taken place in a more focused way, on the sectors textile and fashion, construction and built environment and electronics. The following activitities were undertaken: •

•

Company visits + CE presentation: lingerie confection industry in Nova Friburgo. The goal of the visit to this cluster of lingerie production was twofold: identifying the challenges in the production process and familiarize the companies with the Dutch CE approach. During the seven company visits, three challenges were identified and connected to opportunities for CE implementation. In the presentation for the local council and associated companies, several examples of Dutch CE projects in the clothing industry were given. Company visit: Werner Tecidos. During the visit, this

4.2 LIVING LAB CIRCULAR ECONOMY

After the successful establishment of the Living Lab Biobased in Belo Horizonte (Minas Gerais state), a second Living Lab in Rio de Janeiro will be dedicated to Circular Economy (LLCE). The aim is knowledge development and innovation, and to improve the education of students disciplines related to the development of a Circular Economy. For such a Living Lab it is crucial to involve a wide range of partners, apart from universities from both countries. Companies are able to bring in knowledge and challenge from the industries and network organisations are able to connect and bridge the gaps between the involved stakeholders (between the industry and the universities for example). The set up of the Living Lab is coordinated by the Dutch education promotor NUFFIC NESO. This first collaboration of Dutch and Brazilian stakeholders

PART I: A STRATEGY

around the theme of CE in the Living Lab ideally leads to a structural relationship and possible collaboration and trade between companies from both countries. The activities of the LLCE consist of: • • • •

Student exchange for education and research intership Educational Projects Joint Applied Research Networking and knowledge sharing

Timeline By April 2018, all partners from both Dutch an Brazilian side have to be on board in order to get started with the Living Lab in September. In this fall semester of 2018, the mobilty of the first Dutch students to Brazil will start. In a later stage, also Brazilian students will be mobilized.

4.3 TRAIN THE TRAINERS: ‘CREATING BUSINESS THROUGH CIRCULAR DESIGN’

Focus Based on this report on opportunities for CE collaboration between the Netherlands an Brazil, textile and clothing will be the first focus sector of the Living Lab. The appropriate partners are currently getting involved: on one hand the universtities with research programs in (fashion) design and fashion business, on the other hand partners from the industry that are able to bring in cases from the industry (such as the Nova Friburgo case, as described in part II). The following sectors and topics are defined: Textile and clothing: • new products and materials • the production process • new business models (and rethinking clothing utilization) • collection and sorting of post-consumer waste • recycling options Electronics: • new business models (utilization and product to service) • reverse logistics It must be noted that this is a preliminary focus that is subject to changes, depending on the research agenda of certain involved university for example. Also the work by the Dutch network and other CE devolopments in Brazil might cause adjustments in the LLCE focus.

CIRCO is a Dutch project, funded by the Dutch government, to stimulate the transition to a circular economy. In the three-day workshop ‘Creating business through circular design’ (focused on the manufacturing industry), CIRCO helps companies to identify opportunities for circular business and design. Subsequently, these are ideated, ranging from smaller adjustments that can be realized on the short term to completely new concepts. Thirdly, realization of the new services, products and business model is subject of the course: commercial viability, possible consequences of implementation, etc. Considering the plan ‘Netherlands circular in 2050’ and the identified opportunities to export the Dutch knowledge to other countries, CIRCO wants to explore the possibilty of establishment of CIRCO hub abroad. Brazil is chosen as the first country to start piloting. The course will be organized in August 2018. Eight companies from the manufacturing industry will be invited. Also, eight FIRJAN trainers will participate in the course, with the intention to educate them giving the course as well and start diffusion of this way of CE thinking in Brazil (‘train the trainers’).

ROADMAP CIRCULAR ECONOMY NETHERLANDS - BRAZIL AC TION S AN D AC TIV I TI E S

T H R E E S T E P STR AT E G Y 1

AWARENESS RAISING OF CE INFORMATION CREATE CONDITIONS

CE KNOWLEDGE DEVELOPMENT INNOVATION

CE BUSINESS AND POLICIES IMPLEMENTATION

OLYMPICS

CE MISSION TO NL

Business event: a seminar about CE, followed by round tables about specific CE topics

Innovation mission about CE with the Brazilian core stakeholders: FIRJAN and FIEMG BOOK PUBLICATION ‘Economia Circular NL - BR’

2016

2017

SE CT O R O R T H E ME SPE CI F I C C O N C RE T I Z A T I ON*

TEXTILE (CONSUMER GOODS)

2018

BUILD NETWORK Mapping the Brazilian textile industry and identification of the relevant stakeholders (innovators, established companies, governments) ELECTRONICS (MANUFACTURING)

Start with the willing: find the right moment in time to accelerate

*it must be noted that in a Circular Economy a strict sector-approach does not serve, since new connections and sectoral crossovers are an essential part of a Circular Economy

social inclusion

stimulate rules and regulation

support knowledge development (CE Nucleus)

CIRCO TRAINING

CIRCO HUB BRAZIL

‘Creating business through circular design’ with FIRJAN and associated companies

to coordinate, stimulate and identify the necessary system changes and the development of Circular Economy strategies

universities

governments

companies network organizations

CE BUSINESS NL-BR 2019

DEVELOP CE SOLUTIONS

CE BUSINESS IN TEXTILE

Collaboration with the Dutch network organizations Circle Economy and Modint + associated companies on mature CE solutions (business models, technologies)

Dutch-Brazilian solutions are applied in the textile industry, such as: - a commercialized defibration technology

FROM E-WASTE TO CE

DEVELOP CE SOLUTIONS

PLASTICS CONSTRUCTION

CE BUSINESS

PART I: A STRATEGY

5. CONCLUSIONS What are the opportunities for the export of Dutch Circular Economy expertise to Brazilian industries and what steps have to be taken to enable this? Sectors and CE potential The four sectors that were studied (either superficial or profound) differ in complexity and interest for CE approaches. The four sectors should be prioritized in the following order: 1. Textile and clothing. Like in many sectors, network organizations (top-down) and small, innovative startups (bottom-ups) are aware of the CE concept and aim for implementation. But what makes the textile and clothing sector different from other sectors in Brazil, is the presence of several medium and big companies (fashion brands) that have real ambitions to implement the CE concept in their businesses. Examples of such companies are C&A, Lojas Renner and Farm. Furthermore, the international movement to make the clothing industry more socially and environmentally sustainable contributes to a greater ‘willingness’ in this sector to innovate. Part II of this report is, therefore, fully dedicated to this sector, mapping all Dutch and Brazilian projects and stakeholders. A real demand or the import of Dutch CE expertise and technologies was found in the lingerie confection industry in Nova Friburgo (Rio de Janeiro state). 2. Electronics. Several Brazilian companies are identified that focus on the recycling of a certain type of e-waste: linha branca (fridges, washing machines), linha verde (laptops, phones) and linha marron (televisions, projectors). These companies are not the producers, and therefore completely focused on recycling. In the Netherlands, producers of electronics have developed more complete CE approaches, such as the product to service model. Philips, Bosch and Bundles are examples of companies that have this expertise. The Brazilian e-waste recyclers have showed interest in this model, but have no real incentive to implement these models. The involvement of manufacturing partners is inevitable for this. This issue is already addressed to the companies Recicladora Urbana and Natgenius, but follow-ups and further amplification is required. Considering that

Natgenius is a branch of Embraco, a multinational producer of compressor for fridges, this is a possible entry for implementation of a full CE approach. 3. Plastics. So far, no starting point for CE collaboration or trade between the Netherlands an Brazil is found. Apart from smaller scale initiatives, the CE (related) efforts of bigger network organizations like ABIPLAST are not identified yet. 4. Built environment and construction. Investments and a stimulating and coordinating government lack, but several (international) network organization have Rio de Janeiro on the radar for sustainable (and circular) urban (re)development. In the construction industry, no more efforts than complying with sustainability certification is expected. Despite of the focus on these four sectors, opportunities in other sectors should not be excluded from investigation. The missing link One of the main differences in the CE transition between the Netherlands and Brazil, is the presence of a acceleration agencies in Brazil. In the Netherlands, for example, Circle Economy has set up programs such as the Circular Textiles Program and the Circle Cities program to set up specific CE projects and involve the right stakeholders; a crucial actor in the transition to a circular economy. Apart from the lacking interest from the bigger companies, this is the missing link in CE innovation in Brazil. Similar acceleration agencies do not exist in Brazil, but are crucial, independent actors that have the ability to coordinate system changes, identify opportunities and initiate the right CE projects. The Ellen MacArthur Foundation is active in Brazil, but its manpower (two local employees) is unsufficient and EMF does not consider the coordination of specific CE projects as its task. Furthermore it is unsure whether a foreign organization (like EMF) would be a successful coordinator in a network of just Brazilian partners. Whether this ‘Dutch approach’ of chain organization would fit well in the Brazilian culture is also doubtful. Network organization do exist, but an independent agency that has the real ability to accelerate CE transition and set up collaborative projects are not part of the Brazilian reality.

PART I: A STRATEGY

6. RECOMMENDATIONS AND NEXT STEPS Apart from the mentioned activities that have been initiated, new activities have to be initiated to stimulate CE trade between the Netherlands and Brazil.

6.1 TEXTILE AND CLOTHING: CONNECT WITH DUTCH CE PARTNERS

The focus on textile and clothing has led to the identification of stakeholders, CE projects, challenges in the chain and opportunities (part II of this report). However, the Dutch actors around the theme of CE in textile and clothing have low awareness about the Brazilian efforts and opportunities in the market.

investigating CE opportunities. E-waste recycling is a mature industry in Brazil, that is interested in the Dutch expertise. Dutch technical expertise of recyclers could be an opportunity for export, but also (1) the CE concepts as product to service and change of ownership are interesting if not only recyclers but also manufacturers and retailers get involved. And (2) the way the e-waste sector is organized in the Netherlands by foundation Wecycle is an opportunity for export of Dutch expertise. The opportunities for the plastics industry are still very unclear, but considering the momentum that is created (with the global awareness about ocean plastic, EMFs report, etc.) the opportunities for CE collaboration in this sector should be discovered more.

Organize seminar or bootcamp

From sector focus to CE approach focus

By organizing an event in Brazil, driven by a Dutch network organization like Fashion for Good or Circle Economy, this connection between the Dutch and Brazilian side can be established. The Brazilian partners in the network that are CE aware should be invited, as well as companies that have shown little interest in the CE concept so far. C&A foundation is a good partner to involve, considering its link with both the Netherlands and Brazil.

In this report, it was chosen to focus on specific sectors, with the aim to concretize more and to identify the Circular Economy opportunities in the sector. However, from the concept of CE several new approaches have been developed, which can be applied to any sector. Examples are:

Living Lab Circular Economy

• • • •

from product to service design for disassambly new business models reverse logistics

Another way to connect Brazilian and Dutch partners, is to let them collaborate on industry challenges and/or innovation. The specific topics can be identified based on the interest and agenda of the participating actors.

Dutch organizations like Turntoo spread and apply the product to service model for example. Well-known is the example of lighting in collaboration with Philips, but it has also been applied for washing machines, fridges and even buildings.

6.2 APPLY FOCUS

Promoting this expertise and familiarize Brazilian parties with the model, could lead to business opportunities for Dutch companies.

Applying a focus on specific areas and sectors and getting to know the specific networks, industries and important stakeholders, enables the Dutch network to push CE innovation forward in these specific areas or to act quickly if an opportunity for Dutch CE export emerges.

Develop systematic trade map

Next sector focus: electronics and plastics It was concluded that for Built environment and Construction there is currenlty no basis to continue

Developing a systematic trade map, including a market analysis. This can be done either for specific sectors or for typical CE approaches such as product to service, reverse logistics and (product) design. Understanding both the Dutch and Brazilian market and documenting it in a structured way, could help to identifiy where the two markets could complement each other and trade could take place.

PART I: A STRATEGY

6.3 IDENTIFY OPPORTUNITIES

6.4 CREATE CONDITIONS

Apart from focusing on specific areas or sectors, anticipating and reacting on opportunities in other areas is important.

In Brazil, many conditions are not in place yet to really make the transition to a circular economy. The Dutch network has to, continuously, contribute to:

Connect Dutch CE solutions to interested innovating Brazilian industries and individual companies As concluded, in the Brazilian textile and clothing industry there is an intrinsic, real motivation to apply the CE concept, even if it does not lead to financial benefits on the short term. Therefore, in this sector there are opportunities to come in with Dutch CE solutions that are not available in Brazil. Organization of mission/event in Brazil (with Circle Economy and/or Fashion for Good) to present the Dutch CE solutions to the Brazilian partners??????? In other industries, on a smaller scale, ‘early movers’ in specific Brazilian sectors can be connected to the right Dutch partners to start collaboration and trade. Connect CE solutions to industry problems and urgencies Considering the Brazilian economic situation, it is unlikely that other sectors that textile and clothing will demand for CE solutions. Also, there are no policies in place (yet) that stimulate CE implementation. For this reason, finding a challenge in a (focus) sector or theme and connect it to a certain CE solution, could lead to a business opportunity if a Dutch company has the expertise. Another option, if the solution is not yet available, is to bring the challenge to the Living Lab Circular Economy. Also, a very specific, concrete and tangible case has the potential to attract attention on a wider audience, including the public and colleagues within the Dutch governmental network.

Knowledge development and diffusion: Dutch Circular Economy expert Douwe Jan Joustra (C&A foundation and former independent CE consultant) stretched the importance of a so called ‘CE Nucleus’ at universities, since a lot of knowledge about CE still has to be developed. Beatriz Luz, independent consultant from Exchange4Change Brazil, is currently setting up such a nucleus (named ‘NEC’) and a network of Brazilian ‘multiplicators’. The activities consist of organizing events, webinars and the publication of a new CE book in Brazil. Multiple Dutch CE experts will contribute to the book, including Guido Braam (The Valley) and Douwe Jan Joustra. The Dutch consulate is currently not involved in any of these activities. However, NEC contributes to spreading of the CE concept and knowledge development, which possibly leads to increased interest in Dutch CE expertise. Social inclusion: Currently, society is unsufficiently aware of the Circular Economy concept. Improving the terms of participation through enhancing opportunities is an important condition for diffusion of the CE implementation. Policy making: Often, rules and regulation work block CE implementation, for example for the reuse of materials in new products or buildings. New policy making (and taxation) is required to enable the transition. The Dutch network can insist on enabling policies, by addressing these issues. In the Netherlands, for example, the law that gas network operators are obligated to connect all houses to the gas network is currently being changed, in order to enable the transition to electrified heating and cooking appliances.

PART II - THE CLOTHING INDUSTRY Mapping the opportunities for Circular Economy practices in the Brazilian clothing industry, linked to the Dutch expertise

PART II: THE CLOTHING INDUSTRY

1. INTRODUCTION 1.1 THE CLOTHING INDUSTRY AND CIRCULAR ECONOMY In the past decade, the concerns about the social and environmental impact of the textile and clothing industry have grown. The working conditions (in mainly Asian countries) are often bad and the environment suffers from the pollutants that are used in the production processes. Environmental protection agencies and governments are putting pressure on companies to become more social and environmental sustainable. In November 2017 the Ellen MacArthur Foundation published the report ‘A New Textiles Economy’, identifiying the major issues in the industry and presenting four ambtions for a future clothing system (focused on the environmental side of the problem, not so much on the social aspects to it). The aim to close the loop forms the basis, with attention to new materials, improved clothing utilization, post-consumer collection and sorting and recycling options (Ellen MacArthur Foundation, 2017c).

1.2 RESEARCH OBJECTIVE This EMF report and the growing conciousness have led to the initiation of many Circular Economy related projects and businesses that aim for a better clothing industry. The goal of this research about Circular Economy in the clothing industry is to find the opportunities for the Netherlands and Brazil to collaborate. This can be information and knowledge sharing and development, but ideally leads to real business opportunities for Dutch businesses to sell their CE solutions to Brazilian companies.

•

How can challenges from the industry be linked to opportunities for a CE approach?

1.3 SCOPE Considering that 80 percent of the textile fibres are destined for the clothing industry (Modint, 2016), the scope of this research is narrowed to this industry. This excludes other types of products such as carpets, curtains, geotextiles and tents. The geographically, the focus is on the Netherlands and Brazil.

1.4 METHODOLOGY The basis of this report are the current and the future (envisioned) clothing system. Firstly, findings about the environmental impact and economic implications of the current clothing system are the baseline. Secondly, a future, circular clothing system is defined, including the related challenges to make this transition. Two different visions were compared to sketch out this future clothing system and its challenges. A SWOT analysis is made for the clothing industry in both countries, to identify the similarities and differences between the countries. This way, insight is gained in the opportunities for the two countries to complement each other.

What are the opportunities for the export of Dutch Circular Economy expertise to the Brazilian clothing industry?

Subsequently, a mapping is made of all existing CE related projects and innovations in Brazil and the Netherlands. These are catagorized per challenge (which are identified for the future clothing system). All mapped projects are assessed by maturity and possible impact in the industry.This categorization provides insight in where knowledge and expertise is being built up, and in which area project development is still required. Furthermore, it becomes clear where the Netherlands and Brazil possibly complement eachother. Desk research, field trips and interviews were used to collect all information.

• •

Furthermore a mapping of the involved stakeholders is made.

In a broader sense, this report results in a methodology to that can be replicated for other sectors. The research questions are as follows:

•

• •

How does the current clothing system look like? How does a future, circular clothing system look like and what themes can be identified to shape this system? What are strengths, weaknesses, opportunities and threats in the Dutch and Brazilian clothing industry and what are the similarities and differences between the two countries? What CE practices are already available in the Dutch and Brazilian clothing industry and what is their current state? What stakeholders are involved in a circular textile industry in the Netherlands and Brazil?

Lastly, a case study about the challenges in one specific industry (the lingerie confection in Nova Friburgo) is made as a first attempt to bring the demand for CE solutions together with the offer.

PART II: THE CLOTHING INDUSTRY

2. ANALYSIS: THE GLOBAL CLOTHING INDUSTRY 2.1 THE CURRENT CLOTHING SYSTEM How does the current clothing system look like? Ellen MacArthur Foundation (2017c) has published a report in which a vision for a future clothing system are described, based on an analysis of the current system. The current trends of â&#x20AC;&#x2DC;fast fashionâ&#x20AC;&#x2122; led to underutilization of clothing, which is often disposed within one year. After usage of the garments, the materials they are made from are mostly lost. Most countries have very low collection rates, excluding any kind of recycling option. A global material flow analysis shows that the current system is very linear, in which less than one percent of clothing is recycled into new clothing and 87 percent of clothing goes to landfill or is incinerated. Around 10 percent of the garments is lost in the production process (as cut-offs for example), but the major part, 73 percent, is lost after final use of the clothing (Ellen MacArthur Foundation, 2017c).

This linearity causes a system that consumes a lot of resources, pollutes the environment and creates negative social impact. The industry relies highly on non-renewable inputs and chemicals are used in the production process, such as pesticides for cotton production. The chemicals that are used for colouring the textiles are often released to surface water, causing negative environmental impact. Furthermore significant greenhouse gases are emitted and In the use phase of clothing, plastic microfibres are released through washing. Most of these end up in the ocean, causing environmental and health issues. On current trend these negative effects continue increasing, consuming even more resources, emitting more CO2 and releasing more microfibres to the ocean. Economically, the report estimates that the value of the clothing material that is not recaptured in the chain, represents a loss of over USD 500 billion.

Figure 2.1: The current linear clothing system (Ellen Macarthurfoundation, 2017b)

PART II: THE CLOTHING INDUSTRY

2.2 THE FUTURE CLOTHING SYSTEM How does a future, circular clothing system look like and what themes can be identified to shape this system? Two reports were studied to identify the main themes to work on for realizing the future clothing system. One source is the mentioned report by Ellen MacArthur Foundation and the other one is the Roadmap Circular Textile by the Dutch fashion branch organization Modint. 2.2.1 Ellen MacArthur Foundation (2017) Based on this identification of negative effects, as described in the previous chapter, EMF defines four ambitions for a future clothing system (Ellen MacArthur Foundation, 2017c).

1. Phase out substances of concern and microfibre release The release of pollutants and microfibres to the ocean and the environment has te be avoided. a.

During farming, fibre manufacturing, textiles production, use and after use, impact is caused by pollutants, such as pesticides for cotton production and chemicals in the colouring process. It is estimated that 20 percent of the worldwide industrial wastewater pollution comes from the textile industry (Kant, 2012). The whole industry has to align its efforts to create safe material cycles and to scale up alternative technologies. b. Plastic in the environment is recognized as a hazard for the environment and human health. The microplastics that are released in the washing of plastic-based textiles are a major contributor to this. New materials and production processes have to be developed to avoid this release of microfibres.

2. Transform the way clothes are designed, sold, and used to break free from their increasingly disposable nature

Figure 2.2: Ambitions for a new textiles economy (Ellen MacArthur Foundation, 2017c) Apart from these four ambitions, EMF states that ‘achieving a new textiles economy demands a new level of alignment and collaboration’. System level change is required, which means that collective action has to take place. Actions: • • • •

•

Align key industry players and secure their commitment. Drive large scale pilot projects, including a wide range of stakeholders. Orchastrate complementary initiatives. Broadly engage stakeholders. Apart from businesses, policymakers can create the enabling conditions and education institutes can develop the right knowledge and evidence. The role of NGOs and industry associations are able to connect stakeholders and facilitate collaboration. Establish a coordination vehicle that takes on the abovementioned activities.

Clothing utilization has to be increased, despite of the current customer needs and desires. On one hand clothes have to be designed and produced in a more durable way, on the other hand new business models help to increase the real utilization of clothing. Through policy, guidelines for the industry could be developed. From the business perspective, scaling up short term clothing rental is a business model that could increase clothing utilization as well.

3. Radically improve recycling by transforming clothing design, collection, and reprocessing Clothing disposal has a large negative impacts and represents an economic value that is currently lost. To improve recycling rates: a. clothing collection has to be scaled up. b. technological innovation is needed to improve the output quality, including sorting technologies. c. these recycling processes have to be aligned with the way the clothes are designed. d. demand has to be created for recycled materials.

4. Make effective use of resources and move to renewable inputs Even though the raw material input is reduced in a closed loop clothing system, virgin material input will always be required. A shift to renewable resources is desired for plastic-based fibres and regenerative agriculture. Furthermore, the production process has to become more efficient (to reduce resource input) and has to run on renewable energy.

31 2.2.2 Modint (2016) The Dutch industry association Modint has hight ambitions the create a circular textiles industry, and has come up with a platform to facilitate the transition. Similarly to Ellen Mac Arthurfoundation it has defined themes to start undertaking action and to concretize future plans (Modint, 2016).

PART II: THE CLOTHING INDUSTRY

1. Circular design The development and implementation of ‘circular design’, enables recycling options, moves away from the ‘fast fashion’ culture and reduces the raw material input. The following main activities are defined: a. Design for recycling b. Design of product for long term use, reuse and repair. c. Use of new (digital) technologies

2. Circular chain The part from post-consumer clothing to the application of recycled textiles is considered here, and subdivided into two steps: a.

Figure 2.3: A closed loop textile industry (Modint, 2016) Apart from these specific themes, Modint defines several means that could contribute to the transition and innovations. First of all, using calculation models and other tools to define environmental impact provides useful insights. Secondly, social and enviromental costs should be included in the prices of products to make circular clothing more favorable above unsustainable clothing: the ‘true cost’. Thirdly, track & trace of clothing and textile improves transparency of the chain and the recyclable content.

Collection of post-consumer textile: optimization of the collection and sorting processes, as well as the collection of post-consumer clothing from second hand markets. b. Creation of demand or recycled textile and fibres: use of recycled fibres in fashion, workwear, nonclothing textile (such as towels and bed sheets) and in products from other sectors.

3. Mechanical recycling Shredding of garment and fabrics back to fibres, that have to be complemented with virgin material to make a suitable mix to make new yarns. Two activities: a. Technical improvement of defribration technologies b. Enlarge and improve the offer of mechanically recycled yarns and fabrics

4. Chemical recycling The (cotton) fibres are mixed with a solvent, resulting in a solution that is used to produce new (viscose) yarns. Two activities: a.

Technical development of chemical recycling of cotton b. Enlarge and improve the offer of mechanically recycled yarns and fabrics

5. New business models Apart from technical solutions for new materials and recycling, one could also rethink the chain and how clothes are used. The focus is on the following: a. Extend lifetime of clothing b. From ownership to use (clothes library or lease concepts) c. Local production

PART II: THE CLOTHING INDUSTRY

2.2.3 Recycling options In both reports about a future clothing industry several recycling options are mentioned as key issue in closing the loop. In this paragraph the different options an overview of these options is provided. In the production process and after use of clothing (postconsumer) several recycling options are possible, ranging from reusing entire pieces of fabric to chemical processes. Most of the options are technically possible, but they ofthen lack scale and most of the recycled products are not yet cost-competitive with virgin material. Furthermore alignment with the used material palette is required: new materials have to be developed to replace existing materials that can not be economically recycled.

raw material

polymer

fibre

yarn

fabric

Figure 2.4: From raw material to fabric and possible recycling options (own illustration, based on Ellen Macarthurfoundation, 2017b)

Table 2.1: Textile recycling options (Ellen Macarthurfoundation, 2017b; EY, 2015) process

material*

maturity

fabric recycling of complete pieces of fabric from production cut-offs or post-consumer clothing: remanufacturing

all

widely adopted

unravelling of the garments

all knitted garments

unexplored

cellulose-based

fibre

‘mechanical recycling’: garments are shredded back into fibres, which are shortened and have to be complemented with long fibres to make new garments

applicable at scale

polymer mechanical

back to polymer level: melting and extruding of textiles

plastic-based (mono material)

not yet at scale

polymer chemical

back to polymer level: dissolves textiles with chemicals to pulp which can be brought back to virgin-equivalant quality; options for seperating cotton-polyester blends are currently in development

cellulose-based and plasticbased

moving from R&D stage into pilots, but more research required

polymers are broken down into individual monomers that can then serve as feedstock to produce virgin-quality polymers

plastic-based

mature and proven but not yet costcompetitive

fabric

yarn

monomer

*Examples of plastic-based fibres: polyester, nylon. Examples of cellulose-based fibres: cotton, wool, viscose

2.2.4 The economic potential A ‘circular economy’ distinguishes itself from a ‘green economy’, because it leads to significant business benefits (Ellen MacArthur Foundation, 2012). In the Netherlands, for example, the overall impact on the economy is estimated to be 7,3 billion euro, involving the creation of approximately 54,000 jobs (TNO, 2013). Ellen MacArthur Foundation (2017c) estimates that if all clothing would be collected, 22,2 million tonnes would be reused (46% of all collected). This volumes has a value

of USD 460 billion, which shows that closing the clothing cycle has significant economic benefits.

2.2.5 Closing the loop: identification of the main themes Based on the studied visions of Ellen MacArthur Foundation and Modint, themes of importance are defined for developing a future clothing system. The next page provides an overview

PART II: THE CLOTHING INDUSTRY

1: NEW PRODUCTS AND MATERIALS

1A: Make the fabrics and clothes suitable for recycling 1B: Avoid microplastic release of the clothing 1C: Substitute raw material with alternatives, such as biodegradable materials or plastic waste

3: CLOTHING UTILIZATION

2: THE PRODUCTION PROCESS

2A: Reduce or recycle water 2B: Phase out pollutants 2C: Run on renewable energy 2D: Reduce solid waste generation (cut-offs etc.)

4: COLLECTION AND SORTING

3A: New business models (product to service, lease models) 3B: More durable clothing

4A: Collection 4B: Seperate fabrics from buttons, zippers etc. 4C: Sorting by fibre type

5: RECYCLING OPTIONS

6: ENABLING TOOLS

5A: Fabric recycling 5B: Yarn recycling 5C: Fibre recycling (mechanical recycling) 5D: Polymer recycling (chemical recycling) 5E: Monomer recycling 5F: Align clothing design and recycling processes

fibre, yarn and fabric production

6A: Information and evidence base 6B: Chain approach: alignment industry players, collaboration 6C: Policy 6D: Transparency

clothing production

retail

raw material

waste-to-textile

5 3

4 landfill or incineration

Figure 2.5: Future clothing system, themes (own illustration, based on Modint, 2016; Ellen MacArthur Foundation, 2017c)

PART II: THE CLOTHING INDUSTRY

3. ANALYSIS: CE IN THE NETHERLANDS AND BRAZIL 3.1 THE CLOTHING INDUSTRIES IN THE NETHERLANDS AND BRAZIL

EUR 17 million

What are strengths, weaknesses, opportunities and threats in the Dutch and Brazilian clothing industry and what are the similarities and differences between the two countries? In this chapter the Dutch and Brazilian clothing industries are discussed and compared. SWOT analyses provide insights in the differences and similarities between the industries. 3.1.1 The nature and size of the industries Both the Netherlands and Brazil were textile and clothing producing countries in the past, but in the recent years (large parts of) the production has moved away to mostly Asian countries. Consumption In Brazil 6.700 million clothes were sold in 2017, against 330 million in the Netherlands in 2015. This means that in Brazil more clothes are sold per capita: 32, against 19 per capita in the Netherlands (Abit, 2017; Wijnia, 2016). Imports and exports The value of the Brazilian textile and clothing export market was 0,8 billion USD in 2017. Of this amount, EUR 17 million (2,1% of exports) was earned from exports to the Netherlands (Abit, 2018a). In opposite direction, the value of the textile and clothing import stream was EUR 13 million (0,3% of all imports) (Abit, 2018d). Textil waste imports Apart from the import of fabrics for confection, Brazil is also importer of textile waste. In 2017, over 9 million kg was imported (Abit, 2018e). This might endorse the opportunity for the implementation of better recycling solutions in Brazil.

EUR 13 million Figure 2.6: Textile and clothing trade between the Netherlands and Brazil

Table 2.2: Figures about clothing industry in the Netherlands and Brazil (Wijnia, 2016; Abit, 2017; Awearness Fashion, 2017; Fashion United, 2014) Netherlands (2015)

Brazil (2017) Turnover

EUR 10 billion

EUR 36 billion Import and export

Import: EUR 13,4 billion

Import: EUR 4,1 billion

Export: EUR 8,9 billion

Export: EUR 0,8 billion

Clothing sale (consumption) 330 million pieces

6700 million pieces

PART II: THE CLOTHING INDUSTRY

3.1.2 SWOT the Netherlands and Brazil Two SWOT analyses are made to understand the Dutch and Brazilian industry better and to discover similarities and differences between the two countries. From there, insights are derived in how knowledge exchange and trade between the two countries may emerge.

•

Differences: •

The Dutch SWOT is made by Modint (2016) and the Brazilian is based on literature research and interviews. Similarities: •

Production of textiles and clothing has moved away to low income countries in mainly Asia. In both countries some bigger fashion brands have increased environmental awareness and are piloting CE practices or follow these developments closely.

•

Driven by designers and start-ups, a lot of knowledge is being developed about new materials, alternative production methods, new business models and recycling practices.

•

In the Netherlands there exists a strong, supportive institutional context to stimulate Circular Economy practices. The government supports and stimulates CE innovation, also in the textile and clothing industry. Furthermore, several NGOs and network organizations are in place to coordinate pilot projects and other CE initiatives. In Brazil this institutional context lacks. In Brazil, a lot of textile waste is imported. This condition is a possible opportunity for CE practices.

Table 2.3: SWOT the Netherlands (Modint, 2016) Strengths • • • •

ambition to innovate strong institutional context for collaboration and innovation Dutch Design textile expertise

Weaknesses • • • • •

Opportunities • • • • • • •

stimulating government (NL Circular in 2050) municipal waste collection policies international collaboration intention to join forces manufacturing partly moving back to Europe increasing consciousness upscaling of textile recycling

manufacturing industry has moved away collection and recycling is separated from the clothing and textile industry short term focus competition in the market on price consumer is used to ‘cheap’ Threats

• • • • • •

massive system change ‘first mover’ dilemma municipalities have a different agenda second hand market under pressure and leak in the circular system low prices of raw materials treshold because of great variety of the current offer

Table 2.4: SWOT Brazil Strengths • •

expertise in clothing confection many pilot projects and small scale innovations

Weaknesses • • • • •

Opportunities • • • • •

focus country of Ellen Macarthurfoundation huge market to create impact intention to join forces waste-related challenges in the industry Brazil is an importer of textile waste, creating a demand for recycling options

• • • •

massive system change ‘first mover’ dilemma low prices of raw materials treshold because of great variety of the current offer

PART II: THE CLOTHING INDUSTRY

3.2 CURRENT CE PRACTICES IN THE NETHERLANDS AND BRAZIL

Table 2.5: Scores of 1 to 5, assessing the maturity and the impact of the CE projects

What CE practices are already available in the Dutch and Brazilian clothing industry and what is their current state?

Maturity

Impact

draft/plan

tiny impact (art)

In the Netherlands, plenty of actors are collaborating on the implementation of Circular Economy practices in the textile industry. Circle Economy, Modint and Fashion for Good are examples of Dutch organizations that develop platforms, research programs and pilot projects in collaboration with companies, start-ups and universities.

pilot

small impact

implementation

medium impact

commercialization

big impact

As addressed in the previous chapter, this kind of faciliating, collaborative context lacks. Still, several CErelated innovation projects are running.

mature

huge impact

The tables below provide an overview of these projects in the Netherlands and Brazil, catagorized per theme. An indication of the maturity and (potential) impact of the innovation is provided, with scores ranging from 1 to 5. The meaning of this score range is provided in table X.

Table 2.6: Overview of Circular Economy practices in the clothing industry in the Netherlands and Brazil

1: NEW PRODUCTS AND MATERIALS

project description

involved actors

maturity / impact

1A, 5F: Rework. Workwear is designed in such a way that it is completely recyclable: new yarns or compostable. C2C bronze certified (C2C-Centre, 2012).

Van Puijenbroek, Berensen, Lavans, Van Ganzewinkel

2/3

1A, 5F: aWEARness: specially designed polyester, clothing by Dutch aWEARness can be recycled up to as many as eight times.

aWEARness

2/3

1A, 1C: C2C Gold certified t-shirt, made of 100% organic cotton (also labels and stitches) (Fashion United, 2017).

C&A, Fashion for Good

4/4

1C: Uniforms from yarns made of old PET bottles. 300,000 bathrobes for a German spa for example (Nederland Circulair!, 2016).

Waste2Wear

4/3

PART II: THE CLOTHING INDUSTRY

project description

involved actors

maturity / impact

1C: Jeans, comprised of 33% to 61% of ocean plastic (Nederland Circulair!, 2016).

G-star

2/2

project description

involved actors

maturity / impact

Brightloops

4/1

2A, 2B, 2C, 5C: Brightloops produces a woolen sweater, using post-consumer waste as input. By sorting this input by colour, the use of chemicals and water is avoided in the production process (Brightloops, 2017).

Circle Economy, Worn Again, BTR, DHL, Boer Groep, Recover, ReShare

1/3

2D: Circle Market is an online trading platform that connects the supply and demand of excess textiles. It enables all players in the circular textiles value chain to connect, reduce waste, and accelerate the transition to a better industry (Circle Economy, 2017b).

Banco de tecidos

3/2

2D: Clothing manufacturers (small scale) can hand in their textiles, in exchange for credits which can be used to purchase other textiles. This way, excess textiles are exchanged between different players in the industry and waste is avoided. 2D: Benefitting production leftovers for new products (AHLMA, 2017).

AHLMA

4/2

2. PRODUCTION PROCESS

PART II: THE CLOTHING INDUSTRY

3. CLOTHING UTILIZATION

project description

involved actors

maturity / impact

LENA fashion library

3/4

3A: Lena has clothes in stock that can be borrowed for occasional use, this way increasing the clothing utilisation (Mahawasala, 2015).

MUD Jeans

3/4

3A: Lease a jeans is a business model that aims to increase clothing utilization. MUD Jeans remains the owner of the clothing and makes sure that it is recycled after lifetime (MUD Jeans, 2017). 3A: Sharing platform to facilitate the reselling and reuse of clothing (Rombino, 2017).

Enjoei, Farm

3/4

project description

involved actors

maturity / impact

4A: Several Dutch brands have started take-back systems. WE fashion produced a collection that was partially made of these collected clothes. (In Brazil, Farm started a similar initiative.)

H&M, C&A, WE fashion

3/2

4C: Fibersort sorts large volumes of post-consumer textiles by fiber type. This way, consistent input materials for high value textile to textile recyclers is generated. The project is a collaboration of various actors in the chain (Valvan, 2017; Lockerbie, 2015)

Circle Economy, Reshare, Wieland Textiles, Valvan, Procotex, Worn Again

2/4

4. COLLECTION AND SORTING

PART II: THE CLOTHING INDUSTRY

5: RECYCLING OPTIONS

project description

involved actors

maturity / impact

5A: Direct reuse of fabrics from shirts into boxershorts. Strong social component (Nederland Circulair!, 2016).

Van Hulley

4/1

5A: New clothes made of unsold clothes. Collaborations with Farm, IED, Rede Asta (Reroupa, 2017).

Reroupa

4/1

5A: Refarm. Beach fashion brand Farm pilots with reusing unused amounts of fabric for new clothing design (Farm, 2016).

Farm

2/2

HAK aviamentos

2/2

5A: Cut-offs from clothing confection are directly reused to make new products (no recycling/ defibration necessary)

KICI, Enviu

1/2

5A: Textiles for life (research project). Emergency products made out of textiles.

5C: Mechanical defibration. Texperium is an innovation centre that develops a mechanical defibration technology for both natural and synthetic fibres. The non-reusable end-of-life textile is broken down to the fibre, after which it is reused to produce new textiles. Within three years the technology can be commercialized if it is scaled up to 1000 tonnes/year (EY, 2015).

Texperium

3/4

PART II: THE CLOTHING INDUSTRY

project description

involved actors

maturity / impact

5C: High value (textile to textile) recycling of denim. Maximum of 30% of the fibres can be reused for new yarns (Circle Economy, 2016).

Circle Economy, G-star, Recover

2/3

5C: Transforming post-consumer textile waste into high-quality, textile products (Circle Economy, 2016).

Circle Economy, Reblend, Recover

2/3

5C: Workwear into new yarns, consisting 80% workwear and 20% virgin polyester (Circle Economy, 2016).

Circle Economy, Reshare, Recover

2/3

Renovar

4/2

5C: Mechanical defibration. Renovar receives small amounts of textile waste (production waste and post-consumer waste) and shreds it back to the fibre. The output is used for pillow filling or mats (for cars). A limitation of the technology is that not all fabric types can be used and that it has to be free of buttons etc.

Saxion UAS

2/4

5D: Chemical defibration by SaXcell, a project of Saxion UAS. A chemical defibration technology was developed, which is able to handle short cotton fibres to produce viscose yarns. Therefore, this complementary to mechanical defibration (EY, 2015).

Dutchspirit

3/3

5D: recyclable workwear: new fabric consists exclusively of 100% recyclable polyester (Nederland Circulair!, 2016).

PART II: THE CLOTHING INDUSTRY

6: ENABLING TOOLS

project description

involved actors

maturity / impact

6A: Circle Fashion Tool. The aim of this tool for brands and producers is to evaluate their own production chain. Different scenarios can be compared, providing insight in the differences in environmental impact between certain design choices. The current focus is on postindustrial, pre-consumer and postconsumer cotton (Circle Economy, 2017a).

Circle Economy, C&A Foundation

2/3

6C: Green deal textile collection. In 2012, fifteen actors in the textile chain agreed on the collection of all textile (also damaged textiles). This way, intentions were aligned and a common goal defined.

Ministry of Economic Affairs, Ministry of Infrastructure and environm + partners from the industry

4/2

6D: In 2009, the community â&#x20AC;&#x2DC;Rank a brandâ&#x20AC;&#x2122; was established, to assess the social and environmental sustainabilty of brands.

Rank a brand

3/2

PART II: THE CLOTHING INDUSTRY

3.5 STAKEHOLDER IDENTIFICATION What stakeholders are involved in a circular textile industry in the Netherlands and Brazil? IIt was mentioned that the involvement of all differents kinds of actors are necessary when integrating CE in the industry. Therefore, again a division into different stakeholder groups is made: • • • •

It was already mentioned that, in contrast to most other sectors, the catagory ‘Company - CE efforts’ is well represented. Apart from all kinds of small scale innovation projects, fashion brands like Farm, Lojas Renner and C&A have started to implement the CE approach in their businesses.

network organizations and governments companies - innovators companies - CE efforts universities and research institutes

Table 2.7: Dutch and Brazilian stakeholders in the clothing industry Stakeholder

Role

Importance

Network organizations and governments International Apparel Federation

INT

Platform for the international clothing industry. Exchange of market info, technological developments, innovation, etc.

C&A Foundation

INT

Globally active, with departments in both NL and BR. Bring together brands, initiatives, etc. that want to create a fair and sustainable fashion industry. Strong focus on CE.

Ellen MacArthur Foundation

INT

Published report ‘The new textiles economy’, to create a solid evidence base for CE in textiles, create momentum

Circle Economy

Coordinates the ‘Circle Textiles Programme’, which connects stakeholders to collaborate on specific research and pilot projects.

Fashion for Good

Global platform for innovation, made possible through collaboration with brands, producers, retailers, etc, with the aim to ‘make fashion good’.

Modint

Dutch branche organization, with a special focus on circular textiles ‘Circle textiles platform’

MVO Nederland

Promotion of responsibility for people and nature. Focus on CE.

FIRJAN - moda

Department within FIRJAN, focused on textiles and clothing, with dependance located in Nova Friburgo. Aware of developments in the (local) industries.

SENAI CETIQT

National research institute, demand driven by the industry. Located in Rio de Janeiro, but focus on whole Brazil. Focus on Industry 4.0. Setting up a fablab currently.

SENAI moda

Research institute, subdivision of FIRJAN, focused on the state Rio de Janeiro and the industries there.

Casa TEAR

Spreading the best sustainability practices, developed by companies that strive for a better, more ethical world

Abest

Brazilian association for fashion designers

PART II: THE CLOTHING INDUSTRY

Stakeholder

Role

Importance

Companies - innovators Wieland Textiles

Reselling (to developing countries) and recycling of postconsumer clothing. Already active since the 1980s.

Boer Groep

Collects, sorts and prepares used textiles for reuse and recycling (450.000 kg/day in NL, Germany and Belgium)

Reshare (Leger des Heils)

Collects, sorts and resells post-consumer clothing. Long history in clothing collection and reuse

Reblend

Circular fashion & textiles agency, aiming to use postconsumer textiles to new products (high value recycling)

KICI

Collects post-consumer textiles

LENA Fashion Library

New business, completely based on the new business model of cloth leasing

MUD Jeans

New business, completely based on the new business model of cloth leasing

aWEARness

Design 100% recyclable workwear

Van Hulley

Business based on the idea of direct reuse of fabrics of post-consumer shirts to new products

Brightloops

Business based on the idea of recycling wool for the production of new sweaters

Malha

Incubator for innovators in fashion design. Partnership with C&A Foundation Brazil. Start-ups: Acorda, Holyfancy, Jupe, The lilled small town, Lumilab, Zรณia, Ripa, Thnk Blue, Movin, Matter

Banco de Tecidos

Business fully based on the platform that was developed to facilitate the exchange of fabric excess

Renovar

Company specialized in mechanical defibration

Retalhar

Business based on social and environmental sustainability: recycling of uniforms and other products

Ecotece

Collaborates with various partners (Banco de Tecidos, Flavia Aranha, Retalhar, etc.) to develop new products of sustainable (biodegradable) materials and waste

Insecta shoes

Makes shoes, made of residues from plastic and textiles

AHLMA

Branch of Reserva, selling unique clothes, made of residues from production

Flavia Aranha

Fashion brand, projects in slow fashion, natural painting,

ByZahira

Brand of beach fashion and acessoires, partially made of biodegradable material

PART II: THE CLOTHING INDUSTRY

Stakeholder

Role

Importance

Enjoei

Company that facilitates a â&#x20AC;&#x2DC;sharing economyâ&#x20AC;&#x2122; with its online platform

Materia Brasil

Design and consultancy. Collaboration with C&A foundation in Brazil on the development of a platform

C&A

Strong efforts for CE. Example: development of C2C gold certified cotton shirt

Zeeman

Brand with efforts to make the chain more sustainable

WE fashion

Developed a collection partially made of collected postconsumer clothing

HaVeP (Van Puijenbroek)

Producer of workwear. CE efforts: involvement in Rework project (100% recyclable polyester workwear)

G-star

Brand that initiates various pilots in reuse and recycling of (mainly) jeans.

Lojas Renner

Brand with strong efforts to develop more sustainable clothing, using sustainable raw material in 130 pieces of its collection, such as yarns from recycled material.

Reserva

Brand with some sustainability efforts.

Farm

Brand of beach fashion, which started initiatives and collaboration to reduce waste generation in the production process. Farms take-back policy of old cloths from the brand, facilitates reuse of the clothes.

HAK aviamentos

Producer of finishes for textile products, like laces and ropes.

Companies - CE efforts

Universities and knowledge institutes Saxion UAS

Developed chemical defibration technology

Design Acadamy Eindhoven

Fashion design

TMO

Business fashion school

PUC Rio

(Fashion) design faculty of private university

IED

International private design institute

PART II: THE CLOTHING INDUSTRY

4. CASE STUDY: LINGERIE CONFECTION IN NOVA FRIBURGO How can challenges from the industry be linked to opportunities for a CE approach?

4.1 INTRODUCTION A large part of the Brazilian lingerie confection industry is located in Nova Friburgo, Rio de Janeiro state. Seven companies were visited on 4 and 5 December 2017, to gain insight and to collect data regarding the production process and residue generation. This report answers the question: What are the challenges in the production process in the lingerie confection industry in Nova Friburgo regarding waste generation? The current production process Apart from confection, the Friburgo industry was formerly also responsible for production of few raw material such as special sheets and laces, ribbons and others. This has changed in the past decades, since it became cheaper to import the fabrics from abroad. In the current situation, the industry only takes up on the confection of the lingerie. From the incoming fabrics the appropriate cuts are made and the final products are sewed. Problem statement In this production process, on average 10-20 percent of the fabric is lost as cut-offs. Currently, waste processing companies collect these cut-offs to discard them to landfills. There are two main issues regarding to that fact: First, the environmental issues and then the legal issues. Both affects either the community and the local industries. Particularly related to the industries, there is the loss and discard of raw material, increasing the production costs. The municipality is not legally responsible for the industrial waste discard and moreover and its fiscallization. Also, this practice keeps filling up the local landfills. Second, due the high number of informal companies (small family business that usually provide services to other – formal – companies) it is difficult to control the destination of their industrial waste. It worsens up this situation, since it causes urban disorder and community’s nuisance towards both the textile industry and the municipality, since these material is left on the streets without any criteria or standards. Opportunities for innovation Considering (1) the pressure from the Nova Friburgo municipality, (2) the interest of the confection industry to cut on the costs of discarding their residues and (3) the environmental concerns, the right conditions appear to be in place to push innovation and develop circular strategies. Also from a broader perspective, the Brazilian textile and fashion industry is showing numerous innovative projects related to reduce environmental impact. NOVA FRIBURGO LINGERIE CONFECTION`

material

stock

fabric cutting

80-90%

confection

final product

+ 10-20% cut-offs

Figure 2.7: The current production process of lingerie confection in Nova Friburgo

landfill

PART II: THE CLOTHING INDUSTRY

4.2 MAPPING THE CHALLENGES Seven lingerie confection facilities were visited to identify the challenge and collect data about the production process.

EMPRESA 1

Empresa 1

Empresa 1 is one of the largest lingerie confection companies in Friburgo. Both in the cutting as in the sewing process the residues are separated in fabric cutoffs, paper, cardboard and plastic. One of the few companies that has enough automation technology to maximize the material cuts.

production/month

cutting

fabric use

separation

220.000 pcs

automatic

80%

fabric cut-offs, paper, cardboard, plastic

separation of fabric leftovers by color and type

EMPRESA 2

Empresa 2

separation of cutting waste

Empresa 2 has two production facilities: one in Minas Gerais and a smaller one in Nova Friburgo, producing 250.000 pieces per month in total. Most of all investigated companies, the owner of Empresa 2 has positioned himself as a protagonist for innovation in the Friburgo industy.

production/month

cutting

fabric use

separation

30.000 pcs

manual

90%

fabric cut-offs, paper, cardboard, plastic

the fabrics after cutting

confection

PART II: THE CLOTHING INDUSTRY

EMPRESA 3

Empresa 3

Empresa 3 is a small/medium sized company that has just moved to a new factory building, located on a business park with several other production facilities. Empresa 3 lingerie confection is one of them.

production/month

cutting

fabric use

separation

30.000 pcs

manual

85%

cardboard

the manual cutting process

EMPRESA 4

Empresa 4

yarn stocks

Empresa 4 is one of the biggest lingerie confection companies in Nova Friburgo. During the visit, the issue of unused stocks of yarns and fabrics was addressed. Raw material storage in required in this facility, due to the high level of customization and personalization of its products (sold to large or medium retail chains), produced and delivered swiftly. The suggestion was raised that sharing the information on these stock among the industry might facilitate the exchange of stock.

production/month

cutting

fabric use

separation

280.000 pcs

automatic

85%

the cut-offs after automatic cutting

large amounts of non-separated cut-off waste

PART II: THE CLOTHING INDUSTRY

EMPRESA 5

Empresa 5

The production in Friburgo is separated from the stocking facility in SĂŁo Paulo. From there, the lingerie is distributed among the stores where the products are sold. Monthly, 200-300 kg production waste is generated (mainly cut-offs).

production/month

cutting

fabric use

separation

30.000 pcs

manual

80-85%

lingerie confection

EMPRESA 6

Empresa 6

unseparated cut off waste: fabrics and paper

Empresa 6 has a smaller facitilty that is specialized in the confection of underwear for men. Monthly, 300-400 kg production waste is generated.

production/month

cutting

fabric use

separation

30.000 pcs

manual

80%

fabric cut-offs, paper, cardboard, plastic

the fabrics are manually cut

waste is separated

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EMPRESA 7

Empresa 7

In the production process of Empresa 7, the proximity of the product design and development space facilitates the dialogue between the producers and designers to optimize the production process.

production/month

cutting

fabric use

separation

30.000 pcs

manual

80%

fabric cut-offs, paper, cardboard, plastic

the fabrics are prepared for manual cutting

EMPRESA 8

confection

Empresa 8 is associated with Empresa 7, but works independently. The consultancy work consists of developing solutions for its clients, mostly focusing on manufacturing and production costs reduction.

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4.3 OVERVIEW The table below provides an overview of all collected data. Table 2.8: Dutch and Brazilian stakeholders in the clothing industry production/month

cutting

fabric use

separation

Empresa 1

220.000 pcs

automatic

80%

fabric cut-offs, paper, cardboard, plastic

Empresa 2

30.000 pcs

manual

90%

fabric cut-offs, paper, cardboard, plastic

Empresa 3

30.000 pcs

manual

85%

cardboard

Empresa 4

280.000 pcs

automatic

85%

Empresa 5

30.000 pcs

manual

80-85%

Empresa 6

30.000 pcs

manual

80%

fabric cut-offs, paper, cardboard, plastic

Empresa 7

30.000 pcs

manual

80%

fabric cut-offs, paper, cardboard, plastic

4.4 OPPORTUNITIES FOR A CE APPROACH In the Nova Friburgo lingerie confection process, three opportunities for the implementation of Circular Economy solutions are identified. It must be noted that applying these solutions do not yet lead to a fully circular system, considering the limited scope (the Nova Friburgo industry). Before any development towards a Circular Economy approach, it is essential to introduce legal instruments

FROM CHALLENGE

(such as laws and public policies) that behold and mediate the textile industry waste in the city of Friburgo between the companies, the municipality and the community. Therefore, they should be taken into account in accordance with their own specific features and necessities and how will it impact over the community, environment and the industries.

TO NEW BUSINESS THROUGH CIRCULAR DESIGN

1. Cut-off waste from production

Recycling options

Around 20% of the imported fabrics is wasted as cutoffs, which pollutes the environment (landfills) and costs money for the companies to discard.

In collaboration with the right partners the defibration technology can be developed in the Living Lab to circulate this part of the chain. Waste is then turned into a valuable product.

2. Unused material stocks

Trading platform

Unused stocks of fabrics, yarns, buttons and laces are stocked in all Nova Friburgo production facilities, not valued as resource.

Making the information on stocks available for everyone, supply and demand can be matched. Unused materials are revalued.

3. Use of material blends

Substitute material for recyclable input

Currently, lingerie is made of a material blend with materials that are part of the technical cycle, complicating the recycling process.

By anticipating on recycling, different choices can be made regarding the used matierial. For example, material blends could be avoided, or biobased material could be used.

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NOVA FRIBURGO LINGERIE CONFECTION` 3

material

stock

fabric cutting

defibration?

80-90%

confection

final product

+ 10-20% cut-offs

landfill

Figure 2.8: Identification of the challenges in the chain that can be taken up by the Nova Friburgo industry Strategy for implementation of recycling options

Focused on the first identified challenge (cutoff waste), the following six steps are defined to implement recycling options: 1. 2. 3. 4.

Qualifying the waste Storing and stocking the waste Setting up logistics Identifying and involving the right (interested) partners 5. Processing/ transformation procedures 6. Setting â&#x20AC;&#x2DC;zero waste goalsâ&#x20AC;&#x2122;

At first, it is probably most viable to begin with a small group of companies that are prepared because they have favorable conditions due the markets they are well positioned. Therefore, they can input investments and have technological resources to perform this first stage. However, it is important to stretch that implementing the concept of Circular Economy requires more than only implementing recycling options. This involves also rethinking the product design, the business model and th clothing utilization for example.

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4.5 SOLUTIONS IN DEVELOPMENT The table below presents some international researches and solutions (in development), that relate to the Nova Friburgo challenges. Table 2.9: Some possible recycling options for the Nova Friburgo lingerie confection industry project description

involved actors

maturity / impact

5A: Cut-offs from clothing confection are directly reused to make new products (no recycling/ defibration necessary)

HAK aviamentos

2/2

Saxion UAS

2/4

Georgia Institute of Technology

1/4

5D: This research project aimed to find an alternative for removal elastane (spandex) from blended nylon/spandex fabrics. It is a two step process: (1) heating and (2) washing with ethanol. The result is a fabric containing only nylon yarns (Yin, Yao, Wang, & Wang, 2014).

4.6 CONCLUSION ON CASE STUDY The Nova Friburgo case What are the challenges in the production process in the lingerie confection industry in Nova Friburgo regarding waste generation? The main challenge that was identified in the Nova Friburgo lingerie confection industry is the waste that is generated in the cutting process: 20 percent of all fabric input is lost and discarded to landfill. In general, the Nova Friburgo industry is aware of this issue, witness the fact that most companies separate the waste that is generated. Another issue that was identified is that of unused stocks of fabrics, trims and yarns. All companies showed interest in solutions to both issues, especially if there are economic benefits. However, it must be noted that only few of them are willing to play an active role in the development of new ideas, technologies or business models that could lead to solutions.

PART II: THE CLOTHING INDUSTRY

5: CONCLUSIONS ON CE IN CLOTHING INDUSTRY What are the opportunities for the export of Dutch Circular Economy expertise to the Brazilian clothing industry?

Trends •

In both the Netherlands and Brazil, there is great willingness in the sector to make the chain circular. Brazil is, however, behind on governmental and institutional level.

•

In both countries, fashion brands are starting their own initiatives in post-consumer collection and collections made of recycled products.

•

Maturity vs. impact: Most projects that have a small (potential) impact on improvement of the chain are often in research/plan/pilot phase. Example: chemical recycling (SaXcell). Projects that have small influence on the chain are often more matured. Example: reuse of old shirts to make boxershorts (Van Hulley).

•

There is a great diversity of CE initiatives, both in Brazil and in the Netherlands. Some focus on product design, others on new business models or recycling option.

Netherlands and Brazil per theme Involved stakeholders and ongoing CE projects in both countries are analyzed. For the following themes there is potential for Brazil and the Netherlands to complement each other: •

Circular business models are further developed in the Netherlands than in Brazil, for example clothes leasing (LENA fashion library, MUD jeans). However, these models have not grown to scale yet.

•

Collection of post-consumer clothing is still a big challenge and a necessary condition for all seperation and recycling options after. The expertise of the Netherlands can contribute to improve the collection in Brazil: on a bigger scale there is the ‘green deal textile collection’ (typical example of the Dutch chain approach), on company level there is the expertise of

Reshare for example (which collects large volumes of post-consumer clothing in the Netherlands). It must be noted that willingness on governmental level is required to implement such practices in Brazil. •

Enabling tools, such as platforms, transparancy, policy making and sector orangization are further developed in the Netherlands than in Brazil. The Brazilian side should be activated on governmental level to realize this.

•

Recycling options are being developed in both countries. The difference is, however, that the projects in the Netherlands take place on a bigger scale, aiming for a profitable technology on the market. Furthermore, a wide range of stakeholders in the chain collaborate to include all necessary knowledge. An example is the chemical recycling project by SaXcell. Opportunities for export arise if this becomes a mature, commercialized product.

Stakeholders Driven by designers and start-ups, a lot of knowledge is being developed about new materials, alternative production methods, new business models and recycling practices. In both countries some bigger fashion brands have increased environmental awareness and are piloting CE practices or follow these developments closely. Like in other sectors, the presence of an acceleration agency (like Circle Economy and Fashion for Good) contribute greatly to stimulate and coordinate CE innovation projects. In Brazil, such structured coordination with CE focus does not exist. Identification of CE opportunities By focusing on clothing and getting to know the sector, a challenge in the Nova Friburgo lingerie confection industry could be identified. From there, a possible link with the Dutch expertise can be made, to validate whether there is a trade opportunity for Dutch companies.

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6. NEXT STEPS IN CLOTHING INDUSTRY Connect with Dutch partners This report is a mapping of CE initiatives and stakeholders, but no connection is made with the Netherlands yet. Dutch network organizations and companies have to be made aware of the interest of the Brazilian sector in CE. The case in Nova Friburgo is an example of an opportunity is suitable to connect with a Dutch CE solution. Living Lab Circular Economy The Living Lab is a tool to get the Dutch and Brazilian side in contact with each other, potentially leading to collaboration and trade on the long term. The clothing industry is chosen as the first focus. Interested universities are: • • • •

BR: PUC Rio BR: IED NL: Design Acadamy Eindhoven NL: TMO business Fashion school

PUC, IED and Design Acadamy Einhoven are focused on the design side of the fashion industry. For this reason,

the involvement of TMO is crucial from the business perspective. New business opportunities are of great importance in the transition to a circular economy. The next step is to connect these acadamic partners to the industries. Companies (fashion brands) have to be requested to formulate specific research questions to generate content in the LLCE for the students to work on. With the focus on Rio de Janeiro state, the following companies and start-ups are identified as CE-interested and/or willing to participate in the LLCE: • • • • • • •

Farm Reserva/AHLMA Osklen C&A Malha HAK aviamentos Byzahira

Furthermore, the intention is to sign an MoU with the involved partners in April 2018. In September 2018 the first mobilization of students (from the Netherlands to Brazil) is planned to take place.

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NL NL

N BR

NL BR

NL NL

N BR

NL BR

NL N L NL