„Sustainable Future Cities, Towns and Communities“ (V)
“Circularity is not a trend; it’s a culture shift” (Ken Webster, 2017)
Looking at the inefficient and polluting way that energy is produced and used worldwide, it becomes apparent that we are still following the linear economic development model of “take, make, use, lose” (Raworth, 2017). In the local context, the social and environmental impacts of the linear economic model are particularly evident, namely the effects of climate change, ecological degradation and social exclusion.
For many years we have jointly applied methods with local actors to promote competitiveness for territorial development worldwide. Today we are faced with the question as to what extent our approach is compatible with the idea of the circular economy, to what extent we have to question old paradigms and assumed certainties, and to what extent we need to unlearn, newly learn, adapt and adjust our world view in this respect.
A short introduction to the circular economy paradigm
The term “circular economy” was coined and promoted by the Ellen MacArthur Foundation (EMF). Manufactured products are designed to be reused to their maximum potential before becoming recycled or dumped in a landfill. The “Multi-R-Hierarchy” is one of the critical elements of the approach (see Figure 1) with the emphasis on patterns of consumption, production and distribution.
Figure 1: The Multi-R-Hierarchy
Source: ACR+, 2015
Following the logic of a living ecosystem, in which waste becomes the basis for a new life, products are reused circularly or are integrated into new products to retain the resources embedded in a product as long as possible. The term “waste” is questioned and is instead seen as a resource to be reintegrated into the (circular) economy. Accordingly, the whole economic process should be fuelled by renewable and reusable energies.
Figure 2 shows the two wings of the circular economy logic.
Figure 2: The butterfly model
Source: Ellen MacArthur Foundation
The left wing visualises the biological cycle where the biological nutrients of products are regenerated and captured at each stage of the decomposition. The right wing represents the technical cycle where technical nutrients are designed to be repaired, reused, refurbished and only then recycled. The final opportunity is still to burn or dump them.
Figure 3: The importance of the territory for circular economy development
Source: ACR+, 2015
Taking on a stronger circular economy lens in our Mesopartner work
Mesopartner often uses terms such as “competitive advantages”, “systemic competitiveness”, “new business opportunities”. They also stand for our efforts to promote local development creatively and inclusively.
A more systematic application of the principle of circularity can provide us with new entry points at the business, consumer and civil society level, and at the organisational as well as policy and socio-cultural level. It also opens up a new lens for innovation processes and sustainable development initiatives in the field. In the discussion below we will mention areas in which we see the potential contributions we can make from our side.
Strengthening circular business opportunities
At the business level, the circular economy lens would require economic development promoters and analysts to look into additional aspects of value chains or local economies:
- Identifying and analysing the multiple “R” opportunities within the locations.
- Promoting circular economy business models and businesses to make better use of the existing resources and innovation potentials.
- Promoting a conceptual rethink and redesign of products in a way that they are up to 100% reusable or recyclable.
- Promoting the move towards “zero” waste or circular models in locations instead of waste management. The latter traditional focus is predominantly on managing and recycling waste instead of identifying income generation opportunities from traditional waste resources.
Supporting civil society groups and meso organisations to identify circular economy opportunities
Most territorial development and local innovation system promotions still focus on an innovation understanding based on linear, non-sustainable growth models of industrialised countries. New knowledge is required to deal with the consequences (Renn, 2020). We see different entry points to promote the necessary understanding for discovering more extensive development opportunities:
- Integrating the circular economy perspective into our methodologies of analysing the local economies. In general, we take representatives of meso organisations with us when collecting insights.
- Organisational and service development support for meso organisations to provide better services for the efficient use of resources.
- Promotion of dialogue and lateral thinking in networks with a focus on circular business development opportunities and paths.
- Promotion of circular economy relevant to civic organisations in better organising themselves and developing a creative voice in promoting sustainable development.
- Innovation network promotion between applied knowledge organisations and businesses on regenerative product design and composition, material flows, dismantlability, repairability, recyclability, etc.
- Bringing together different characters with specific capabilities: Transformation schools emphasise the requirements for involving different characters for driving change. For a transformation process from a linear to a circular economy to take place, it requires a combination of idealists (as the forerunners and visionaries), institutionalists (as the ones who believe in rules and regulations) and interventionists (as the ones who believe in technological solutions) (Schneidewind, 2018). Change initiatives need to integrate all three characters.
Figure 4: The combination of driving characters for transformation
Source: Designed by Mesopartner based on Schneidewind (2018)
Promoting a systemic approach towards a more circular economic development
For Mesopartner, the different levels of the Systemic Competitiveness Framework are still useful to consider when identifying opportunities to support circular development. New questions emerge and require answers (see examples in Table 1).
Table 1: New questions emerging for the promotion of a more circular economic development process
| Micro level | What new business innovation and social innovation opportunities of firms are available? What are the opportunities of civil society actors and consumers to contribute to a more circular consciousness and demand behaviour? |
| Meso level | What meso organisations, or civil society groups, are there to promote circular economy initiatives? What is their knowledge, their interest and their capacity? |
| Meso/Macro policy level | What are relevant, targeted meso and generic macro policies at the local and national level that support circular economic/business solutions? Where are valuable policies not in place or policies hindering the use of circular economic opportunities? |
| Meta level | What are the fundamental values that drive/shape (or hamper) the interest of the local society to strengthen the circular economy, while respecting planetary boundaries and social justice? |
Source: Mesopartner
Local promotion activities of circular economic models would reach their limit if relevant knowledge were not provided, and circular products were not valued in the respective society. Here a broader search process for potential circular innovation opportunities is required. This process needs to involve a wider group of societal actors in the analysis. It requires meso organisations to be strengthened in order to offer services that support circular economic innovations. This needs to be done in a context-specific manner, working with the individuals and organisations interested in developing circularity of their local economy.
Authors: Frank Waeltring and Ulrich-Harmes-Liedtke
A longer version of this blog post was also published in the Annual Reflections 2020 from Mesopartner.
References
ACR+ (2015). General guidelines for integrated circular economy, strategies at local and regional level, circular Europe network.
Ellen MacArthur Foundation. Further literature and butterfly model. Available at https://www.ellenmacarthurfoundation.org
Raworth, K. (2017). Doughnut Economics: seven ways to think like a 21st-century economist. UK: Random House Business Books.
Renn, J. (2020). The evolution of knowledge, rethinking science for the anthropocene. Princeton: Princeton University Press.
Schneidewind, U. (2018). Die große Transformation, eine Einführung in die Kunst gesellschaftlichen Wandels (The Great Transformation – an introduction to the art of social change). Berlin: S Fischer Verlag GmbH.
Webster, Ken (2017): The Circular Economy, the Wealth of Flows. 2nd ed. UK: Isle of Wight.
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