Annexes to COM(2015)614 - Closing the loop - An EU action plan for the Circular Economy

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dossier COM(2015)614 - Closing the loop - An EU action plan for the Circular Economy.
document COM(2015)614 EN
date December  2, 2015
agreements with stakeholders and public authorities ('innovation deals').


This initiative adds to a wide range of existing Horizon 2020 programmes supporting innovative projects relevant to the circular economy, in fields such as waste prevention and management, food waste, remanufacturing, sustainable process industry, industrial symbiosis, and the bioeconomy 45 . These will be complemented by the implementation of the Eco-innovation Action Plan 46 .


Important R&I funding opportunities are also available under the Cohesion Policy: the circular economy is one of the priorities highlighted by Member States and regions in their Smart Specialisation Strategies 47 . The Commission will offer further support to them, including through the Smart Specialisation Platform.


The development of the circular economy will also require public and private sources of financing to scale up improved technologies and processes, develop infrastructure and increase cooperation between actors in the value chain. Significant support for these objectives will come from EU funding programmes such as Cohesion Policy, LIFE and COSME. For example, Cohesion Policy funds are directed towards a growing number of programmes supporting the circular economy, including support for reuse and repair, improved production processes, product design and SMEs 48 . The Commission will assist Member States, regions and local authorities in strengthening their circular economy approach in this context through targeted outreach. Private finance needs to be directed towards new opportunities created by the circular economy. For the financial sector, such projects can differ significantly from 'business as usual'. The European Fund for Strategic Investments (EFSI) is one instrument that can be used to fund such investments. Together with the European Investment Bank EIB), and the European Investment Advisory Hub, the Commission will carry out outreach to encourage applications for funding, and support the development of projects and investment platforms relevant to the circular economy, e.g. in the areas of plastics recycling or mineral. Work will be done to develop cross-sectoral clusters and pool resources to formulate projects with a European dimension. 49 In addition, circular economy projects can benefit from EIB advisory and financing tools under the InnovFin programme. 50 The Commission is also assessing the possibility of launching a platform together with the EIB and national banks to support the financing of the circular economy.


SMEs, including social enterprises, will make a key contribution to the circular economy: they are particularly active in fields such as recycling, repair, and innovation. However, they also face specific challenges, such as access to funding, and the difficulty of taking account of the circular economy if it is not their core business. As set out in the 2014 Green Action Plan for SMEs 51 , the Commission is acting to support these companies, analyse the barriers they encounter to a better use of resources and waste management, and to encourage innovation and cooperation across sectors and regions. The Commission also provides access to finance for social enterprises 52 .


The transition to a circular economy will also require a qualified workforce with specific and sometimes new skills, and opportunities for employment and social dialogue. If the right skills at all levels are to be developed, they will have to be espoused by the education and training systems. The Commission is following up on its Green Employment Initiative 53 with action to anticipate needs and encourage the development of skills and other measures to support job creation in the green economy. It is also acting through its forthcoming New Skills Agenda for Europe.


The global dimension of the circular economy and supply chains is prominent in areas such as sustainable sourcing, marine litter, food waste, and an increasingly globalised market for secondary raw materials. In implementing this action plan, the Commission will cooperate closely with international organisations and other interested partners as part of the global efforts to reach the 2030 Sustainable Development Goals.


Finally, the Commission will actively engage stakeholders in the implementation of this action plan, in particular through existing sectorial platforms. This will be complemented by further support for public private partnerships, voluntary business approaches, exchange of best practice among Member States and regions, and will include consultation with social partners where changes may have important social implications.


- The Horizon 2020 Work Programme for 2016-2017 includes a major initiative on ‘Industry 2020 in the circular economy’, with funding of over €650 million

- The Commission will launch a pilot approach for "innovation deals" to identify and address potential regulatory obstacles for innovators.

- The Commission will step-up its action to mobilise stakeholders on the circular economy and in particular for the implementation of this action plan. It will also carry out targeted outreach to help the development of circular economy projects for various sources of EU funding, in particular Cohesion Policy Funds.


7. Monitoring progress towards a circular economy


In order to assess progress towards a more circular economy and the effectiveness of action at EU and national level, it is important to have a set of reliable indicators. A lot of relevant data already collected by Eurostat can form a basis for this monitoring. In addition, the Resource Efficiency Scoreboard 54 and the Raw Materials Scoreboard 55 contain relevant indicators and analysis which will be particularly useful for tracking progress.


On this basis, the Commission will work in close cooperation with the European Environment Agency (EEA) and in consultation with Member States to propose a simple and effective monitoring framework for the circular economy. Complementing the two above-mentioned scoreboards, this framework will include a set of key, meaningful indicators that capture the main elements of the circular economy. These will be published in connection with the Commission's reporting on the Sustainable Development Goals and will include new indicators on food waste (see section 5.2) and indicators based on existing Eurostat and other official data in areas such as security of supply for key raw materials, repair and reuse, waste generation, waste management, trade in secondary raw materials in the EU and with non-EU countries, and the use of recycled materials in products. Where necessary, action will be taken to improve the quality of existing data. The Commission will report on progress in implementing this action plan five years after its adoption.


In close cooperation with the EEA and in consultation with Member States, the Commission will develop a monitoring framework for the circular economy, designed to measure progress effectively on the basis of reliable existing data 56 .


8. Conclusion


This action plan sets out a concrete and ambitious EU mandate to support the transition towards a circular economy. A continued, broader commitment from all levels of government, in Member States, regions and cities and all stakeholders concerned will also be necessary. The Commission invites the European Parliament and the Council to endorse this action plan and to actively engage in its implementation, in close cooperation with all relevant stakeholders.

(1)

 Growth within: a circular economy vision for a competitive Europe, report by the Ellen MacArthur Foundation, the McKinsey Centre for Business and Environment and the Stiftungsfonds für Umweltökonomie und Nachhaltigkeit (SUN), June 2015.

(2)

Directive 2009/125/EC. This Directive covers all energy-related products.

(3)

Together with the energy labelling measures in place, it is estimated that the Ecodesign Directive will save 175 Mtoe of primary energy by 2020.

(4)

e.g. Ecodesign, Energy Labelling, Ecolabel, Green Public Procurement, and other relevant product legislation.

(5)

In particular the "Trade and investment for all" strategy adopted in October 2015.

(6)

  http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52014DC0440  

(7)

In order to facilitate SME's access to technological service centres in the area of Key Enabling Technologies

(8)

Following its ongoing Fitness Check

(9)

  http://ec.europa.eu/environment/etv/etv_preprog.htm  

(10)

In particular CO2.

(11)

A series of manufacturing steps acting on an end-of-life part or product in order to return it to like-new or better performance, with corresponding warranty.

(12)

Call for Factories of the Future, 2014 – call on industrial symbiosis, 2014

(13)

  http://ec.europa.eu/regional_policy/index.cfm/en/information/legislation/guidance/  

(14)

This will take place in the context of the regular planned reviews of the BREFs

(15)

See consumer market study on environmental claims for non-food products: http://ec.europa.eu/consumers/consumer_evidence/market_studies/environmental_claims/index_en.htm

(16)

In the context of Directive 2005/29/EC on unfair business-to-consumer commercial practices

(17)

 COM/2013/0196 final. Currently being tested on pilots projects. Subject to pilots' results, the Commission will consider the further use of the Product Environmental Footprint methodology.

(18)

 Following its ongoing Fitness Check

(19)

 COM(2015)341

(20)

 Based on data that are measurable by market surveillance authorities, and without significant negative impact on the clear intelligibility and effectiveness of the label for customers

(21)

  Under Directive 99/44/EC, within the first six months after delivery, the seller has to prove that no lack of conformity existed at the time of delivery. Subsequently, the burden of proof is on the buyer.

(22)

Under the Fitness Check of consumer legislation announced in the Commission Working Programme 2015 (COM(2014) 910 final – Annex 3).

(23)

Such as incentive systems for municipalities or "pay-as-you-throw" schemes, where households (for example) pay according to the amount of non-recyclable waste that they throw away.

(24)

 COM(2015) 550

(25)

In line with the global Sustainable Development Goal of promoting public procurement practices that are sustainable

(26)

 Inter alia through targeted training schemes

(27)

In the proposal for metals, separate sub-targets will be introduced for aluminium and ferrous metals.

(28)

http://ec.europa.eu/environment/waste/packaging/index_en.htm

(29)

Including through innovative approaches

(30)

  Regulation (EU) No 660/2014 of 15 May 2014

(31)

With some exceptions such as steel or paper – e.g. 5% for plastics.

(32)

Announced in the 7th Environment Action Programme

(33)

This strategy will include a follow-up to the Green Paper on plastic waste .

(34)

The European Commission, in its communication "Towards a circular economy, a zero waste programme for Europe" has proposed an aspirational target of "reducing marine litter by 30 % by 2020 for the ten most common types of litter found on beaches, as well as for fishing gear found at sea, with the list adapted to each of the four marine regions in the EU". Work to reach this target is already underway in Europe.

(35)

2000/59/CE

(36)

  http://ec.europa.eu/food/safety/food_waste/stop/index_en.htm

(37)

 Article15 of Regulation(EU) N° 1380/2013 on the common fisheries policy

(38)

 The European Commission has listed critical raw materials here:  http://ec.europa.eu/enterprise/policies/raw-materials/critical/index_en.htm . They include, for example, rare earth elements and other precious metals, but also phosphorus.

(39)

Such as rare earths in electronic displays or precious metals in printed circuit boards

(40)

  http://ec.europa.eu/environment/waste/weee/index_en.htm  

(41)

  http://ec.europa.eu/environment/waste/construction_demolition.htm  

(42)

In application of the Communication on "Resource efficiency opportunities in the building sector

(43)

COM(2012)60

(44)

  http://ec.europa.eu/research/bioeconomy/index.cfm  

(45)

Horizon 2020 work programme for 2014-2015; call for the ‘Waste: a resource to re-use, recycle, and recovery raw materials’ focus area; http://ec.europa.eu/research/participants/data/ref/h2020/wp/2014_2015/main/h2020-wp1415-climate_en.pdf ; FP7 Environmental Theme, 2013 resource efficiency call: http://ec.europa.eu/research/participants/data/ref/fp7/132129/f-wp-201301_en.pdf  

(46)

  http://ec.europa.eu/environment/ecoap/index_en.htm  

(47)

  http://s3platform.jrc.ec.europa.eu/home  

(48)

  http://ec.europa.eu/regional_policy/en/policy/what/investment-policy/  

(49)

  http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0209:FIN:EN:PDF  

(50)

  http://www.eib.org/products/blending/innovfin/?lang=en – the Commission will extend the scope of the Innov'fin instrument to ensure eligibility of a wider range of innovative circular economy projects

(51)

  http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52014DC0440  

(52)

 Through the EU Programme for Employment and Social Innovation (EaSI): http://ec.europa.eu/social/main.jsp?catId=1081  

(53)

  COM(2014)446

(54)

  http://ec.europa.eu/eurostat/web/environmental-data-centre-on-natural-resources/resource-efficiency-indicators/resource-efficiency-scoreboard  

(55)

Developed in the context of the European Innovation Partnership on Raw Materials – to be published on https://ec.europa.eu/growth/tools-databases/eip-raw-materials/en/content/eip-raw-materials-monitoring-and-evaluation-scheme

(56)

 and newly developed data on food waste (see section 5.2).