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Circular Economy Changes Traditional Value Chains, Pekka Ojanpää. Global Cleantech Summit 2015

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Global Cleantech Summit 2015 Helsinki, 8th of September, 2015 Mr. Pekka Ojanpää, President and CEO Lassila & Tikanoja plc

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Circular Economy Changes Traditional Value Chains, Pekka Ojanpää. Global Cleantech Summit 2015

  1. 1. © Lassila & Tikanoja Oyj1 GLOBAL CLEANTECH SUMMIT 2015 HELSINKI, 8TH OF SEPTEMBER, 2015 MR. PEKKA OJANPÄÄ, PRESIDENT AND CEO LASSILA & TIKANOJA PLC
  2. 2. BACKGROUND © Lassila & Tikanoja Oyj 2 THE AMOUNT OF WASTE WILL DOUBLE by 2025, reaching 6.5 million tonnes per day. 1) THREE BILLION NEW CONSUMERS IN MID- INCOME RANGE by 2030. 2) CIRCULAR ECONOMY WILL BECOME A REALITY providing new business opportunities. x 2 +3 billion 1) World Bank 2) OECD
  3. 3. WASTE IS NO LONGER A THREAT BUT AN OPPORTUNITY © Lassila & Tikanoja Oyj 3 1960 1980 1990 2000 2010 2020 2030 2040 2050 Incineration • Aim: obliteration of waste • Waste recovery at a modest level • Expensive long-term solutions Circular economy • Closed cycle • Reuse and remanufacture • Repair • From consumption to utilization • New technologies and service models Recycling • Sorting at the source • Priority order/waste hierarchy • Producer liability • Gradual elimination of landfills Landfills • Preventing the hygienic threat • Recovery and safe burial of waste
  4. 4. CIRCULAR ECONOMY INTERACTIVE SYSTEM1) © Lassila & Tikanoja Oyj 4 1) Ellen MacArthur Foundation
  5. 5. CIRCULAR ECONOMY CHANGES TRADITIONAL VALUE CHAINS BY MOVING UP IN THE WASTE HIERARCHY © Lassila & Tikanoja Oyj 5 Prevention Preparing for re-use Recycling Other recovery Disposal Using less material in design and manufacture. Keeping products for longer, re-use. Using less hazardous material. Checking, cleaning, repairing, refurbishing whole items or spare parts. Turning waste into a new substance or product. Includes composting. Including anaerobic digestion, incineration with energy recovery, gasification and pyrolysis which produce energy and materials from waste; some backfilling operations. Landfill and incineration without energy recovery.
  6. 6. PRODUCER RESPONSIBILITY PROVIDES A GOOD FOUNDATION FOR THE DEVELOPMENT OF CIRCULAR ECONOMY In product design, reuse throughout the product’s life cycle must be taken into account Renting and leasing models encourage the design of more durable products Voluntary producers responsibility schemes are growing Shift from regulations towards consumer driven demand © Lassila & Tikanoja Oyj 6
  7. 7. EXAMPLE OF THE DEVELOPMENT OF CIRCULAR ECONOMY © Lassila & Tikanoja Oyj 7
  8. 8. PRIVATE SECTOR LEADS CIRCULAR ECONOMY INNOVATIONS © Lassila & Tikanoja Oyj 8
  9. 9. WE CIRCULATE PALLETS © Lassila & Tikanoja Oyj 9
  10. 10. CONCLUSIONS © Lassila & Tikanoja Oyj Businesses are capable of changing their operations towards sustainable economy, actually the transition to circular economy is already underway Circular economy is a positive opportunity for Europe - We can ensure self-sufficiency in energy and raw-materials - Technology and service solutions are a major employment and investment opportunity Circular economy will be achieved in a society which recycles - Regulation is needed to ensure resource-efficiency on all levels (recycling targets, ecodesign, support and reinforcement of recycled raw-material markets) To achieve effective recovery of recycled raw-materials we need to strengthen the producer’s role in the value chain–and to diminish that of the state. Market needs a stable and predictable operating environment (regulation) and a well-functioning marketplace based on market economy and consumers’ freedom to choose. 10

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