1. November 18th, 2020
Circular Economy in Cities and Regions

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5. Circular Economy in Cities and Regions
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The concept of circularity is not new and the need to adopt circular practices in business
and beyond is becoming even more pressing.COVID-19 has highlighted unsustainable
environmental and social trends, contributing to a re-examination of production and
consumption patterns.The traditional understanding of economic activity is based on a
linear model, where natural resources are extracted and transformed into products,
which then consumers use and then dispose based on a “take-make-dispose” process.
Linear economy ignores high economic, environmental, and social costs, and thus is
unsustainable in the long run. Circular economy, is considered an example of resilience in
the face of crises, as it preserves the value of products, materials, and resources for as
long as possible, with the purpose of eliminating waste. Cities and regions play an
essential role in the global economy, and play an important role in the move from a linear
to a circular model.
A circular economy as a transformative opportunity
Cities are home to more than half of the world’s population and responsible for major
policies in local public services such as transportation, solid waste, water, and energy
management that affect economic growth and environmental health. Applying the
principles of circular economy in cities and regions yields economic, social, and
environmental benefits in line with the Sustainable Development Goals (SDGs).
© 2020 Sustainability Knowledge Group
Circular Economy in Cities and Regions

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•Economic benefits: Contributes to the creation of cities that can prosper economically
in the long term. It increases production rates and achieves savings related to improving
resource efficiency. It also supports opportunities for growth, innovation and new
business development.
•Social benefits: It achieves prosperity and well-being for citizens, as it improves air
quality and reduces pollution, thus creating livable cities. It also creates job opportunities
and enhances community participation.
•Environmental benefits: Preserves the planet and reduces its environmental impact by
reducing congestion and eliminating waste. It improves resource security, as it reduces
dependency on raw materials, in addition to achieving a balance between local
production and global supply chains.
Cities and CircularAreas Initiative (CCRI)
The Cities and Circulars Initiative (CCRI) is part of the Circular Economy Action Plans
(CEAPs) and focuses on implementing circular solutions at local and regional level.
An increasing number of cities and regions are participating in the formulation of various
CEAPs. For example, Amsterdam has adopted the “Doughnut Economic” model, a
sustainable framework developed by economist Kate Raworth.
The Doughnut model is a holistic approach that balances social needs without harming
the environment.
© 2020 Sustainability Knowledge Group
Circular Economy in Cities and Regions

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The outer ring represents the environmental ceiling as defined by scientists, which
highlights the limits that humans must not cross. Between the two rings are the matters
that represent the absolute needs of everyone and the needs of the planet.
The 3Ps framework: People, policies, and places
The circular economy in sustainable cities, regions, and countries still needs to be
activated, and can be achieved based on theThree Dimensions of People, Policies and
Places (3Ps).The 3Ps provides a conceptual framework for making a circular economy
happen in cities and regions.The circular economy requires:
•People: A shift towards sustainable production and consumption pathways, as well as
new business and governance models (e.g. use of secondary materials, recycling, and
sharing)
•Policy: A holistic and systemic approach intersecting with sectoral policies (e.g.
environmental policies, regional development, agricultural and industrial policies)
•Places:Adopting a functional approach that goes beyond the administrative boundaries
of cities and regions and links them to surrounding areas and beyond.
Governance gaps
Cities and regions may face challenges when moving from a linear to a circular economy.
According to the Organisation for Economic Co-operation and Development (OECD)
Survey on Circular Economy in Cities and Regions, there are five main categories of gaps:
© 2020 Sustainability Knowledge Group
Circular Economy in Cities and Regions

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•Financial gaps: Insufficient financing, financial risks, lack of critical scale of business and
investments
•Regulatory gaps: Inadequate regulatory frameworks, and incoherent regulation across
levels of government
•Policy gaps: Lack of a holistic vision, poor leadership and co-ordination, lack of political
will
•Awareness gaps: Cultural barriers, lack of awareness, and inadequate information
•Capacity gaps: lack of capacity, skills, and human resources
Towards circular economy for cities
Cities and regions contribute significantly to Europe’s transition towards a more circular
model. Circular economy thrives on cooperation, and the best way to adopt successfully
circular frameworks is to join forces with those who want to move in the same direction
and make a difference.
Local and regional authorities have an important role to play in launching and
accelerating the transition to the circular economy. Promoting a culture of circular
economy and providing clear information and setting goals and objectives is key to
success. Facilitating communication, dialogue, and cooperation, as well
as enabling appropriate governance conditions and defining regulatory tools is seen as a
prerequisite for this transition. Shared responsibility between governments and
stakeholders will help in promoting, facilitating, and ultimately enabling this transition.
© 2020 Sustainability Knowledge Group
Circular Economy in Cities and Regions

10. 10© 2020 Sustainability Knowledge Group
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11. 11© 2020 Sustainability Knowledge Group
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