Circular Economy Roadmap

1. SUSTAINABLE INDUSTRY PRODUCTION The development of industry depends on access to raw Reindustrialisation is one of the priority areas which allow for materials as production factors. Since 2011, Poland has seen an the achievement of specific objective I of the SRD, i.e. increase in resource productivity and resource decoupling, i.e. “sustainable economic growth based on existing and new there is an increase in GDP coupled with a simultaneous advantages”. decrease in domestic material consumption (DMC). However, due to the high share of industry in GDP, resource productivity In Poland, the share of industry in GDP (23.4% in 2016) is higher measured as the ratio of GDP to domestic material consumption than the EU average (17.4% in 2016). In the years 2004-2016, (DMC) is still relatively lower as compared to countries with a the average annual growth rate of industrial production in lower share of industry in GDP. Poland was 5.3% compared to 0.5% in the EU. Figure 2 Trends in Resource productivity 170 resource productivity in Poland Domestic consumption of raw materials (source: EEA “More from 160 less – material resource GDP efficiency in Europe” 150 2016) 140 130 120 110 100 90 8 Notwithstanding doubts about the validity of such a method of from this activity for reuse in other production processes and in calculating resource productivity, it is one of the determinants other sectors of the economy, can significantly contribute to of entrepreneurs' competitiveness. increasing the profitability of production in Poland and reduction of its negative impact on the environment. The idea of sustainable production is based not only on the principle of increasing resource productivity, i.e. reducing the amount of raw materials used per unit of goods produced, but also on the assumption of reducing the negative environmental 1) Waste from mining, processing industry and impact of production processes in particular in the context of power generation reducing greenhouse gas emissions and the amount of waste produced. According to Central Statistical Office data (“Environmental Protection 2018”), 126 million tonnes of waste were produced In Poland, there is great potential for improvement as regards in Poland in 2017, and only a small amount of this was municipal actions concerning industrial waste, in particular from mining waste (12.0 million tonnes). The main source of waste in 2017 and extraction, industrial processing, and energy production was, as in previous years, mining and extraction, industrial and supply. So far, relatively little attention has been paid in the processing, and energy production and supply. In the last public discussion to the issues of waste in the above mentioned decade, the largest share in the amount of waste generated is areas while the issue of municipal waste has generated a lot of waste generated during exploration, extraction, physical and interest. Production generating less waste all the time, as well chemical processing of ores and other minerals, and waste from as managing the largest possible amount of industrial waste thermal processes. Mixtures of ash and solid waste from flue gas Coal fly ash desulphurisation with calcium-based sorbents 2% Soil and earth, Figure 3 Waste 3% including stones produced in 2% Poland in 2017 Waste from mining of minerals other than metal ores… Slags from smelting processes 3% Fly and bottom ash Waste from mixtures from wet enrichment by disposal of flotation of non- combustion waste ferrous metal ores 7% 25% Municipal 10% Waste from washing and cleaning of minerals 22% Other 23% Source: “Environmental Protection 2018” (Central Statistical Office).1 1 Data on industrial waste include units (plants) generating more than 1,000 tonnes of waste, excluding municipal waste, or having 1 million tonnes or more of accumulated waste during the year 9 Out of the total amount of waste (other than municipal waste) are not homogeneous and, therefore, their management generated in 2017, 49.1% was recovered, 42.5% was disposed requires differentiated approaches. of by landfilling, 4.4% was disposed of in a manner other than landfilling. The total amount of waste on the plants’ private The primary source of electrical power and heat in Poland is landfills and facilities for mining waste disposal (heaps, burning of hard coal and lignite. The combustion of this raw settlement ponds) over the last decade has remained at the material generates both gases and the so-called combustion level of 1.7 billion tonnes (“Environmental Protection 2018”). By by-products, i.e. ashes, slag and dust. These are a source for comparison, 42% of waste was recovered (other than energy many minerals, whose potential as an anthropogenic raw recovery) in the EU-28 in 2014, while 36% of waste generated material is currently not fully exploited. For example, increasing in the EU-28 in the same year was landfilled (Eurostat data). the scale of aggregate production from combustion by- products could significantly contribute to the transition to CE in It should be noted that mining waste (produced, for example, the energy and construction industries in Poland. in the process of washing and purification of minerals) and waste from various other industries (e.g. food or automotive) Action Competent agency Schedule and regulations

1. Analysis of the potential and proposal of legislative changes to the minister competent for energy in 2020–2021 increase the economic use of combustion by-products: The cooperation with the minister combustion of energy resources results in large quantities of slag, ash and competent for environment, the Act of flue gas desulphurisation products. Appropriate preparation of raw 14 December 2012 materials, even before they are burnt, defining the quality (including minister competent for construction, on waste environmental) requirements to be met by combustion by-products and spatial planning and development creating conditions for their use (including eco-design) may increase the and housing and the Inspectorate of accessibility of raw materials for other sectors of the economy, while Environmental Protection reducing the amount of waste disposed of through landfill. Combustion by-products could be used to a greater extent in the construction sector, e.g. as components of embankments, concrete or other structural layers, as well as a source of raw materials crucial for the Polish economy.

2. Development of guidelines for Zero Waste Coal Power (ZWCP) aimed the minister competent for energy in 2022–2023 at minimising the environmental impact associated with coal mining cooperation with the minister and electricity and heat generation from coal combustion: The action competent for environment requires strengthening of cooperation with the science sector and, as a result, the implementation of innovative solutions extending the possibilities of utilising combustion by-products.

3. Feasibility study on creating a dedicated platform for secondary raw the minister competent for economy 2021 materials: A feasibility study will be carried out on creating a dedicated in cooperation with the Stock platform to serve market participants for information (supply and Exchange, the minister competent for demand) and trading purposes. environment and the Inspectorate of Environmental Protection.

4. Analysis of the potential of opening and utilizing waste heaps from the minister competent for energy in 2021–2022 processing and mining industries and analysis of the morphological cooperation with the minister composition of mining waste and possibilities of their utilization in competent for environment, the Act of particular branches of the Polish industry, as well as proposing minister competent for economy and 14 December 2012 legislative changes on the basis thereof: For years, the basic method of on waste waste management in many branches of the industry has been landfilling, the Inspectorate for Environmental including disposal on heaps. Taking into account technological progress, Protection the act of 10 July it is assumed that some of the heaps may become a source of raw 2008 on mining materials for reuse in other sectors of the economy. Moreover, there is waste insufficient information on the composition of waste generated in the mining industry, on the one hand, and insufficient demand for it in other industries (including innovative industries), on the other hand. 10 2) Extended producer responsibility Extended producer responsibility (EPR) is an approach that but also to design and manufacture the product in such a way obliges producers to collect and manage waste generated from as to make a measurable contribution to extending its service the same products that they place on the market. EPR reflects life. “the polluter pays" principle and at the same time provides an incentive for the producer to take into account the whole life In the near future, there will be an opportunity to analyse the cycle of the raw material from which their product is made. effectiveness of the current system and to introduce changes or Therefore, they should use raw materials and technologies from completely new solutions in this respect, in connection with the the design and production phase, and introduce such design revision of the European directives on waste. The new and use solutions that allow for the collection of more waste requirements provide in particular for increasing the recycling and for recycling as much of it as possible. rates of municipal waste to 55% in 2025, 60% in 2030 and 65% in 2035. These high objectives concern also recycling of Under the current regulatory system, EPR is introduced in packagings alone – in 2025 a recycling rate amounting to 65% particular for packaging, end-of-life vehicles, used electrical should be achieved, while in 2030 this rate should go up to 70%. and electronic equipment, tyres, batteries and accumulators, Therefore, it is necessary to introduce modifications to the and lubricating oils. To be an effective tool, EPR should, on the waste policies currently in force in Poland. In particular, it is one hand, grant unambiguous rights and impose obligations on necessary to define more clearly the roles and obligations of producers and, on the other hand, not hinder their business individual entities participating in the implementation of EPR, activities. EPR cannot be a solution whose implementation is to impose obligations on entities other than producers, to set perceived only an unwanted obligation imposed on the new objectives concerning preparation for reuse and recycling entrepreneur. It should be designed in such a way as to of individual waste flows, to develop a system for reporting on contribute to the acquisition of good quality raw materials for the implementation of EPR, and to ensure equal treatment of all production and increase the producer’s competitive entrepreneurs by the system. Small and medium-sized advantages over other market players. enterprises are particularly noteworthy in the above system. For them – by comparison with large enterprises – adaptation to Analysis of the current EPR systems in operation leads to the new regulatory requirements constitutes a greater conclusion that there are a number of issues that both organisational and financial effort. It may turn out that it will producers and recyclers are facing. Given that the first element also be necessary to analyse the role of individual market in waste hierarchy management is waste prevention, it is participants, including recovery organisations, and reasonable to extend the definition of EPR beyond what is introduction of changes in the system financing. The tightness implied by current regulations. The producer should not only be of the system and its connection to the product, packaging and obliged to collect and manage waste, waste management database is also important, taking into account the experience with solutions currently in place. 11 Action Competent agency Schedule and regulations

5. Review of regulations concerning packaging, end-of-life vehicles, the minister competent for 2019–2020 used electrical and electronic equipment, tyres, batteries and environment in cooperation with the accumulators, as well as lubricating oils and lubricating preparations, minister competent for economy Act of 14 December and development of proposals for changes in the Polish regulations in 2012 on waste order to adapt them to the requirements of EU law and their orientation to stimulate the transfer to CE: The review aims to answer Act of 13 June 2013 the question to what extend the current regulations cover the entire life- on packaging and cycle of products and fit into the CE concept. The starting point will be the packaging waste definition of EPR which needs to be applied to each stage of the raw management material life-cycle. It is therefore necessary to evaluate and propose changes that go beyond waste management itself. Issues such as the Act of 20 January responsibility of individual entities implementing EPR, the recovery 2005 on the organisation scheme and financing should then be assessed. The analysis recycling of end-of- should also cover potential and already existing alternative systems for life vehicles collecting and managing particular types of waste. The analysis should result in a set of proposals for legislative changes, including in particular Act of 11 September the transposition of provisions of waste directives into the Polish law in 2015 on used such a way as to create a clear legal environment supported by efficient electrical and control mechanisms. electronic equipment Act of 24 April 2009 on batteries and accumulators Act of 11 May 2001 on the responsibilities of entrepreneurs in the field of certain waste management and product fee the minister competent for

6. Analysis of strengths, weaknesses, opportunities and threats in terms of control and reporting under EPR and development of environment in cooperation with the 2019–2021 proposals to eliminate irregularities in this area: EPR should not be minister competent for economy perceived as an unwanted obligation imposed on entrepreneurs, but one Act of 20 July 1991 of the tools that can increase their competitiveness, including in particular on the Inspectorate obtaining good quality raw materials. Therefore, it is necessary, inter alia, of Environmental to ensure that EPR-compliant activities are cost-effective. The proposal Protection based on this analysis will aim at eliminating irregularities and creating a friendly business environment. acts listed in Action 5

7. Information campaign on the benefits entrepreneur’s image from the minister competent for economy 2021–2022 applying EPR: Environmental protection actions are increasingly in cooperation with the minister associated not only with fulfilling regulatory obligations but they also competent for environment have a direct impact on the image of the entrepreneur. Some consumers also take into consideration the environmental impact of the product while making their purchase decisions. Therefore, the aim of this action is to strengthen the entrepreneurs' conviction that public relations activities related to environmental protection may lead to a competitive advantage in relation to other producers on the market. 12 3) Environmental life-cycle assessment Currently, there are several dozen ways of calculating the product transport and distribution processes, product use and environmental impact of products and several hundred types of waste management phase. environmental labels used worldwide. In this situation, it is difficult to clearly define what an environmentally friendly The European Commission's objective is to create a competitive product is and how one can compare individual products, taking economy in which environmental resources are used in an into account their environmental impact. At the same time, the efficient and sustainable way. One of the actions taken in this competitive position of a given product and the company’s respect is the pilot phase for the development of uniform position on the market may depend on the adopted method of methodologies for calculating the environmental footprint of calculating the environmental impact of their product. individual product groups and economic activities, which ended in April 2018 and was based on the LCA concept. In autumn LCA (life-cycle assessment) is one of the approaches to 2018, it became a two-year transition phase, during which the assessing the environmental impact of a product or business companies concerned will test methodologies and, on the basis activity. of these findings thereof, regulatory solutions will be discussed, which will include for instance: A product's LCA involves identifying and quantifying so-called > defining criteria for the selection of products and “inputs”. (raw materials, energy, water, etc.) and “outputs" services in public procurement, (product, waste, emissions, etc.) into and out of the product > designing instruments to support businesses and system and determining the environmental impact of these industries, “inputs” and “outputs” in defined categories (e.g. depletion of > differentiating tax rates. water resources, soil salinisation, land use and conversion, global warming, ozone depletion, acidification, eutrophication, Although there are no regulations covering the environmental ecotoxicity, ionising radiation, smog, etc.). impact of individual product categories and economic activities yet, it is necessary to start the preparatory process for their The product system consists of various stages of the life-cycle, future introduction now. i.e. extraction of raw materials, their processing and production of goods, 13 INPUTS LIFE-CYCLE OUTPUTS PRODUCT SYSTEM: FROM RAW MATERIAL TO WASTE RAW MATERIAL PRODUCT extraction of raw materials ENERGY CO-PRODUCT processing WATER distribution WASTE use EARTH EMISSIONS waste management OTHER OTHER INPUTS IMPACT CATEGORIES OUTPUTS on natural to the RAW MATERIAL PRODUCT resources: environment: • water depletion • global warming ENERGY • soil salinity • ozone depletion CO-PRODUCT • use and the • acidification transformation of • eutrophication WATER WASTE ground • ecotoxicity EARTH to the well-being of a EMISSIONS human: • ionizing radiation OTHER OTHER • smog Figure 4 Life-cycle Action Competent agency Schedule and regulations

8. Development of information and educational materials concerning the minister competent for economy 2019–2020 the calculation of the environmental impact of products and economic in cooperation with the minister activities based on the methodologies developed by the European competent for environment Commission, including PEFCRs – Product Environmental Footprint Category Rules and OEFSRs – Organisation Environmental Footprint Sector Rules. 14

2. SUSTAINABLE CONSUMPTION The habits and consumption patterns of the citizens of on environmental impact or determining the maximum economically developed countries are hardly sustainable. The usefulness of a product without harming the consumer and the experience of Western European countries shows that the environment. increase of society's wealth is followed by rapid consumption growth. This trend is also visible in Poland. For instance, Raising consumer awareness is also of great importance. according to the Central Statistical Office data, in the years Education on sustainable consumption should be provided at all 2000-2014 the real level of consumption expenditure more stages of formal, non-formal and informal education and than doubled. As households' income increases, so does the training, starting at the pre-school level. demand for food, for bigger residential space, new appliances, furniture, cleaning products, as well as for clothing, transport, An important action on the part of the consumer is proper and energy. As a result of the economic development in Poland, management of municipal waste, which – although it generating demand for a highly skilled workforce, the middle- constitutes a small percentage of waste generated in Poland – class is growing, which in turn results in increased consumption. directly contributes to the transfer to CE. According to the Central Statistical Office data, the increase in consumption in the first quarter of 2018 was about 5%. This chapter is divided into 3 subchapters: 1) Municipal waste; As the European Commission emphasises in its Communication 2) Food waste; Closing the loop – An EU action plan for the circular economy, 3) Education. consumer choices may support or hamper circular economy. Consumer behaviour is therefore crucial to the success of the transition to CE. Sustainable consumption means meeting basic human needs while minimising consumption of natural resources and reducing waste and emissions. Consumer-oriented actions in the transition to CE include ensuring the accessibility of repair and spare parts information, better enforcement of warranties, elimination of false claims 15 1) Municipal waste The management of municipal waste in Poland still constitutes a challenge. In 2013, an amendment to the policy covering this The levels of recycling of municipal waste, which deviate from waste flow was introduced, which delegated the management the maximum European levels, are a problem in Poland both of municipal waste to the municipalities. Thus, entrepreneurs from the environmental and economic perspective. The latter is have been deprived of an opportunity to compete for individual related to the insufficient supply of secondary raw materials for clients and obliged to participate in tender procedures for the needs of the national economy. The reform introduced a few municipal waste collection and management organised by years ago increased the levels of waste recovery, including municipal authorities. recycling. On the other hand, further systemic changes are required in order to meet very high levels of requirements in this Creation of an economy fully aligned with the CE approach will respect, resulting from the amendments to the directives on require increased efforts in the field of prevention and waste adopted in 2018. Therefore, it is necessary to analyse and management of the largest possible amount of municipal waste evaluate the existing system and propose changes therein. A by recycling. The latter requires selective collection of good reduction of the use of landfill by several dozen per cent could quality waste. The quality of municipal waste is evaluated in be one of the driving forces for economic growth in Poland, from particular on the basis of its cleanliness, meaning that it cannot the point of view of lowering demand for primary raw materials be polluted by other types of waste. and switch to more extensive use of secondary raw materials, in particular. In 2017, 11969 thousand tonnes of municipal waste were collected in Poland, 3199 thousand tonnes of which were The need for better management of municipal waste is also recycled, 848 thousand tonnes were composted, 2922 entailed by the requirements set out in the European thousand tonnes were thermally transformed, and 5000 regulations. The amendment to the Directive on packaging and thousand tonnes were landfilled. The diagram below shows that packaging waste adopted in 2018 provides for a significant too much waste is still being landfilled and the raw materials increase in the recycling rates for packaging waste (which has a contained therein are thus wasted. significant share in municipal waste), including an increase up to 50% for plastic waste, 70% for glass and 75% for paper in 2025 and an increase up to 55% for plastic waste, 75% for glass and 85% for paper in 2030. At the same time, the opportunities for landfilling municipal waste will be significantly reduced – to 10% in 2035. Composting 7% Figure 5 Municipal waste management in Poland in 2017 in thousand tonnes Thermal conversion 24% Landfilling 42% Recycling 27% Source: “Environmental Protection 2018” (Central Statistical Office) 16 Action Competent agency Schedule and regulations

9. Monitoring the effectiveness and efficiency of the current the minister competent for 2021–2022 regulations and developing recommendations for adapting and environment amending national regulations on municipal waste: An analysis of the Act of 13 September effectiveness of the current system of municipal waste collection and 1996 on maintaining management will be conducted, taking into account, in particular, the cleanliness and order demand for raw materials crucial for the Polish economy, as well as in municipalities barriers to the collection and management of municipal waste. The outcomes of the analysis will be proposals for regulations necessary to make the CE concept of municipal waste a reality.

10. Preparation of proposals for regulations concerning hazardous the minister competent for 2019–2021 waste: A proposal for legislative changes will be prepared in order to environment introduce separate collection of hazardous waste generated in Act of 14 December households, which is not covered by the existing collection system. 2012 on waste Act of 13 September 1996 on maintaining cleanliness and order in municipalities the minister competent for 2020–2021

11. Identification of all municipal waste flows, including post- consumed waste, which so far have been unrecorded and which are of environment great importance for the economy and achievement of recovery and recycling targets in waste management. A significant part of municipal waste already undergoes processes of preparation for reuse or recycling without being included in official records (e.g. kitchen and garden waste managed in household composters). Identifying all flows will also make it easier for the waste industry, including recyclers, to reach new materials that can be recycled. 2) Food waste According to international estimates, over 9 million tonnes of Although there is no current data as to what extent consumers, food are wasted annually in Poland.2 Food is wasted at the stage producers and distributors are currently responsible for food of production, distribution and consumption. Nearly 6.6 million waste in Poland, since September 2018 a PROM project tons of food waste are generated in the production processes, (Development of a system for monitoring wasted food and an over 2 million tonnes are generated in households, while the effective programme to rationalise losses and reduce food amount of food waste from other sources is 0.35 million tonnes. waste) has been implemented, and financed under the Based on the above data from 2006, Poland ranks fifth among GOSPOSTRATEG programme by the National Centre for countries responsible for wasting most food in the EU – after the Research and Development (NCRD). United Kingdom, Germany, France and the Netherlands. It is worth emphasizing, however, that in Western countries the Taking into account European trends, particular attention scale of food waste is greater among consumers, while in Poland should be devoted to consumers now. Losses of food at the the Eurostat data points to the food industry as the main source consumption stage most often result from difficulties in of food waste. determining the demand, incorrect planning of purchases and meals and inept storage. Selective collection of food waste and its management in appropriate installations is an important 2 Based on the 2010 document commissioned by the European element of waste management, especially taking into account Commission – Preparatory Study on food waste across EU 27 the fact that in Poland 39% of respondents admit to throwing food away. On the other hand, the most frequently mentioned reason for wasting food is exceeding of shelf-life. 17 Action Competent agency Schedule and regulations

12. An information campaign to raise awareness among consumers and the minister competent for 2020–2021 producers on how to prevent food waste: An educational campaign will agriculture, the minister competent be launched to raise awareness among consumers and food industry for rural development and the representatives about food waste, i.e. by promoting the notion of planning minister competent for agricultural purchases in advance, processing food to extend its durability, storing markets in cooperation with the products in appropriate conditions and sharing unnecessary food with minister competent for environment, people in need. the minister competent for health and the minister competent for education and upbringing

13. Developing the concept of distribution mechanisms and the minister competent for economy 2020–2021 appropriate handling of products approaching their date of minimum in cooperation with the minister durability: Many of the products collected (e.g. by charities) cannot be competent for agriculture, the Act given out to people in need because of the restrictive rules on dates of minister competent for rural on food waste minimum durability – under certain conditions, it leads to waste of food development, the minister competent prevention that is still fit for consumption. for agricultural markets, the minister (new) competent for health, the minister competent for environmental issues and the Chancellery of the Prime Minister

14. Developing the concept of a system of incentives and obligations the minister competent for economy 2019–2020 for entrepreneurs to prevent food waste: Taking into account the in cooperation with the minister economic, environmental and social dimension of actions taken to reduce competent for agriculture, the Act food waste, it is desirable to introduce mechanisms that will make minister competent for rural on food waste enterprises engage more actively with charities involved in providing food development, the minister competent prevention to people in need. for agricultural markets, the minister (new) competent for social security and the minister competent for public finance

15. Conducting periodical statistical research on the scale, structure the minister competent for from 2021 and directions of processes related to food waste in Poland: Despite agriculture, the minister competent estimates made by various organisations (both public and private), the for rural development and the causes and scale of food waste in Poland are still not fully known. minister competent for agricultural Therefore, periodic surveys based on a uniform methodology should be markets in cooperation with the introduced into public statistics to monitor this phenomenon in Poland. minister competent for the economy, the minister competent for the environment and the Central Statistical Office 3) Education Environmental education is key to the success of transfer to CE. of their rights to access product and manufacturer information. At the same time, however, studies on sustainable consumption indicate that the knowledge of consumer behaviour of Poles is In the age of "lifelong learning", educational activities should be still low. Consumers are generally unconvinced about their real diverse and aimed at all social and age groups. Awareness- impact on the environment in which they live, and consequently raising of future consumers should start as early as at the level on the quality of life of present and future generations. Price is of primary and general education. It is important that this still the decisive criterion while making purchase decisions. knowledge is practical and reflects market trends. Moreover, it Environmental awareness studies indicate that although Poles is necessary to launch social campaigns in order to disseminate are aware of the risks resulting from excessive use of resources, practical knowledge on sustainable consumption among adults. they do not know of any practical ways to prevent this. Changing mindsets and consumer habits will ultimately put pressure on producers. In this context, there is a strong need for education oriented towards changing consumer behaviours by raising their environmental awareness and increasing their knowledge 18 Action Competent agency Schedule and regulations

16. Developing the concept of a government information platform on the minister competent for the 2020–2021 CE: The platform will enable the exchange of information between the economy in cooperation with the government administration, business and local governments. The minister competent for platform should contain CE guidelines, information about incentives for computerisation entrepreneurs and current support programmes, as well as educational brochures. the minister competent for 2021–2022

17. Social campaign on sustainable consumption patterns: The aim of the campaign is to popularise sustainable consumption patterns (for environment example, sharing, waste management, food storage, purchasing functions instead of ownership of products, etc.) among all groups of the society. 19

3. BIOECONOMY Closed-loop economy i.e. a biological cycle in the economy, is in 2017 the area of agricultural land in Poland amounted to one of the two pillars of CE, alongside the technological cycle. 14620 thousand ha (i.e. ca. 47% of the size of the country), The biological cycle in CE is related to the management of which translates into a significant potential for the renewable resources – the so-called biomass – throughout its development of bioeconomy based on this source of biomass. life cycle. This includes their processing, production of goods Another source of biomass is forest management, including the (e.g. food, feed, bioenergy), sale of goods, the use phase and production of wood. Forests also perform natural and bio-waste management. The bioeconomy is the basis for the recreational functions and contribute to the protection of air, functioning of the first sector of the economy, which consists of water and soil. Another source of biomass is fisheries, and bio- agriculture, forestry and fisheries, as well as many branches of waste generated in all areas mentioned above, i.e. the second sector, including industries such as biodegradable substances of animal and plant origin. food, fodder, forest and wood, pulp and paper, pharmaceuticals, textiles, furniture, construction, Currently, apart from food production, biomass is most often biotechnology, cosmetics, fuel and organic recycling. used for energy purposes in Poland - mainly for direct combustion and, to a relatively small extent, for the production Bioeconomy presupposes the management of renewable of liquid fuels. The combustion of biomass suitable for other resources in an optimal, responsible and sustainable way. This uses does not fit in with the idea of CE, according to which it is means that these resources should be used in the most crucial that biomass be kept in the economic cycle for as long as economically and environmentally beneficial way, taking into possible and that its value be maximised. account the principle that food is the most important product. In addition, they should be managed in such a way as to ensure The CE Road Map focuses, on the one hand, on general actions that resources, including soil, surface water and air, are fully aimed at creating conditions for the development of recoverable. bioeconomy in Poland and, on the other hand, on activities concerning the development of bioeconomy in selected areas, One of the primary sources of biomass is agricultural i.e. creating local value chains, in industry in general, and in the production, which is used first for food, then industrial purposes power industry in particular. and ultimately for energy. According to the Central Statistical Office data, AGRICULTURE FISHERIES FORESTRY BIO-WASTE Figure 6 Biomass sources 20 The development of bioeconomy contributes to the reduction of the minister competent for environment – responsible for pressure on the natural environment, inter alia by reducing the forestry and waste, the minister competent for agriculture, rural demand for non-renewable raw materials, limiting soil development and agricultural markets – responsible for degradation and surface water pollution with biogenic elements agricultural biomass and its use in value chains, the minister (eutrophication), as well as reducing greenhouse gas emissions, competent for economy – shaping industrial policy, and the in particular CO2 and methane. The development of minister competent for higher education and science – setting bioeconomy also contributes to creating new jobs, in rural areas the directions of personnel training and financing of research in in particular. the area of bioeconomy. Such a silo approach makes it difficult to coordinate and create a sustainable framework for bioeconomy, which in the light of current challenges related to access to non-renewable resources has high priority in the 1) Key actions in the area of creating conditions for policies of many countries. the development of bioeconomy Creating favourable conditions for biomass use requires a Due to the cross-sectional and intersectoral nature of coherent approach not only at the central but also at regional bioeconomy, there is no single ministry in Poland responsible level. Since biomass is managed locally, the types of available for shaping this framework and defining its development biomass in the given region should determine the directions of directions at the central level. Particular aspects of renewable its management. resources management fall in particular within the competence of: Action Competent agency Schedule and regulations

18. Establishing a permanent team of department directors at the minister competent for economy 2019–2020 government agencies responsible for individual areas of bioeconomy in cooperation with the minister and appointing a coordinator in charge of defining the development competent for agriculture, the directions for bioeconomy, supervising the implementation of tasks in minister competent for rural individual areas and improving the flow of information between these development and the minister agencies: The initially identified areas of activity of the team should cover: competent for agricultural markets, biomass for energy, food, soil, waste, forestry, greenhouse gases, water the minister competent for resources, industry, innovation, science. The first outcome of the team's environment, the minister competent work should be a report defining the institutional framework for the for higher education and science, the implementation of bioeconomy actions. minister competent for energy, the minister competent for fisheries and the minister competent for water management

19. Review of existing regulations and development of uniform the minister competent for 2021–2022 requirements/standards for biomass: The aim of this action is to identify, environment in cooperation with the analyse and compare biomass regulations in different legislative acts, in minister competent for economy, the Act of particular its definition and scope. The action also aims to propose minister competent for energy, the 20 February 2015 amendments to existing regulations that will contribute to the definition minister competent for agriculture, on renewable energy and standardisation of requirements for biological raw materials and, the minister competent for rural sources consequently, to increase their usability. This should contribute to development and the minister innovation and production in bioeconomy. competent for agricultural markets Act of 14 December 2012 on waste

20. Analysis of biomass supply potential at the national and regional the minister competent for 2021–2022 level, preceded by the development of an appropriate methodology: agriculture, the minister competent The aim of the action is to quantify how much biomass from different for rural development and the sources (agriculture, forestry, fisheries, bio-waste) is potentially available minister competent for agricultural in Poland. markets in cooperation with the minister competent for environment and the minister competent for fisheries

21. Identification of research, development and innovation (R&D&I) the minister competent for higher 2021–2022 priorities for the development of bioeconomy in Poland: A education and science in cooperation comprehensive analysis of R&D&I areas important for the development of with the minister competent for bioeconomy will be carried out in order to identify the priorities that can economy and the minister competent be included in the support instruments. for agriculture, the minister competent for rural development and the minister competent for agricultural markets 21 2) Actions in the field of building local value chains and raw material base comparable in some aspects to oil refining, may become a way The production of innovative materials and products within to bring out the potential of biomass in Poland. An example of bioeconomy requires a continuous supply of quality biomass. bio-refining is the method of enzymatic production of second- Therefore, it is important to build local value chains in the areas generation biofuels made from wood waste and waste around local biorefineries, which will be able to produce high lignocellulosic biomass of agricultural origin. It is important to quality bio-residue material in the quantities consistent with note that bio-refining does not compete with food production, entrepreneurs’ needs. In this context, bioeconomy is a great which the usual objection made against biofuel production. opportunity for the development of local communities in rural municipalities. Cooperation between individual entities within Measures to secure the required raw material base, which the value chains may contribute to the creation of new, depends among other things on soil resources, are also crucial. In financially attractive jobs. this context, it is important to ensure high availability and quality Biorefining, which involves the use of thermal, biological and of soils (for example, through rational use of mineral and organic enzymatic conversion technologies to process biomass, and is fertilisers, plant protection products, etc.). Action Competent agency Schedule and regulations

22. Identifying local value chains: On the basis of knowledge of biomass the minister competent for economy supply, demand and potential outlets for agricultural products made from in cooperation with the minister 2011–2022 biomass, several key local value chains with the greatest potential for competent for agriculture, the development will be identified. minister competent for rural development and the minister competent for agricultural markets 2021–2023

23. Feasibility study on the creation and development of local the minister competent for economy biorefineries: As regards identified of local value chains, the technical and in cooperation with the minister economic potential for the creation and development of biorefineries will competent for energy be analysed, allowing for the production of new products from biomass or the integration of multiple value chains in one industrial plant in order to maximise the potential of the available biomass resources and achievement of maximum profitability on the project.

24. Information campaign aimed at educating farmers and targeting the minister competent for 2020–2021 their activities on CE agriculture, the minister competent for rural development and the minister competent for agricultural markets 22 3) Actions in the field of energy Biomass is currently one of the most popular renewable energy It is also necessary to ensure that biomass is used as close as sources in Poland. However, reasonable management of possible to the place of production, in small local dispersed biomass should be cascading, based primarily on its use for food energy facilities, thus reducing emissions associated with its production and as a raw material for the chemical, transport. There is a need to develop domestic production of pharmaceutical, paper and building materials industries as well advanced biofuels for transport purposes, i.e. biofuels produced as for the production of organic fertilisers. If possible, waste from raw material which does not compete directly with food from these industries should be recycled. Only residual biomass and fodder crops (lignocellulosic biomass resources, residues and waste from the final stages of recycling should be used for and waste as well as other non-agricultural biomass, including energy purposes, with priority given to the production of microorganisms). biofuels and biogas. Technologies for the direct combustion of biomass residues should be reduced to the minimum necessary Increasing the level of biomass utilisation will contribute to to transform them further into more advanced biofuels, which employment growth in agricultural areas. It will also enable the will provide a viable alternative to fossil fuels and complement implementation of objectives set out in Directive 2009/28/EC other RES sources in the energy mix. of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (OJ L 140, 5.6.2009, p. 16, as amended). Action Competent Schedule and agency regulations Competent agency

25. Information campaign on the principle of cascading use the minister competent for 2020–2021 of biomass: A campaign will be launched to raise awareness of agriculture, the minister the need to reuse biomass in production cycles and to produce competent for rural fuels and energy from residual biomass for which, from an development and the minister economic and environmental point of view, other applications competent for agricultural are not optimal, and of good bio-waste resource and energy markets in cooperation with recovery practices. the minister competent for environment, the minister competent for energy and the minister competent for water management

26. Analysis of barriers to the use of advanced biofuels in the minister competent for 2023 transport: Technical and non-technical barriers to the energy in cooperation with the development of domestic production and use of advanced minister competent for biofuels will be analysed in line with strategic transport transport objectives (Directive 2009/28/EC and the development of low- emission transport) and taking into account the specific time horizon in which the internal combustion engine will no longer be used as a vehicle propulsion system. 4) Activities in the area of industry The use of biomass in industry is inextricably linked to to create knowledge, goods and services. biotechnology, listed by the European Commission as one of the key technologies for the further economic development of The use of biotechnology allows not only for creation of new Europe. products, but also replacement of non-renewable (fossil) raw materials, including both energy and non-energy raw materials, Biotechnology is an interdisciplinary field of science and with renewable raw materials (biomass) in the production of technology dealing with the change of living and non-living already existing goods. matter through the use of living organisms, their parts or products as well as models of biological processes 23 Biodegradability and easy recirculation of unpolluted biomass renewable biological raw materials for cosmetics. New enables using it as a raw material in industry in a way that companies, usually small businesses producing locally facilitates reduction of harmful emissions to the environment detergents and cosmetics, for example soaps, fragrance oils or during the whole life cycle of the raw material. Industrial creams, are established in this sector. On the other hand, the biotechnology is also cheaper than processes based on chemical pulp and paper industry uses wood biomass to produce paper. synthesis. Many universities in Poland offer specialisation courses in this field of bioeconomy and industrial biotechnology, but Bioeconomy can provide a strong stimulus for increasing the graduates of these faculties have difficulties in finding jobs in innovation and competitiveness of entire industries. For this field domestically. example, in the pharmaceutical industry, it can contribute to developing biopharmaceuticals with high added value, To support the development of the bioeconomy in the industrial reducing the invasiveness of medical procedures, and sector, the principle of the cascading use of biomass is improving waste recycling. However, the use of biomass by important, favouring the use of higher value-added industry in Poland is still not widespread. For example, in the technologies that allow the reuse and recycling of products and chemical industry – one of the key branches of the processing raw materials, and promoting the use of biomass for energy industry in Poland – bioeconomy has not been applied on a large purposes only when other uses are exhausted. The priorities are scale. Although it should be noted that at present, optically to focus material use before energy use, which is motivated by active amino acids, carboxylic acids, alcohols, special purpose the irreversible loss of raw materials in combustion and energy biopolymers (e.g. bacterial nanocellulose), vitamins and production in combination with 'parallel products', such as antibiotics are obtained using bio-processes. In addition, more compost, instead of energy production itself. and more cosmetic companies are using Action Competent agency Schedule

27. Information campaign on biomass products: The aim of the action the minister competent for 2020–2021 is to stimulate demand by making consumers aware that products made economy in cooperation with the from biomass can be of the same or better quality as those made from minister competent for agriculture, non-renewable raw materials, while being environmentally friendly. the minister competent for rural development and the minister competent for agricultural markets

28. Drawing up norms and standards for particular categories of the minister competent for 2019–2023 products made from biomass: Standardisation activities should economy in cooperation with the contribute to consumer confidence in products made from biomass, minister competent for agriculture, including compost and other organic fertilisers. the minister competent for rural development and the minister competent for agricultural markets

29. Developing a concept for an information platform on current the minister competent for 2021–2023 quantity, quality, place and source (agriculture, forestry, fisheries, agriculture, the minister competent bio-waste) of biomass: This action aims to create a tool for for rural development and the entrepreneurs interested in obtaining biomass with certain parameters minister competent for agricultural (quality and source), in certain quantities and in certain areas. Due to markets in cooperation with the environmental issues, it is not feasible to transport biomass over long minister competent for distances. Suppliers and recipients of biomaterials should come from the computerisation, the minister same region. competent for environment and the minister competent for fisheries and the Central Statistical Office

30. Establishment of a working group with entrepreneurs to develop the the minister competent for economy 2019–2020 concept and creation of a cluster for bio-economic development in the B2B model, taking into account intersectoral and trans-regional policies. 24

4. NEW BUSINESS MODELS The transfer to CE requires reorganisation of the functioning to deliver measurable value to the customer. According to the model of practically all market participants, including canvas below, the business model of the company consists of entrepreneurs, public institutions and consumers. the following elements: key partners/suppliers, key actions, key resources, customer relations, distribution channels, customer Traditionally, the business model refers to an enterprise and is segmentation, costs and revenues. defined as the sum of resources and activities that the enterprise organises and performs in order Key Key Value Customer Segmentation Figure 7 Business model actions Partners propositions relations of clients canvas according to A. Osterwalder Key Distribution channels resources Costs Revenue In addition to enterprises, other actors operating on The CE Road Map refers mostly to business models of mesoeconomic scale (e.g. cities and municipalities) and companies, understood as the sum of resources and actions macroeconomic scale (e.g. States) have specific business that simultaneously serve to provide value to the customer models. For example, designing a public transport system in a and “close the loop.” city requires a certain business model. the CE business model of an enterprise delivering value to the customer working towards “closing the loop” 25 The novelty of the business models, which is to enable the 3D printing), popularising new business models in transfer to CE, involves both introducing innovations into the transport (e.g. electric vehicles, autonomous vehicles, elements included in the business model template presented multimodal transport, hyperloop technologies), new above, and adding new elements to this template. products and services and substitutes for non- renewable raw materials. For example, a new factor which is not explicitly included in the traditional approach and which plays a special role in CE is For example, with regard to key partners/suppliers, it is reverse logistics. In the B2C (business to consumer) approach, it important from the CE perspective that, when purchasing raw means ensuring the flow of waste generated from the consumer materials and semi-finished products, companies assess them to the producer for proper management. Reverse logistics may in terms of their potential use according to the CE concept. This concern many products, from beverage bottles through means, for example, that the constituent raw materials and household goods to industrial machinery. The effectiveness of semi-finished products should enable the product to be reverse logistics in practice depends not only on the actions of designed in such a way that it can be dismantled in a entrepreneurs, but also largely on the involvement and technologically accessible and financially viable way and then awareness of consumers. the waste can be optimally managed. The global nature of supply chains is both an opportunity to choose suppliers whose Cooperation, not only between consumers and producers, but business strategy fits the idea of CE best and a threat due to the also among producers themselves and among entrepreneurs, considerable length of supply chains, and thus the amount of scientists and the public sector, is a new element of business waste and emissions generated by them. models that is key to the success of the transition to CE. With regard to providing value to customers, in the context of There is a great potential for cooperation between transition to CE, the dilemma between extending product life (in entrepreneurs operating in the same or similar industries as well line with the CE concept) and the desire to continuously as in different industries. Within the same industry or at the increase sales and profit for the enterprise (according to borderline of different industries, cooperation in clusters is a traditional business logic) becomes apparent. At first glance, it great opportunity. This may include: sharing production tools may seem that extending the life of products is not in the (e.g. large machines), whose volume of wear is low, or joint interest of entrepreneurs, because it causes a decrease in sales research and development activities for increasing process volumes and thus may result in a decrease in the enterprise’s innovation (including increasing production efficiency), product income. In fact, however, it may be beneficial due to the and organisational innovation. Furthermore, cooperation may innovative approach of enterprises, in which the function of the also benefit market participants from different industries, for product is sold rather than ownership. For instance, it is possible example under the process industrial symbiosis, in accordance to use a model where the consumer buys a number of with the principle "your waste is my raw material”. In turn, the kilometres instead of tyres or hours of lighting instead of a light development of innovative technologies often requires the bulb, while at the same time the entrepreneur remains the involvement of representatives of the scientific world, as well as owner of the product and is responsible for ensuring the financial support from public funds. functionality of the product throughout its lifetime and, as a result, they have the incentive to extend the life of the product. Within the elements included in the above business model template, according to the Ellen MacArthur Foundation’s The product as a service model (PaaS model), instead of selling ReSOLVE classification used by the European Commission, the ownership, can also be used in transport, in particular as part of following actions can be distinguished to enable the transition automation and robotisation processes as well as in conjunction to CE: with the idea of sharing. Nowadays, passenger cars are usually > regenerate: use of renewable energy and raw materials used by only one person or family who own them. Studies show in production processes, preservation and restoration that, as a result, the car is parked for about 94% of the time of ecosystems, return of recovered biological during the day, which is a sign of waste. Once the idea of car- resources to the biosphere, sharing is implemented, cars (including self-driving cars) may > share: sharing real estate (e.g. premises) and movables be the key to solving this problem. According to the CE (e.g. cars), prolonging the life of products by proper approach, cars offered as part of a sharing service could be on design and use, reuse of products, the move most of the time, picking up and carrying passengers to specific destinations. This would result in a relatively high > optimise: increasing the efficiency of production intensity rate of use of such vehicles, limited production of new processes, minimising waste, using large data sets and cars (which would lead to saving natural resources, including in automation, particular non-renewable fossil resources that are used in > closing the loop: by recycling, component reuse, production processes) and less urban traffic, which in turn recovery of biochemical components from bio-waste, would contribute to reducing emissions. > virtualise: indirect (for example, online shopping) and direct (for example, non-material books and records), With regard to sharing business models, the major challenge is > exchange: including the use of new technologies (e.g. to ensure their sustainability. It can be seen that, for example, 26 a short-term rental of vacant residential space or short- their roots in local communities, these entities provide services distance car transport systems were launched as initiatives (e.g. municipal waste management, goods sharing, running well suited to the idea of CE, since they involved optimising the food cooperatives) tailored to the needs of these communities, use of private goods by making full use of vacant space, but at while at the same time contributing to raising their awareness, present they are increasingly different and resemble classical as well as the social and professional reintegration of people at economic activities. However, it might be possible that risk of social exclusion and creation of new jobs on the local business models of sharing can be permanently integrated into market. Thus, in accordance with the concept of sustainability, the concept of CE. One such positive example is the car-sharing they contribute to the simultaneous achievement of economic, system for intercity travel. environmental and social objectives. The involvement of social and solidarity economy actors, for In order to create the right conditions for the development of example social cooperatives, associations, foundations, can be CE business models, the following actions are suggested: the source for new solutions and business models. Thanks to Action Competent agency Schedule and regulations

31. Analysis of the possibility of amending the tax system, which the minister competent for public 2019–2021 would allow for the increase of competitiveness of enterprises finance in cooperation with the operating on the basis of CE business models: The analysis should minister competent for Act of 11 March result in regulatory change proposals, which would create incentives for environment and the minister 2004 on tax on goods and economic activities such as: recovery of key raw materials, product competent for economy services reuse, repair services, sharing (movables, real estate, production tools, transport), rental, product quality improvement. Act of 15 February 1992 on corporate income tax

32. Developing a proposal for a legislation on shared property and shared use of real estate and movables, in particular short-term the minister competent for 2020–2022 rental of vacant residential space and passenger transport. economy in cooperation with the minister competent for public finance

33. Analysis of the opportunities for introducing reporting and the minister competent for 2021–2022 control reliefs for entities applying environmental standards (e.g. EU environment Eco-label, EMAS, ISO etc.) and for entities registered in the Polish Act of 11 March 2004 Register of Cleaner Production and Responsible Entrepreneurship. on tax on goods and services 27

34. Developing proposals of amendments to public procurement law, 2019–2021 the minister competent for economy which would generate demand for products and services produced within the CE business models. Act of 29 January 2004 – Public procurement law

35. Developing a concept of a support ecosystem for enterprises the minister competent for economy 2020–2021 based on CE business models, including financing, education and promotion at the development and commercialisation phase of green technologies (the GreenInn project).

36. Developing guidelines for increasing the role of CE in economic the minister competent for economy 2020–2021 clusters in the field of circulation of raw materials and waste from in cooperation with the minister competent for environment and the particular industry sectors, including the processing industry: The Inspectorate of Environmental creation and cooperation of clusters should be even more CE-oriented. Protection The analysis of the waste management options will be carried out by individual sectors of the economy, in particular taking into account the intersectoral potential and the creation of economic clusters.

37. Creation of a CAD (Connected Automated Driving) Contact Point the minister competent for 2019–2021 in the field of automation of road transport to provide substantive transport support for the effective functioning and competitiveness of the national automotive market (including car parts and ICT market) and to activate society with the aim of promoting and developing the ways of operation of autonomous systems to improve mobility, shorten the route to destination and travel time, and developing the idea of automated car- sharing.

38. Developing a concept for the creation of a nationwide multi- the minister competent for economy 2022-2023 industry Internet platform that would enable lending products and sharing products with low usage frequency.

39. Establishment of the National Intelligent Specialisation for CE the minister competent for economy 2019 focused on the development of R&D&I in the area of technologies related to CE (especially in the area of water, non-renewable raw materials and waste) in cooperation with entrepreneurs, scientists and public institutions.

40. Developing a system of incentives for universities to introduce the minister competent for higher 2019–2021 research programmes and curricula concerning CE, e.g. subsidies for education and science scientific research, support for subsidizing laboratories/design studios, support for subsidizing the activity of academic associations, competitions for engineering and master's theses on CE. 28

5. IMPLEMENTATION, MONITORING AND FINANCING OF CE 1) Implementation of CE The implementation of individual actions provided in the CE of the implementation of CE in the Polish government Road Map will be carried out by the entities indicated in the administration will analyse the progress of implementation of tables of actions, including in particular the ministers the CE Road Map, on the basis of reports from individual responsible for individual sectors of the economy. The ministries responsible for particular actions in particular. minister competent for economy – as the minister in charge of coordination 2) Monitoring of CE Monitoring of CE is a major challenge due to the complexity of Therefore, within the framework of the CE Road Map, a separate the CE concept itself, which includes policies covering multiple action has been identified to develop a conceptual approach to areas and the interdependence between them, and due to the monitoring CE in Poland. multidimensional impact of the transition to CE on the socio- economic development of the country. Action Competent agency Schedule

41. Implementation of the “oto-GOZ” [“this-is-CE”] project (the the minister competent for economy 2019–2021 Gospostrateg programme): The aim of the “oto-GOZ” project is to develop two methodologies which would allow for evaluation of 1) the progress of transformation towards CE in Poland and 2) the impact of CE on social and economic development at the mesoeconomic (regional) and macroeconomic (national) levels. 29 3) Financing of CE The CE Road Map has not been assigned a separate framework the Common Agricultural Policy. CE will be reflected in for financing since the document identifies actions to be taken particular in investments and actions aimed at innovation, only by the government administration in order to create research and development. Financial support for CE-related appropriate general framework for the transfer to CE in Poland. actions should also be reflected in the funds currently The actions proposed in the CE Road Map concern mainly included in the HORIZON 2020 programme. analytical, conceptual, informational, promotional and coordination tasks in the areas within the competence of The implementation of CE can also be financed from other individual ministries. sources of public sector funding, such as environmental fees. In the future, if such legislative changes are introduced to the The concept of CE is firmly established in the country's waste management system, financing can be provided from strategic documents, including the SDR, the draft the deposit systems within the environmental protection Productivity Strategy and the draft State Environmental system. Policy. As the basis of the country's development policy, these documents are, and will continue to be in the future, The implementation of CE will require commitment of the a reference point for the direction of the support system in staff with regard to the ministries responsible for various the area of CE, including in particular the Cohesion Policy and actions included in this CE Road Map. 30 (CIRCULAR ECONOMY) 31