A Circular Economy in the Netherlands by 2050

1.1 Changes in a broad sense 6 1.2 Unifying theme in policy 6

1.3 International context 6

1.4 Structure 7 2 Raw material use: the great challenge of the 21st century 9

2.1 Necessity 9

2.2 Economic opportunities 10 3 Changing course 13

3.1 Vision 13

3.2 Strategic goals 13 3.3 Generic Policy (for change): removing obstacles 17

3.4 Cooperation 18 3.5 Specific policy (for change): approach for each sector or value chain 21

3.6 Direction and monitoring 22 4 Interventions 23 4.1 Fostering legislation and regulations 23

4.2 Intelligent market incentives 27

4.3 Financing 30

4.4 Knowledge and Innovation 31

4.5 International Cooperation 36 5 Priorities 43

5.1 Biomass and food 43

5.2 Plastics 49

5.3 The manufacturing industry 53

5.4 Construction sector 58

5.5 Consumer goods 63 Government-wide Programme for a Circular Economy | 3 4 | A Circular Economy in the Netherlands by 2050 A Circular Economy in the Netherlands by 2050 The Government-wide programme for a Circular Economy is Through the Government-wide programme, the Cabinet is aimed at developing a circular economy in the Netherlands implementing the Çegerek/Dijkstra motion that requested by 2050. The ambition of the Cabinet is to realise, together the Cabinet to come up with an overarching programme for with a variety of stakeholders, an (interim) objective of a the circular economy.2 We are meeting this request, as well 50% reduction in the use of primary raw materials as various other motions and promises (see Appendix 1), (minerals, fossil and metals) by 2030. With this objective for with this programme. It is also our response to the recently the use of raw materials, the Netherlands sets its ambitions adopted advisory report of the Social and Economic Council at a level adopted in comparable countries.1 of the Netherlands (SER)3 and the advisory report by the Council for the Environment and Infrastructure (Rli).4 The Cabinet wants to outline a vision of a future-proof, sustainable economy for us and for future generations. In In developing this programme, we have benefited from the concrete terms, this means that by 2050 raw materials will knowledge, insights and suggestions of a range of different be used and reused efficiently without any harmful emissions parties from society. To accelerate the transition to a fully- into the environment. In case new raw materials are needed, fledged circular economy, the efforts of all parties involved they will be obtained in a sustainable manner and further are needed and will remain so throughout the entire damage to social and physical living environments and process. After all, each party – ranging from local govern­ public health will be prevented. Products and materials will ments to social partners and citizens – has unique inter­ be designed in such a way that they can be reused with ventions to offer. The Cabinet will use this programme as a minimum loss of value and without harmful emissions the starting point for further cooperation. The Government- entering the environment. wide programme presents the commitment of this Cabinet for the steps to take from now to 2020. This programme contains the current steps and sets a course for the subsequent steps to be taken on the way to 2050. With this programme, the Cabinet takes responsibility for setting actions in motion that are aimed at achieving this goal. In addition to its role as market regulator and network partner, the Cabinet wants to promote the transition to a circular economy with its eye on promising prospects and a system approach. Special emphasis will be placed on organising the course to be taken, on management and on The Minister for the Environment The Minister of Economic Affairs everyone’s responsibilities. Sharon A.M. Dijksma H.G.J. Kamp 2 Parliamentary documents II, 34 300 XII no. 27 3 SER, Werken aan een circulaire economie: geen tijd te verliezen [Working towards a circular economy: no time to lose], 2016 1 European Environmental Agency: More from less – material resource 4 RLI, Circulaire economie: van wens naar uitvoering [Circular economy: efficiency in Europe, 2016 from aim to implementation], 2015 Government-wide Programme for a Circular Economy | 5 1 Promising prospects

1.1 Changes in a broad sense example, the elaborations of the Biomass Vision for 2030 (Visie Biomassa 2030)7 and the Raw Materials Memorandum The circular economy provides an answer to the great (Grondstoffennotitie)8 have been incorporated into this challenge of the 21st century, which is to utilise raw materials programme. The programme builds on the green growth with much greater efficiency. In order to continue feeding programmes From Waste to Resources (Van Afval Naar humanity, provide it with the necessary goods and to Grondstof - VANG), which is aimed at using raw materials in guarantee people a decent existence, a fundamental change a more sustainable manner, and Biobased Economy, which in how we use raw materials is necessary. We are talking is focused on the transition from fossil-based raw materials about an economy that provides for people’s needs without to biomass as a raw material. The goals and ongoing actions placing an unacceptable burden on the environment and of these programmes are reflected in the document at hand. without exhausting natural resources. This challenge will The programme also ties in with the policy to foster a healthy require the introduction of changes in a broad sense. and safe living environment. In addition to creating Technological, social and system innovations will have to be interconnectivity in the current policy, the programme implemented. comprises proposals to accelerate the necessary transition to a circular economy. The programme furthermore expands This transition presents economic opportunities to the the approach into areas such as food, construction, finances, Netherlands. It will make the Netherlands less dependent education, and the labour market. Finally, the programme on the import of scarce raw materials and will contribute to indicates what must happen at different scale levels – a cleaner environment.5 In a circular economy, we will treat internationally, nationally, as well as regionally and locally. products, materials and resources within the earth’s capacity to provide them and in an efficient and socially responsible manner so that future generations can retain 1.3 International context access to material prosperity.6 Many parties in society are already making a contribution to achieving a circular The transition to a circular economy is an international economy and are asking the government to do its part. challenge. According to the UN, the increasing consumption They recognise that, by being careful about our raw brought on by the rapid growth of the middle class world­ materials, we will be able to continue to live, work and wide means that, in the last four decades, the amount of recreate in the future, both here and in other parts of the raw materials that humans have extracted from the earth world, in a healthy and clean environment with a strong has tripled.9 economy. At the European level, the European Commission set out an action plan and a package of legislative proposals on 1.2 Unifying theme in policy 2 December 2015 to move from “waste” to “raw material” and to push the circular economy forward.10 As President The ambition of the Cabinet and the wishes of the House of of the European Council, the Netherlands has placed the Representatives are developed in this Government-wide action plan and the package of legislation on the agenda of programme for a Circular Economy. The programme, streamlines and coordinates current policy paths. For 7 Parliamentary documents II, 33 043, no. 63 8 Parliamentary documents II, 32 852, no. 1 5 PBL, Waarom een circulaire economie? [Why a circular economy?] 9 UNEP IRP, 2017: Global material flows http://themasites.pbl.nl/circulaire-economie 2016 10 European Commission, Closing the loop – An EU action plan for the 6 See footnote 3. Circular Economy, 2015 6 | A Circular Economy in the Netherlands by 2050 the Council. The Circular Economy package of the Four describes the general interventions that the Cabinet Commission and the Council’s conclusions11, which were intends to apply.. Finally, Chapter Five describes the specified in the Environmental Council meeting of 20 June ambitions, goals, and efforts for the priorities that will be 2016, form an ambitious European policy agenda. The addressed first. Netherlands wants to contribute to realising this agenda and, to this end, has put forth activities in the Government-wide programme. The SER advisory report UN Sustainable development goals The Cabinet asked the SER for its recommendations to At the global level, the UN reached agreements last year on serve as input for this programme. They particularly new global goals for sustainable development: the asked the SER to give its view of how the different parties Sustainable Development Goals (SDGs). Seventeen goals were (including the government and social partners) could formulated – and divided into secondary goals – in which better anticipate the transition to a circular economy. the circular economy is addressed in different ways: They also asked subsidiary questions about promoting • Promote continuing, inclusive and sustainable innovation, about new business models and about the economic growth, full and productive employment and role of employment. decent work for everyone (e.g., by decoupling economic growth from environmental degradation); In its recommendations, the SER endorsed the urgency • Promote sustainable industrialisation and innovation and necessity of redirecting the character of our economy (e.g., by adapting industries in order to make them in the direction of a circular economy and the importance sustainable, with a focus on greater efficiency in the use of a Government-wide programme in this area. The SER of resources and cleaner and environment-friendly recommends that the programme be developed into technologies and industrial processes); a transition agenda that has concrete goals and • Make cities and human settlements inclusive, safe, transition paths. The SER would like to lend its resilient, and sustainable (e.g., through inclusive and assistance in this regard. The SER recommends the sustainable urban development and building capacity programme to pursue three paths: for participative, integrated and sustainable planning); • anticipate risks, obstacles and opportunities of the • Ensure sustainable production and consumption (e.g., transition; reducing global food waste by half, through sustainable • develop a policy framework that anticipates the government assignments and sustainability education); transitional phase of the supply chain; • Conserve and make sustainable use of the oceans, the • develop an integral assessment framework for the seas, and maritime resources (e.g., by preventing choice of priority value chains. marine litter); • Protect biodiversity and ecosystems (e.g. by integrating Finally, the SER advises the Netherlands to become ecosystem and biodiversity values into national and a worldwide leader in certain supply chains. local planning and into development processes). In the transition to a circular economy, the Netherlands is contributing to the realisation of these Sustainable Development Goals.

1.4 Structure The reasons why the transition to a circular economy is important and what opportunities it presents to our country are explained in Chapter Two. Chapter Three sets out the ambitions and vision of the Cabinet in more detail, and outlines the transition strategy the Cabinet intends to use to realise this ambition. The chapter also indicates how the programme will be monitored and administered. Chapter 11 Council of the European Union, Council conclusions on the EU action plan for the circular economy, June 2016 Government-wide Programme for a Circular Economy | 7 interview Low-energy lighting, with re-used materials ‘The world is changing rapidly and requires more ­ ‘Hence the introduction of “Circular Lighting”. A service low-energy lighting. Population growth and urbanisation involving a monthly fee, rather than having customers generate an increasing demand for resources and energy, invest in lighting and maintenance. The modular structure, which results in climate change. This calls for an alternative without an investment threshold and at lower costs, approach to the use of our energy sources and materials.’ ensures long-term efficiency in the maintenance of the system – which incorporates the latest technology. Thus, ‘Lighting accounts for a substantial proportion of global we save energy – together with the customer – while power consumption and thus has a significant impact on making responsible use of resources. In short: replacing CO2 emissions. The good news: the technology to “property” by “use”. considerably reduce that share in the years ahead is already available. Low-energy, smart LED lighting uses up to 80 percent less power compared to traditional ‘Replacing property by use.’ incandescent lamps. Philips Lighting and the UN have the joint ambition to reduce the lighting share in global power ‘The collaboration between governments, companies, consumption (still 15% in 2014) to a maximum of 8 percent science, civil society organisations, and consumers is the by 2030.’ mainstay of our success. These things start with trust and the shared conviction that we need to take action together in order to keep this planet habitable. The government plays a leading role in this respect: it must encourage innovations and create sufficient scope for incorporating circular principles and thus the re-use of materials into existing legislation.’ Leon Konings Sustainability Professional Philips Lighting 8 | A Circular Economy in the Netherlands by 2050 \ 2 \\ Raw material use: the great challenge of the 21st century materials, and climate change. A further increase in the

2.1 Necessity demand for raw materials will thus exacerbate environ­ mental, climate-related, and other sustainability issues. The necessity to strive for a circular economy comes from a concurrence of three developments. 2) Dependency on other countries Another point is the fact that the Netherlands and Europe 1) Explosive demand for raw materials are dependent on third countries to a high degree for raw The most significant issue is the explosive rise in the materials. Of the 54 materials14 that are critical for demand for raw materials during the last century: the Europe, 90% must be imported, primarily from China. Earth’s population started using 34 times more materials, The Netherlands imports 68% of its raw materials from 27 times more minerals, 12 times more fossil fuels and abroad.15 This dependency is illustrated in the figure 3.6 times more biomass.12 This increase is illustrated in below. The relatively limited availability of these raw the figure below. The demand for raw materials will materials will lead to (more) geopolitical tensions. That, further increase as a result of global population growth in turn, will impact on the price of raw materials and the (from more than 7 billion to 9 or 10 billion world citizens security of supplies, and thus on the stability of the Dutch by 2050), the rapidly growing middle class in emerging and European economies. This development can also economies, and the application of new technologies that lead to an increasing disparity in access to raw materials, require specific raw materials. For example: rare earth whereby the poorest population groups will have the metals for batteries, dynamos and electric motors. This greatest disadvantages. This will affect the (non-) growth is not sustainable. Apart from the higher achievement of the Sustainable Development Goals environmental impact, it will also involve increasing (SDGs). damage to and exhaustion of natural capital13, a loss of biodiversity, a risk of exhausting the supply of raw 12 See footnote 3. 13 Natural capital is the world’s stock of natural ecosystems that produce a stream of valuable products and services, now and in the future. It is an extension of the economic notion of capital (manufactured means of production) to include the products and services that the natural environment produces. For example, a forest or a fish population may produce an indefinitely sustainable flow of new trees or fish. Natural capital can also provide services, such as breaking down pollutants, water catchment, and erosion 14 Scarce raw materials that are essential for certain industrial tasks control. The flow of services from ecosystems requires such and whose supply security is low. a system to function properly at full force. (source: Wikipedia) 15 CBS, Environmental accounts of the Netherlands, 2011 Government-wide Programme for a Circular Economy | 9 3) Interconnectivity with the climate (CO2 emissions) different handling of raw materials is necessary. This calls The extraction and use of raw materials has a negative for an economy that meets the needs of people without effect not only on the environment and natural capital. having an unacceptable impact on the environment and It also makes a considerable contribution to the without exhausting natural resources. It requires not only consumption of energy and the emission of CO2. a relative decoupling of raw material use from economic The urgency with which we need a circular economy is growth, but also an absolute decoupling of economic underlined by the recent Climate Agreement concluded growth from environmental impact.16 Safeguarding natural in Paris, in which countries commit themselves to capital with a view to supply security and sustainability is limiting global warming to less than 2 degrees Celsius, a precondition for this. It presents an enormous challenge, with the goal of limiting it to 1.5 degrees C. Between the but not an impossible one. The circular economy thus climate policy and the circular economy, contradictions provides an answer to the major challenge we face in the can also occur. For example, the use of critical metals or 21st century, which is to handle raw materials with much biomass for the generation of energy. It is therefore greater efficiency. important to monitor the coherence between the two.

2.2 Economic opportunities The developments outlined above necessitate a more efficient use of raw materials and their substitution by Jobs and benefits sustainably produced, renewable, and generally available The circular economy also presents our country with plenty raw materials. Even if the economy responds to a scarcity of of (economic) opportunities. Innovation creates supply, the social and environmental consequences will be opportunities for existing businesses, for newcomers ­ high because, in its utilisation of natural capital, humanity has now already far exceeded the capacity of the earth. To continue to feed humanity, supply it with the necessary 16 UNEP International Resource Panel, Decoupling Natural Resource goods, and to guarantee a decent existence, a fundamentally Use and Environmental Impacts from Economic Growth, 2011 Worldwide resource extraction in billions of tonnes, 1900-2005 Resource extraction GDP Billions of tonnes Thousand billion USD 100 50 80 40 60 30 40 20 20 10 -- 0 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 Ores and industrial minerals Fossil-based fuels - Source: Krausmann et al., 2009 published in Construction materials Decoupling Natural Resource Use and Environmental Impacts Biomass from Economic Growth, by UNEP/International Resource Panel GDP 10 | A Circular Economy in the Netherlands by 2050 (start-ups), and for science. It also generates new export The Netherlands Organisation for Applied Scientific possibilities. Dutch knowledge and expertise provide Research (TNO) has made an initial estimate of the benefits solutions to scarcity issues elsewhere as well, and can that a circular economy would bring to the Netherlands. contribute to sustainable development and the expansion Among other things, it states that each year, within the of markets. sectors involved in the circular economy, an extra turnover of € 7.3 billion can be generated, which will account for The circular economy can thus make a significant 54,000 jobs in the Netherlands.17 The use of raw materials contribution to the future earning capacity of the can be reduced by approximately 100,000 kilotons Netherlands and Europe. The Netherlands has a good (one-fourth of the total annual import of raw materials in starting position to capitalise on these opportunities: it has the Netherlands).18 In an exploratory scenario study19, the a good infrastructure, major ports and airports, and leading Rabobank has estimated that a circular economy can lead to businesses. Strong sectors include the chemical industry, extra growth in GDP ranging from 1.5 billion euros (in the agri-food sector, high-tech systems and materials, a business-as-usual scenario) to 8.4 billion euros (in the logistics, the creative industry, and recycling. most circular economic scenario). European cooperation can help us to capitalise on this leading position internationally. The Netherlands leads the way when it comes to the biobased economy and the utilisation of Nature Based Solutions that reduce the use of 17 TNO, Kansen voor een circulaire economie in Nederland [Opportunities for raw materials. a circular economy in the Netherlands], 11 June 2013 18 The TNO calculations should be seen as exploratory and indicative, Dutch design is setting trends internationally. We intend to because not all relevant economic effects have been mapped out. (SER, 2016) take a leading role for circular design as well. 19 Rabobank, De potenties van de circulaire economie [The potential of the circular economy], 2015 Production concentration of critical mineral materials Europe is dependent on other continents Canada India Cobalt Graphite United States Russia Beryllium Platinum group metals Mexico Japan Fluorspar Indium Brazil South Africa China Niobium Platinum group metals Antimony Tantalum Beryllium Democratic Republic Gallium Graphite - of Congo Germanium Cobalt Indium Tantalum Magnesium Rwanda Rare earth minerals Tantalum Tungsten Source: European Commission, 2010 Government-wide Programme for a Circular Economy | 11 It is expected that it could bring the European Union Safe and sound economic growth worth 550 billion euros and could Substances influence people and nature in different ways. produce 2 million new jobs.20 The goal of the policy on substances is to reduce exposure to substances that damage health or harm the functioning In addition to these positive possibilities, it should be said of ecosystems. Substances are added to products because that a circular economy would also lead to declines in some they improve the quality of those products, despite their sectors: the closure of loops in industrial sectors could adverse effect. result in a decline in the waste-processing sector.21 The circular economy is good for public health and our CO2 reduction environment. Designing products in such a way that they A more responsible use of raw materials also fits in with can be fully reused and recycled or can be safely released the climate policy. The annual emissions released in the into our environment as ecologic raw materials will also Netherlands are close to 200 megatons of CO2eq. An provide social benefits. By preventing pollution with improvement in efficiency in raw material and material circular products and services, we will save money spent on value chains could cut this by approximately 17 megatons of water purification and, over time, save on the costs of CO2 a year22 (which is 9% of total Dutch emissions) and thus clean-up and health. The fact that this can yield not only make a contribution to achieving the climate objectives. an environmental benefit, but also an economic benefit is demonstrated by the Dutch invention of dying textiles with The Circle Economy and Ecofys have explored the contri­ CO2. This invention is now increasingly being used by textile bution that a circular economy could make to achieving the and shoe producers worldwide. This method replaces water climate goals agreed to in Paris. Based on existing literature – traditionally used in the dying process – by CO2. This and their own calculations, they state that worldwide, by reduces raw material requirements, cuts back the use of improving material efficiency alone, the current gap water, energy, and chemicals, and eliminates the cost of between the promised measures for CO2 reduction and the purifying wastewater to be released. Compared with the objective of limiting the maximum rise in temperature to traditional dying methods, this Dutch invention reduces the 1.5 degrees can be narrowed by half by 2030.23 consumption of energy by approximately 60%. The factories that now use these technologies have reduced their carbon At the same time, nature-based solutions for climate footprint by a quarter and have also reduced the dying time mitigation and adaptation help to reduce the demand for by 40%. primary raw materials and promote the transition to circularity. Securing natural capital will thus contribute to solutions in both domains. The realisation of climate and energy goals will increase the demand for some raw materials for renewable energy technologies (generation, storage, and transport). A circular economy is also important to meeting this demand. ---- 20 Ellen MacArthur Foundation, Growth Within: a Circular Economy Vision for a Competitive Europe, 2015 21 PBL Balance of the Living Environment, 2016 22 As shown by the road maps for Multi-year Agreements on Energy Efficiency (MJA). In the road maps of the service sectors, industrial sectors, and the food industry, the business community sets out the ambitions for a route to climate-neutrality by 2030. RVO, Routekaarten en Voorstudies MJA3/MEE. 23 Ecofys & Circle Economy, Implementing Circular Economy Globally Makes Paris Targets Achievable, 2016 12 | A Circular Economy in the Netherlands by 2050 3 Changing course The ambition of the Cabinet is to realise a circular economy as the economy grows and waste is being reused to an ever- by 2050. This means that the preservation of natural capital increasing degree. Although the need for raw materials is will be taken as a starting point in the economic system, being stemmed, the capacity of the earth to provide them is such that renewable and generally available raw materials still being exceeded and the supply security of materials and are used wherever possible. To that end, raw materials are raw materials is decreasing. optimally deployed and (re-)used without any risks for health and the environment, and primary raw materials, The Netherlands Environmental Assessment Agency (PBL) insofar as they are still needed, are extracted in a sustainable notes that: “The idea of the circular economy as a fully manner. In 2050 the circular economy must be a reality. This closed system is a mobilising ideal image. The use of will continue to give future generations access to material primary raw materials and the creation of residual streams prosperity. The ambition of the Cabinet is to realise, together can probably never be completely avoided. This has to do with a variety of stakeholders, an (interim) objective of a with those raw materials that are necessary for countries 50% reduction in the use of primary raw materials (minerals, that are still building up their infrastructure, and with the fossil and metals) by 2030. With this objective for the use of fact that some of the use of raw materials is inherently raw materials, the Netherlands will raise its ambitions to linear, e.g., for energy and food.”26 meet the level adopted in comparable countries.24 By 2020, the Cabinet will have taken a major step in accelerating the There are also limits to the reduction of material require­ pace of the transition to a circular economy. ments with continual global economic growth.27 This underpins the necessity of continuing to focus on the In this chapter, the Cabinet explains its vision, strategy and sustainable acquisition of raw materials and on the goals for achieving this ambition. preservation of our natural capital in order to provide future generations with raw materials as well.

3.1 Vision Although the circle will never be entirely closed and absolute decoupling at the global level seems to be feasible The transition involves a shift from “take, make and waste” only in the very long term, this programme is focused on to a system that uses as few new raw materials as possible. this decoupling of growth and material use, and on a system The basic idea behind the transition is shown in the in which the sustainable extraction of raw materials and the diagram below. In the diagram, three economic models are preservation of natural capital are guaranteed. identified, each of which has a different starting point with respect to its approach to the use of raw materials: the linear economy, the reuse economy and the circular 3.2 Strategic goals economy.25 The transition to a circular economy requires a transfor­ In many sectors, the Dutch economy is already on the way mation in the way we use raw materials. To transform the to becoming a circular economy and can primarily be Dutch economy into a circular economy at an accelerated classed as a reuse economy: the amount of waste is falling pace, three strategic goals have been formulated in the Government-wide programme: 24 See footnote 1. 25 Based on the EU consultation Circular Economy for member states, 26 See footnote 5. sent to the House of Representatives and the European Commission 27 Prof. Dr Arnold Tukker, In kringetjes vooruit. De circulaire economie als on 19 October 2015 (appendix to Parliamentary documents II, 22 112, recept voor duurzaamheid [Progressing in circles. The circular no. 2009) https://zoek.officielebekendmakingen.nl/blg-602632. economy as a recipe for sustainability], 2016 Government-wide Programme for a Circular Economy | 13 interview Skateboarding on plastic bottle caps ‘Plastic Whale, the organisation that retrieves plastic from ‘As a former professional skater, I know what requirements rivers and canals, and uses it to build nice boats to fish for a good skateboard must meet. Contributing to resolving more plastic, came up with the idea of making skate­ the plastic waste issue is inspiring and gratifying. That is boards out of plastic bottle caps. We succeeded after a lot why I quit my job in order to fully focus on WasteBoards.’ of research and tests, in collaboration with students from Amsterdam University of Applied Sciences. This is how the WasteBoards came into being. ‘ ‘... waste can be a valuable ‘This summer we attended several dance and music resource for beautiful festivals with a cargo container, converted into a mobile bakery. By arranging 750 different-coloured and different- products.’ sized bottle caps in a particular pattern in the mould, we created beautiful and unique WasteBoards. It is not only ‘Our mission is to tackle plastic waste at the global level as cool to watch these boards being made; it is also a very well. And in addition to encouraging local activity and good way to raise awareness among the festival crowd: employment opportunities, we aim to set up mobile board waste can be a valuable resource for beautiful products.’ bakeries across the globe, anywhere where there is a lot of waste. We have already established the first contacts in Manilla, Rio, and Mumbai. We are raising awareness and encouraging local entrepreneurial spirit in a positive and relevant manner. Our ultimate goal, of course, is to get rid of all plastic waste in the world; we’re in business to go out of business!’ Jonathan Morrison Chef WasteBoards Bakery 14 | A Circular Economy in the Netherlands by 2050 '' 1 Raw materials in existing supply chains are utilised in 3 We develop new production methods, design new a high-quality manner. products and organise areas differently. We also This increase in efficiency can lead to a decrease in the promote new ways of consumption. demand for raw materials in existing supply chains. This leads to different supply chains that give additional 2 In cases in which new raw materials are needed, ­ impetus to the desired reduction, replacement and fossil-based, critical and non-sustainably produced utilisation. raw materials are replaced by sustainably produced, renewable, and generally available raw materials. As these goals are achieved, the manner in which material Apart from biomass, generally available raw materials are streams are used and organised in the Dutch economy will the raw materials that nature needs for life (iron, silicon, radically change over time. carbon, magnesium, sodium, potassium, calcium, nitrogen, oxygen, phosphorus, sulphur, hydrogen). This preserves our natural capital and enables us to make our economy more future-proof and less dependent on (the import of ) fossil sources. From a linear to a circular economy Linear economy Reuse economy Circular economy Raw materials Raw materials R a w m a t e ri a l s Prod u ction Production Production Recycling g c ec y l in Use R Use Use Non-recyclable waste Non-recyclable waste From a linear to a circular economy • In a linear economy, raw materials are again (cascading, repair/maintenance, • The ideal picture is a circular economy extracted from the earth, used and reuse, remanufacturing, recycling). in which raw materials are never discarded: “take-make-waste”. At best, this reuse economy leads in depleted. This economy can be At best, this economy leads to the part to an absolute decoupling of structured so that there is a positive relative decoupling of economic economic growth from the use of coupling between economic growth growth from the use of natural natural resources and from emissions: and the growth of natural resources resources. the demand for natural resources and (“negative” emissions / positive • In the reuse economy, many the emissions decrease as the footprints). In a circular economy, value non-recyclable materials are used economy grows. chains will be organised differently. Government-wide Programme for a Circular Economy | 15 interview “Easy to repair” as a standard requirement ‘In order to continue to meet our demand in the future, we We hope that in five years’ time there will be more need to convert to a circular system, in which resources are volunteer groups organising a Repair Café in their own preserved and continually re-used. Wastage of valuable neighbourhood once a month or once a week. We also products and materials grieves me: I think that’s a shame. expect that within five years “easy to repair” will be I intend to make an effort to reduce the amount of waste a standard requirement to be met by product designs. we collectively produce. By encouraging everyone to repair things or have them repaired when they are broken, and by encouraging manufacturers to improve the repairability ‘Wastage of valuable products of their products. That is why I devised the Repair Café. and materials grieves me: Manufacturers will only start making products that can be repaired more easily if this is financially attractive for I think that’s a shame.’ them. This requires support from the government. For example, by extending a manufacturer’s responsibility for The Repair Café foundation is a not-for-profit organisation the proper functioning of a product. If a producer is receiving financial support from a number of private required to give, for example, a five-year rather than funds. Our funding for the future is as yet insecure. a two-year guarantee for his products, it will be in his own It would be nice if the government would also support us, interest to ensure that the item will not break down within in order to enable us to continue our work. There is still so five years. And that it can be easily repaired if it should much work to be done.’ break down anyway. Martine Postma Repair Café foundation 16 | A Circular Economy in the Netherlands by 2050 3.3 Generic Policy (for change): Regulations The current regulations still insufficiently target the removing obstacles transition. This is because the focus is still too much aimed at countering the damaging effects of waste and emissions, Changing the economic structure and too little at utilising the value of the raw materials. In order to change the Dutch economy to a circular economy at an accelerated pace, both the economic External effects are not internalised structure and the material streams within it must be Sustainable products are often more expensive than influenced and changed. This requires technical, social and non-sustainable alternatives. This is because damage to systems innovations. The models described in paragraph 3.2 the environment and public health is still insufficiently constitute different phases on the way to a circular reflected in the price of raw materials and thus in the price economy, but in practice these phases often exist side by of products. side. This may differ from one specific material value chain to the next. For this reason, made-to-measure work and Lack of knowledge for technological, social and system proper timing are important. In some situations, we must innovations build on the strength of the linear economy to capitalise on Both entrepreneurs and financers are insufficiently aware of economic advantages of scale and, at the same time, limit the possibilities presented by new circular business models. negative external effects. In other situations, we must Knowledge is necessary to redesign production processes, strengthen the reuse economy by using materials and so that raw materials can be optimally reused. Knowledge is products in a more intelligent fashion and by making more also necessary for the development of sustainable efficient use of facilities (sharing economy). Parallel to this, alternative materials for production. the challenge is to consciously and collectively create new circular forms of consumption and production, such as Non-circular behaviour among citizens and professionals making the shift from possessing to using, the 3D printing This pertains to breaking through ingrained, non-circular of food, or the use of CO2 as a raw material. behaviour patterns among consumers, producers, and other organisations. The transition path to be chosen always requires an integral consideration in which not only economic and environ­ Coordination problem in supply chains mental aspects are taken into account, but also other Parties in the supply chain must jointly tackle material aspects of welfare. streams, beginning with product design and the choice of raw material, and ending with recovering the used International approach necessary materials. This currently happens to an insufficient degree. The transition to a circular economy is by definition international in nature because economies are becoming Vested interests and investments made increasingly intertwined and the Dutch economy is highly These impede a transition, on the one hand, because dependent on international streams of raw materials. Our newcomers lag behind in market penetration, and, on businesses operate increasingly at a European and global the other, because investments made can be exploited at level. The circular economy can therefore not successfully a relatively low cost price. Attention must also be paid to develop outside the European and international context. the position of employees in sectors that are going through This is especially true for European cooperation in the transition. area of legislation and regulations, and for strengthening the market for secondary and renewable raw materials. Limited influence in the international playing field Yet in a wider context, too, international cooperation is Due to the great differences between countries, and the necessary to close supply chain loops, to internalise interests of countries that export raw materials, the concept environmental costs and achieve a level playing field, to of a circular economy is still not a widely shared ambition. prevent evasive behaviour, and to safeguard supply security. Inside the EU and outside it, the Netherlands is “only” one Safeguarding a level playing field, in particular, as well as of the players. preventing evasive behaviour, requires a balanced assessment between what is nationally desirable and what is Five interventions internationally feasible. The aforementioned obstacles make it difficult for businesses, consumers and governments to take on their Obstacles for a circular economy role in the transition to a circular economy. Some of these This transition will not come about on its own. The Rli and obstacles can be removed by the government, in concert SER advisory reports indicate the obstacles that stand in the with social partners. Through targeted interventions, they way. The most significant obstacles are summarised below: stimulate the desired transition. Government-wide Programme for a Circular Economy | 17 The Cabinet has designated five interventions in which the Examples of instances when the government has acted in government, in its role or authority, influences the such roles are the Green Deals that have been concluded, as transition: well as other networks such as the value chain agreements • Fostering legislation and regulations; for the phosphate and plastic cycles, and the cooperation in • Intelligent market incentives; the approach taken to packaging. These examples show that • Financing; such cooperation can lead to accelerated, tangible social • Knowledge and innovation; results. • International cooperation. Scale levels Good and mutual cooperation that is focused on Through cooperation at different scale levels the Cabinet interconnectivity and timing can reinforce these wants to encourage initiatives at the national and interventions. If all parties in a specific sector or supply international levels, as well as initiatives at the local and chain decide to act in concert in order to counteract regional levels to reinforce one another. The Social and negative effects, the transition can be accelerated. The Economic Council of the Netherlands (SER) also stresses phase in the transition that specific supply chains find the importance of this cooperation. themselves in also plays an important role in choosing the most appropriate type of intervention.28 The first City Deal and the first local value chain agreements for the circular economy have been concluded, in which These five interventions will be further elaborated in regional governments, companies and knowledge institutes Chapter Four. jointly take initiatives, and in which the national government collects their learning experiences and actively contributes to the development of indicators for

3.4 Cooperation monitoring progress. This holds great potential due to the additional management capacity of the local and regional Owing to its complexity, the transition requires new authorities, the close proximity of parties, the direct approaches. Technological innovations are not sufficient to relationship with the labour market and consumers, and change the system of the economy and the relationships because “loop closure” of some material streams is between market parties. Issues run straight across business effectively achieved at the regional level. City Deals are sectors and various scale levels. In designing a product, for a good instrument for forming coalitions with cities to put example, the period following the time when the product is the circular economy programme into practice through the used must be taken into account. This is why parties need layers of government with related government efforts. each other. It is important for public and private parties to seek possibilities to implement technological, social and Spatial planning solutions system innovations from a shared vision and in partnership. The Netherlands Environmental Assessment Agency (PBL) In their own supply chain or across sectors. Between indicates that spatial planning solutions can also contribute companies, knowledge institutions and NGOs: at the local, to the transition to a circular economy. This also comprises regional, national and international levels. Step by step. the connection with the natural capital policy field. This joint transition requires a government that not only Through business park management and urban planning, acts as a market regulator, but also – when necessary – acts companies in industrial parks can make use of one as a director, steering the course and, as a network partner, another’s materials and residual streams, as shown in showing its commitment and actively cooperating with Park20|20 in Haarlemmermeer. At the local level, loops are various stakeholders in product value chains, in sectors and then closed. Regional spatial planning policy offers greater at various scale levels from the position of its own added scope for supporting circular activities. value. The Cabinet aims to develop projects with pioneering cities for the adaptation of local area planning, such as disconnecting rainwater collection in new construction and installing green roofs. ---- 28 In transition literature, each large social transition can be divided into four phases: a development phase with pioneers and fundamental research, a start-up phase with new applications and experiments, an acceleration phase in which existing actors and systems are put under considerable pressure by seasoned new actors and systems, and a stabilisation phase in which the work method is institutionalised. 18 | A Circular Economy in the Netherlands by 2050 interview Breaking out of the vicious textile circle ‘Textile production takes a considerable toll on the ‘We are the first company in the Netherlands to examine '' environment. At the same time, a lot of clothing is discarded because they are considered no longer of use. Reblend (2013) develops, in collaboration with designers, manufacturers, and brands, yarn made of 100% used textile, and processes this into clothing and upholstery fabrics.’ the production of recycled textile, in interconnection with supply and demand. As a result, we are often held back by the fact that we are still producing on a small-scale level. By way of comparison: we have currently produced 6000 kg of textile, which is nothing compared to the 300.000 to 400.000 kg produced annually by major producers. Government tender procedures, for example, in the event of sustainable procurement, also remain ‘Our aim is to establish difficult for us. We derive our added value from other aspects.’ ourselves within five years as a brand marketing innovative ‘Our aim is to establish ourselves within five years as a brand marketing innovative collections, made in collections ...’ co-creation with major and small labels: not creating a hallmark, putting up machinery, or spinning our own yarn, but rather forming an umbrella label inter- ‘There is an extreme imbalance between the short life span connecting sustainable development, projects, and of textiles and the permanent impact these materials processes: “re-think, re-use & re-connect”. Actually have. We use mainly textiles that are no longer suitable for breaking out of the vicious circle. That is our intention.’ wear (70%) and process them in a smart process – without the use of water or additional chemicals, which yields yarn and textiles with a considerably better ecological footprint!’ Anita de Wit co-founder of Reblend '' Government-wide Programme for a Circular Economy | 19 interview 100% zero emissions with quiet and efficient drive ‘With our buses division, we have been pursuing smart and sustainable mobility for quite a while, by manu­ ‘Next year, we will introduce facturing electric public transport buses. Initially in the form of pilot projects, but in recent years we have been our first electric truck.’ the first to upscale to major projects in Western Europe. Meanwhile, we have various basic vehicles. This year, our In addition to these electric vehicles in the Netherlands hydrogen buses will take to the road in Eindhoven. and Belgium, we are focusing on other issues that are essential to enabling electric transport. For example, VDL Next year, we will introduce our first electric truck, initially will be able to supply charging infrastructure solutions a fully electric 37-ton tractor with a range of 100 to 120 km, through its partners. We are also working on energy mainly intended for urban distribution and shop supply storage (buffering, peak shaving, load shedding) in large- deliveries. At a later date, a hydrogen version will become scale battery systems and related smart grid solutions. available with a range of 350 to 400 km. In addition, we Eventually, these energy storage systems could be will bring out an electric delivery van. All vehicles are 100% provided with used battery units from electric vehicles. zero emission and equipped with a quiet and efficient Furthermore, we have plans to bring battery assembly to electric drive. the Netherlands, because of the growing demand for large battery units for our own vehicles, energy storage systems, and delivery to third parties, and also on account of increasing delivery times and transport costs of batteries from Asia. In addition, command of battery technology and battery systems for heavy electric transport is crucial to retaining know-how and jobs in the Netherlands.’ Menno Kleingeld CEO, VDL Group 20 | A Circular Economy in the Netherlands by 2050 Spatial economic development Local and regional circular initiatives For the development of a number of circular economic hubs Together with local governments and entrepreneurs, the in the north wing of the Randstad (Port of Amsterdam, Cabinet intends to expand the number of repair and Schiphol Airport, Aalsmeer, AMS-IX), a collaboration was recycling initiatives. recently established between the national government and regional authorities under the name of Westas or West Axis. The National Sustainability Network (Rijksduurzaamheids­ The national government and regional authorities in the netwerk), with 1,600 members from inside and outside the north and south wings of the Randstad and Brainport government, will be deployed to support regional business Eindhoven signed a declaration of intent on 9 June 2016 to cases and to make new connections between parties at the establish a spatial economic development strategy municipal, provincial and national levels. (ruimtelijk-economische ontwikkelingstrategie, REOS).29 This collective strategy is intended to help these regions to remain internationally competitive. 3.5 Specific policy (for change): Digitalisation approach for each sector or The commitment to digitalise the economy is important.30 value chain Through digitalisation, everything becomes connected, such as intelligent infrastructure, energy networks, the In addition to a generic approach, the transition to a circular “Internet of things”, and social networks. Digital platforms economy calls for a change strategy specifically geared to and developments such as Blockchain make a sharing each sector or raw materials value chain31, i.e., to each economy possible. Further digitalisation and the develop­ priority. The programme is focused on five priorities that ment of big data will enable a much more accurate, local, are important for the Dutch economy, that have a large and efficient organisation of processes and systems. This is impact on the environment, in which there is already demonstrated, for instance, by the “smart cities, industry, considerable social energy for the transition to a circular and mobility” developments, resulting in a much more economy, and that fit in with the priorities of the European efficient use of raw materials and energy. Commission. The five priorities are: • Biomass and food Toolbox for the regional level • Plastics The Cabinet will support a circular economy through spatial • Manufacturing industry economic policy that fits in with current initiatives. To • Construction sector optimally deploy the strength of partnerships at various • Consumer goods scale levels within the Netherlands in the transition to the The Cabinet supports the SER recommendations and has circular economy, an integrated toolbox has been developed the ambition of making the Netherlands the international that will actively be offered to stakeholders at the regional leader in the area of the circular economy in these sectors level. and supply chains by 2020. Change in transport The strategic goals have been rendered operational for each It is generally expected that the circular economy will priority in the form of concrete objectives. In this way, the change transport patterns and the scope of these patterns in Cabinet has taken the first step for the transition agendas the Netherlands, due to developments such as the sourcing and transition paths proposed by the SER. Each priority has of products and raw materials from the near vicinity (near its own dynamics, stakeholders, regulations, and transition sourcing), the sharing economy, changing waste streams, phase. This is why the approach is differentiated for each a decrease in the transit of primary raw materials, the priority. increasing importance of service and reverse logistics, and sustainable product value chain networks at different scale Chapter Five sets out the five priorities in more detail. levels. The regional network Noord4bio is an example of this. This will have consequences for major ports and airports, Circular economy agreement and transition agenda per priority transhipment points, industrial sites, and other modalities With the approach outlined in this chapter, the Cabinet is in the infrastructure. For example, the Port of Rotterdam is taking the initiative to reach an agreement on circular preparing itself to become an international hub for biomass. economy (grondstoffenakkoord), together with the social partners, before for the end of this year. In this circular economy agreement, the Cabinet aims to share the 29 www.centre-for-sustainability.nl/uploads/cfs/attachments/ Oratie%20Tukker.pdf 30 The Digital Agenda, Parliamentary document 2016D28621, 5 July 2016 31 See footnote 3. Government-wide Programme for a Circular Economy | 21 ambitions that have been recorded in the Government-wide scope of the goal, and the experiences gained. During this programme with the partners, and generally explore the process, consideration will also be given to any other bottlenecks that obstruct its realisation, including the priorities to be tackled, and to verify whether the interim goal of 2030, while concurrently exploring relevant organisation by sectors and relevant supply chains needs to solutions. The Government-wide programme presents the be adjusted. The process will tie in with the monitoring efforts by the Cabinet in support of the agreement. method and associated indicators being developed by the EU. The circular economy agreement will be further developed The Cabinet will inform the House of Representatives for each priority in transition agendas, in cooperation with annually via a progress report. This report will discuss both the relevant businesses and other social stakeholders. the performance of the actions and the progress of the In these agendas, concrete and accountable agreements transition. This monitoring process can capitalise on the will be made on the way in which the parties involved will experience gained with the monitoring of Green Growth contribute to achieving the aforementioned goals. The (Groene Groei), the From Waste to Resources (VANG) objective is to complete these transition agendas before programme, the Smart Regulation (Ruimte in Regels) the summer of 2017. This Government-wide Programme programme, energy innovation, Green Deals, Biobased explains the actions envisioned by the Cabinet. In this way, Economy, Natural Capital accounting, and City Deals. the Cabinet will substantiate the motion put forth by Çegerek/Van Veldhoven, which requested to reach To be able to measure what results have been achieved in all an agreement on circular economy.32 of these forms of cooperation in a uniform manner, the Cabinet is taking the initiative of producing a measurement Supporting partnerships in networks protocol. This will also enable the progress made in the Cooperation within and between supply chains can be transition to be measured in a consistent manner. improved. The same is true for cooperation on a regional Measurable results will thus constitute the basis for further scale. Often the infrastructure for this is missing or is action. This measurement protocol will be developed in insufficient, causing the cooperation to stall before it really cooperation with the Netherlands Environmental gets off the ground. This is why the Cabinet intends to Assessment Agency (PBL) and Utrecht University. provide these types of networks with a little temporary support through a value chain cooperation project subsidy. The subsidy involves a limited financial contribution for, e.g., a facilitator that helps parties (including small and mid-sized businesses) to gather the correct knowledge and to exchange knowledge within and between networks in order to quickly achieve concrete, shared results.

3.6 Direction and monitoring For a good implementation of the programme, a steering committee will be set up, made up of the national government ministries involved and various stakeholders. This committee will direct an innovative implementation of the programme. A project group in which the same parties are represented will operationalise the implementation. Cross-sector steering of the transition agendas will ensure that relationships between the priorities are addressed, in order to prevent a compartmentalised approach to each priority. Gradually, the government-wide programme, and particularly the development of the priorities in transition agendas, will be monitored and, when necessary, adjusted. This will be effected on the basis of the transition phase, the ---- 32 Parliamentary documents II, 34 300XII, nr. 37. 22 | A Circular Economy in the Netherlands by 2050 4 Interventions To achieve these ambitions and to create good conditions costs, rather than to integrated assessments in the for the intended transition, the Cabinet will deploy five enforcement chain. For innovative solutions, the legislation instruments for the priority sectors, wherever such is should provide room by applying the principle of equivalent necessary and useful: solutions when new technologies are used and to create 1. Fostering legislation and regulations; room to experiment without any imprudent risks being 2. Intelligent market incentives; taken. That said, legislation can also serve as a driver for 3. Financing; innovation. By gradually scaling up the standards to 4. Knowledge and innovation; establish, say, full circularity with respect to emissions to 5. International cooperation. land, air and water, companies will be forced to innovate and adopt circular substances and technologies. 4.1 Fostering legislation and Definition of waste Because residual flows that were seen as waste in the past regulations are more and more being used as raw material, we need a more targeted and coherent conceptual framework for Legislation and regulations can promote, as well as hamper waste: when is it waste or not, when is it a by-product and innovation. Although the goal is to remove regulatory when is it end-of-waste? A more critical assessment of the barriers, the primary objective is to develop legal label “waste” is therefore necessary not only for residual frameworks that encourage innovation, promote dynamics, waste flows, but also for returned products (such as and support investments.33 To remove barriers and to products bound for repair, disassembly, or recycling). provide room in the legislation to benefit a circular economy is in line with the Cabinet policy of establishing International policy on substances (such as REACH, Stockholm future-proof legislation that makes it possible to innovate Convention) and anticipate societal initiatives.34 The guiding principle of the policy on waste is to deal with raw materials as efficiently as possible by, inter alia, aiming

4.1.1 Barriers and opportunities to recycle products and materials. The policy on substances Legislation is still often based on current technology or is intended to phase out so-called harmful substances in operate from the basis of linear insights. Legal frameworks products and materials. In the transition to a circular organise the market based on classical production sectors economy, it is important to strike the right balance between (foodstuffs, feed, cosmetics, chemicals). Collaboration recycling raw materials, on the one hand, and preventing between production value chains and the use of residual the spread of harmful substances, on the other. Sometimes waste flows from other value chains will more likely result products and materials that contain harmful substances can currently to the build-up of obligations and compliance be safely recycled by taking into account their intended use in the future. In some cases, current legislation could ---- render safe recycling impossible, even though this can 33 This serves to respond to the Dik-Faber and Çegerek motion reduce the environmental impact enormously by saving raw (Parliamentary documents II, 33 043, no. 61 (was 57)) in which the materials and reducing CO2 emissions. For this reason, the government is asked to come up with a proposal for removing Cabinet is aiming to establish an assessment framework for barriers in laws and regulations that thwart the realisation of a circular economy. deciding, on a case-by-case basis, whether recycling or removal is the best option. 34 Cf. the Parliamentary memorandum Werken aan toekomstbestendige wetgeving en een toekomstbestendig wetgevingsproces [Working on future-proof legislation and a future-proof legislative procedure] of 6 July 2016, Parliamentary documents I, 33 009, no. 30, no. E, Parliamentary documents II, 33 009, no. 30. Government-wide Programme for a Circular Economy | 23 EC Regulation on shipments of waste currently counts only to a very limited degree towards The administrative obligations and financial guarantee that achieving the emission reduction goals. There is a specific the EU Waste shipment regulation requires for the cross- policy for the promotion of bioenergy and biofuels, but border transport of waste are reason enough for many hardly any policy for the chemical and material sectors. The companies to decline to offer or use waste substances as raw business case of many biobased initiatives in relation to materials. Particularly in a country of transhipments like the fossil-based alternatives is negative, which makes it very Netherlands, companies tend to have to deal with trading difficult for producers of renewable products and materials partners abroad when it comes to the purchase and sale of to launch a market introduction and scale-up. The raw materials. This bottleneck can be solved by removing Netherlands is aiming to reduce CO2 in all sectors. That is a substance’s waste status, when it is unnecessary, or by why we are arguing at the EU level for policy that will providing made-to-measure assessment when promote the reduction of CO2 in the chemical and materials implementing the Regulation. sectors. Added value of the sharing economy is significant 4.1.2 Ongoing efforts A more efficient utilisation of existing (capital) goods could reduce the intensity of raw material use and the environ­ Smart Regulation programme mental impact. In this way, the sharing economy and the The Smart Regulation programme (Ruimte in Regels) runs up sale of a product as a service can contribute to the circular to 2020. In this programme, the government cooperates economy. Easy access to a car when it is needed, for with entrepreneurs to look for greater room within current instance, can convince people to get rid of their (second) legislation to promote sustainable innovations. The car. The potential added value of shared use for the Dutch programme was initiated following indications from economy is significant.35 An underlying trend for the entrepreneurs who felt restricted by legislation when development of a sharing economy is the shift that takes planning innovative investments. The Smart Regulation place from the possession of goods to the possibility of programme delves into the nature and background of these using these goods without owning them. An economy that barriers, brings the relevant parties together and helps them uses fewer raw materials can still meet the demands of to search for solutions. Up to now, more than 80 barriers consumers, or even more. Consider services such as Spotify: have been removed, which has made it easier for companies listening to music anywhere without CDs. Or Peerby, an app to run their businesses in a circular fashion. that enables you to borrow something from someone in These cases have helped identify the barriers described in your neighbourhood. Why buy a new electric drill when you paragraph 4.1.1. This programme will continue in the years can borrow one from a neighbour that is not using his to come. In the period running up to 2020, the Cabinet will via an app? After all, the hole in the wall, that is what strive to remove at least another 80 barriers. counts. Of course, possible negative (rebound) effects will have to be taken into account. Application of the concepts of “waste”, by-product” and “end-of-waste” For shared use and providing a product as a service, there Capitalising on the possibilities for secondary raw materials are challenges to face with respect to legislation, incentive to shed the label of “waste” led to two ministerial arrangements, and tax frameworks. Uncertainty about the regulations in 2015. One is related to the end-of-waste application of legislation may hamper the development of status of recycling granulate (stony material) and the other such business cases. concerns the conditions for the by-product status, tailored to the substance glycerine. Since then, efforts have shifted Implementation and enforcement to encouraging companies and governments to start Licensing authorities and inspectors are responsible for applying the concepts of “by-product” and “end-of-waste” applying the rules in a changing environment. Licensing themselves. This is accomplished by providing information authorities and inspectors need new knowledge and new and through discussions in meetings, as well as by means of work methods to utilise the existing room for manoeuvre in so-called legal rulings (opinions of the Ministry of laws and regulations for upcoming circular initiatives. Infrastructure and the Environment concerning a specific case given at the request of a company). This policy will be Integration of policy and management in the chemical and given a significant boost in 2017 through an explanation of materials sectors the concepts of “waste”, “by-product” and “end-of-waste” in The benefit to the climate resulting from the use of biomass the third National Waste Management Plan (LAP3). and/or recycled raw materials in chemicals and materials ---- 35 See footnote 17. 24 | A Circular Economy in the Netherlands by 2050 Dealing with issues surrounding the definition of waste 4.1.3 Planned actions In considering the change to the Waste Framework Directive36, the Netherlands is arguing for clarification of Promoting circular revenue models the definition of waste and enforcement of the regulation Current regulations are not always geared to new for by-products and end-of-waste. The Netherlands is also relationships between those who supply and those who buy urging that the European Commission plays a facilitating products and services. This can be seen in initiatives involving role in issues surrounding the definition of waste and the provision of services rather than products. The Cabinet cooperation between the EU member states, as well as the intends to provide greater clarity on related tax and liability transition to a circular economy. This provides aspects by analysing practical examples and, on this basis, opportunities over the coming years to further refine the review whether amendment of the regulations is necessary definition of waste and thus also tailor the EU Waste and desirable. Shipment Regulation to circular activities. Room to experiment Harmful substances and recycling policy on the international In follow-up to the European Council conclusions and the agenda recommendations of the Social and Economic Council of Internationally, within an EU framework (European Council the Netherlands (SER), the Cabinet will create more room conclusions, REACH committees) and within the framework for experimentation within the framework of the Smart of the Stockholm Convention (persistent organic pollutants) Regulation programme (Ruimte in Regels) in order to support and the Basel Convention (how subsequently to deal with circular initiatives in their development. It will do this both the persistent organic pollutants already in circulation), the in a physical sense (e.g., in spatial planning or in testing Cabinet has placed the interface between the policy on facilities) and in the application of regulations (such as the substances and the recycling policy firmly on the agenda. Crisis and Recovery Act [Crisis- en Herstelwet]). In this area, the Netherlands continually points out the fact that the large volume of material containing harmful Inspectorates and local and regional governments need substances that is in circulation in society cannot and does instruments to respond to circular initiatives that need not, in practice, all need to be taken to waste incineration. room to experiment. In some cases, it is better to focus on prevention and, with respect to the substances already in circulation, on safe Producer responsibility recycling methods and applications, which will reduce the The current responsibility of producers is based on the EU environmental impact through savings achieved in raw Waste Framework Directive and currently applies to materials and the reduction of CO2 emissions. At the review a limited number of product streams (cars, tyres, of REACH in 2018, the Cabinet especially wants to focus on electronics, packaging and batteries). The Ministry of preventing the use of harmful substances and on recycling Infrastructure and the Environment has commissioned EY materials in circulation in cases in which this would not be to conduct a study into the options for applying producer harmful. responsibility to new streams and the possibilities for strengthening the instrument itself. EY has named “North Sea Resources Roundabout” Green Deal a number of product streams that are relevant for the On 3 March 2016, the International Green Deal “North Netherlands (such as mattresses, nappies/diapers, textiles Sea Resources Roundabout” was signed. This is a public-private and building materials). Also indicated is how producer partnership initiated by the Netherlands, comprising the responsibility can be boosted: with incentives for circular United Kingdom, Flanders, France and the European designs and the prevention of material use, high-quality Commission. The goal of the partnership is to facilitate the reuse, and upcycling.37 use and cross-border trade of recycled material, e.g., by harmonising quality standards and waste definitions, as Next year we will explore how we can expand the well as adopting a tailored approach to the implementation substantiation of the current producer responsibility. The of the EU Waste Shipment Regulation. For three material Cabinet is considering agreements on the amount of streams – compost, PVC, and bottom ashes – barriers and reusable (recycled or biobased) materials. In addition, the potential solutions are being identified. A fourth stream Cabinet will foster a value chain approach to a number of will soon follow: struvite (phosphate from sewage). In this priority streams, such as mattresses, nappies/diapers and way, barriers present in regulations can be removed without textiles, aimed at developing sustainable business cases. the need for EU-wide measures. The Cabinet is exploring possibilities for new international Green Deals. 37 http://www.ey.com/NL/nl/Services/Specialty-Services/Climate- Change-and-Sustainability-Services/ EY-extended-producer-responsibility 36 COM (2015)595 Government-wide Programme for a Circular Economy | 25 An instrument that could be deployed to this end is the information. In the future, we want to adopt a more flexible introduction of producer responsibility (e.g., requiring approach to amendments of the National Waste producers to take back discarded products). Management Plan so that we can anticipate the changes required by the transition more quickly. The National Waste Gearing standards to the circular economy Management Plan sets out the current policy on waste. The setting of open standards can play a role in combination with certification and standardisation. In collaboration with Enforcement study the business community, the sectors, and NEN we are One primary role of the government is to protect public adapting the process in place for setting standards and interests, e.g., in the areas of health, safety and the issuing certificates. The process and the structures should environment. In the transition to a circular economy, be adapted in such a way as to enable innovative small and oversight and enforcement will change. This coincides with medium-sized businesses with their circular products and a shift in emphasis from origin (waste/no waste) to the services to make better use of them. This will further characteristics of a raw material (market for secondary raw implement the Dijkstra motion concerning the Dutch and materials), as well as the more complex networks and European standards and the realisation of a circular cooperatives in the circular economy. This calls for economy.38 The House of Representatives has already been a reconsideration of the knowledge, skill and capacity of informed about this.39 The Netherlands is making the inspectorate. New detection technologies and methods a contribution to the efforts launched by the European (such as IT applications) might be necessary to be able to Commission to establish European standards for a circular continue intervening quickly, effectively and selectively. economy. Research will be conducted into the manner in which cost-efficient oversight and effective enforcement can Promoting circular product design at the EU level and in continue to be guaranteed. transition agendas In the European Council conclusions regarding the EU Enforcement dialogue Action Plan for the circular economy, the European In the development of their innovation or investments for Commission is called on to tailor the Ecodesign Directive on a new product or process, companies often have insufficient products to the relevant criteria for the circular economy access to the implementers and inspectorate, even though before 2020. This regulation pertains to aspects such as they are important partners in the realisation of their product lifespan, reuse, repairability, renovation, and business case. Room for innovation thus requires that recyclability. Along with other member states, the enforcers are closely involved in the creation of legislation Netherlands will study how this European approach can be and regulations and that they listen to the needs of supported and accelerated. The Cabinet will monitor the entrepreneurs. This fits in with the idea of the enforcement established actions closely and will also conduct a study in dialogue, a dialogue between policymakers, inspectorate collaboration with like-minded member states, with a view and entrepreneurs, as was proposed by the Commission for to supporting and accelerating the process. The Cabinet Sustainability Issues and Biomass (Commissie Duurzaamheids­ stresses the importance of tightening these regulations and vraagstukken en Biomassa) in its advisory report on biomass in intends to reinforce this by reaching agreements with the circular economy.40 An example of a platform with such producers under which new products contain recycled or a work method is the aforementioned Green Deal, the North biobased raw materials. Preferably, we will take steps to this Sea Resources Roundabout. effect within the framework of the transition agendas to be developed jointly. The Cabinet will not exclude the Use of Smart Regulation in priority sectors possibility, if it is necessary and effective, of making Entrepreneurs often do not study the legal frameworks that a certain percentage of recycled or biobased material in pertain to their new product or innovation until fairly late products mandatory if it is unsuccessful in achieving the in the game. This entails risks of delay and unnecessary goals at a sufficient pace in consultation with the value tension with government policy. With regard to the five chain parties. priority sectors and supply chains, the Cabinet intends to accelerate the transition by better anticipating the Conducive interpretation of rules to promote dynamism opportunities, barriers and risks for innovative Some of the barriers experienced can be solved by adapting entrepreneurs. For this reason, the Smart Regulation European or national legislation. Other barriers are caused programme (Ruimte in Regels) will actively look for the by differences in the interpretation of rules or by a lack of 40 Commission for Sustainability Issues and Biomass (Commissie 38 Parliamentary documents II, 30 872, no. 154 Duurzaamheidsvraagstukken en Biomassa): Sustainable use and management of biomass streams. 2016 39 Parliamentary documents II, 30 872, no. 165 26 | A Circular Economy in the Netherlands by 2050 barriers to innovation that arise in these sectors during the 4.2.2 Ongoing efforts transition. Studies will be conducted to this end and meetings will be set up with entrepreneurs and other MIA and VAMIL tax schemes government authorities. Tax schemes such as MIA (Milieu Investeringsaftrek - Environmental Investment Rebate) and VAMIL (Willekeurige Afschrijving Milieu-investeringen - Arbitrary depreciation of

4.2 Intelligent market incentives environmental investments) give a significant boost to investments in environment-friendly operating assets. Both Intelligent market incentives are meant to tackle schemes pertain to sustainable investments that produce imperfections in the market and to encourage the market to greater environmental benefit than is required by law. move in the direction of a circular economy through The MIA and VAMIL schemes are now already important targeted price incentives and regulations. This intervention instruments for realising the goals set out in the national is intended to promote the demand for recyclates and visions on fuel, the circular economy, and sustainable biobased materials, to stimulate circular innovations and agriculture. The annual revision of the Environmental List business models, and thus reinforce the national and (Milieulijst) makes it possible to anticipate new sustainable international markets for these types of raw materials. technologies quickly. The Netherlands Enterprise Agency (RVO) is currently shedding light on how existing

4.2.1 Barriers and opportunities instruments such as MIA/VAMIL can be geared to circular innovations. It is also exploring the advisability of schemes Social costs in the price aimed at the circular economy that promote the reuse of The benefits and costs for nature and the environment are renewable and recyclable raw materials. Finally, greater not reflected or are insufficiently reflected in the price of attention is being given to communication about the a product. As a result, these aspects do not yet play a role in available set of instruments in order to raise awareness of purchase or investment decisions. Assigning a value to the schemes among the target group. these social effects promotes the creation of closed-loop circular business cases. Further expansion of waste disposal tax Starting from 1 April 2014, a waste disposal tax has been Promoting resource efficiency imposed on the disposal and incineration of waste. The There is a need for a market incentive that promotes reintroduction of the waste disposal charge has resulted in resource efficiency, because resource efficiency pertains to a manifest and immediate reduction in the volume of waste both the sustainable and efficient use of raw materials and deposited. As of 1 January 2015, this tax was expanded to to the efficiency with which the raw materials are processed. include waste that is incinerated. CO2 market incentive in the chemical and plastics sectors 4.2.3 Planned actions Producers of chemicals and plastics are pushing for the integration of renewable energy and climate policies, using Actions aimed at contributing to the climate policy a single parameter as the point of departure, namely CO2eq. To further substantiate the focus on a single parameter, i.e., This is a calculation unit used to inter-compare how CO2eq, in the circular economy policy, the following actions different greenhouse gases contribute to global warming. will be taken: There is no market incentive for these sectors to use • Developing methodology for calculating CO2eq renewable raw materials, even though their use would reduction and its allocation in the biobased chemistry contribute to replacing fossil carbon sources and reducing and biobased materials value chains to achieve CO2 CO2 emissions. This reduction does not play a role in the reduction after 2020; energy policy. • Study into fossil carbon pricing. Learning from existing experiences with CO2 pricing; More conscious purchasing by the government • Commitment to accepting CO2eq sequestration in In government procurement procedures, the impact that existing and new forests (climate smart forestry) and purchases have on the use of raw materials is considered products; only to a limited degree. By setting requirements for • Incorporating the contribution raw materials make to government purchases that mandate the circularity of the prevention of CO2 emissions. products and services, the government can encourage the market to use circular production methods and thus be The Cabinet will ascertain whether the Netherlands should a significant advocate for the circular economy. expand the approach aimed at reducing CO2 to include raw materials and the circular economy, among other areas, for the period after 2020. Government-wide Programme for a Circular Economy | 27 The Cabinet will return to this at the start of 2017 in the Harmonisation of existing sustainability frameworks House of Representatives. It is advisable to harmonise existing sustainability frame­ works for biomass and to develop a single framework for all Phasing out subsidies that are detrimental to the circular raw materials, building on the existing sustainability economy frameworks for biomass. To this end, a study will be At the national and European levels, the Cabinet will focus launched next spring that should give greater insight into on phasing out (tax) market incentives that have a negative how we can accomplish further harmonisation. impact on the environment. A factor to be considered with respect to every subsidy that promotes the use of new True pricing in the food value chain products or the destruction of used products is whether the The Cabinet is committed to greater transparency in the food subsidy benefits the circular economy or not. If the subsidy value chain. In this context, it is studying the opportunities that does not promote the circular economy, alternatives should true pricing offers, ascertaining the “real” costs of food, including be sought that do have this effect. any external effects that can later lead to costs elsewhere. European study into market incentives that promote a circular Socially Responsible Purchasing and innovation-oriented economy purchasing The Netherlands is initiating a study with a European Together with other government authorities and businesses, collaborative of interested member states to map out the we will deepen and expand knowledge about circular possibilities and impossibilities of market incentives for the procurement and the inclusion of total product life cycles circular economy. and costs in tenders. At this moment, in the view of the Cabinet, the single or short-term price of a product is still Encouraging circular and biobased products too often the decisive factor for the selection of suppliers in The Cabinet will initiate a move to have product policy government tendering and procurement procedures. The encourage circular and biobased products (at both the Cabinet aims to give more attention to integral life-cycle national and the European levels). Special attention will be costs, environmental performance and the social costs given to the advantages of biobased and biodegradable during and after the life cycle of a product. It will boost applications in which substances return to nature due to these goals by purchasing more circular and biobased wear or use (e.g. drilling fluids and lubricants). goods, thus creating or enlarging the market for sustainable and circular products and services. In the memorandum on The advisory report of the Social and Economic Council of Socially Responsible Purchasing42, this is extensively the Netherlands (SER) and the European Council discussed, as is the endeavour to raise the proportion of conclusions both indicate that there are possibilities to circular procurement to 10% by 2020. Moreover, in addition tailor the existing set of instruments of tax law, levies and to the public sector, the private sector can also give a good subsidies to the transition to a circular economy.41 The SER example in this area. has also indicated that it wishes to play a role in this. The Cabinet is eagerly awaiting the SER’s initiative on this point. Internationally, the Netherlands is seen as a leader in the area of circular or sustainable purchasing. Dutch In the view of the Cabinet, various aspects should be experiences are published in both a European context and considered in greening measures. For example, the in the context of the UN.43 measures should not lead to the loss of jobs across the border as, in the meantime, the global climate does not In addition to Socially Responsible Purchasing, innovation- improve. Furthermore, the measures should be easy to oriented purchasing is also an important programme in the implement for the Tax Administration. It should also always procurement domain. It encompasses tendering procedures be considered whether other means, such as requirements and other processes that are necessary for the successful and subsidies, would not be more effective or more cost- procurement of innovative products or services. From efficient than a tax measure. strategic policy up to and including the implementation and repeated purchase of innovations. The core of innovation-oriented purchasing is starting a dialogue with 41 The Cabinet bases its choices regarding deployment of these 42 Parliamentary Documents II, 30 196, no. 466 “market incentives” on a number of criteria: effectiveness and 43 For example, in the implementation of the European Council cost-efficiency compared with alternative measures, the effects on conclusions on the circular economy and in the UNEP “10-year employment, the feasibility and the solidity of the results. The Framework Programme on Sustainable Consumption and testing framework for tax expenditures applies to the consideration Production”. of tax expenditures. 28 | A Circular Economy in the Netherlands by 2050 interview Truly believing in the circular economy ‘I would like to provide a bright future for my children, ‘I would like to provide a bright '' with lots of opportunities. This requires a future-proof world. This means that we will need to adapt the current economic system. Circular Economy is a way to achieve this goal, by creating cycles and optimising product lives. This will reduce leakage (waste) from our system. I consider it important to view all this from an economic future for my children …’ The government can play a boosting role in this context and encourage circular initiatives. If the government were perspective (circular economy): it must be underpinned by to express its firm belief in the circular economy, attaching a revenue model yielding both financial and societal concrete control measures to this end (in terms of returns. taxation, subsidies, legislation, et cetera), this would accelerate the transition. Good initiatives have already Rabobank regards itself as one of the facilitators of the been launched, for example, by CSR Netherlands, but circular transition. As a bank, we are anxious to finance more resources would be welcome. good circular business models. Good in this case means taking account of the triple bottom line: “people” (mankind & society), “planet” (the environment), but also a good revenue model (“profit”). '' Jeroen van Muiswinkel Sustainable Business Developer, Rabobank Government-wide Programme for a Circular Economy | 29 the private sector long before the tendering process begins 4.3.1 Barriers and opportunities in order to encourage the business community to innovate and to be able to take their ideas into account in the actual Higher capital requirements purchase. This provides space for innovations in the area of Circular innovations generally entail higher capital renewable or biobased materials and other circular requirements. The return-on-investment times are innovations. Use can also be made of the experiences sometimes longer, such as when businesses want to keep gained during innovation-oriented purchasing and the possession of their products and want to earn money channels in the purchasing domain in order to promote through providing services. circularity. Lack of knowledge and experience National government gives a good example There is a lack of specific knowledge and experience with The National Government itself wants to give a good the circular economy in the financial sector and among example in the area of socially responsible and circular businesspeople. Private financers are also ignorant of purchasing. Economic circularity in the operations of the circular innovations and therefore see investments in National Government provides opportunities to profit from circular economy projects as high risk, partly due to their the economic perspective of a circular economy, to combat limited experience with circular revenue models. wastage of raw materials, to expand the scope for innovation, and create opportunities for new business 4.3.2 Planned actions models. The government is launching pilot projects involving circular and biobased operations in the categories Support private sector initiatives of furniture, confidential paper, work wear, IT hardware, The Cabinet intends to take decisions in the current cabinet waste and raw materials, and catering. term to further stimulate investments in the Netherlands. In 2017, the government-wide implementation of the With the Netherlands Investment Agency and the BNG Bank, separation of office refuse will be completed. The goal is for the Ministry of Economic Affairs is also studying the the government to halve the volume of non-recyclable feasibility of an Energy Transition Financing Facility. This waste (comparable to household waste) by 2020, compared facility is focused on boosting and realising economically to the volume produced in 2012. and technologically sound projects that are difficult to finance at the moment. The projects should make The national government has the ambition of setting up a contribution to a sustainable generation of energy, energy a first fully circular product category and to use lessons savings, and the reduction of CO2 emissions. They may also gained from it in order to set up five other circular involve circular projects. Likely fields are, for example, categories starting in 2017. sustainable energy (e.g. geothermal energy), the use of residual heat, sustainability in an urban environment In addition, the national government will also commit itself (including social real estate, small and medium-sized to more circular and biobased purchasing in the construc­ businesses, and industry) and the circular economy. The tion sector (see Chapter 5.4). The Central Government Real pilot project is scheduled to commence before the end of Estate Agency RVB and Rijkswaterstaat (the executive branch this year. of the Ministry of Infrastructure and the Environment) have an important role to play in this as contractors. The first commercial biobased factories have already been announced. To realise a sound investment for sugar processing, wood processing and pyrolysis, among others,

4.3 Financing the Ministry of Economic Affairs is looking into possibilities to support these companies. Investments in circular products and services have a different risk profile, different depreciation periods, and a different Supporting entrepreneurs with developing revenue models cost-benefit balance from linear products. There is also still The transition to a circular economy is still in the early relatively little knowledge about circular business models. stages. The group of pioneering businesses is small but There is a demand for insight into a wider social cost-benefit enthusiastic, and the group of companies lagging behind is balance and active support for circular business models. large. In between them there is a growing group of businesses that see opportunities in the circular economy. Yet they have not yet cashed in on them and often also do not know how to do this. Encouraging circular entrepreneurship should be integrated into the current policy for encouraging sustainability in the business 30 | A Circular Economy in the Netherlands by 2050 community. The Cabinet also intends to support the group who play a central role in society with the information of “willing” companies more intensively in various ways. required to take decisions, and to tailor innovation more to • In recent years, experience has been gained with the three strategic objectives of this programme. supporting these companies through the Nederland Circulair! programme. This assists companies in the areas In its recommendations, the Social and Economic Council of financing, value chain collaboration, start-ups, of the Netherlands (SER) indicates that the transition to design, and business models. The plan is for this a circular economy introduces uncertainty about the programme to continue; structural changes in the labour market. New jobs can be • The Cabinet is exploring the possibilities for a low- created at all educational levels, yet at the same time threshold voucher scheme, providing entrepreneurs attention should be given to the jobs that will possibly be with knowledge and advice regarding the development lost. of revenue models and the utilisation of financial instruments; 4.4.1 Barriers and opportunities • In follow-up to the recommendation of the Social and Economic Council of the Netherlands (SER), the Cabinet Building up knowledge will invite financial institutions and businesses to look The availability of knowledge that is important for the into the possibilities of having new circular revenue transition to a circular economy varies from one topic to the models compete with linear revenue models. next. The development of information about material flows, natural capital, the biobased economy, and effect estimates Private funding regarding technology, the labour market, and quality labels Private funding for circular developments clearly shows that is still in full swing. Yet much is already known about there is support in society for the ambitions set forth by the subjects such as assets, ownership ratios, prices, taxes, and government. The Cabinet is pleased that private financers, subsidies. such as the three large banks (ABN-AMRO, Rabobank, and ING), have underlined the importance of circular Following the conclusions of the Social and Economic entrepreneurship in a joint statement.44 They will also Council of the Netherlands (SER), the Cabinet has investigate what else is necessary to increase the knowledge established that coherent and inter-connected regional of financial products and risk management in light of the policies regarding the creation of learning and experimental circular economy. The Cabinet will enter into a dialogue environments aimed at the circular economy are largely with private financers about what is necessary and how the lacking. national government can help to facilitate it. The SER has also concluded that in the domain of the circular In addition, through the Funding of sustainable energy projects economy, especially, a tailored approach is required at job Green Deal, a joint expertise centre of the government, learning centres, and that the relevant regulations are too major banks, and green banks is active. rigidly structured. European (co)financing Labour market aspects The European structural funds and the resources from the Following on from the SER recommendations, the Cabinet so-called Juncker fund (European Fund for Structural will conduct a study into the labour market aspects of the Investments, EFSI) also provide opportunities for Dutch circular economy, the underlying mechanisms and the businesses and governments to finance circular innovations preconditions that must be met to contribute effectively to and investments. an acceleration of the circular economy. Innovation policy

4.4 Knowledge and Innovation Entrepreneurs go through different stages in the development of their product or business model, from The development of knowledge (education and research) research to a fully mature product in a mature market. and the dissemination and exchange of knowledge in The government can implement policy to help a circular networks are essential for the desired transition. This calls product or service move on to the next phase. Each phase for a supporting infrastructure. The objective of the calls for specific instruments.45 knowledge and innovation intervention is to provide those 44 MVO Nederland, Major banks support a circular economy in the 45 Massa is Kassa [Mass is Cash], developed in the context of the SER Netherlands, 2016. Vision on Fuel. Government-wide Programme for a Circular Economy | 31 To change the worn-out routines and structures of the comprising representatives from the business community, linear economy, social innovation is just as important as research institutes, educational institutions, and the technological and system innovations. Social change is government, are being continued in 2017. necessary to give the new technology a place in society. In some respects, technology is even of secondary importance. Biobased and circular economy In recent years, networks and regional platforms have

4.4.2 Ongoing efforts invested in the accumulation of knowledge regarding the biobased economy.48 A network of scientists, businesses Knowledge networks from different sectors, and NGOs is developing knowledge The Netherlands has active knowledge networks operating about the opportunities of biobased business cases, for in the domain of the circular economy at both the national example, in the Biorenewables Business Platform and the and regional levels. A large number of institutions Platform Agro-Papier-Chemie. Furthermore, the development participate in these networks.46 Other networks too, such as of the biobased economy is supported by cooperation with the Platform for Biodiversity, Ecosystems and the Economy47, two educational centres for the biobased economy. contribute to knowledge and practical experiences that support the transition to a circular economy. In addition, A good example of innovative education is a Massive Open foreign knowledge institutes, such as the Ellen MacArthur Online Course on the circular economy (Circular economy: Foundation (EMF), the World Resources Institute (WRI), the Green an introduction) with more than 1,700 participants from Growth Knowledge Platform (GGKP), the OECD, and the UNEP 49 countries (cf. www.biobasedacademy.nl). Delft University International Resource Panel (UNEP-IRP), also play an important of Technology has organised a similar course on the circular role in the collaboration with Dutch knowledge institutes. economy that attracted more than 6,000 participants from 47 countries. The Social and Economic Council of the Netherlands (SER) justifiably underlines the importance of strengthening the In Europe, the transition to a “Bio-Economy” is one of the collaborative ties between governments, businesses and social challenges in the European Innovation Policy (Horizon educational institutions at the regional level. In education, 2020). A key effort in this regard is the Joint Undertaking the circular economy is still a relatively new subject. Biobased Industries (JU-BBI), an instrument with more than Sustainability education already features many networks 3.7 billion euros in public and private contributions to build and curricula in which sustainability is embedded and a bridge between research and the private sector. The goal is supported by the inter-ministerial Duurzaam Door achieving a 20% market share for biobased chemicals and [Sustainably Forward] programme. materials by 2020 and a market share of 30% by 2030. Knowledge agendas Material Flows Monitor A number of circular economy knowledge agendas have In recent years, Statistics Netherlands (CBS) has compiled been drawn up, the Groene Brein (Green Brain) network has time series, via the national Material Flows Monitor (Monitor developed a knowledge map (www.hetgroenebrein.nl/ Materiaalstromen), of material use in the Netherlands linked kenniskaarten), and the Dutch National Research to the Environmental Accounting, including water Agenda is giving attention to the circular economy consumption, ownership ratios, and international value (www.wetenschapsagenda.nl). chains. Based on this work, the supply security risk for 64 metals and minerals for the Dutch economy could be Rubber, plastics and metal brought to light. The circular potential of 1,100 abiotic Within the “From Waste to Resources” (VANG) programme, product groups can now also be determined in terms of networks have been set up for rubber, plastics, and metal quantity. The monitor is being continued on the same basis, to develop and transfer knowledge i.e., with the environmental accounting linked to the (www.circulairemetaalketen.nl). These networks, material flows monitor.49 46 Such as CBS, TNO, PBL, Rli, NSOB, Delft University of Technology, Erasmus University, Leiden University with the Centre for Sustainability, Utrecht University with the USI, RIVM, CPB, WUR, Rathenau Institute, and Groene Brein. 48 www.biobasedeconomy.nl/kennisnet 47 Platform Biodiversiteit, Ecosystemen en Economie is a collaboration 49 Also based on the CBS report “Expanding the Material Flow Monitor, between VNO-NCW and IUCN Nederland, supported by the Ministry 2015”, and actions set out in the Government-wide programme of Economic Affairs. The Platform focuses on the development of (linkage with planetary boundaries and SDGs, sustainability business cases for handling natural capital in a sustainable manner. framework for all raw materials, regional tool, raw material scanner, biobased economy, resilience of value chains, et cetera). 32 | A Circular Economy in the Netherlands by 2050 interview Expanding the use of bioplastics Tjerk de Ruiter, CEO of Corbion: ‘Polylactic acid (PLA) is ‘PLA is a fine example of '' a raw material that is used in, e.g., products for the medical industry and coffee capsules, plastic bags, (food) packaging, plates, and cutlery, but also in cars, textiles, and electronics. Corbion has already supplied the chemical building blocks for the production of polylactic acid. Now that we have built our own bioplastics plant, we can a circular building block.’ In addition to sugar, Corbion has also successfully used other types of biomass for their PLA production. As yet, produce our own PLA, a biodegradable plastic made from this is a costly process, whose further development and biomass. As PLA is made from biomass, it is a renewable upscaling requires more research. Corbion is setting up raw material and thus a fine example of a circular building a consortium with private sector parties to enable its block. It is compostable and can thus be used for introduction and reduce the costs. consumables that are difficult to recover by recycling.’ ‘The use of bioplastics can be widely expanded. For That is another motive for Corbion. De Ruiter adds, ‘What example, by explaining to consumers that biodegradable is better than consumers directly contributing to the plastics can be discarded in the organic waste bin. The circular economy?’ He is proud of the fact that, for example, government could be involved in raising public awareness not only food packaging but also coffee capsules with concerning the advantages of degradable plastics.’ coffee grounds and all can go into the organic waste bin. Tjerk de Ruiter CEO Corbion '' Government-wide Programme for a Circular Economy | 33 Investing in experiences with natural capital entrepreneurs, (government) purchasers and policymakers In recent years, businesses, financial institutions and the in an interactive manner. Both will become available in national government have invested large sums in 2016. The information available nationally will also be instruments and methods to make their dependence and expanded and translated to the regional level via the impact on natural capital manageable. Thus, in the context development of a regional tool. The objective of this tool is of the Transparency of Natural and Social Capital Green to assist regional players in completing regional circular Deal50, more than 20 best practices have been collected, business cases. This tool will be actively offered to stake­ predominantly from businesses. Participating companies holders at the regional level. For the five priorities in the emphasise in the final report that better information on national approach, the toolbox will be used to investigate natural and social capital leads to better decisions and that where (on what scale level) possibilities exist for circular there are now sufficient practical tools for businesses to entrepreneurship. work with. The financial sector has also explored promising approaches; for example, the Dutch Association of Investors Encouraging circular product design in the Netherlands for Sustainable Development (VBDO) has issued guidelines The Cabinet is convinced that increasing the life of on natural capital for investors in sustainable development products, making them repairable and using products more with the financial support of the Ministry of Economic efficiently should be encouraged. To this end, the Cabinet Affairs. will continue a programme aimed at fostering circular design and link it to the five priorities set out in this Natural capital government-wide programme. Entrepreneurs and designers In addition to promoting and facilitating the will be assisted, in interaction with scientists and students aforementioned activities, the government has also taken in workshops, with the development of new circular steps in the area of natural capital under its own products, services, and business models. responsibility. Information about natural capital and nature-based solutions is provided via the Atlas Natuurlijk www.circulairondernemen.nl and Nederland Circulair! Kapitaal (Natural Capital Atlas), via biomimicry in education Since 2015, businesspeople have been informed about (HAS University of Applied Sciences, Utrecht University) and circular entrepreneurship via the platform the foundation Biomimicry NL. In addition, the Ministry of www.circulairondernemen.nl. This platform will be Economic Affairs and the Ministry of Infrastructure and the continued in 2017 and the network function will be further Environment have commissioned Statistics Netherlands extended. (CBS) to explore the possibilities for setting up natural capital accounts in the Netherlands, which should give The Nederland Circulair! programme, from which this platform natural capital a place in the economic system. This and CIRCO have ensued, initiates different practical support exploration has led to the conclusion that the prospects are programmes for companies and start-up enterprises that good. CBS is preparing subsequent steps, taking into want to take the next step towards circular entrepreneurship. account the Natural Capital Atlas. This programme will be continued in 2017. Furthermore, a network has formed around sustainable KIEM-VANG programmes and Closed Loop Cycles area management called Verified Conservation Areas (VCA). With respect to research and support, two programmes This international VCA approach is used to enhance the have been initiated that are specifically aimed at the circular transparency and accountability of sustainable area economy. Firstly, the KIEM-VANG51 scheme established by management in the Netherlands, with a view to providing the Ministry of Infrastructure and the Environment and new revenue models and attracting investors. carried out by the National Coordinating Body for Practice- oriented Research (Nationaal Regieorgaan Praktijkgericht Dissemination of knowledge via raw materials knowledge Onderzoek), which promotes research projects conducted by plaza and regional tool universities of applied sciences in cooperation with The raw materials knowledge plaza (kennisplein grondstoffen) companies. These projects pertain to material flows: metal, and the associated tool that are currently being developed plastics, rubber, biotic waste flows, nutrients, and building are intended to share all available information about the materials. This scheme will be continued in 2017. We are risks and opportunities involved in raw materials with examining whether more of these networks can be set up; e.g., for the furniture and kitchen industry. Furthermore, in 2016 the NWO programme Closed Loop Cycles – Transition 50 Ministry of Economic Affairs, IUCN Nederland, MVO Nederland, True Price, 2016, Het loont om transparant te zijn. Geleerde lessen van de Green Deal Samenwerken aan Transparantie van Natuurlijk en Sociaal Kapitaal 51 Knowledge Innovation Mapping. http://www.regieorgaan-sia.nl/ 2014-2016 [Being transparent pays. Lessons learnt from the Green Deal nieuws/pro-vang Collaborating on Transparency in Natural and Social Capital 2014-2016]. 34 | A Circular Economy in the Netherlands by 2050 to a circular economy (Gesloten Kringlopen – Transitie naar een be set up should provide room for the development of circulaire economie) will be launched. This cross-sectoral indicators for monitoring and quantifying the progress of programme (5 million euros) targets the Top Sectors of Agri the implementation of the circular economy and the and Food, Logistics, Horticulture & Cultivation Materials, programme (key performance indicators). and Water. In its innovation policy, the Cabinet also aims to strengthen Top Sector policy, biobased economy programme, and circular the collective attention given to the circular economy in the economy relevant routes of the Dutch National Research Agenda53 and Apart from encouraging research and development in the different Top Sectors. investments via innovation subsidies (solving “market failures”), the current innovation policy is, to a significant Continued development of Natural Capital degree, aimed at strengthening the collaboration between In order to realise a circular economy that remains within businesses, knowledge institutes, and governments (solving the capacity of the earth to support it, the Natural Capital “system failures”). Atlas will continue to be developed, especially for local governments and businesses. This continued development In the Top Sector policy, businesses, knowledge institutes, will be aimed at identifying the potential of possible and governments work closely together on innovations to innovation, revenue models and business cases of natural strengthen the competitive capacity of the Netherlands. circular solutions for businesses and local governments. The Top Consortium for Knowledge and Innovation (TKI) In the meantime, a study will be conducted into how the Biobased Economy 2015-2027 is implementing four research Atlas can continue to exist after 2020. lines focused on optimising the use of biomass for different objectives, such as for energy supply and chemicals. In The Dutch support for the VCA (Verified Conservation Areas) addition, the consortium is working on relevant material approach will also be continued in 2017 and the and process innovations in the roadmaps of the Top Sector VCA network will be scaled up so that it can function as High Tech Systems and Materials. a label for natural circular solutions in area management. Finally, initiatives in the area of the circular economy and Integrated knowledge bank Biobased Economy can make use of the government’s existing Statistics Netherlands (CBS) proposes supplementing the financial tools.52 material flows monitor with other available information.54 Examples include information on the degree of toxicity of The Netherlands Enterprise Agency (RVO) will complete materials and products, and how the Netherlands’ use of a study this autumn (2016) into the degree to which raw materials relates to the planetary boundaries. The financial barriers, as presented in the literature on the Cabinet will do this step by step, in order to produce subject, actually hamper circular and biobased initiatives, a knowledge bank. All information from the knowledge and how the national government can assist in reducing or bank will be disseminated via the raw materials tool for removing such barriers. companies and the regional tool under development. In addition, it will investigate whether and, if so, what

4.4.3 Planned actions information about the effects on biodiversity can be linked to the raw materials databank in order to be able to take Dynamic knowledge and innovation agenda better account of the risks and dependencies of natural In collaboration with societal stakeholders, a government- capital. wide knowledge and innovation agenda will be established in 2017, in keeping with the Cabinet’s efforts to achieve The knowledge bank (with information and access tools) a circular economy. This agenda will foster interconnectivity can lead to an infrastructure in which, for instance, strategic in the development of knowledge and build on the agenda setting for European research and investment funds knowledge agendas already developed. Existing innovation is commonplace. lines, such as TKI Biobased Economy 2015-2027, and research programmes in the area of electric transport will be factored in. Furthermore, the knowledge and innovation agenda to 53 Under the National Research Agenda (Nationale 52 For example, Innovation Credit (Innovatiekrediet), Agricultural Wetenschapsagenda), the Smart Industry, Circular Economy, and raw Guarantees (Garantstelling Landbouw), Business Financing Guarantees materials routes are being developed: sustainable circular impact, (Garantie Ondernemingsfinanciering), the Green Projects Scheme and Materials Made in Holland (www.wetenschapsagenda.nl). (Regeling Groenprojecten), Early Phase Financing (Vroege fase 54 CBS, Expanding the Material Flow Monitor, 2015. financiering), the Growth Facility (Groeifaciliteit) or SEED Capital. Government-wide Programme for a Circular Economy | 35 Tenders and competitions For secondary schools, the Ministry of Infrastructure and The Cabinet intends to challenge parties through, for the Environment and the Ministry of Economic Affairs have example, tenders and competitions to invest in value chain set up the Duurzaam Door programme (Sustainably Forward). cooperation and in the joint tackling of a social challenge. The substantiation of this programme is currently being This approach is not yet commonplace, yet it does fit in well studied, as are ways to flesh out the directive role. with the socially responsible purchasing policy under which government contracts are awarded on the basis of desired Channel existing EU resources to the circular economy performance or social values. The EU is an important source of funding for research and innovation for the circular economy (Horizon2020 and Communities of practice LIFE). For the budget years 2016 and 2017, Horizon2020 has For the five priorities from the Government-wide allocated approximately 650 million euros to circular programme (see Chapter Five), the national government economy projects, including funds for large demonstration will set up a number of communities of practice. This also ties in projects aimed at closing the loop in the raw materials and with the recommendations of the Social and Economic water cycles, funds for regional development projects, and Council of the Netherlands (SER). Communities of practice funds for the development of new business models. The are a valuable instrument for businesses to gain new Netherlands is already making good use of these resources. knowledge in the area of the circular economy, primarily Small and medium-sized businesses are playing when giving practical substance to the business operations. an important role in this and should be able to benefit from The experience gained in this way is very significant for the available resources as well. The Cabinet is committed to other companies. ensure that Dutch businesses enjoy maximum profit from these resources. It also aims to embed the circular economy Cross-sectoral approach securely in the Horizon2020 work programme 2018-2020 and to The circular economy is a theme that often affects several channel the financial resources of the European Investment (Top) sectors. In the policy on Top Sectors and industry, the Bank (EIB), the European Fund for Strategic Investments circular economy is taken up as a cross-sectoral theme. (EFSI), and the global funds of the World Bank and Together with the business community, knowledge International Finance Corporation (IFC) to the circular institutes, and the government, the desirability and economy. feasibility of a number of roadmaps for the priorities will be explored.

4.5 International Cooperation Circular Challenge Project The Cabinet will challenge the initiators of the Circular The circular economy is an international challenge. Various Challenge project to develop a business case based on global developments require a radical change in global innovation and investments that can offer a sustainable production and consumption patterns: solution for the social issues of our time. The feasibility of • the rapid development of countries; such a business case often depends on the question of • the growing world population; whether governments – central, regional and local – have • the effects of climate change; adopted an integral policy approach (e.g. in the areas of raw • the growing scarcity of natural capital and raw materials, energy, and the environment) with appropriate materials; regulations. By involving and gathering the expertise of the • the rising demand for products and food. government early on, a collaboration is created to foster innovation within a financially profitably business case with In other words: the absolute decoupling of our raw a view to legal authorisation. This immediately provides materials consumption from economic growth presents us opportunities for the European internal market and, where with a collective challenge. The transition to a circular possible, the government as a “launching customer”. Ties economy makes a significant contribution to resolving this can also be sought with existing initiatives such as NL issue. Innovative Topland of the Confederation of Netherlands Industry and Employers (VNO-NCW). In order to realise a circular economy in the Netherlands, it is essential that this transition also takes place at the Vocational education European and global levels. Value chains and waste flows The Cabinet aims to embed the circular economy firmly in are international and, although use or consumption takes education. For the higher education sector, a Circular Economy place in the Netherlands or the EU, the discarded products Platform will be set up for lecturers at Universities of Applied or materials do not by definition end up in the Netherlands. Sciences with the objective of developing and coordinating Legal and economic preconditions are to a large degree research programmes, and exchanging knowledge. established on European level and Dutch businesses 36 | A Circular Economy in the Netherlands by 2050 interview Launching successful initiatives across the globe After I had started and built up companies in the United The carbon black we retrieve from old tyres can be re-used '' States, I returned to the Netherlands, where I intended to set up a business that would make a positive contribution to the world. So I thought to myself: what would really contribute to resolving the climate issue on a global scale? for the production of new tyres or, for example, paint or ink. The quality of the carbon black we retrieve is similar to that of the carbon black commonly extracted from petroleum oil. But our new production process emits far less CO2, and it yields valuable oil and gas as by-products. ‘I intend to set up a business Our initiative is capital-intensive and we needed financial support long before we could produce something that would make a positive concrete. Fortunately, we received subsidy from the contribution to the world.’ government – without which we couldn’t have made it – but that required us to keep extensive records: retaining receipts, clocking hours. This is quite a burden. Really I decided to join forces with Black Bear, a company that putting the circular economy on the map requires a few recycles carbon black from car tyres. This resolves two worldwide successful initiatives. This is what the issues. First of all, we reduce the pile of discarded car tyres: government should focus on. some 2 billion a year. In many cases, these are burnt, emitting high levels of CO2, or they end up on a landfill. In Africa, they are a source of malaria problems, because mosquitos thrive in the water that collects in the tyres. Martijn Lopes Cardozo Black Bear '' Government-wide Programme for a Circular Economy | 37 increasingly operate internationally. A study conducted by the Centre of Expertise on Resources55 shows that the negative effects of a circular economy in A successful Dutch policy for the circular economy will Europe will be limited for most developing countries that therefore require operating on several levels. At the EU export raw materials. The EU-bound share of the export is level, we are working on the right legal and economic often relatively small and accounts for less than 5% in the preconditions and incentives so that we can then GNP of these countries. This would change if other implement them as effectively as possible at the national countries that import raw materials also make a transition level. At the same time, we are committed to better to a circular economy. Particularly in countries where a lack understand the impact that a circular economy in the of good management and large demographic pressures may Netherlands and the EU may have on other countries, increase their economic vulnerability. To avoid overall especially low-income countries. In a UN context and in negative effects, special attention should be given to international public-private partnerships, we are countries that export raw materials that are also dependent committed to an ambitious agenda for an international to a large degree on the extraction and export of primary circular economy without any negative impact on low- raw materials. income countries. In this respect, we will capitalise on the strengths of the Dutch economy and turn our national 4.5.1 Barriers and opportunities knowledge and expertise into a product to be exported to The perspective of a circular economy offering solutions for other countries. global issues concerning raw materials has not yet taken root everywhere. Some countries that export raw materials Three objectives are, for instance, concerned that the circular economy in Three objectives are key to international cooperation in the Europe could lead to a decreased demand for raw materials area of the circular economy: and thus jeopardise their economic development. At the EU level, although there is broad support for the circular Creating international conditions for a circular economy economy, opinions may differ with respect to the right pace The Cabinet is committed to creating an enabling and the level of ambition. Some eastern member states environment for the transition to a circular economy: both express concern about the feasibility of ambitions and are legal preconditions (legislation and regulations) and asking for support in making the transition. In order to economic preconditions (a well-functioning market for build EU-wide and global support for ambitious measures, secondary raw materials). This is particularly relevant for it is therefore important that everyone is able to profit from European cooperation with regards to EU legislation and the the economic, social and environmental benefits of the common market. circular economy. International market for Dutch leaders The circular economy calls for a new, facilitating role for the The circular economy provides international opportunities government and for new ways of cooperation between for the Dutch business community. By operating strategically governments and the business community, between sectors at the international level, our innovations can be capitalized and supply chains. The Netherlands has experience with abroad. The export of Dutch knowledge and expertise abroad this: the “polder model” is in our genes. But on the inter­ can strengthen our frontrunners position internationally national playing field, this is still a relatively new approach and create economic benefits. that cannot be applied one to one in every context. Contributing to an international circular economy without These barriers can be partially removed simply by showing negative impact that it works. In recent years, the Netherlands has In order to build an international circular economy and established an international reputation as a frontrunner in contribute to realizing the SDG’s, the Cabinet intends to the circular economy, with knowledge and experience in make Dutch knowledge and experience available beyond the areas of waste and nutrient management, technological our national borders, working together with our companies and social innovation, an integrated approach and cross- and other partners. These efforts will be focused on those sectoral cooperation with companies, knowledge institutes, countries and local communities that have difficulty coping and governments. Dutch companies are international with the social and environmental impact of the current leaders in the fields of water, agriculture, maritime activities, linear economic system, and where a circular economy logistics, and governance, and presenting integral solutions. could contribute to a local sustainable economy and the These are the “unique selling points” with which Dutch security of supply of critical materials. ---- 55 Centre of Expertise on Resources: The Circular Economy and Developing Countries, COE-Resources Issue Brief 3, 2016 38 | A Circular Economy in the Netherlands by 2050 partners can capitalize their knowledge and experience and recycling sector, yet it also concerns the (re)use of raw internationally. materials, circular design and production, social innovation, and the creation of added value via integral

4.5.2 Ongoing efforts supply chain cooperation. International conditions The Dutch business community is also active in this respect. During the Dutch EU presidency in the first half of 2016, the The “Netherlands Circular Hotspot” campaign of last year, for Netherlands actively brought forwards the Commission instance, resulted in the opening of the Circular Economy proposals on a circular economyon the agenda and Expo in Hoofddorp and a successful incoming trade mission organised various meetings to collect input from European in April 2016. stakeholders.56 As a result, in the Environment Council on June 20th 2016, the member states unanimously declared Towards an international circular economy without passing on their support for a European transition to a circular economy. negative impacts They called on the European Commission and on each other The Netherlands operates in global bodies such as the UN to remove barriers in regulations, to create circular and the OECD in order to realize the potential of the circular incentives within current policies, to deploy market-based economy to reduce pressure on the environment, to assure instruments instruments, to take an integrated approach, supply security of resources and to promote geopolitical and to create room for circular initiatives, e.g., via stability.59 In focused partnerships, the Netherlands works Innovation Deals. In addition, they are calling on the with public and private stakeholders on specific supply European Commission to take concrete measures for the chains and sectors, such as the UNEP Global Partnerships sustainable sourcing of raw materials, promote a longer on Nutrient Management and Marine Litter. In addition, it lifespan of products (e.g., via the Ecodesign Directive), to is working on International Corporate Social Responsibility reduce plastic waste, to tackle food wasta, and to establish (IMVO) covenants that are concluded in multi-stakeholder a platform for cooperation to support swift implementation contexts (between the private sector, NGOs, trade unions, of the Action Plan.57 and the government) in which the circular economy can play a part in removing the social and environmental On March 3rd 2016 the North Sea Resources Roundabout was impacts of our linear economic system and converting them concluded: the first international Green Deal, initiated by The into opportunities for sustainable economic growth. New Netherlands.58 This illustrates a new way of cooperation in IMVO covenants, such as the one for clothing and textiles, an EU context, based on voluntary cooperation between as well as the covenants under preparation for electronics governments and companies that are leading the way in the and metals, offer the possibility of including roadmaps for transition in an area in which an EU-wide approach has not the circular economy. Further more the possibilities for yet been established. a more circular economy in urban deltas will be explored, with the aim of strengthening local economic In a manifesto under the Dutch presidency during development. “Bio Economy Utrecht 2016”, the European bio economy stakeholders called on the bio economy strategy from 2012 Internationally, through the World Bank/International to be revised. The Netherlands strongly supports a firm bio Finance Corporation (IFC) for example, the Netherlands economy strategy from the European Commission. supports the application of the Natural Capital Protocol by companies and the use of natural capital accounts by International market for Dutch leaders governments.60 The government helps create international business opportunities for the private sector via, for example, the With regard to the SDG’s, the Cabinet intends to give Top Sector policy and by organising trade missions. an assessment by autumn of how the Netherlands can fulfil Economic diplomacy has been mostly aimed at the waste its responsibility, in concrete terms. At the same time, impact assessments will be conducted at 56 This is implementing the motion of Dijkstra (Parliamentary an early stage to map out the effects that policy options for documents II, 21 501-08, no. 557) that calls on the government to a circular economy will have on global sustainable develop­ work intensively in new proposals for the promotion of investments ments and low-income countries. This will strengthen and the removal of barriers. 57 Council of the European Union, Council conclusions on the EU action plan for the circular economy, 20 June 2016 and Council conclusions 59 such as UNEP (incl. via 10YFP), OECD, World Bank, UNECE, WRI and on Food losses and food waste, 28 June 2016. IRP 58 See paragraph 4.1.2 60 www.naturalcapitalcoalition.org/protocol Government-wide Programme for a Circular Economy | 39 interview Discarded fishing nets given a new life as carpets ‘We came up with the idea during a brainstorming session. ‘Increasing the appeal of using end-of-life products as At that time, we did not just procure yarn, we also provided an alternative source of scarce and expensive resources our suppliers with recycled yarn. A successful example of requires a new balance in the tax system. Under the a circular value chain. Eventually, market demand for current system, labour is heavily taxed, whereas hardly any recycled yarn exceeded our supply. This made us wonder tax is paid on energy and resources. The current system whether fishing nets, made from high-grade nylon, could thus encourages exactly the opposite of what a circular be used as an alternative source for the yarn in our carpet economy aims to achieve, viz., more work, a reduction in tiles.’ energy consumption, and a more efficient use of existing and old materials.’ ‘In the coastal areas of development countries, large sections of the population fish for their living. Discarded fishing nets seriously affect the eco systems of these areas. ‘… hardly any tax is paid on Through the Net-Works project, set up in collaboration with the Zoological Society of London (ZSL) and yarn energy and resources.’ manufacturer Aquafil, local fishermen are trained to select and clean discarded nets. The coast and the ocean are ‘With Mission Zero, Interface aims to eliminate any cleaned, thereby restoring biodiversity. The local negative impact on the environment by 2020. In addition, population makes some money and Interface re-uses with our new Climate Take Back mission we aim to make valuable resources for the production of carpet tiles.’ a restorative contribution to the environment and combat climate change.’ Ton van Keken Vice President of Operations, Interface 40 | A Circular Economy in the Netherlands by 2050 policy coherence and synergy. In addition, any future International market for Dutch leaders passing-on effects can thus be prevented or mitigated as The development of business cases, the organisation of much as possible. trade missions, and government-to-government (G2G) support can be mutually supporting. This can result in In an international context, attention will be given to the ambitious public-private collaboration that focuses on export of recyclable waste and the risk of passing the issue specific opportunities and dilemmas in rapidly growing on to low-income countries. cities in emerging markets and developing countries. The best practices of the Dutch circular economy are used to

4.5.3 Planned actions position the Netherlands as a Sustainable Urban Delta, building on experiences with the Clean Urban Delta Initiative in Rio de International conditions Janeiro.62 A smart connection of the supply and demand for At the European level, the Cabinet has the ambition of knowledge and expertise in the world’s urban deltas can implementing the circular economy package of the boost local economic development and activity. European Commission and the relevant Council conclusions in the very near future. This calls for creating Efforts expended by embassies the right conditions for the circular design of products and During the EU presidency, Dutch knowledge and experience services, for longer product lives, and for uniform product regarding the circular economy attracted considerable and waste regulations that are conducive to a circular international interest. Various embassies, for example in economy. This will give secondary raw materials access to Denmark, have since organised seminars/events with the the European market, enabling the sustainable sourcing local business community to support the circular economy. and use of raw materials, and the targeting of public and Substantive support for the embassies will be structured, private financing sources to circular innovations. thus enabling them to properly propagate the Netherlands’ leading position in this area. Strategic coalitions To guarantee sufficient support for these Dutch ambitions, Holland Circular Hotspot Platform it is essential that efforts are not solely directed towards the The Ministry of Infrastructure and the Environment, European Commission. Also in light of the current dynamics together with the trade association Envaqua for water and within the EU, it is important that efforts are also focused environmental technology, will soon launch the platform on strategic coalitions with frontrunning public and private Holland Circular Hotspot. This platform focuses on companies stakeholders , as well as on sharing knowledge and and knowledge institutes in the waste and recycling sectors experience with other parties. that (want to) operate internationally, and on companies and knowledge institutes that focus on the transition to The activities that the Cabinet has in mind are: a circular economy and that (want to) share their knowledge • Establishing and actively participating in a European and expertise internationally. Attention is also given to the platform for the Circular Economy61; domestic market, which enables us to present iconic • Coordinating and steering the implementation of the projects abroad. The platform Holland Circular Hotspot can European Action Plan for a Circular Economy, e.g., via an lend support for a firm international positioning of the policy network of directors/directors-general; Dutch private sector in the area of a circular economy, • Supporting the transition in eastern and southern building on successful initiatives like the one launched by member states in cooperation with other leading Netherlands Circular Hotspot (NLCH). European countries; • Initiating and contributing to European and regional Trade missions conferences, such as the European Conference on Incoming and outgoing economic missions have provided Plastics (December 2016); a spotlight for circular innovations in the Dutch private • Concluding international Green Deals in follow-up to sector. Two missions to Eastern European countries and the Green Deal North Sea Resources Roundabout (NSRR), e.g., a climate adaptation mission to Indonesia are scheduled for in European river basins and in areas with market the autumn of 2016; the Netherlands will also participate in potential for recycled nutrients from animal manure the first Chinese circular economy trade fair to be held this and other organic residual waste flows. autumn. 62 Clean Urban Delta Initiative Rio de Janeiro, see http://goo.gl/ 61 See footnote 10. PsqQPb. Government-wide Programme for a Circular Economy | 41 Research Cooperation with countries exporting raw materials To shed light on the impact of the circular economy on The Cabinet is committed to cooperating with countries global sustainable development and to strengthen policy that export raw materials and with countries that have large coherence and synergy, the Cabinet is studying potential waste flows around rapidly developing cities on the basis of barriers and undesirable effects of existing measures with the so-called “mutual gains approach”, which aims to remove regard to waste processing (e.g. waste from electronics, the negative social and environmental impact of our linear textiles, metal, and paper) to serve as a basis for the economic system and to convert it into opportunities for development of a circular economy in developing countries. sustainable economic growth. An example of such Impact reports, drawn up with the support of the an approach is the relationship that the Netherlands has Netherlands Commission for Environmental Assessment entered into with Morocco. This relationship was (MER), will enable the identification of potential established in light of Morocco’s strong position as unforeseen effects at an early stage of policy development, an exporter of phosphate and its vulnerability with respect and mitigation of any future passing-on effects.63 to water management (a scarcity of water) due to climate change. Similar opportunities also present themselves in Cooperation with the Caribbean region international material value chains of, among other An initiative has been launched with the United Nations materials, tin, gold, lithium, textiles, nutrients, and plastics Environment Programme (UNEP) based on barriers or in sectors such as the metal sector and the maritime perceived in our constituent parts of the kingdom and sector. municipalities in the Caribbean region, in order to develop a good approach to waste management and the circular economy. The initiative will consider how, through innovation and partnerships between the islands and between private and public parties, the circular economy can be developed in these areas. This initiative, which can already count on the broad support and enthusiasm of the island residents, can possibly lead to an international Green Deal between the Small Island Developing States (SIDS) in the Caribbean region, UNEP, the Dutch Government, and private companies in, for instance, the tourism sector. ---- 63 Quick scan Circular economy: effects on developing countries, PBL, 2016. 42 | A Circular Economy in the Netherlands by 2050 5 Priorities

5.1 Biomass and food utilised economically and efficiently, the preservation of natural capital is taken into account, and natural capital is

5.1.1 Why this priority? used in a sustainable manner. This means that the quality of Biomass is an indispensable raw material in the circular soil, water and air is protected, and biodiversity is main­ economy. This is the case for both produced biomass and tained, while at the same time reducing greenhouse gas biomass from residues. By its nature, biomass is a circular emissions. raw material, which distinguishes it from other raw materials. Biomass is used for food and feed; it is a base Furthermore, on 27 January 2016, the Cabinet presented the material for, inter alia, textile, paper & carton, building Strategische Visie voor de inzet van Biomassa op weg naar 2030 materials, chemicals, plastics, transport fuels, and energy. [Strategic Vision for the use of Biomass on the road to 2030] to the House of Representatives.66 This indicates that Biomass is thus of essential importance for reducing our sufficient sustainable biomass could potentially become CO2 emissions and our dependence on fossil resources. available to meet the Dutch demand for biomass for food, Furthermore, its use contributes to the greening of several feed, energy, transport, chemicals and materials. Provided major economic sectors with considerable large exports that the efforts bear fruit, the focus will be on expanding (biobased economy). the supply of biomass and the optimum use of biomass. For reasons of cost effectiveness and the relatively limited

5.1.2 Vision for 2050 availability of other options, bio-energy will continue to be In a circular economy the closure of loops is central. Biomass stimulated under climate adaptation and renewable energy and biotic residues can eventually be incorporated into policy. In addition to food and feed, biomass is increasingly natural cycles (biosphere), provided they do not carry any used in sectors featuring few other renewable alternatives: risks for public health and the environment. Because of the chemicals & materials, aviation & shipping, long distance growing world population more biomass needs to be heavy road transport, and high temperature industrial heat. produced for food, feed, energy, materials, and other This government-wide programme constitutes a next step applications. In order to reduce pressure on natural capital and contributes to the realisation of the two visions and to make more biomass flows possible, it is important outlined above. that biomass is retained in cycles for as long as possible. The closed loops principle is not new to the agro sector; this 5.1.3 Strategic goals sector traditionally revolves around natural cycles. However, The three strategic goals of the programme will translated as a result of industrialisation and internationalisation in to the biomass & food priority in the following manner: the past century, this sector has also evolved into a largely 1. Optimising the use of biomass and food by closing loops. linear system focused on efficiency. All raw materials, semi-manufactures, and products must remain in cycles as long and at as high a grade as In a response to the WRR [Dutch Scientific Council for possible, by utilising raw materials to the largest extend Government Policy] report Towards a food policy64, the Cabinet possible, making high-quality use of biomass, and presented its views on food policy to the House of Represen­ recycling residues. This also calls for optimising tatives on October 30th, 2015.65 In its response, the Cabinet efficiency in the use of biomass (cascading and multiple indicates to pursue an ecologically sustainable food system valorisation), amongst other ways by combating (food) in which raw materials, energy, water, and nutrients are wastage, preventing waste, the ­well-balanced application of fertilisers, and efficient incineration; 64 Parliamentary Documents II, 34 395/22 112, nr. 2 en nr. 3. 65 Parliamentary Documents II, 31 532, nr. 156. 66 Parliamentary Documents II, 33 043, nr. 63. Government-wide Programme for a Circular Economy | 43 2. Reducing the use of and replacing fossil resources by production on a regional scale. The first “sea farms” have sustainably produced biomass; now been set up. 3. Developing and implementing new production and consumption methods that lead to improvements and Optimum utilisation of biomass and food deviations from the trend in the use of biomass and Sustainable consumption food. An example is the transition towards the use of As indicated in the Food memorandum, the Cabinet is alternative proteins. committed to sustainable consumption. The manner in which consumers deal with their food, in terms of both

5.1.4 Ongoing efforts purchase and use, impacts the use of farmland and resources. For this reason, consumer behaviour plays a key Sustainable biomass and food production role in the pursuit of sustainable food production. Dietary Promoting sustainable trade value chains adjustments, for example, the use of alternative proteins, The agro & food and biomass sectors operate at an can yield benefits for both the environment and public international scale and depend on import for many of their health. Knowledge of (consumer) behaviour, education, raw materials. Their international nature is a factor and culture are equally important as, if not more important complicating the closure of loops and the sustainable than, technological innovation in this respect. management of natural resources. The Sustainable Trade Initiative (Initiatief Duurzame Handel, IDH) and Solidaridad are Food wastage key partners in promoting the sustainability of trade value The Cabinet is committed to minimise food wastage. chains. As indicated in Paragraph 4.5, the Cabinet fosters In its response to the initiative note Aanpak voedselverspilling sustainability initiatives launched by the sectors, public- [Tackling food wastage] submitted by MP Dik-Faber, in its private collaborations, (international) Green Deals, and response to the aforementioned WRR report, and with the the conclusion of ICSR covenants (ICSR = International Letter to Parliament “Rapporten voedselverspilling” [Reports Corporate Social Responsibility). In addition, the on food wastage]68, the Cabinet has outlined its policy to government supports initiatives such as the Alliance for combat food wastage. The focus is on monitoring, consumer Climate Smart Agriculture and the Round Tables for Responsible information, revision of best-before dates, food banks, Soy and Palm Oil. innovation through the Agri & Food and Horticulture & Cultivation Materials Top Sectors, the removal of statutory Animal proteins obstacles, and positioning this topic on the European and The Letter to Parliament about the Insects for feed, food and global agendas. pharma Green Deal67 outlines the Dutch government’s commitment to improve the potential uses for insects. Residues These efforts have brought the use of insect protein in feed In the context of a circular economy, it is important that a step closer. Furthermore, the Netherlands is making the offshoots and residues are regarded as base materials rather case in the EU for to allow the use of animal protein derived than waste. Various residues from the food industry, such as from offal and approved pigs and poultry in pig and poultry beetroot pulp and brewery dregs, are already processed feed. A careful approach is preconditional in this respect, in within the feed value chain. Under certain conditions, order to prevent another BSE outbreak and violation of the foodstuffs that are no longer fit for human consumption anti-cannibalism principle. The use of such animal proteins will be converted to feed. Base materials are thus preserved is currently already allowed for pisciculture feed. within the food value chain. In this context, the Netherlands has successfully advocated that vegetable Regional cultivation residues suitable for processing into feed are no longer Dutch policy is also aimed at reducing the import regarded as waste. The Circular Economy Action Plan of dependency for raw materials. The Cabinet champions the European Commission comprises a proposal for sustainable regional cultivation and the development of amendment of the waste regulations. This amendment alternative sources of protein. Within the Agri & Food Top harmonises the use of such residues for feed. Sector, specific room has been created for relevant research proposals. Ongoing studies currently explore how Dutch Loop closure soy cultivation can be fostered, for example, through From Waste to Resources research into strain and culture improvement. A promising The Cabinet endeavours to support initiatives aimed at alternative source of protein is sea cultivation of algae and closing biomass loops, producing recycled raw materials, seaweed; this may contribute to expanding biomass and the maximum and multiple valorisation of biomass. 67 Parliamentary Documents II, 33 043, nr. 64. 68 Presentation of reports on food wastage, 18 August 2016 44 | A Circular Economy in the Netherlands by 2050 Tl-11S FOOD I-IAS .... - .. _ ... . ... interview .JUST BEEM RESCUED • Saving kilos of food ‘At the Albert Heijn supermarket chain, I started as ‘The restaurants are where everything comes together. '' a trainee in the department responsible for sustainability. Of course, as a child I learned to finish my plate, not throw away food. Only during my traineeship I saw with my own eyes how much foodstuffs we throw out. I just had to do something about that. But we also want to encourage people to prevent wastage. Our next step is the upcycling of product development. For example, with our spud beer: rather than malt, we use potatoes that would otherwise have been thrown out. We have also developed a cookery book focused on the preservation of food.’ ‘… as a child I learned to finish ‘The next step is to replace our van that we use to collect products from Albert Heijn supermarkets, with a slightly my plate … ’ bigger electric van. This will allow us to make runs every other day, rather than every day. Unfortunately, nowadays Together with three other trainees I submitted a proposal you need a HVG licence to drive such vehicles. The govern­ to the Jong Ahold ideas contest to start a pop-up- ment could do something about that, in addition of course restaurant using the left-overs of the AH supermarkets. to raising public awareness regarding food wastage.’ And we managed to set up such a restaurant: in the Westergasfabriek in Amsterdam. Instock, as we called the Foundation that ensued from the contest, now has two branches: one in Amsterdam and we recently opened another one in The Hague.’ '' Selma Seddik Co-founder of Instock Government-wide Programme for a Circular Economy | 45 Examples include the “Grondstoffenfabriek” [Raw materials by 2030. Under the SER [Social and Economic Council of the plant] Green Deal initiated by the water authorities to Netherlands] Energy Agreement, the SER Fuel Vision, and extract valuable raw materials from waste water, and the the Biomass Vision for 2030, the Cabinet and various NGOs “Business with biomass and biobased gas” Green Deal. are expending substantial efforts in the fields of bio-energy, biofuels and sustainability criteria. Biomass is indispensable Soil quality for replacing fossil resources in the chemical industry and The preservation of a fertile and healthy soil is vitally in plastics. The biobased economy is already growing important to be able to produce biomass for food and other steadily.70 purposes. Soil quality is pressured by the intensive agriculture of the Netherlands. To maintain the long-term health and Chemical production in the Netherlands based on biomass: productivity of the soil, it is important that the soil contains “green chemistry” sufficient stable organic matter and optimum volumes of In addition to climate benefits, green chemistry offers nutrients. Expanding stable organic matter in the soil opportunities for new investments and employment, for increases ecosystem services by expanding the water storage example, biochemical plants for bio refinery and the capacity, increasing resistance to diseases and infestations, production of advanced biofuels, biobased chemicals and and retaining carbon in the soil in order to combat climate materials. The Top Sectors have launched an extensive change. innovation programme to foster this development.71 This should make it possible to unravel biomass into various Nutrient cycle high-grade components for different applications. In addition to good soil management, we need to pursue closure of the nutrient cycles. This involves essential 5.1.5 Planned actions nutrients such as phosphate, nitrogen, and micro nutrients some of which are potentially scarce (phosphate) and Sustainable biomass and food production whose extraction, production, and use may also cause Food environmental problems (eutrophication, greenhouse gas The Ministry of Economic Affairs recently commissioned the emissions, and pollution)69. Efforts are made to optimise Netherlands Environmental Assessment Agency (PBL) to the recovery of nutrients from residues in order for them to explore what is required to make the food value chain more be reused. However, large sections of the Netherlands fail to circular.72 PBL has indicated that interconnectivity between achieve the target values set for ground and surface water policy areas must be improved. In addition, PBL has quality. The Dutch manure policy encourages farmers to identified preconditions for a circular food system: minimise the input of nitrogen and phosphate in the sustainable use of resources (soil, water, minerals) in the cultivation of their crops. This promotes the efficient use of Netherlands and beyond, and optimum use of food and nutrients in agriculture. residues. In the progress memorandum regarding the Food Agenda, to be published this autumn, this PBL policy Precision farming memorandum will be taken into consideration. A next step in closing the nutrient cycles is the development of precision farming, in which nutrients are used in the Sustainability frameworks and criteria right place, in the right quantities, and at the right time, A host of systems are available to safeguard the sustainable thus ensuring that fewer nutrients are wasted. This also production of biomass using ecological and social prevents nutrient leakage into the environment, which sustainability criteria. With respect to the origin of biomass, could cause eutrophication issues. This is encouraged by for example, it is important to avoid any evasion of an extensive innovation programme rolled out within the ecological or social responsibilities at the international Agri & Food Top Sector. One of the challenges is the reuse of level. However, these sustainability criteria differ from one recycled nutrients, by the application of technologies such type of biomass, region, or application to the next. This as precision farming. differentiation has produced a wide range of certification schemes, resulting in high cost and lack of clarity for both Replacing fossil resources by biomass: biobased economy The Biomass Vision for 2030 sets out the target of reducing the share of fossil resources in the Dutch economy to 70% 70 Monitoring Biobased Economy in the Netherlands 2015, no. 2016 D10576, March 2016 71 Top Consortium for Biobased Economy Knowledge and Innovation 69 Advisory report by the Soil Protection Technical Committee (TCB), (TKI-BBE) Onderzoeksagenda Bio-based Economy 2015 – 2027 [Biobased Toestand en dynamiek van organische stof in Nederlandse landbouwbodems Economy Research Agenda for 2015-2027] [Condition and dynamics of organic matter in Dutch agricultural 72 PBL policy memorandum Voedsel voor de circulaire economie [Food for soils] TCB A110 (2016) the circular economy], 2016 46 | A Circular Economy in the Netherlands by 2050 producers and processors of biomass: for example, it is manner. Within the Netherlands, expanding the production unclear which certification schemes should be used, since of timber by encouraging afforestation and a responsible each buyer imposes different requirements that have to be growth of the timber harvest can make a significant met by producers. In addition, it is not always clear for contribution to CO2 sequestration and the expansion of the producers which schemes can be used to designate an end domestic biomass supply. The Cabinet supports this product as sustainable. For this reason, coordination of the initiative and strives to increase Dutch production of timber existing sustainability frameworks for biomass would be by encouraging afforestation and the responsible growth of advisable. The existing biomass sustainability frameworks the annual timber harvest. can be used as a point of departure to this end. Optimum utilisation of biomass and food Biomass can compete with other raw materials in a lot of Residues application areas. Biomass increasingly needs to meet Biomass usage calls for optimum-level use of all elements sustainability requirements, whereas other raw materials and high-level reuse of (food) residues. However, the status are not scrutinized by any sustainability frameworks. This of a residue is not always clear. Some residues are regarded leads to unfair competition between biomass and other raw as waste whereas they could be perfectly suitable to be materials. For this reason, a single sustainability framework processed into, for example, feed. To clarify this distinction for all raw materials would be advisable: and the associated conditions, a framework is being drawn • Harmonisation of biomass sustainability frameworks at up in collaboration with the sector, comprising guidelines the EU and international levels; for the business community and various supervisory bodies • Survey of sustainability systems and exploring options involved, such as the Netherlands Food and Consumer for a single sustainability framework for all raw Product Safety Authority NVWA, the Human Environment materials; and Transport Inspectorate ILT, and regional environmental • Facilitation of public-private collaboration initiatives authorities. In the pursuit of a level playing field across involving biomass sustainability criteria in terms of Europe, we are consulting with other member states and standards, certification, and chain of custody (NEN and the European Commission regarding harmonisation of the Green Deal Green certificates); substantiation of this distinction. Within Europe, the • Facilitation of voluntary sustainability reports for Netherlands is making a case for maximising the options for bio-energy producers, as a follow-up to the useful applications of raw materials, and preventing food Sustainability of Solid Biomass Green Deal. residues from prematurely being regarded as waste. Criteria at the product level Furthermore, CSR Netherlands is supporting entrepreneurs In order to be able to ensure that circular biobased products in the valorisation of residues in the agro sector, through can meet the sustainability requirements, the government the “Circular Enterprises Expedition”. will focus on producer responsibility, among other ways, through financial incentives, encouraging quality assurance, Actions to achieve optimum usage based on the Biomass and hallmarks (for more details, see Chapter Four). Vision for 2030 include: • Facilitating cross-sector collaboration aimed at high- Criteria for cycles level biobased business cases (Agro Paper Chemicals / In addition, integrated assessment methods will be Bio-renewables Business and sustainable biofuels developed and tested to assess sustainability, and the platforms); effectiveness and feasibility of loop closure measures. • Wherever possible, supporting private initiatives in the Wageningen University and Research Centre is developing field of commodity formation of residues; a Cycle Test, specifically designed for the food cycle, which • Facilitating collaboration between minor timber may be used by a range of stakeholders. This approach will suppliers and new wood-using sectors; be used as the basis for further action. • Supporting the development of revenue models for biomass cycles by area organisations. This ties in with Future of Forests and Timber Action Plan the IUCN/Nijenrode Green Finance Academy. Representatives of the Dutch forest and timber sector are drawing up an Action Plan regarding the future of forests Cascaded use and timber, together with Nature organisations, which will In the aforementioned policy memorandum, the be published in the autumn of 2016. This action plan Netherlands Environmental Assessment Agency PBL addresses the question in the National Nature Vision, viz. advocates the adoption of cascaded use as a rule of thumb how the forest and timber value chain can meet the growing and providing room for a tailored approach. Following new demand for wood in a green circular economy, in developments and practical experiences with cascading, this an ecologically, economically, and socially sustainable policy concept is being continuously improved in order to Government-wide Programme for a Circular Economy | 47 optimise its applicability to the reuse of biotic residues and studied. Important preconditions are that the current food. Low-grade use of residues can sometimes yield more environmental requirements are met and that the efforts benefits than high-grade use: for example, if purification of will not hamper the achievement of the targets for polluted residues would require a great deal of energy. In renewable energy and wood recycling. addition, the multiple valorisation of residues could be given more consideration. This would improve the options Bio steam SDE+ for biomass usage and enable, for example, the production Furthermore, consultations have been initiated with parties of recycled nutrients, soil improvers, energy or other base in the chemical and energy sectors to optimise the SDE+ materials, along with food and feed. category of industrial steam from wood pellets (bio steam). The replacement of gas-fired boilers by biomass boilers will Smaling motion and the elaboration of the commitment considerably enhance the sustainability of the chemical regarding cascaded use sector. In addition, it offers opportunities for synergy in The Smaling motion73 requests the Cabinet to amend logistics value chains of sustainable biomass, the sharing of biomass policy in such a manner as to accommodate the infrastructure/facilities, and the supply of industrial heat/ considerations of the Royal Netherlands Academy of Arts steam between parties within industrial clusters (for and Sciences (KNAW). In its letter dated 23 January 201674, example, in the industrial clusters in the ports of the Cabinet already commented on the KNAW views Amsterdam, Rotterdam, and Eemshaven). regarding the use of biomass, and indicated how these will be taken into account in bio-energy and biofuels policy. ILUC biofuels directive The Cabinet has promised the House of Representatives75 With respect to biofuels, the Indirect Land Use Change that the 25 PJ of co-combustion of biomass in coal-fired (ILUC) Directive allows member states, among other things, power plants will be included in this elaboration, in order the freedom to set their own limits for the incorporation of to be able to encourage the cascaded use of biomass and conventional biofuels, with a maximum of 7%. The directive foster the circular economy, without compromising the also comprises an indicative sub-target of 0.5% for the most achievement of renewable energy targets. The four actions advanced biofuels. The implementation of the ILUC set out below substantiate the motion and the Directive marks is an effective step towards enhancing the aforementioned commitment. sustainability of biofuels and the promotion of advanced biofuels. In the autumn of 2016, the Minister for the Optimisation of SDE+ regulations Environment will inform the House of Representatives A study has been launched to explore whether regulatory about this in more detail. obstacles in the Sustainable Energy Incentive Scheme + (SDE+) can be removed, in order to allow the use of bio Loop closure refinery (residual) materials as a support fuel. The study Nutrients cycle and soil quality specifically examines the approval of lignin as a fuel, Together with the agriculture and waste sectors, we are whereby lignin is released as a residual substance in exploring potential measures for enhancing the volume of wood refinery. The use of pyrolysis, torrefaction, and stable organic matter in the soil, for example in order to carbonisation fuels has already been approved earlier. recover organic matter from residues, improve soil quality, Consultations are underway with parties in the chemical sequester carbon in the soil, and counteract soil subsidence. and energy sectors in order to explore which components This ties in with the French 4 pour 1000 initiative aimed at (other than lignin) could be approved. In accordance with increasing the proportion of organic matter in the soil by the Biomass Vision for 2030, this will enable the shift from 0.4 percent annually for the purpose of improving soil combustion to valorisation and combustion, and foster the fertility, food security, and achieving the Paris climate biobased economy. targets. The Netherlands supports this initiative. Combustion of waste wood Fertilisers Regulation The aim is to allow less clean waste wood (“B-wood”) as There is a huge potential for the recovery of nutrients such a fuel in some SDE+ categories. This will possibly reduce the as phosphate from residues such as manure, waste water amount of fresh wood and clean waste wood (“A-wood”) and purification sludge, and from industrial processes, thus that is used to generate energy (which will then become contributing to the development of a circular economy. The available for alternative uses). This issue is currently being proposal presented by the European Commission to review the Fertilisers Regulation expands the harmonisation of the ---- trade requirements for artificial fertilisers to organic 73 Parliamentary Documents II, 30.196, no. 445 fertilisers, soil improvers, and growth media. This can 74 Parliamentary Documents II, 30 196, nr. 293 create more room for the production of artificial fertilisers 75 General Consultations, 23 March 2016 from secondary (recycled) fertilisers, such as base materials 48 | A Circular Economy in the Netherlands by 2050 from waste (water), compost, digestate, animal manure, Replacement of fossil resources by biomass (biobased economy) and other animal by-products. For example, in the future In addition to comprehensive energy and climate policy, the the Fertilisers Regulation may enable the EU trade of focus on biobased economy will be continued, among recovered fertilisers such as struvite without a waste label other ways through Top Sector policy. Manufacturers of but with a CE marking. These products thus lose their waste chemicals, plastics and other materials (such as paper, status and, in addition, reach their final status under the building materials, et cetera) would like to see an Animal By-products Regulation. This removes some integration of renewable energy and climate adaptation significant obstacles to the reuse of these products. policies by focusing on a single parameter, viz. CO2eq. For more details, see the measures outlined in Paragraph 4.2. Under the Dutch presidency, the consideration of this Regulation was initiated. The proposal is expected to be Chemical production in the Netherlands based on biomass: adopted in 2018. Expanding the scope of this Fertilisers “green chemistry” Regulation to include these new fertilising products, and The sector has requested better incentives, in particular for the possibility of using residues to this end renders the the investments in the first commercial biobased plants in Netherlands less dependent on fossil resources (such as the Netherlands. Companies assess potential locations on natural gas, phosphate, or potassium), some of which have the basis of a combination of clustered facilities and been designated as critical by the Commission. In addition, financial support, for example, in combination with the organic fertilisers may make a positive contribution to production of renewable energy (under the SDE+ increasing the organic matter content of the European soils. arrangement) or biofuels (through the blending requirements). Consortia have entered into a dialogue with Nutrients platform the government regarding upcoming investments in the In collaboration with the Nutrients Platform, the Cabinet is development of, inter alia, sugar chemistry, timber refinery, working on the creation of a European and global market and pyrolysis. In consultation with the regions, the existing for recycled nutrients in sustainable agriculture, focused on tools will be used to the full in order to support companies knowledge exchange and development regarding with concrete biobased investment plans. We are exploring sustainable innovations and setting up smart coalitions/ potential tools to be developed supplementary to the partnerships. This will be substantiated by permanent aforementioned investment fund in order to realise these support to the implementation of the Ambitie Nutriënten investments in the Netherlands. 2018 [Nutrients Ambition 2018] of the Nutrients Platform (a comprehensive agenda that also considers the relationship with micro nutrients, organic matter 5.2 Plastics (humic acid), and soil improvement). This Ambition comprises, for example: 5.2.1 Why this priority? • an exploration of the options and opportunities for recycling and sustainable reuse of nutrients other than Increasing use phosphate and organic matter; The use of plastics has increased twentyfold over the past • potential supplementary and effective policy measures fifty years. Expectations are that plastic use will double once aimed at the substantial expansion of the use of recycled again in the twenty years ahead. The worldwide production nutrients. of plastics has risen to 299 million tons in 2013, approximately 20 percent of which are produced in Europe. At the international level, the Cabinet continues to invest in The majority of plastics are used in packaging. In Europe, strengthening the European Sustainable Phosphorus Platform and their share accounts for nearly 40%. At the same time, the Global Partnership on Nutrient Management. Additional increasingly more biobased and biodegradable plastics are efforts will be expended on the implementation and further marketed, as an alternative to fossil plastics. development of international Green Deals aimed at promoting an international market for recycled nutrients. Urgency for the environment Furthermore, the Cabinet will promote the development of The range of applications for plastics has expanded international Green Deals aimed at combining balanced enormously: from industry to households, from food precision fertilisation with nutrients cycle closure, and the packaging to wind turbines. This can be attributed to the support of circular agriculture in Eastern and Southern diversity of material properties, such as a low weight and Europe (cf. Paragraph 4.5). relative strength. In the food processing and food packaging sectors, plastics have contributed to the improvement of hygiene and product shelf life. A major challenge with respect to plastics is reducing the dependency on fossil resources. In addition, large volumes of plastic end up as Government-wide Programme for a Circular Economy | 49 interview Ocean Cleanup stands out to sea ‘Even in high school, I was concerned about the plastic ‘The set-up will be tested for an entire year. The prototype soup issue. I went diving in Greece, and during my trip will thus be subject to every season, including the dreaded I encountered more plastic than fish. In my TEDx talk – North Sea storms. Such circumstances do not occur in the I was 18 at the time – I already announced my intention to Pacific in a hundred years. Sensors measure whether the tackle plastic waste in our seas and oceans. “Why would movements of the floating barriers behave according to we move through the ocean if the ocean can move the advance calculations, and monitor whether they can through you”; that became my motto. In 2013, I founded withstand extreme weather conditions.’ The Ocean Cleanup.’ ‘This summer – with significant financial support from the ‘I went diving in Greece, and national government – we placed a purification unit in the North Sea, 23 kilometres off the Scheveningen coast. during my trip I encountered A 100 m long prototype, enabling the large-scale removal of plastics from our seas and oceans. This is the first test of more plastic than fish.’ this kind in open waters.’ ‘If this works out, we will place a 100 km plastic catcher in the Pacific Ocean, between California and Hawaii, in 2020. In 10 years’ time, this could clean up approximately half of the plastic soup in this section of the ocean.’ Boyan Slat Founder and CEO of The Ocean Cleanup '' 50 | A Circular Economy in the Netherlands by 2050 litter, which does not belong on the streets or in the oceans. 2. Plastic materials in value chains are utilised as One property of plastic is that it takes a long time to efficiently as possible, which would lead to a reduction degrade, or it hardly degrades at all. In water, plastic in the need for raw materials and the prevention of gradually degrades into increasingly smaller (micro and “leakage” in the system; nano) particles. These particles – that can attract toxins – 3. Optimisation of the renewable use of plastic material eventually affect the ecosystem and end up in our food flows, by large-scale usage of plastic recyclates and system (through, for example, birds and fish). biobased plastics, making use of biodegradable plastics in specific situations in which such plastics have added Potential for increased recycling value for the circular economy (more effective joint The separate collection of plastic waste is currently a hot processing with biotic residues; pollution risks for the issue. Yet plastic recycling in the Netherlands lags behind marine environment). considerably compared to the recycling of other material flows. Only 34% of all plastics were recycled in 2012. 5.2.4 Ongoing efforts A particular improvement can currently be observed in the recycling of discarded plastic packaging, from 42% in 2012 VANG and plastics to 50% in 2014. The target is 52% by 2017. The plastic Within the framework of the VANG [From Waste to recyclate released can and must be used more efficiently and Resources] programme, significant steps have been taken on a larger scale in the entire market. over recent years towards closing the plastic cycle. Under the Raamovereenkomst Verpakkingen II 2013-2022 [Dutch Complex plastics market Agreement on Packaging], notable results have been The plastics market comprises a wide range of plastics, and achieved, with a considerable increase in the proportion of features a fragmented playing field with many small actors. collected and recycled plastic packaging. This proportion A great deal of plastic waste is still incinerated or exported, has currently already risen to 50%. resulting in considerable loss of value and failure to close the loop. The development of the market for recycled Upscaling of bioplastics production plastics is still in full swing. Pure flows (in particular, PE, PP, Bioplastics constitute a growing international market, and PET) have a positive value; their collection and recycling in which Dutch companies rank among the leaders with can be cost-effective. Recycling of mixed flows and foils is respect to production and processing. Several innovation not yet cost-effective. Furthermore, providing assurance to programmes have provided support, for example, the customers in the product value chain regarding consistent Biobased Performance Materials programme. Upscaling is quality (“grades”) appears to be difficult. With respect to also fostered by Green Deals, such as the Green Deal on the composites (fibre-reinforced polyester, et cetera), good and Raw Materials of the Water Boards that is working on cost-effective recycling methods are not yet available. bioplastics (PHA) from sewage sludge.

5.2.2 Vision for 2050 The Cabinet supports the ambitions of the business In 2050, 100% renewable (recycled and biobased) plastics community to set up large-scale commercial production of will be used without any harmful impact on the environ­ renewable plastics in the Netherlands. Various chemical ment, wherever such is technically feasible. Plastics retain clusters in the Netherlands view this as a key route in their value, products have been designed in a circular improving the sustainability of the chemical sector, which manner, we no longer depend on fossil resources for the will bring the 2030 target closer. production of plastics, CO2 emissions have been reduced drastically, and plastic litter is combated effectively. New Value chain agreement on plastic cycles markets for innovative plastic recycling and biobased In 2013, at the initiative of the Ministry of Infrastructure and businesses have opened up, circular business models have the Environment, the national government concluded evolved, and there is a solid market for recycled plastics. a Value chain Agreement on Plastic Cycles with 55 parties involved International collaborations have been set up in order to in the plastics value chain. This network (which has close the plastics value chain across the globe and thus meanwhile grown to comprise more than 90 parties), contribute to strengthening our natural capital. shares knowledge and experience and look together for opportunities for innovation. In addition, various

5.2.3 Strategic goals stakeholders are collaborating on value chain projects The realisation of this perspective on a national and involving the use of recycled and biobased materials. international scale requires that: The parties have also jointly developed guidelines for 1. Plastic products are designed in such a manner as to the circular design of plastic products (involving, inter alia, enable reuse and high-grade recycling after being the use of plastic recyclates). discarded; Government-wide Programme for a Circular Economy | 51 Plastic bags Discouraging use of non-recyclable products With effect from 1 January 2016, giving away free plastic bags The Cabinet is developing a set of tools to phase out certain is prohibited in the Netherlands. This ban has been environmentally harmful products (or components of implemented in the context of a comprehensive policy to products), especially those for which good alternatives are reduce the use of all carrier bags. This approach is the already available. Products the Cabinet is considering in this substantiation of the EU directive aimed at reducing the use respect include superfluous or non-recyclable packaging of plastic bags, and thus the prevention and reduction of (multilayer packaging, such as for crisps and soup). It goes plastic litter on land and in the oceans (see Paragraph 5.5).76 without saying that any alternative must meet the same primary requirements, such as prevention of food decay. Plastic litter in the oceans This will be addressed as a substantiation of European The efforts to clean up and prevent (plastic) litter in the policy. Together with the Sustainable Packaging Knowledge oceans are expended under the Programme of Measures for Institute KIDV and others, pioneering tracks will be rolled the implementation of the Marine Strategy Framework out aimed at developing sustainable circular designs. Directive (KRM), whose point of departure is an effective source policy (prevention is better than cure) and which Innovation comprises a micro plastics policy. Actions to retrieve plastic Innovations aimed at returning plastics into the cycle at the from the oceans, such as the international The Ocean highest level possible will permanently be fostered Cleanup initiative, are actively supported. throughout the plastics value chain through the network set up under the plastic cycle value chain agreement. This Monitoring of plastic flows specifically pertains to waste prevention, the design of In order to be able to conduct a focused substantive plastic products, and the development of alternatives (to, discussion in the years ahead, proper monitoring of the for example, multilayer packaging). A quality assurance plastic flows (production – usage – discarding – processing) system for “grades” must be set up (consistent composition) is essential. In 2016, a start was made with the design of and the possibilities for mechanical and chemical recycling a monitoring system. of (composite) materials need to be explored in more detail. An important point of attention with respect to closing the

5.2.5 Planned actions loop is mutual confidence in the product supply chain. The Cabinet will make an effort to create cooperation and Changing designs commitment. The Cabinet endeavours to expand and intensify the European Ecodesign Directive aimed at increasing the use of The Chemical Top Sector has rolled out the Biobased plastic recyclates, upcycling, longer shelf lives, and Performance Materials programme. Under this programme, improved repairability of plastic products. Together with companies and knowledge institutes are working on other member states, the Netherlands is going to explore improving the quality of bioplastics and the expansion of how this European approach can be supported and their uses. accelerated. Together with the NEN Institute, more CEN/ISO certification tracks will be developed in order to enhance Usage of renewable (recycled and biobased) materials confidence in plastic recyclates. More production companies (brand owners) will be involved in the finalisation of the plastics cycle value chain The programmes aimed at promoting circular design will agreement in order to upscale market demand for recycled also be tailored to companies in the plastics sector, based and biobased plastics through voluntary arrangements on the aforementioned guidelines for designing with plastic (such as those made under the Eco label). Furthermore, recyclates. The body of thought underpinning the concrete circular procurement by both governments and large approach and the results of these design programmes and companies will further support (European) market demand. guidelines will be disseminated on an international scale in International Europe-based companies are encouraged to order to inspire others to initiate similar projects. adopt circular procurement at the global level. Within the framework of the plastics transition agenda to be drawn up, the Cabinet aims to explore, together with private sector parties, to what degree renewable plastics, recyclates, and biobased materials can be incorporated into ---- the production process. On the basis of this data, target 76 Directive (EU) 2015/720 of the European Parliament and the Council figures will be set down, together with the plastics sector, dated 29 April 2015 to amend Directive 94/62/EC concerning the that can be adapted to the technological feasibilities of reduction of the use of light-weight plastic carrier bags. blending in these renewable plastics. The study will also 52 | A Circular Economy in the Netherlands by 2050 consider the options for setting down agreements on the field of plastics clearance (through various dredging a conversion to biodegradable plastics, as requested in the systems), but also regarding the prevention of marine litter Van Gerven motion.77 by circularising local and regional cycles. An example of this is the Clean Urban Delta Initiative Rio de Janeiro78, ensuing from Manufacturers marketing packaged products pay a fee to the the plastics value chain agreement network. In the years Packaging Waste Fund (Afvalfonds), which is used to pay, ahead, this integrated approach towards the circular inter alia, collection and recycling costs. One of the items economy will be rolled out in other urban deltas via on the transition agenda may involve a positive financial subsequent climate adaptation missions, such as the incentive for companies marketing products packaged in Cabinet mission to Indonesia in November 2016. plastic in order to encourage the use of these renewable materials. Such an incentive may be created by Opportunities will also be explored for upscaling national differentiating the rates that currently apply to plastic Green Deals (such as the one pertaining to the Shipping packaging, which would increase the demand for such waste value chain) and the Plastics Cycle Value Chain Agreement renewable materials. This market incentive will be explored to the European and global levels in the form of during the evaluation of the outline agreement, in International Green Deals (cf. Paragraph 4.5). consultation with the outline agreement parties. Subsequently, if it is in line with the transition agenda, and the wishes and possibilities of the outline agreement 5.3 The manufacturing industry parties, further agreements will be made in this regard.

5.3.1 Why this priority? Uses of biodegradable plastics Sectors such as electronics, machinery and systems industry, Furthermore, the Cabinet is focusing on clarifying the automotive industry, electric transport, aerospace, and potential uses of biodegradable plastics that may be sustainable energy technologies use increasingly more raw composted or fermented in their end-of-life phase. Such materials due to a growing demand for products and uses may be found in, e.g., the food value chain and the services.79 Across the globe, extraction and processing of medical sector. Biodegradable plastics are used increasingly these raw materials cause environmental and climate issues and specifically in cases involving high risks to the as well as other sustainability problems. At the same time, environment. Clarity towards consumers, municipalities, the supply of raw materials such as scarce metals is and the waste and recycling sector as to how to deal with particularly limited. Such raw materials originate from only the various types of plastics is essential. a few source countries and conflicts hamper accessibility of the supply. Moreover, raw material extraction is becoming A study is currently underway into biodegradable plastics in increasingly laborious as a result of, inter alia, declining ore relation to the existing and future recycling market, in quality. Another challenge is the required short-term which the consumer perspective (simple explanations of upscaling of metal and mineral extraction in light of the the ways in which various materials can be presented to rapidly increasing demand for metals and minerals. Mining waste collectors) and the combat of litter aspect are taken projects involve a long start-up. Without a change in policy, into account. In 2017, this study will generate a Cabinet view the relatively limited availability of certain raw materials on bioplastics, and serve as input for the EU Strategy on will lead to increasing dependency and geo-political Plastics that will be presented by the European Commission tension, while negatively impacting companies as well as at the end of 2017. regional and national economies. International closure of the plastics value chain The Netherlands has taken the initiative to organise an EU conference on Plastics in December 2016, which will serve to share knowledge and experience regarding innovations, to strengthen European networks, and explore ways to close the loop at the European and global levels. The plastic soup issue that is growing all across the globe 78 See footnote 62. needs to be tackled, but also offers opportunities for the 79 TNO, follow-up study Materialen in de Nederlandse economie [Materials Dutch business community in the maritime, waste, and in the Dutch economy], December 2015; Rene Kleijn, Ester van der Voet, 21 July 2010, Resource constraints in a hydrogen economy based on recycling sectors to valorise our knowledge and expertise in renewable energy sources: An exploration, Elsevier. And: René Kleijn et al, 1 July 2011, Metal requirements of low-carbon power generation, Elsevier; Joint Research Centre European Commission, Critical Metals in the Path 77 Parliamentary Documents II, 30 872, no. 140 towards the Decarbonisation of the EU Energy Sector, 2013 Government-wide Programme for a Circular Economy | 53 A source of concern is that most businesses pay relatively Increasing efficiency and high-grade sustainable reuse of metals little attention to the topic of supply security and the role and minerals in all steps of relevant value chains a circular economy could play in this respect. This calls for In 2016, TNO assessed the options for a more efficient and raising awareness and new revenue models that reduce smarter use of metals in over 1000 products. This could dependency on raw materials and thus the environmental generate considerable material savings and added value. impact. Developing new ways of producing/consuming

5.3.2 Vision for 2050 The future global economy of products and services calls for The Cabinet is advocating a gradual development towards large volumes of primary raw materials and energy. a high-quality circular manufacturing industry, in which the Accordingly, we will need new production and consumption demand for (scarce) raw materials is met by raw materials systems using sophisticated printing technologies (for from the value chain wherever possible. example, printing food) and includes products made of self-healing and shape-shifting materials that prolong their By 2020, the Dutch business community will be well shelf life. informed about the vulnerability of natural resources and supply security. Dutch companies see the opportunities Bundling public and private demand for circular products and arising from an overall European raw materials infra­ services structure. This will accommodate the growing demand for Along with the supply side, the demand for circular metals and minerals ensuing from the energy transition. products and services will need to increase in order to complete the circular business cases. Companies and By 2050, critical metals such as rare earth metals will be governments play a key role in this by adopting socially upcycled at a large scale, for example, in industrial material responsible procurement. pools in Europe. In addition, a highly sustainable rare earth metals mine will have been opened in Europe under the EU Shift from fossil to renewable raw materials Raw Materials Initiative. The “urban mine” (built-up In the near future, fossil carbons can largely be replaced by environment as a “mine” for new raw materials) will have short-cycle carbons. This has already been achieved on been exploited and accounts for a substantial proportion of a small scale with heavy chemicals such as ethanol, high-grade industrial raw material flows. A considerable methanol, butanol, and acetic acid. When properly used, part of the material needs of basic facilities in the this contributes to reducing CO2 and reduces dependency Netherlands will have been met. on scarce or volatile raw materials. The use of foreign raw materials will have been reduced 5.3.4 Ongoing efforts dramatically and remains within the capacity of the Earth. Over recent years, the Cabinet has focused, often in Supply security issues will have been resolved by the shift collaboration with the Top Sectors, on the development and from fossil to renewable raw materials, and from “critical” dissemination of knowledge relating to supply security. The metals and minerals to generally available ones. In addition, ongoing projects and/or activities are listed below. efficiency will have been enhanced in all the steps of the value chain, and high-grade reuse of metals will have CBS Material Flows Monitor become the standard. The CBS [Statistics Netherlands] Material Flows Monitor is used in the follow-up study Materials in the Dutch economy:

5.3.3 Strategic goals supply security risks for 64 metals and minerals, the development The vision above has been translated into five strategic goals of a self-assessment tool for businesses, the Circular potential for the circular manufacturing industry. of product groups study, the Raw Materials and the Circular Economy Knowledge Plaza website to be launched, and the design of Shift from critical raw materials such as metals and minerals to a regional tool to promote regional circular business generally available raw materials models. In order to provide insight at the company or value Many companies use critical metals and minerals for their chain level into the relationship between the use of raw increasingly complex products. As this entails long-term materials and natural capital, application of the Natural risks, we need to explore ways of using generally available Capital Protocol will also be promoted. metals and minerals as substitutes. 54 | A Circular Economy in the Netherlands by 2050 interview A smartphone with social values ‘Fairphone was launched in 2010, as an awareness ‘Personally, I am driven by the concept of sustainability. '' campaign. Two years later, some individual employees decided to take it to the next level and establish an independent company, with financial support from Waag Society.’ Reflecting on design is a means to reform systems, to actually bring about a better, more honest world. Fairphone is not just a movement. It is also a product and a company. This enables us to launch a wide range of activities, from the development of long-lasting, sustainable products to the use of honest materials.’ ‘Reflecting on design is ‘We are attempting to gradually upscale our production to a means to reform systems …’ an average annual sales level of some 100,000 phones a year. This would have to provide us with sufficient scope ‘Fairphone is currently a social enterprise, based on the to achieve our social and environmentalist ideals in the idea of establishing a movement towards more honest long run. It is important for both the government and electronics. We expose the production and distribution other companies to realise that they have to keep creating systems, thus revealing how smartphones are made and conditions to boost businesses that have already what challenging issues are involved. This gets a debate embarked on sustainability.’ going on what is actually fair. Social and ethical values are leading in this respect. Thus we have a positive impact on the entire value chain: the design, the production and the lifecycle of a smartphone. Miquel Ballester '' Co-founder of Fairphone Government-wide Programme for a Circular Economy | 55 CIRCO Project roadmap, published in May 2016, focuses on the The aforementioned Creating business through circular design technological challenges and opportunities that are CIRCO project has been initiated by CLICK NL, the Top conducive to the development of a circular economy. Consortium for Knowledge and Innovation for the creative industry. This project involves workshops to help entre­ EU Conflict Minerals Regulation preneurs and designers in the manufacturing industry set The EU Conflict Minerals Regulation was endorsed on up the development of new circular products, services, and 16 June 2016. This Regulation is aimed at breaking up the business models. link between the trade in certain80 minerals and the funding of violent conflicts in the areas in which such minerals are Circular Metal Value Chain initiative extracted. The Dutch Ministry of Foreign Affairs has assisted The Circular Metal Value Chain initiative ensued from the VANG in setting up a sustainable tin value chain. A similar value [From Waste to Resources] programme. Under this chain is being developed for gold. initiative, all the value chain partners (raw materials trade, tooling, processing, (manufacturing) industry, and Routes: Smart Industry, Circular Economy and Materials recycling) collaborate with training institutions, knowledge Under the Dutch National Research Agenda, so-called institutes, and government parties in concrete projects to “routes” are being developed comprising inter-related achieve high-level circular objectives, in terms of both cluster questions concerning topics such as Smart Industry, quantity and quality. and Circular economy and raw materials: sustainable circular impact. Top Sectors roadmaps Top Sectors roadmaps with innovation targets and associated programme line up to 2020, fostering the transition to a circular economy. The roadmaps pertain to sectors such as High Tech Materials, Lighting, Solar, Printing, Automotive, and Aeronautics. The cross-sectoral Smart Industry 80 3TG: tin, tungsten and tantalum, and gold. The urban mine Concrete and steel from buildings Materials Rare metals Residual from cars from industrial electronics heat Glass and paper from households Source: PBL; http://themasites.pbl.nl/circulaire-economie/ 56 | A Circular Economy in the Netherlands by 2050

5.3.5 Planned actions tungsten and tantalum, to be concluded by the Netherlands The actions planned to achieve circularity in the Metallurgy Industry Association VNMI and the FME techno­ manufacturing industry have been bundled into eight logy industry employers’ organisation, offer opportunities operational goals. for improving the sustainability of value chains and tapping new urban mines. This Dutch initiative is aimed at By 2020, 50% of the businesses must be aware of the risks and expanding the demand for and supply of responsible opportunities involved in metals, and have taken steps towards minerals in order to encourage sustainable development in circularity development countries with mining prospects. The Many medium-sized and small businesses are unaware of partnership will also contribute to enhancing the supply potential risks involved in the supply of raw materials, such security of raw materials in this trade value chain. as supply interruptions and risks related to Corporate Social Responsibility. In addition, awareness of the possibilities Meeting material needs by national and international reuse for boosting the circularity of products is only limited. For Discarded products, buildings, and infrastructure contain that reason, we are committed to the long-term operation large amounts of materials suitable for reuse: the urban mine. and further development of the Raw Materials Knowledge Plaza, An active focus on the rapid reuse of residues should cover including a self-assessment tool. part of the Dutch need for new raw materials. Investments in opening up this urban mine will foster the development Companies will benefit from a long-term strategy for the of a new raw materials market.81 supply security of critical raw materials. To facilitate this, the Ministry of Economic Affairs has commissioned the Boosting the EU Raw Materials Initiative (RMI) development of a so-called “Raw Materials Knowledge Plaza”, The RMI comprises three pillars, viz.: a method and IT tool to map out business risks. This will 1) access to raw materials in international markets; become available at the end of 2016. The further 2) sustainable mining in Europe; development of the Knowledge Plaza will comprise several 3) raw materials efficiency and reusable materials through additional functionalities, including a helpdesk function, recycling. trends monitoring, and an information desk for other EU countries. Expanding knowledge regarding risks and One of the conclusions drawn during the European Raw opportunities must induce SME companies to take action Materials Conference held in April 2016 was that this sooner. initiative must be underpinned by an integrated knowledge infrastructure regarding raw materials supply security and Development of promising business models focused on circular economy. Furthermore, Europe could mine one of energy-intensive products with circular potential and the last scarce earth metal supplies in European soil, the ­substantial export prospects Norra Karr deposit in Sweden, in a highly sustainable The Cabinet aims to encourage the development of circular manner. The Water and Mining Platform gathers Dutch business models and explore, together with the manu­ expertise in order to facilitate such sustainable mining. facturing industry and in close collaboration with the creative industry, energy-intensive products with circular Development and implementation of a pilot involving e-waste and economic potential. To this end, promising circular as an existing urban mine business models are being developed in five product groups. The CBS [Statistics Netherlands] study entitled Green Growth in The Netherlands 2015, presenting research data concerning TNO has mapped out promising product groups in its report electronic waste, will serve as the basis for exploring entitled Circulaire potentie van producten [Circular potential of options for developing business cases in the Netherlands, products]. The focus will be on the top 5 of these product together with parties such as WeCycle. groups, with high circular potential and a large energy impact. Raw materials savings thus go hand in hand with Development and implementation of a pilot involving new achieving climate targets. This could be a concerted effort by sustainable urban mines in collaboration with the maritime value chain partners (Circular Metal Value Chain, comprising sector sectors such as the manufacturing and creative industries). In its design of ships and platforms, and in its choice of materials, the manufacturing industry can contribute to the The Netherlands takes initiative for EU approach regarding risk reuse of materials, reducing the use of scarce raw materials, management of the supply of several metals by sustainable and reducing the environmental burden. The EU and the extraction national governments can promote the sustainable The Netherlands is going to initiate the establishment of a European Partnership for responsible minerals. The ---- exploration phases of the ICSR Covenants pertaining to 81 See footnote 5 Government-wide Programme for a Circular Economy | 57 dismantling and recycling of ships and recreational vessels. Under the Electric Transport 2016-2020 Green Deal, the An EU Ship Recycling Regulation has been created to this application of circular principles will be considered within end. Within the next 15 years, 75,000 scrap ships will be the cross-sectoral topic of electric transport (High Tech Systems taken out of service. & Materials, Chemical Industry, Energy, and Logistics). The reuse of batteries provides concrete opportunities. The Maritime Manufacturing Industry 2016 – 2018 action programme, a joint effort of the business community and the government, sets out a number of concrete actions that 5.4 Construction sector give impetus to the ambition of developing sustainable products and solutions, and contribute to achieving 5.4.1 Why this priority? a circular economy. For example, a plan will be established for cleaning up the ocean and keeping it clean by removing Scope pollutants such as plastics and micro plastics, and the Resource intensity in the construction sector is high. The regulations pertaining to the environmentally responsible construction industry is estimated to account for 50% of the and safe recycling of ships will be actively enforced. raw materials used, 40% of total energy consumption, and 30% of total water consumption in the Netherlands. In Implementation of a strategic track with businesses and addition, a large proportion of waste in the Netherlands knowledge institutes involved, aimed at a long-term strategy for (approximately 40%) involves construction and demolition raw materials supply security waste, while the sector is responsible for approximately 35% Analyses have revealed minor and major vulnerabilities in of CO2 emissions.82 the Dutch economy with respect to raw materials supply security involving metals and minerals. On the basis of the The construction sector is distinguished in Commercial and raw materials scenarios of the International Resource Panel, Non-residential Building (Burgelijke en Utiliteitsbouw - C&NRB) we will explore, together with relevant businesses and on the one hand, and Soil and Civil Engineering (Grond-, knowledge institutes, how the raw materials supply security Weg- en Waterbouw - S&CE) on the other. One of the reasons of the manufacturing industry is changing and what why this distinction is relevant relates to the difference in strategies can be employed to boost it. The metals and structure: C&NRB largely involves private funding and minerals required for the energy transition and climate a large, diverse playing field with many (major and minor) adaptation will explicitly be taken into account in this study. stakeholders. S&CE often involves public commissioning and features a smaller number of more homogenous Green Deals to be concluded with sectors and value chains that stakeholders. are vulnerable in terms of supply security Green Deals may help expand the use of sustainably Degree of circularity produced raw materials, including recyclates and biomass. The reuse of C&NRB construction and demolition waste is This calls for support for the development of an equivalent already widespread (>95%), albeit that in many cases sustainability framework (level playing field) for all raw materials are not reused at the same or a higher level. The materials, including fossil ones. reuse rather involves, for example, construction rubble being processed to granulate to be used as a foundation Together with businesses and knowledge institutes, we will material in S&CE. The bulk of the material is subsequently seek leads in the various roadmaps to accelerate the reused at the same level in the S&CE sector; after one road transition to a circular economy. Our aim is to set down life cycle, the rubble is reusable in other road projects. a circular economy agenda within the Top Sectors (cf. Paragraph 4.3). Several round tables will be organised to The need for such foundation material in the S&CE sector is this end. A source of inspiration is the Remanufacturing expected to decrease, as this sector increasingly tends to use roadmap published by High Tech NL in 2013. residual material from other sources. This “saturation” in S&CE generates an incentive for developing more circular The energy transition involves an increase in the use of uses for construction materials in the C&NRB sector. critical materials for generators, for example, in wind turbines. The Social and Economic Council of the Netherlands (SER) has also requested attention to be paid to this issue. With a view to the expected further increase, options for drawing up a (circular) roadmap will be explored under the Top Sectors policy. ---- 82 http://www.ellemmi.nl/grote-duurzaamheidsopgave-voor-bouw- sector/.html 58 | A Circular Economy in the Netherlands by 2050

5.4.2 Vision for 2050 The scope of a circular economy for the construction sector The introduction of a circular economy in the construction extends beyond the mere reuse of waste. A circular economy sector creates opportunities for innovation. The construction for the construction industry calls for the following three sector focuses increasingly on energy savings and reduction questions to be considered with respect to each building: of CO2 emissions, in both the construction and the 1) How can we minimise the use of construction operational phases of a building. Opportunities arise for materials? This involves not only the need for raw cutting down on raw materials and reducing residual and materials, but also the options for reuse and waste matter. In addition, the circular economy can transformation of the building itself; generate quality improvement and cost reduction 2) How can we meet the remaining material requirements throughout an object’s life cycle. as sustainably as possible? The use of sustainable construction materials should be considered here, as This leads to the following vision: should reuse; By 2050, the construction industry will be organised in such 3) How can we meet the material requirements still a way, with respect to the design, development, operation, remaining as efficiently as possible? management, and disassembly of buildings, as to ensure the sustainable construction, use, reuse, maintenance, and These questions also show that higher scale levels also play dismantling of these objects. Sustainable materials will be used in a part in a circular economy for the construction sector: the the construction process, and designs will be geared to the function of buildings and even urban development. dynamic wishes of the users. The aim is for the built-up environment to be energy-neutral by 2050, in keeping with the 5.4.3 Strategic goals European agreements. Buildings will utilise eco system services The Cabinet wants to link the circular economy efforts in wherever possible (natural capital, such as the water storage the construction sector to actions that are already (partially) capacity of the sub-soil). underway. It is the Cabinet’s intention to have circular economy activities in the construction sector tie in, wherever possible, with the energy objectives in both Circular economy in the construction sector >95% Recycling 85% S&CE (= Soil & Civil Engineering) Eventual saturation <3% returned to C&NRB Internal recycling (Commercial & Non-Residential Building) within S&CE Source: Rijkswaterstaat and National Institute for Public Health and the Environment RIVM (2015), Policy exploration regarding circular economy in the construction sector. Figures are indicative on the basis of Hofstra et al (2006), Scenariostudie BSA-granulaten, aanbod en afzet van 2005 tot 2025 [BSA granulates scenario study, supply and sale from 2005 to 2025] Government-wide Programme for a Circular Economy | 59 interview A healthy work environment, inspiratiehuis 20|20 a healthy employee ‘Ten years ago, we changed course. Since then, we have Circular processes ensure that our resources remain intact. implemented all our projects on a Cradle-to-Cradle basis. I firmly believe that everyone who is in a position to leave A prime example is Park 20|20, a Cradle-to-Cradle the world a better place for our children should do so. It is Business Park, developed by Delta, and its partners our good fortune, as developers, that we can create VolkerWessels and the Reggeborgh Groep, which is tomorrow’s world. focused on both people and the environment. To achieve this, we have taken an integral approach to all the flows (energy, water, biodiversity, et cetera), and used ‘… a pleasant office but also sustainable C2C materials. This manner of construction not only generates a pleasant office but also a healthy a healthy living environment, living environment, which promotes productivity among employees and reduces absence due to sickness. promotes productivity and As real estate developers, we saw the market change, reduces absence due to for example, through the advent of flexiwork. However, sickness.’ society and the environment are also changing, as our planet accommodates increasingly more people and the supply of resources continues to decline. We can change Our next goal is the Valley development, a business this. development environment near Amsterdam Airport Schiphol, where we are joining forces to accelerate the circular economy. I would like to widely share the knowledge and experience we are gaining there. The government is indispensable in this regard. Not as a facilitator, but in a participating capacity, playing an active role in the community.’ Rob van den Broek Sales Director, Delta Development Group 60 | A Circular Economy in the Netherlands by 2050 '' existing and new C&NRB and S&CE buildings and structures. principals are already experimenting with circular economy Efforts may be paired in the renovation and transformation principles. Examples include Park20|20 in Hoofddorp, the of the existing supply, for example, from offices to Overtoom urban garden project, the Knoop national office residential buildings. High-grade reuse can assist in project in Utrecht, the Brummen town hall, and the office obtaining funding for transformation or demolition, or for of a sensor manufacturer in Hengelo. Rijkswaterstaat will new construction projects. To realise its vision, the Cabinet open up the first biobased motorway service area on has elaborated a set of strategic goals, in which the goals set October 26th, 2016. out in the Biobased Economy Vision for 2030 have been factored in: Green Deals 1) C&NRB and S&CE to use (mainly) renewable raw Meanwhile, a number of Green Deals have been concluded materials; regarding circular economy in the construction sector. 2) Optimising the use of material throughout the Under the Circular City Green Deal, public and private parties building’s life cycle (value preservation, cost savings, are collaborating at the local level to close the materials more reuse, lower environmental impact); cycle in the construction sector. The Circular Buildings Green 3) Minimising CO2 emissions by the construction sector, in Deal focuses on the development of a “buildings passport” both the construction and the operational phases; outlining a building’s circularity. The construction sector 4) As an innovative sector, the construction sector must already has amassed several decades of experience in the proactively respond to changes in society as well as use of biobased construction materials. The Biobased Building private sector and consumer demands. Green Deal was concluded in December 2015; as a follow-up, a ready-to-market biobased house was exhibited at the Another option is the deployment of legislation; the point Innovation Expo of 14 April 2016. The demand side is also of departure in this respect is that the Cabinet will refrain beginning to move now, for example, in the province of from setting down any new legislation that would add to Noord-Brabant and the city of Amsterdam.84 They are the financial burden. The National Building Decree, for that planning to focus on the use of biobased construction matter, contains restrictive provisions regarding the materials in new buildings and renovations, in keeping with environmental impact.83 It also contains provisions the circular economy. Their current challenge involves regarding the separation of construction and demolition upscaling the use of biobased construction materials. waste. The legislation applicable to the construction sector do not yet set out any specific provisions regarding resource The Infra-Nature Green Deal provides best practices and know- efficiency. how regarding the implementation of natural solutions in the construction of S&CE infrastructure. With the Sustainable Key preconditions in the implementation of this policy are S&CE Green Deal, this experience is widely disseminated to the that the construction sector assumes its own responsibility, other parties (principals and contractors) in the S&CE sector. and that the government provides a level playing field, contributes to the acquisition and safeguarding of Under the Urban Green and Blue Values City Deal, pilots are carried knowledge through pilots, and provides limited support out involving the use of natural rather than technical wherever such is required and advisable. Principals and solutions in area developments and new construction building users play an important part in this. The strategic projects. This generates savings in the use of raw materials goals will be substantiated in more detail following and cuts the cost of, for example, reducing heat stress or consultations with the relevant NGOs, in the context of the pluvial flooding. aforementioned transition agenda.

5.4.5 Planned actions

5.4.4 Ongoing efforts The circular economy is not yet generally accepted in the Sector agreements construction sector, yet various construction companies, Along these lines, the Cabinet is now encouraging the innovative start-ups, architects, municipalities, and establishment of a value chain agreement with the concrete sector in 2017. The parties to this agreement will include both raw materials suppliers, cement and concrete (mortar) 83 Together with the national environmental database, the Assessment manufacturers, contractors, and concrete recyclers, but also method for the environmental performance of buildings and S&CE projects public and private principals. Principals on the government constitutes the basis for the environmental impact assessment of side include Rijkswaterstaat [the executive arm of the material use. In actual practice, various calculation tools are used to this end. Examples include GPR Gebouw, GreenCalc, DuBoCalc, and BREEAM.NL. These tools use the assessment method referred to above and provide reliable information on the sustainability of 84 In the years ahead, the municipal authorities are planning to build a building or structure. 25,000 houses in an optimally circular/bio-based manner. Government-wide Programme for a Circular Economy | 61 Ministry of Infrastructure and the Environment], ProRail, Implementation agenda for innovation in the construction and the Central Government Real Estate Agency RVB. The sector agreement is aimed at a substantial reduction of the annual The Cabinet will present an Implementation Agenda for CO2 emissions during the production and use of concrete, innovation in the construction sector to the House of achieving circularity in the value chain, and setting down Representatives by no later than the end of 2016. In the agreements on the preservation of natural capital. Implementation Agenda, the government aims to: • gain insight into the prospects for innovation in the In addition to this agreement on concrete, the Cabinet construction sector through a market-based approach plans to reach similar agreements on other construction (infrastructure, real estate, and housing). Points of issues before 2020. departure are the societal issues already identified and pilots drawn up in the context of the Round Table More innovative and circular construction projects discussions with representatives of the construction Together with principals such as corporations and sector and knowledge institutes; municipalities, the Cabinet will explore the options for • develop widely supported policy statements, in adding “substance” to innovations in residential and ­ consultation with the sector and knowledge institutes, non-residential construction, in order to be able to launch regarding a number of overarching issues (digitalisation, innovative concepts such as circular and biobased human resources, transparency, benchmarking, construction at multiple locations and in multiple projects. regulations, tender regulations, et cetera). The This could boost the business community’s willingness to municipalities will be involved in this process. invest risk-bearing capital in innovative projects. This effort will have to bear fruit by no later than 2020. The business Innovation community must submit innovative concepts for new The Cabinet will explore ways to remove asbestos fibres materials and circular construction. Certification, using existing methods that will enable reuse as cleaned standardisation, and equivalence could contribute to (construction) material. accelerating their application. The Smart Regulation programme will submit concrete proposals to this end. Life cycle costs approach by Central Government Real Estate Agency RVB CO2 reduction Through the RVB projects, the Cabinet can convert circular Furthermore, the Cabinet intends to initiate pilot projects ambitions into actual practice. This conversion is under­ aimed at, e.g., gaining more insight into the options for pinned by the criteria for socially responsible procurement CO2 reduction in the construction and operational phases. and sustainable demolition, as this is where the environ­ The aim is to achieve optimum synergy with the activities mental impact of materials plays a role. In addition, the RVB associated with the energy transition in the construction uses the Life Cycle Costs approach in its projects wherever sector. To this end, the projects will map out the existing possible. energy (savings) tools that can simply be supplemented, with attention to circular and biobased use of materials and Circular S&CE construction by the government resources. As the largest S&CE principals, RWS and ProRail can set an important example for this sector. A distinction is made Reuse of materials between the design, construction, and renovation phases Pilot projects can also be used to encourage the further on the one hand, and the management and maintenance development of a circular construction assessment method. phases of structures on the other. For each of these phases, Separate attention must be focused on the quality of reused tools will be developed enabling the RWS networks (the construction materials. main roads network, the main waterways network, and the main water system) and the ProRail rail network to make The National Waste Management Plan (Landelijk more efficient use of resources. Along with these efforts, Afvalbeheerplan – LAP) plays a key role in this respect, as it sets the networks will achieve energy neutrality by 2030.85 out the frameworks pertaining to permit application For example, RWS will circularise its operations by no later procedures for construction and demolition waste. than 2030, while ProRail pursues 100% circularity in its S&CE designs by 2030. The subsequent life cycles of The pilots are intended to not only focus on technological structures are also taken into account in this respect (multi innovation, but also on the social and system changes life cycle analysis). These aims are reflected in many RWS required in the construction value chain in order to achieve procedures, among which is circular procurement. circularity. ---- 85 Parliamentary Documents II, 30 196 no. 459 62 | A Circular Economy in the Netherlands by 2050 Reduction of material consumption by natural solutions facilitate the proper discarding of products among citizens Large-scale paving is undesirable from a climate adaptation and companies, thus fostering high-grade recycling and perspective. By utilising naturally available benefits, such as closing loops. To this end, it is imperative that products are the water storage capacity of the subsoil or the cooling effect designed in a manner that extends product life, enhances of greenery, material requirements may be reduced. Natural their reusability, repairability, and recyclability, and uses capital constitutes a tool that helps bring the circular renewable raw materials. Consumers must exercise more economy closer. Under the Urban Green and Blue Values City care in the separate disposal of products and materials in Deal, cities are experimenting widely with the use of natural the appropriate collection systems. capital (for example, water storage).

5.5.2 Vision for 2050 By 2050, we will only use sustainably produced, renewable,

5.5 Consumer goods and generally available raw materials. We will make efficient use of raw materials and no longer produce waste or litter.

5.5.1 Why this priority? The consumer goods that are eventually discarded will be Consumers (citizens and companies) play an important part recycled in a high-quality manner and used for new in fostering the transition to a circular economy. Consumers products. Smart return and collection systems will have make conscious yet also quite frequently unconscious been set up to this end. Citizens and companies will exercise choices when purchasing consumer products, and discard due care in dealing with products, including how they such products after a certain period of time. Consumer discard them after use, thus eliminating the need for goods (things or stuff ) rank first in the environmental incineration or the landfilling of residual waste; while impact top ten of average annual consumption per capita86). discarded products and materials will retain their value in Many discarded products are already separated and recycled, the economy. but half of the mass still goes to waste because it is incinerated or ends up in a landfill. Residual waste from Companies will facilitate their employees and customers in citizens and companies accounts for 80% of the total waste prevention and waste separation, and pursue volume of incinerated or landfill waste.87 sustainable raw materials policies because these pay off. Citizens and companies will purchase sustainable products Consumer products and their packaging are not just used at and services that can be properly reused once discarded. The home, but also outside the house, for example, at work, in retail trade sector will support consumers in their choices school, or on the road. Citizens and companies are not by offering only sustainable products. The waste and always aware of the importance of the role they play in recycling sector will encourage the customers, and is crucial preserving the high quality use of products and materials. for the producers in ensuring their high-quality use of Everyday choices, whether conscious or unconscious, affect recyclates rather than primary raw materials; recyclable raw the demand for products and materials, and their discarding materials will no longer be incinerated. Consumers will after use. Changing consumer behaviour is vitally important, regard the careful use of products and materials as with special attention focused on waste prevention. Such a standard matter, in order to make a concrete contribution behaviour forms part of an overall approach to product to the preservation of natural capital and the countering of value chains, which run from design and production up to climate change. and including discarding and recycling.

5.5.3 Operational goals We are no longer in a position to waste raw materials. Too many raw materials are wasted: in 2012, nearly 10 million 1. By 2020, the annual volume of household residual tons of Dutch waste were incinerated or landfilled. waste will be a maximum of 100 kg per capita; by 2025 Municipalities, producers, and waste and recycling the maximum will be 30 kg per capita per year; companies can play a greater role in the transition to 2. By 2022, the volume of residual waste from companies, a circular economy, among other ways by focusing on and organisations, and governments that is comparable to investing in innovative collection, sorting, and processing household residual waste will be halved (compared to systems that yield high-quality raw materials for producers. 2012 figures); Such systems may be structured more effectively in order to 3. By 2025, citizens and companies will use consumer goods in such a manner as to allow them to remain in ---- the cycle; not littering will have become the standard. 86 Top ten of environmental impact of average consumers, CE Delft, April 2016 87 Waste processing in the Netherlands, 2014 data, Waste Registration Working Group, November 2015 Government-wide Programme for a Circular Economy | 63 interview Only 2.6 kg of “ordinary” waste a week Kees and Daniëlle have participated in the 100-100-100 Daniëlle agrees: ‘We are definitely going to continue project: 100 households, 100 days,100% waste-free. separating waste after the 100-100-100 project. We are not buying less than usual, but we do take a bag of our own along to the shops, for example. It has become a good ‘… we used to throw out habit that requires little effort. On the day before we went on holiday I threw our organic waste into the ordinary bin, ridiculous amounts of waste.’ and felt rather guilty.’ ‘Of course, it is just a drop in the ocean,’ says Kees, ‘but we More bins for plastic waste: that is something Daniëlle used to throw out ridiculous amounts of waste. Now we would like to see. ‘But the government should also refute separate our waste, which leaves us with only 2.6 kg of the urban legend that once separated, all waste is thrown “ordinary” waste and an average of 2 shopping bags of together!’ Kees wonders about the different regulations in plastic a week. We also have a separate bin for organic place from one municipality to the next. ‘In our town, milk waste. I was rather dreading that. It is bound to smell, cartons and tins go into the regular waste bin, but in other I thought. But we collect our organic waste in a small bin cities they can go into the plastics bin. That does not make and empty that into the large organic waste bin outside. sense. Why can’t the regulations be the same throughout I’m very happy we started this. Our 60 litre waste bin in the country?’ the kitchen is now for sale.’ Kees en Daniëlle 100-100-100-project 64 | A Circular Economy in the Netherlands by 2050

5.5.4 Ongoing efforts domestic waste]95 and the Uitvoeringsprogramma Huishoudelijk Afval96 [Domestic waste implementation programme] have Applying behavioural knowledge for consumer action been drawn up to halve the volume of household residual perspective waste. A further reduction in the volume of discarded paper In keeping with the recommendations by the Dutch will be achieved by a wider use and easier accessibility of Scientific Council for Government Policy (WRR)88 and the No-No (no junk mail, no free newspapers) stickers, Council for the Environment and Infrastructure (Rli)89, we simplifying unsubscription to quasi addressed printed have embarked on utilising current behavioural insights in matter, and a shift to and acceptance of digital advertising actual practice. Our point of departure is the Approach to matter. Implementing partners in these initiatives include promoting sustainable consumer behaviour90 developed within the municipalities and organisations active in the advertising From Waste to Resources (VANG) programme. The sector.97 Behavioural Insight Teams91 (BITs) set up by the Ministries of Infrastructure & the Environment and Economic Affairs map Value chain approach out behavioural insights (both internally and externally), Under the Domestic Waste implementation programme, and recommend effective practical policy applications. stakeholders are working on the material and financial closure of product value chain loops, and the optimisation In the Duurzaam Doen [Sustainable Action]92 project, the of material and product flows. This value chain approach Ministry of Infrastructure and the Environment has joined targets consumer goods from domestic and similar waste, forces with a network of companies, NGOs, and (young) such as nappies (diapers), textiles, mattresses, and plastics. entrepreneurs to enhance the appeal, relevance, and Plastic recyclers are involved in the latter topic, in accessibility of sustainable choices for consumers. The PLUK accordance with the Van Gerven motion.98 On the basis of campaign93 marks the first step in sharing inspiring a collective vision, the stakeholders are working on, e.g., products and services, experience, and concrete tips related prevention, improve­ment of waste separation, more and to sustainable living and consumption. better recycling, and processing technologies. With respect to each value chain, options are explored for introducing individual refunds for the relevant materials. Best practices: Implementation of ICSR covenant on sustainable clothing and In the 100-100-100 project95, households demonstrate, textiles in concert with their municipality, that a reduction of Several product value chains are tackled under domestic residual waste to no more than 25 kg per an international CSR covenant. Textiles constitutes the first capita per year is feasible. of these product value chains. The conclusion of the The Schoon belonen [Rewarding clean] project is International CSR Covenant on Clothing and Textiles99 provides another fine example of an initiative revealing ways to a solid foundation. Under the ICSR covenant, concluded in develop effective return systems for certain packaging. 2016, stakeholders are developing a circular economy roadmap for the fashion and textile sectors. This roadmap addresses raw materials efficiency, production planning, Domestic waste use of recycled materials, reuse, and wastage. It is up to the Households still produce an annual average of some 250 kg companies involved to establish sustainability and circular of residual waste per capita. Effective separation and textile strategies, and select conducive initiatives. The Social prevention measures can substantially reduce the volume of domestic residual waste. In concert with the municipalities, the Publiek kader Huishoudelijk Afval [Public framework for 95 Public framework for domestic waste, Ministry of Infrastructure and the Environment, November 2014 96 Domestic Waste implementation programme, Ministry of 88 WRR, De Menselijke Beslisser [The human decision-maker], 2009 Infrastructure and the Environment, November 2014 89 Rli, Doen en Laten [Taking action or not], 2014 97 This carries into effect the Ouwehand motion (Parliamentary 90 National government, Aanpak Verduurzamen Consumentengedrag Documents II, 30 872, no. 194), requesting the government to enter [Approach to promoting sustainable consumer behaviour], 2015 into consultations with municipalities in order to better facilitate the use of No/No stickers, and the Ouwehand motion (Parliamentary 91 BIT is a network of knowledge institutes, renowned behavioural Documents II, 30 872, no. 195), requesting the government to scientists, and practical experts in the behavioural field. explore ways to combat the surreptitious use of quasi addressing in 92 https://www.duurzaamdoen.nl junk mail. 93 https://www.pluk.nl 98 Parliamentary Documents II, 30 872, nr. 153 94 100 households in each municipality attempting to live 100% 99 International CSR Covenant on Sustainable Clothing and Textiles, waste-free for 100 days. March 2016 Government-wide Programme for a Circular Economy | 65 and Economic Council of the Netherlands (SER) has out in this agreement into effect. The Framework supervised the establishment of the covenant and will Agreement parties are contributing to the transition to designate a secretariat to monitor its implementation. This a circular economy and the reduction of residual waste by also extends to the pending (ICSR) covenants to be investing towards a sustainable packaging value chain, concluded with the other high-risk sectors.100 improving the collection and recycling of packaging waste, developing innovative return and processing systems, and Non-domestic waste (office, shop, and services sector) initiating clean-up activities. A good example is the Schoon The VANG Buitenshuis [From Waste to Resources – Non- Belonen [Rewarding Clean] project.103 Sustainable packaging domestic] programme is aimed at halving the volume of is developed through Sector sustainability plans, setting out residual waste in the Office, Shop, and Services (OSS) sector. goals for achieving more sustainable product-packaging By 2022, the volume of residual waste from companies, combinations. In addition, various sectors have committed organisations, and governments comparable to domestic to using a certain percentage of recycled materials in their waste must be halved from 2 Mton to 1 Mton. To achieve packaging.104 this goal, Green Deals have been concluded with NS/ProRail and with festival organisers, and pilot projects have been More and better recycling rolled out aimed at waste prevention and separation in We want to prevent recyclable material from ending up in schools and along motorways. The Rijkswaterstaat Directive the incinerator. With a view to, inter alia, achieving the goal for transparent waste separation101 published in 2015 of halving the volume of incinerated or landfilled residual (seeking uniformity in colour, pictogram, and designation) waste, the central government and the branch organi­ provides tools for efficient communication regarding waste sations in the waste and recycling sector105 have set down separation and encouraging positive behaviour. A study is agreements in the More and Better Recycling Covenant. To currently underway into residual waste, opportunities, and achieve this goal, the parties are jointly working on the obstacles in the OSS sector. The approach will be intensified promotion of sustainable innovations in waste manage­ on the basis of this study. The national government falls ment and recycling, focused on quality and reducing the under the OSS sector and is assuming responsibility for environmental burden, in particular in the field of waste halving its volume of residual waste. separation and collection, on increasing the cost- effectiveness of sorting processes, and on high-grade National Litter Policy recycling. Litter is still a widespread phenomenon. Keeping public spaces clean entails an annual societal cost of some The Cabinet will explore cost-effective ways to upcycle 250 million euros. The packaging industry contributes valuable streams from foreign household and commercial an annual 20 million euros to this sum. waste that is currently incinerated in the Netherlands. Together with the network partners, the Cabinet seeks to Prevention and removal of litter in water clean up and prevent future litter. The implementation of With respect to the prevention and removal of litter in the the Landelijke Aanpak Zwerfvuil (National Litter Policy, LAZ)102 oceans, the Programme of Measures for implementation of will be continued in 2017, placing even greater emphasis on the Marine Strategy Framework Directive (KRM) will be participation by citizens and companies, enforcement of continued in 2017. Continued support will be provided to the regulations, influencing citizen behaviour, and tackling the associated Green Deals, such as those pertaining to sources. An integrated approach is being adopted to Clean Beaches, Fishery for a Clean Ocean, and the Shipping promote sustainable behaviour to keep the Netherlands Waste Value Chain. Clean-up campaigns such as those clean. initiated by Stichting De Noordzee and Schone Maas fit in with this integrated approach. As an extension of these Framework agreement on Packaging efforts, the Netherlands is taking and will continue to take Under its responsibility as producer, the packaging industry a proactive stance in the implementation of the OSPAR has committed to the Framework Agreement on Packaging II Regional Action Plan, involving joint regional measures for (2013-2022). In collaboration with the municipalities and combating marine litter in the North Sea region. the central government, they will carry the agreements set 100 CSR sector risk analysis, KPMG, September 2014 101 http://www.rwsleefomgeving.nl/onderwerpen/afval/afvalpreventie/ vang-buitenshuis/downloads-vang/richtlijn-herkenbare/ 103 Schoon Belonen pilot, June 2015 102 Plan of Action for the National Litter Policy, Ministry of 104 Plastic Recycling Fact Check, KIDV, March 2016 Infrastructure and the Environment, December 2015 105 VA, BRBS Recycling, FHG, NVRD 66 | A Circular Economy in the Netherlands by 2050

5.5.5 Planned actions materials and funding, by 2025. In addition to material and financial aspects, the value chain loop closure process will Wider deployment and expansion of behavioural knowledge also pay attention to ecological and social (multiple) values. Citizens and companies bear an important responsibility for the responsible use of products and materials, and their In order to be able to effectuate the transition to a circular high-grade return to the economy. Individual consumer economy, the “utilisation” phase needs to be spotlighted behaviour is influenced by personal circumstances, within the five priority sectors and value chains. From this a person’s considerations, and his/her beliefs. The social perspective, this phase needs further elaboration, together environment also plays a part. Effective influencing of these with the relevant value chain partners. An example is the factors calls for sharp analyses, careful monitoring, and use of power drills that are made for frequent use, while evaluation of interventions. The Cabinet will deploy the BIT in actual practice consumers only use the product for teams on a wider scale and launch a study to gain more grip 12 minutes of its entire life cycle. This calls for change. on influencing norms and values (unconscious behaviour). More effective collection and return systems It is important for consumers to realise that waste has value The prevention and proper separation of waste needs to and can be reused, if properly used and discarded. The become transparent, easy (univocal), and appealing for message of efficient and effective use of raw materials must citizens and companies. For that reason, the Cabinet is be disseminated and embraced on a much wider scale. going to devise a method, together with producers, Actual observance of the Waste is a resource standard is municipalities, and the waste and recycling sector, for the essential. Sustainable choices must become more appealing, introduction of a univocal and efficient collection system more relevant, and easier. The PLUK campaign will be for both domestic and commercial waste (similar waste, expanded with presentations at locations at which consumer goods). This must enable consumers to dispose consumers make sustainable choices. of their waste separately “anytime and anywhere” (at home, at work, in school, or on the road), thus ensuring that more Promoting sharing, reuse, and repair among residents waste is recycled in a more efficient manner. Together with manufacturers and municipalities, the Cabinet aims to encourage reuse by updating second-hand In order to develop a univocal and efficient system, the and give-away shops, and reinforcing the repair and Cabinet is calling on the major cities to catch up with the restoration culture through, for example, repair cafés. majority of the other municipalities with respect to separate For that reason, a pilot was launched in 2016 involving waste collection. Inspiring experiences with alternative coalitions with municipalities, waste collectors, and waste collection systems, such as reverse collection107, tariff recycling and repair companies aimed at encouraging and differentiation108, and “100-100-100” are taken into account upscaling the reuse of goods. Together with municipalities, in this effort. The ultimate goal of the Cabinet is that the the Cabinet will make an effort to promote utilisation of best results will be the standard (“if it can be done elsewhere, sharing platforms among the population, and encourage it can be done here too”). Another system that could prove residents to lease, rent, trade, and give away more. A set of effective in this regard is subsequent separation. concrete everyday waste prevention tools is currently being developed and will be communicated to consumers. In This calls for companies to support their employees and keeping with the Van Tongeren and Çegerek motion106, customers in the field of waste prevention and separation the Cabinet will also examine which products are most (e.g., setting purchasing requirements, circular procure­ frequently offered for repair. The House of Representatives ment, providing waste separation bins, offering non- will be informed accordingly in the annual progress report packaged products, et cetera). on this programme Improved sorting and processing systems Optimising consumer goods product value chains In their capacities as principals and contractors, local Nappies (diapers), textiles, mattresses, furniture, plastics, parties may raise the requirements to be met by parties and other waste similar to domestic waste are also produced further down the processing value chain, in order to reduce by parties other than households. A large proportion of residual waste. The Cabinet will encourage municipalities such waste is still incinerated. For that reason, the VANG Domestic Waste value chain approach will be expanded to include similar commercial waste. The intention is to have 107 Reverse collection: collection system in which reusable materials relevant consumer goods value chains closed, in terms of are collected door-to-door, and residual waste must be taken to a central location. 108 Waste produced by households is registered upon collection; waste 106 Parliamentary Documents II, 33 043, no. 59 levies are proportional to the volume of waste offered for collection. Government-wide Programme for a Circular Economy | 67 and waste collectors to make increasing use of innovative further increase glass waste collection, and, as stated earlier, tenders (waste contracts) to improve the efficiency of sorting to achieve and provide clear information on an effective and processing systems. and univocal waste collection system, in concert with the municipalities. Several municipalities have already demonstrated that tremendous results can be achieved. Efforts to reduce the volume of residual waste can bear This boost is expected to accelerate and improve the results fruit: in 2015, several municipal waste companies, such achieved by the other and especially the large munici­ as Circulus-Berkel BV and Midwaste, adopted an palities. The Stichting Afvalfonds funding thus contributes innovative tender procedure to successfully challenge to the realisation of the ambitions set out in this sorting companies to raise the percentage of plastics programme. sorted (from 50% to more than 90%). High-grade use of recyclates The waste and recycling sector can be regarded as a “resource broker”, a broker that ensures that raw materials are collected and sorted as cleanly as possible, and that ensures that producers are supplied with sufficient high- quality recyclates.109 The Cabinet intends to set down and make agreements on the proportion and quality of recyclate for the relevant product value chains, together with the waste and recycling sector and the producers. Recyclate must be able to compete with primary material on the (European) market (consistent quantity, quality, and price). This actually does not only apply to consumer goods, but also to the other priorities identified in this programme. Disposable products The Cabinet will enter into consultations with producers and retailers to cut back the use of non-sustainable, disposable products (such as promotional products or disposable plates). After all, there is a sufficient array of alternatives made of renewable raw materials. Wherever necessary, the tools outlined in this Government-wide programme can be used to this end. Waste Fund The Board of the Stichting Afvalfonds [Waste Fund Foundation] has reported on the activities it has undertaken up till now. The Stichting Afvalfonds will use the remaining resources to help fund projects aimed at the promotion of the separate collection and recycling of packaging, making the packaging value chain sustainable, and combating litter. The Cabinet applauds this, because in its view, these efforts make a substantial contribution to achieving the goals set for the plastics and consumer goods priorities. Supplementary agreements will be made by municipalities, the packaging industry, and the Ministry of Infrastructure and the Environment. Programmes will be rolled out, including to 109 Recyclate is the generic term for all sorts of products generated by a completed recycling process, that can be used without any further processing in a semi-manufacture or end product production process. 68 | A Circular Economy in the Netherlands by 2050 Published by: The Ministry of Infrastructure and the Environment and the Ministry of Economic Affairs, also on behalf of the Ministry of Foreign Affairs and the Ministry of the Interior and Kingdom Relations. CIRCULAR ECONOMY www.government.nl/circular-economy September 2016