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This report provides an overview of the main findings from the different research tasks in the CIRCTER project and delivers selected policy messages with European coverage. The report provides: (Sec. 2) a territorial definition of the circular economy; (Sec. 3) insights into the available statistics on material and waste patterns and flows and their interpretation, alongside new territorial evidence on both aspects; (Sec. 4) a sectoral characterisation of the circular economy at regional level (NUTS-2), including data on turnover and jobs; (Sec. 5) key findings from the CIRCTER case studies; (Sec. 6) a systemic interpretation of the circular economy that works as a knowledge-integration mechanism for the entire report; (Sec. 7 and 8) an analysis of the most relevant circular economy policies and strategies at various territorial levels; (Sec. 8) a subset of policy recommendations focusing in particular on territorial and cohesion policies, and; (Sec. 9) suggestions for further research.
On the basis of a literature research, this subtask develops a conceptional framework for a common understanding of CE within the project team and for the following work packages and tasks. After a brief introduction into the objectives and the context of a circular economy, a more elaborated look into the necessity of an explicit understanding of CE, the objectives, the spatial perspective of CE and the specific challenges within the CICERONE context will be done, in order to develop a basis for a common understanding within the project context. Circular economy can and has to be understood as an (eco-)innovation agenda. Therefore, the paper investigates the role policy has to play to support innovation for a CE transition, for creating the framework conditions and why CE has also to be build from the ground up. Finally, the paper looks from two perspectives at emerging trends and business models in a CE to sketch next steps towards the transition in a selection of central sectors. Conclusions are drawn on the basis of the insights gained by the preceding chapters.
The key objective of this deliverable is to gain insights on and assess how CE is being implemented and R&I is being funded at regional level, e.g., via the RIS3 strategy and Structural Funds. As such it sets the scope for the project and provides the background against which programmes and measures can be understood, assessed, developed and recommended in succinct tasks and work packages. The objective of this report is to provide a concise overview of the current R&I priorities, as expressed in running and newly introduced funding and legislative measures with respect to Circular Economy in European countries and regions.
Digitalisation is disrupting business practices worldwide and transforming consumption patterns. While a global increase in wealth is leading to higher consumption rates, consumption-related decisions are increasingly based on digital information and marketing; furthermore, shopping increasingly takes place online and products and services are more and more digitalised.
The transformative character of digitalisation calls for political action in order to ensure sustainable consumption in a new and dynamically changing context. Focusing on consumption is imperative in combatting many global challenges. Take climate change: consumption-based emissions (i.e. emissions from domestic final consumption and emissions caused by the production of imported goods) are rising more rapidly than production-based emissions in high-income countries. Meanwhile most political measures target production-based emissions (i.e. territorial emissions).
The German council for sustainable development (Rat für Nachhaltige Entwicklung) has called for the §principle of sustainable development [to] serve as the political framework for digital transformation" as "digitalisation has the potential to engender disruptive developments in the business world as well as society as a whole that carry both great opportunities and significant risks". Thus, to implement the 2030 Agenda, in particular SDG 12, and the National Program Sustainable Consumption, it is key to seize the opportunities that digitalisation presents for sustainable consumption and tackle the challenges. This assessment report thus examines the following key question: "What are the implications of the digital transformation of consumption patterns for the implementation of the German sustainability strategy in, by and with Germany?"
Much of the current literature on climate clubs sees mitigation costs creating free rider incentives as the main problem of climate policy. Climate clubs are supposed to solve this problem by creating additional incentives for mitigation. Looking more in detail, one sees that the situation differs from sector to sector. Some industry sectors indeed have substantial cost and competitiveness issues. In others such as electricity and transport, there are costs at micro level but balance for economy and society as a whole is rather positive. International climate policy in general and clubs in particular should therefore be tailored to sectoral specifics.
This assessment report identifies six key areas of sustainable consumption. Transforming those areas is associated with a significant, positive impact on sustainable development. In this way, those key areas lay the foundation to set clear priorities and formulate concrete policy measures and recommendations. The report describes recent developments and relevant actors in those six fields, outlines drivers and barriers to reach a shift towards more sustainability in those specific areas, and explores international good-practice examples. On top of this, overarching topics in the scientific discourse concerning sustainable consumption (e.g. collaborative economy, behavioural economics and nudging) are revealed by using innovative text-mining techniques. Subsequently, the report outlines the contributions of these research approaches to transforming the key areas of sustainable consumption. Finally, the report derives policy recommendations to improve the German Sustainable Development Strategy (DNS) in order to achieve a stronger stimulus effect for sustainable consumption.
The Wuppertal Institute conducted an impact analysis of the NRW Sustainability Bond #4 of 2018 on behalf of the State Government of North Rhine-Westphalia (NRW). The most recent bond has a volume of EUR 2.025bn, a term of 10 years and consists of 52 eligible projects from the State's 2017 general budget (sustainable value-added was confirmed in a second party opinion by oekom research1). This report analyses the contribution of the bond to climate mitigation, sustainable land use and social impacts. It also includes information on the impacts of the previous three bonds (NRW Sustainability Bond #1 to #3).
The Wuppertal Institute conducted an impact analysis of the NRW sustainability bond #5 of 2019 on behalf of the State government of North Rhine-Westphalia (NRW). The most recent bond has a volume of EUR 2.25 bn, a term of 15 years and consists of 52 eligible projects from the State's 2018 general budget (sustainable value-added was confirmed in a second party opinion by ISS-oekom). This report analyses the contribution of the bond to climate mitigation, sustainable land use and social impacts. It also includes information on the impacts of the previous four bonds (NRW sustainability bond #1 to #4).
This report on urban mobility performance measurement is aimed at enabling stake- holders of the city of Bucharest and the public to understand their current urban mobility situation through a point-based results framework. It shall provide the city of Bucharest with a yardstick to measure its performance and benchmark the progress against some of its counterparts. It measures the urban mobility and compares it with 13 other European cities: Berlin, London, Vienna, Brussels, Moscow, Rome, Zurich, Paris, Amsterdam, Copenhagen, Oslo, Budapest and Madrid.
Similar to many other European cities, Bucharest employs a Sustainable Urban Mobility Plan (SUMP) in order to continuously improve urban transport and mobility and to make it more sustainable. In this respect, the report should also be regarded as a document which supports the stakeholders in Bucharest in their efforts to develop transport and mobility in the city more sustainable.
Because prevention is closely linked to complex consumption patterns, even cultural changes, such as increasing environmental awareness, changes in the average size of households or changes in the industrial structure of an economy, are relevant factors for the interpretation of changes in the generation of waste - it is more or less impossible to isolate the effect of specific waste prevention measures in this complex system. This must be considered, in particular, in international comparisons of policies and their potential transferability. The guidelines of the European Commission on waste prevention also point to the particular problem of data availability in the area of prevention: as waste statistics focus mainly on the treatment and fate of wastes, they are often of limited value for prevention of waste because they don't give sufficient information about their origins or reasons for their generation.
Against this background, this report has the following objectives:
Chapter 2 discusses strengths and weaknesses of typical waste-based prevention indicators; Chapter 3 analyses possible indicators that consider an upstream perspective and take into account the ecological rucksacks of products and components that have become waste; Chapter 4 focuses on specific product groups that could be targeted by waste prevention indicators.
In general, the report describes the complexity of measuring waste prevention and outlines pros and cons of possible approaches. The final chapter aims to draw rather pragmatic conclusions on possibly most preferable options for future policy-making.
In the context of the German-Korean Energy Policy Dialogue, integration of renewable power sources and smart grids have been identified as topics with high relevance. This study aims to support mutual learning and exploration of new fields for collaboration by identifying similarities and differences in the respective status quos, strategies and policies in both countries.
After a short introduction to the South Korean energy situation, Chapter 2 provides an overview of the South Korean power market, its situation regarding renewable power sources and the Korean definition of smart grids. Chapter 3 of this study highlights the major South Korean energy strategies and regulatory frameworks relevant to integration of renewable energies and smart grids. In Chapter 4, the status and perspectives of renewable energy sources integration and smart grids in South Korea are discussed, presenting various demonstrative examples, new business models and the current situation of technology deployment. Chapter 5 puts South Korea in the global context and compares it to Germany. Finally, Chapter 6 draws conclusions and presents recommendations on suitable areas for mutual learning.
While the Paris Agreement (PA) has enshrined ambitious long-term objectives, the current level of action of the Parties to the Agreement falls far short of this ambition, as is recognised in the very COP decision adopting the Agreement. The Global Stocktake (GST) established in Art. 14 of the PA is a key element to address this problem. Its purpose is to review the implementation of the PA and to assess the progress made towards the collectively agreed goals.
The aim of this report is to develop recommendations on how to maximise the potential impact of the GST. The report starts from a perspective of what the GST could ideally do, irrespective of decisions already taken under the UNFCCC and other political constraints. In the second step, the report takes these limitations into account and suggests ways for how to nonetheless work towards the desired outcome.
This study focuses on smart grids and integration of renewable energy sources in Japan. It first elaborates on the current status of the Japanese power market, its electricity grid, and the trends taking place which result in the need for smart grids. It proceeds with strategic and legislative framework setting relevant for smart grids and renewables, and with current status of smart grids and renewables. Further, it focuses on relevant stakeholders, new business models, and public acceptance relevant for smart grids and renewables. It then puts the Japanese developments in international context and, where possible, compares it to Germany. Lastly, it derives recommendations and identifies where Japanese and German policymakers, regulators and private sector stakeholders might profit from closer collaboration.
Germany and Japan have both gained substantial experience with hydrogen production and applications, albeit with focus on different sectors. They also share similar drivers for hydrogen development and, of course, similar technical and economic opportunities and challenges. However, there also are relevant differences in the policy priorities and approaches.
Notwithstanding differing emphases and patterns, the two countries share three main drivers for hydrogen development and deployment: climate mitigation and other environmental goals, energy supply diversification, and technological leadership. In this context, hydrogen has been identified by the German and the Japanese governments during the Energy Policy Dialogue as having potential for closer cooperation.
The authors of this study provide an overview of demand-side deployment by sector (residential, transport, industry, power generation and power-to-x) for both countries, as well as of their hydrogen policy debates, key institutions, R&D programs and demonstration projects. They also present a short survey on relevant international platforms and initiatives in which Japan and Germany participate.
On the basis of a meta-analysis of the role of hydrogen in 18 long-term energy system scenarios for Germany and 12 scenarios for Japan, this study draws conclusions on the possible role of hydrogen in the long term energy policy debates of both countries. Subsequently, the authors discuss sustainability criteria and certification schemes for clean hydrogen, compare the greenhouse gas intensity of different hydrogen supply chains and provide a data-based analysis to identify countries which could become important suppliers of clean hydrogen.
Europe needs a new vision of progress. An energy transition has this potential. It can give the "European idea" a future-oriented content. The goal for 2050 is clear: a Europe without fossil and nuclear energy! This is not a utopia. Studies, resolutions of the EU and some member states prove that this vision is feasible and has many advantages: more jobs, more security of supply, fewer premature deaths due to air pollution, reduction of resource conflicts, falling energy costs. New green lead markets for renewable energies and resource efficiency are emerging. A European energy transition requires an alliance, ideally fuelled by neighbours France and Germany. Many are hoping for Germany as a driver of nuclear and coal phase-out. But deciding on "revolutionary goals" is not enough: finally implementing them is what Germany and Europe are waiting for. This report shows which concrete steps can advance this vision of progress.
How can existing national climate policy instruments contribute to ETS development? : Final report
(2019)
Before introducing an emissions trading system, jurisdictions have to consider the ex-isting energy and climate policy framework. This report seeks to analyse and evaluate non-ETS climate policy instruments, such as carbon taxes or green certificate trading schemes, regarding their suitability to serve as a basis for establishing emission trading systems. There is a general assessment of prototypical policy instruments. Besides, the report contains insights from case studies in India and Mexico. The report is meant to inform ETS development by showing how existing policy instruments could contribute to this process and by illustrating how non-ETS policy instruments could coexist with an emissions trading system, allowing for an effective policy mix.
Before linking emissions trading systems, there should be a good understanding of the expected economic implications: How could linking affect the development of the common allowance price, the development of emissions or industrial production, capital flows or liquidity? Answering these questions requires a multitude of data and assumptions and therefore usually the use of economic models.
This report gives an overview of various economic models that are suitable for assessing the economic effects of linking. It analyses the economic indicators relevant for the assessment of the effects of linking, formulates requirements for economic models to answer this question, discusses the advantages and disadvantages of different modelling approaches and gives an assessment of which models are suitable in principle for the assessment of linking. Five models were selected for a more detailed description: E3ME, GEM-E3, PACE, POLES, and TIMES-MARKAL.
Today more than 45 % of all energy-related CO2 emissions come from burning coal. Thus, reducing CO2 emissions from coal use is a necessity for reaching the targets of the Paris Agreement. This will not only pose challenges for coal consumers (restructuring of the energy system), but also for countries whose economy is strongly depending on the production of coal. This paper examines the role of coal in three countries, which are or were in recent years among the top coal exporters: Indonesia, Colombia and Vietnam. Understanding challenges and possible transition pathways in these countries will help to develop global strategies to reduce CO2 emissions from coal in the short to mid-term.
Phasing out coal in the German energy sector : interdependencies, challenges and potential solutions
(2019)
Relevant aspects of the options and requirements for reducing and phasing out coal-fired power generation have been under debate for several years. This process has produced a range of strategies, analyses and arguments, outlining how coal use in the energy sector could be reduced and phased out in the planned time frame, and determining structural policy measures suitable to support this. This Coal Report studies the existing analyses and provides an overview of the state of debate. It is intended to provide information on facts and contexts, present the advantages and disadvantages of individual courses of action, and reveal the respective scientific backgrounds. It strives to take a scientific and independent approach, and present facts in concise language, making it easy to follow for readers who are not experts in the field, without excessive abridgements or provocative statements.