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Digital product passport : the ticket to achieving a climate neutral and circular European economy?
(2022)
The introduction of a Digital Product Passport (DPP) is an opportunity to create a system that can store and share all relevant information throughout a product's life cycle. This would provide industry stakeholders, businesses, public authorities and consumers with a better understanding of the materials used in the product as well as their embodied environmental impact.
With the COVID-19 pandemic, the Russian invasion of Ukraine and the cost-of-living crisis, now is a critical moment to transform our economic and business models, while also addressing the huge scale of material emissions. DPPs can be a pivotal policy instrument in this goal. Furthermore, DPPs can accelerate the twin green and digital transitions as part of EU efforts to deliver positive climate action and sustainable economies.
In 2020, the European Commission (EC) adopted a new Circular Economy Action Plan (CEAP), which emphasised the need for circular economy initiatives to consider the entire life cycle of products, from the production of basic materials to end-of-life disposal. The Circular Economy Package published in March 2022 includes a proposal for an Ecodesign for Sustainable Products Regulation (ESPR), which builds upon the Ecodesign Directive that covers energy-related products.
A DPP will form a key regulatory element of the ESPR by enhancing the traceability of products and their components. This will provide consumers and manufacturers with the information needed to make better informed choices by taking their environmental impact into consideration.
As discussed in the report, there is widespread agreement amongst business leaders that a well-designed DPP could have both short- and longer-term benefits, improving access to reliable and comparable product sustainability information for businesses, consumers and policymakers.
A well-designed DPP can unify information, making it more readily accessible to all actors in the supply chain. This will support businesses to ensure an effective transformation towards a decarbonised industry. It could also create incentives for companies to make their products more sustainable, as improving access to reliable and consistent information across supply chains will make it easier for customers to make comparisons.
This study presents in detail: the use of plastic products and the opportunities for recyclate use in the construction sector, quantities of plastic used, take-back systems, recycling techniques, current recyclate use and plastic construction product packaging.Potentials for increasing high-quality recyclate use were identified. Existing hurdles and options for action for industry and politics are presented. Current recyclate use as well as its potential use are strongly dependent on the application area of plastics. The biggest hurdles for the use of recycled materials are product life time, dismantling and technical requirements.
Digitalisation is taking place at a fast pace in all European countries and it is transforming the economies, societies, communication, jobs and the necessary skills for the workplace and everyday life. The Covid-19 pandemic is also accelerating digitalisation at many levels.
To address the great challenges resulting from this, the European Commission has launched the Green Deal, a long-term transformation strategy towards an innovative and sustainable society. Three important initiatives under the Green Deal are the New Circular Economy Action Plan, the Biodiversity Strategy for 2030 and the Zero Pollution Action Plan. The various strategies and action plans draw up a large portfolio of measures, instruments and milestones that are always linked to digital technologies. Ideally, these are eco-innovative and sustainable and contribute to improving living conditions in Europe.
The EIO Biennial Report 2020, which looks at a different topic every two years, considers digitalisation a major opportunity to accelerate the transition to a circular Europe. In the current report, the authors provide an overview of eco-innovation trends, illustrated by digital technology and policy practices that can further drive the circular economy.
Digital platforms may yield a host of advantages in putting circular economy into effect. This paper analyses the related chances and discusses requirements of digital platforms for the realization of a circular economy. It specifically points to potential solutions offered by digital platforms for existing barriers. From there it identifies issues that need specific attendance to create economically and ecologically functional platforms. Three economically relevant perspectives are discussed for this: a management perspective, a legislative perspective and a social/systems perspective.