Luxembourg’s National Institute for Sustainable Development and Corporate Social Responsibility (INDR) was part of a coalition of business associations, representing thousands of companies throughout Europe, calling for a strengthened Circular Economy Package (CEP), based on political leadership and ambitious policies of waste prevention, with economic incentives; they demonstrated this by signing the manifesto, “More Prosperity, New Jobs”, yesterday, 21 May.
The broadly supported manifesto serves as input from the perspective of business frontrunners on the renewed CEP, and the obstacles for circular business as experienced by companies. The circular economy holds a potential of 2 million new jobs, an estimated net savings throughout the EU for businesses of up to €600 billion, and hundreds of millions of tonnes of avoided waste.
Strong government policies to mainstream circular businesses are crucial to reap the benefits of a circular economy. This requires leadership and investments in circular innovation beyond traditional measures. The manifesto calls for the EU and its Member States to act as launching customers through widespread implementation of green public procurement.
Moreover, the coalition calls for targets for maintenance, repair, reuse, refurbishment and cascading, as well as those already existing for landfill and recycling. Additionally, they desire a flexible competition policy and the foundation of a European Institute for Circular Economy. Lastly, the manifesto recommends a Circular Frontrunners Programme, as well as sectorial and cross-sectorial programmes.
In order to reach the targets, the coalition has asked for economic incentives to create framework conditions for companies, in order to implement circular business models. Fiscal incentives are crucial to stimulate consumers to buy circular products and services. This can be achieved by adjusting European VAT regulations to allow for VAT rate differentiation on the basis of circularity.
It is important to stimulate consumers to buy circular products and services. In addition, improved extended producer responsibility schemes can reward producers of circular products with lower costs, while providing considerable funds for investing in improved waste management. Finally, the manifesto recommends tax breaks for externally audited integrated reporting.
The coalition is in favour of expanding the Ecodesign Directive into a directive for Circular Design. Furthermore, the manifesto calls for continuing calls for proposals in the field of circular economy in Horizon 2020 and the Eco-Innovation Programme, including calls for economic mechanism design.
Spearheaded by Dutch Sustainable Business Association, “De Groene Zook’, MVO Nederland and Circle Economy, the manifesto has also been signed by Entreprendre Vert, EcoPreneur, Green Alliance, GreeenBudgetEurope, the Institut de l’Économie Circulaire, Plan C and UnternehmensGrün, as well as Luxembourg’s INDR, as previously mentioned. It also contains supportive statements from the European Environmental Bureau (EEB), ACR+ and the Dutch Society for the Protection of Nature and Environment (Natuur & Milieu) and direct quotes from several businesses.
The full manifesto can be downloaded from: http://degroenezaak.com/wp-content/uploads/2015/05/Circular-Economy-Package-Manifesto-20-5-2015.pdf.
