Why and how Flanders is investing in the circular economy

In this article:

• In essence
• What is the circular economy?
• Why? 5 reasons
• Why here? 5 circular assets of Flanders
• What are Europe, Belgium and Flanders doing?
• How circular is Flanders?

Why? 5 reasons

Committing to a circular economy lowers pressure on the environment and climate. It provides opportunities for businesses and reduces the EU's dependence on foreign raw materials as an economic region. More concretely:

1. Resilience | We secure access to materials/resources

Material costs are decisive in our economy: they represent up to 60% of total operating costs at manufacturing companies. Difficult access to certain raw materials or even their (temporary) unavailability, due to conflict, drought, floods, depletion... lead to sharply rising and volatile prices. By being smarter and more circular with materials and using more of what is already in our economy, we can better absorb supply shocks and stabilise prices.

To make the energy transition successful, we also need to factor in raw materials. The International Energy Agency calculated that for a climate-friendly energy transition in mobility, for example, the demand for raw materials in that sector alone could grow by a factor of 30 by 2040. If we can meet part of that demand with closed cycles, we kill two birds with one stone: a sustainable transition with recycled raw materials.

Our region has few raw materials and is therefore heavily dependent on imports from other regions. By getting our raw materials as much as possible from our own, Flemish, Belgian, European economy and managing available stocks more intelligently, we as a region and continent become less the pawn of geostrategic competition. European industry gains autonomy.

2. Excelling | Strong, cooperating companies with green know-how

Our competitiveness could also benefit from a circular economy. The number of companies with circular activities grew by 35 per cent over the past three years, compared to 15 per cent for all companies combined. The circular economy, through collaboration and innovation, strengthens relationships between companies, beyond company boundaries. This increased connectedness increases the resilience of companies to shocks (such as a pandemic, local conflicts, geopolitical instability...). Moreover, by focusing on eco-design, sustainable use of materials, product sharing, reuse, recovery, remaking and recycling, companies can create more added value. In turn, those Flemish circular solutions and expertise can be exported by the companies and knowledge institutions.

3. Jobs | We creëren nieuwe, betekenisvolle werkgelegenheid.

There is great potential for job creation as the strategies of the circular economy (repairing, maintaining, remaking, recycling...) are labour-intensive. These jobs will be locally anchored and provide new opportunities for people distanced from the labour market in addition to specialised technical staff. A thoroughly circular economy could provide Flanders with some 30,000 to 100,000 extra jobs by 2030. Circle Economy, commissioned by the King Baudouin Foundation, estimated the number of circular jobs in Flanders today at around 148,000 (7.5% of all jobs).

However, jobs will also disappear. A socially just transition should guide those workers and companies through the changeover.

4. Climate | We contribute to the achievement of climate targets.

A large part of our energy demand - and thus climate impact - is embedded in the way we handle materials: two thirds of territorial emissions in Flanders are material-related. In the broad sense, this refers to emissions caused by the production of goods and fuels, transport of goods, production and storage of food and waste disposal. Thus, there is great potential for circular strategies to reduce materials consumption and associated emissions. As an example, a combination of circular strategies could reduce the materials footprint of textile consumption in Flanders by 53% and lower the carbon footprint by 32%. The prerequisite: we must apply these circular strategies thoughtfully, with an eye for sustainability and climate. After all, the link between more circularity and fewer emissions is not automatic.

5. Environment and biodiversity | We reduce the harmful impact of our material consumption on the environment, people and biodiversity.

Ninety per cent of biodiversity loss is caused by the extraction and processing of raw materials, fuels and food. If we handle our materials more consciously and close cycles safely without toxic residues, less (hazardous) waste will be created. Less waste means less chance of (illegal) dumping, disposing, burning and all the accompanying social and environmental problems. Both here and abroad.
That the extraction of raw materials often has a very negative impact on people, the environment and biodiversity is no secret. By applying - again: thoughtfully - circular strategies, we can temper our own hunger for 'fresh' raw materials and help reduce the pressure of mining.

What are Europe, Belgium and Flanders doing?

Europe

The European Commission launched the Circular Economy Action Plan in 2015. In 2020, the plan received an update. The plan is one of the main building blocks of the European Green Deal, the agenda for sustainable growth in the coming years.

The new action plan contains measures targeting the entire life cycle of products and aims mainly to:

• reduce waste and keep used resources in the EU economy for as long as possible;
• protect the environment;
• preparing our economy for a green future;
• strengthening our competitiveness;
• and giving consumers new rights.

The European Green Deal sets out ambitious targets for Europe. All 27 EU member states have decided to make the EU the first climate-neutral continent by 2050 at the latest. They have therefore committed to reduce CO2 emissions by at least 55% compared to 1990 by the end of 2030.

In 2018, the Union put forward measures to make the supply of raw materials in Europe more secure and sustainable. The EU compiled a list of 30 critical raw materials in terms of supply and their importance for European industry.

Belgium

In late 2021, the Belgian government approved the Federal Action Plan for a Circular Economy (2021-2024). The plan contains 25 proposals for measures under federal competence in areas such as product standards, consumer protection, public procurement, employment and taxation. In addition, the plan also contains proposals to monitor progress made.

The action plan is intended to complement the actions undertaken by the regions in the field of the circular economy. Cooperation between the federal level and the regions is also being given new impetus through the Intra-Belgian Platform for Circular Economy (IBPCE).

The plan is the successor to the earlier 2016 action plan. That plan contained 21 measures and focused mainly on human and environmental safety, transparency and consumer protection.

Flanders

The Flemish Government wants to make Flanders a circular leader in Europe. It wants to do this by investing in circular innovation, decoupling the material footprint of our consumption from economic growth, and reducing this footprint by 30% by 2030.

That is why Flanders is investing in the ambitious partnership Flanders Circular. Flanders Circular activates as many partners as possible from the social pentagon (financial world, social profit, knowledge institutions, business and governments). In the steering group, 20 core partners commit to making a difference for tomorrow with coordinated actions today. Two ministers are jointly responsible for the transition: Hilde Crevits, minister of economy, innovation, work, social economy and agriculture on the one hand, and Zuhal Demir, minister of justice and enforcement, environment, energy and tourism on the other.

Circular change is too big a project to put in the basket of one team or organisation. For upscaling, mainstreaming, we need many hands and many different types of expertise. That is why Flanders Circular organises itself into six thematic strategic agendas: bio-economy, chemistry/plastics, circular building, manufacturing industry, food chain and water cycles. The working agendas are in turn supported by seven reinforcing 'levers'. These levers address challenges common to multiple strategic agendas:

1. Policy instruments
2. Circular purchasing
3. Communication
4. Financing
5. Innovation and entrepreneurship
6. Jobs and skills
7. Research

The Flemish government is investing around 120 million euros in circular innovation in the period 2019 and 2022. Flanders is also investing further in research and monitoring its own performance with the CE Monitor and a new research support unit CE Center for the period 2022-2026.

With a relaunch in 2020, Flanders Circular builds on the Materials Decree, the Flemish Materials Programme, Plan C and research support centre Summa, which merged in 2017 to form Flanders Circular.