What circular economy can learn from industrial ecology practices?

1. What circular economy can learn from industrial ecology practices? NoémiCsigénéNagypál PhD Budapest University of Technology and Economics Department of environmental Economics nagypaln@eik.bme.hu www.kornygazd.bme.hu

2. Basic concepts „borrowed” • Industrial ecology • Industrial symbiosis … • Natural capital • Ecosystem services … Economy Nature

3. Industrial ecology • Analogy from ecological system • Closing open material loops • Energy cascading • Less emission, pollution • Less virgin material & energy input needed… More sustainable

4. Proximity – space dimension

5. Mátra PP and industrial park • Fossil fuel (lignite) power plant, since 1969 • Cc. 15% of electricity in Hungary • Flue-gas de-sulphurisation units equipped to comply with EU emission standards • Gypsum for construction Source: http://www.mert.hu

6. Eco-criteria in case of Mátra • Several companies use cheap steam, electricity (e.g. biodiesel plant) • Photovoltaic power plant, biodiesel plant • Burn some communal • Communal: PP • Gypsum • Recultivation after mining, nature trail • Individual contracts with bus company Volán • Continuous technical and biological recultivation of mines • End-of-pipe + fuel optimisation • Modern mining machines, tree planting • PP: ISO14001, high performance expected from partners • Equal opportunities, sport sponsorship…

7. Success factors in case of Mátra

8. Conclusions from Mátra survey • Mainly economic motives for each actor! • Good personal relationship and communication mentioned as the most important success factors – organisational changes: potential threat • Cooperation in technology and logistic is really needed • Risk management: • Main risk: temporarily no gypsum production… → storing • Long-term: on corporate level, factories are not entitled to make strategic decisions on looking for alternative resource providers →Threat for sustainable regional development. • ? Solution: Cooperation with regional authorities or development organisations may reduce this threat! • Interconnections, example: • Photovoltaic cell is not feasible because of the long time of return, partly caused by the fact that they buy electricity for a lower price directly from the power plant • No demand for extended cooperation, only for improvement

9. Conclusions • Several stakeholders, inter-connections → complexity, interdependence • Diversity – stability? • Individual vs. group interest, efficiency • Economic aspects dominant – producers… • Transaction costs – communication, experience of multinationals, cooperative attitude • Proximity is needed but may result huge regional differences and concentrated problems in case of recession… • Big difference: • gradually evolved (sub-optimal?) or planned… • types of waste, by-products • Quality management of by-products (system thinking) is essential • Different size of companies → independent coordinator, organiser • Regulation as catalyst, but some flexibility needed to enable innovation

10. Thank you for your attention!nagypaln@eik.bme.hu