Potential for Circular Economy in open economies: Case of Belgium

The European Commission (re-)launched it’s Circular Economy package in December 2015, by publishing 4 legislative proposals on waste and a Communication, including an action plan. This action plan focusses on actions at EU... [ view full abstract ]

The European Commission (re-)launched it’s Circular Economy package in December 2015, by publishing 4 legislative proposals on waste and a Communication, including an action plan. This action plan focusses on actions at EU level with high added value. Making the circular economy a reality will however require long-term involvement at all levels, from Member States, regions and cities, to businesses and citizens. Member States are invited to play their full part in EU action, integrating and complementing it with national action. The Belgian Science policy launched a research call topic: ‘The gradual implementation of a circular economy: a central element of the transition towards a society that uses resources efficiently and sustainably’. The IECOMAT project on integrated economic modelling of material flows⁽¹⁾ got financed by Belgian Science policy.

The interdisciplinary IECOMAT team will develop a set of complementary numerical and analytical tools that are each designed to study a particular aspect of sustainable material management. The models range from input-output models over partial and general equilibrium models and analytical industrial organization models of economic incentives. Starting from a BAU scenario alternative scenarios will be developed that differ in terms of scope of adoption of more circular economy business models. These alternative scenarios can be driven by changes in the federal and regional sustainable material policy context (for instance support for innovative business models, information campaigns, tradable recycling certificates, etc.).

The presentation will provide :

1. A short overview of the IECOMAT project activities: systems analysis, micro foundations, macro modelling, business cases and scenario’s.

2. A brief reflection on the results of the scoping exercise on the concept of circular economy, to be used within IECOMAT the focus and scope regarding circular economy has been discussed with public stakeholders and the final results will be presented, taking into account several definitions about circular economy existing in policy and scientific contexts.

3. Results from the system analysis to determine the potential for circular economy in an open economy. An overview of the open economic structure of the Belgian economy⁽²⁾ including it’s impacts along the value chain of value added creation, global warming and employment, using the WIOD MRIO tables for the period 1995-2011. These general structural developments are important for understanding the openness of the Belgian economy, which can be related to the potential for circular economy. Imported products add to the potential of closed loop circular initiatives like reuse, repair, remanufacture, recycling, etc., while exported products are no longer available for these domestic initiatives. Especially the increasing geographical distance in trade complicates the practical and legal barriers to close the loop. In open economies both global and territorial substitution effects due to new circular economy initiatives are important to consider.  

1. https://www.belspo.be/belspo/b...

2. With an openness index of 167 in 2015 (World Bank), Belgium has one of the highest global (country-level) results.