4. Policy recommendations
In response to the challenges identified in Chapter 3, this chapter suggests policy recommendations to implement the circular economy in the city of Glasgow, United Kingdom. In particular, Glasgow can act as: i) promoter, defining roles and responsibilities and leading by example; ii) facilitator, creating opportunities for collaborations across stakeholders; and iii) enabler, implementing the necessary regulatory and financial conditions, to accelerate the transition from a linear to a circular economy.
According to the OECD, cities can act as promoters, facilitators and enablers of the circular economy (Figure 4.1) (OECD, 2020[1]).
Promoters: Cities can promote the circular economy acting as a role model, providing clear information and establishing goals and targets, in particular through: defining who does what and leading by example (roles and responsibilities); developing a circular economy strategy with clear goals and actions (strategic vision); promoting a circular economy culture and enhancing trust (awareness and transparency).
Facilitators: Cities and regions can facilitate connections and dialogue and provide soft and hard infrastructure for new circular businesses, in particular through: implementing effective multi-level governance (co-ordination); fostering system thinking (policy coherence); facilitating collaboration amongst public, not-for-profit actors and businesses (stakeholder engagement); and adopting a functional approach (appropriate scale).
Enablers: Cities and regions create the enabling conditions for the transition to a circular economy to happen, e.g.: identify the regulatory instruments that need to be adapted to foster the transition to the circular economy (regulation); help mobilise financial resources and allocate them efficiently (financing); adapt human and technical resources to the challenges to be met (capacity building); support business development (innovation); and generate an information system and assess results (data and assessment).
This chapter presents policy recommendations and related actions for the city of Glasgow, UK, as a result of the interviews with more than 60 stakeholders, during the OECD virtual missions (27-30 April and 22-25 June 2020) and a policy seminar on 22 July 2021 (Table 4.1), and on the basis of international best practice. The 12 governance dimensions for each cluster (promoter, facilitator and enabler) build on the Checklist for Action for cities and regions transitioning to the circular economy (OECD, 2020[1]). These governance dimensions were inspired by the OECD Principles on Water Governance (OECD, 2015[2]) and they are accompanied by the OECD Scoreboard on the Governance of the Circular Economy, developed thanks to the collective efforts of several cities, involved in the OECD Programme on the Circular Economy in Cities and Regions as case studies (OECD, 2021[3]; 2020[4]; 2020[5]; 2020[6]).
Actions are neither compulsory nor binding: Identified actions address a variety of ways to implement and achieve objectives. However, they are neither compulsory nor binding. They represent suggestions, for which adequacy and feasibility should be carefully evaluated by the city of Glasgow, involving stakeholders as appropriate. In turn, the combination of more than one action can be explored, if necessary.
Prioritisation of actions should be considered: Taking into account the unfeasibility of addressing all recommendations at the same time, prioritisation is key. As such, steps taken towards a circular transition should be progressive. Table 4.1 provides an indicative timetable for actions (short, medium and long term) based on the discussion and results of the Policy Seminar on the Circular Economy in Glasgow held on 22 July 2021.
Resources for implementation should be assessed: The implementation of actions will require human, technical and financial resources. When prioritising and assessing the adequacy and feasibility of the suggested actions, the resources needed to put them in practice should be carefully evaluated, as well as the role of stakeholders that can contribute to the implementation phase.
The proposed actions should be updated in the future: New potential steps and objectives may emerge as actions start to be implemented.
Several stakeholders should contribute to their implementation: Policy recommendations and related actions should be implemented as a shared responsibility across a wide range of actors. Based on the results of the Policy Seminar on the Circular Economy in Glasgow held on 22 July 2021, Table 4.1 provides an indicative selection of actors that can contribute to each of the proposed actions.
Roles and responsibilities
It is important to establish clear roles and responsibilities within Glasgow City Council in terms of who does what in policymaking (e.g. priority setting and strategic planning) and implementation of the Circular Economy Route Map for Glasgow. The Neighbourhoods, Regeneration and Sustainability Department took the lead in drafting the route map, advancing a number of proposals towards new circular business models in repairing, reusing and remanufacturing, amongst others. The next steps are to determine how to move forward in the implementation (e.g. financing and budgeting, data and information, and stakeholder engagement) and how to co-ordinate with other municipal departments since the circular economy foresees a systemic change.
The following actions are proposed:
Establish a transversal working group across municipal departments and continue to strengthen the relationship across the city, Zero Waste Scotland and the Glasgow Chamber of Commerce. A first step could consist in selecting in each municipal department a focal point to be part of the group, identify existing gaps, and define possible synergies across the departments, for example in relation to: efficient resource use; eco-design; and sustainable waste management. The group could appoint a co-ordinator. Moreover, Glasgow City Council could strengthen the relationship with Zero Waste Scotland and the Glasgow Chamber of Commerce through: i) building capacities within the city staff and political representatives; ii) financing circular economy-related initiatives; and iii) strengthening collaborations with the business sector.
Lead by example, embedding circular economy principles in daily activities and practices. Glasgow could start introducing circular economy principles by: i) reducing the amount of waste generated (e.g. diminishing the use of paper, banning one-use plastics like cups in municipal events and daily activities); ii) adopting business models shifting from ownership to services (e.g. leasing a furniture service instead of buying new); and iii) encouraging the use of secondary materials (e.g. using recycled plastics for office furniture) (Box 4.1). Moreover, Glasgow City Council could support the development of repair cafés, local swap shops and repairer banks, encouraging local and/or traditional repair activities and creating opportunities for skills development and jobs.
There is a growing number of cities that are aiming at becoming role models to trigger behavioural and business change in the city. Some cities have set themselves the specific objective of leading by example to show the feasibility of the circular transition with specific actions. Examples are reported below:
Shift from ownership to services
The municipality of Bollnäs, Sweden, has applied what the local government calls “functional public procurement” (funktionsupphandlingen) to rent light as a service in municipal pre-schools and schools.
The city of Ljubljana, Slovenia, aims to foster “product as a service” schemes by renting printers, electric lamps or furniture instead of buying them.
In Oulu, Finland, public libraries have extended their services from borrowing traditional items (e.g. books, e-books, audiobooks, music, films, etc.) to skis, skates and other sports equipment.
Use of secondary materials
In the city of Ljubljana, Slovenia, the public tender for the selection of suppliers of sanitary paper products included the “zero waste” criterion, whereby the sanitary products had to be made of cardboard packaging or cardboard hollow packaging collected in the city.
Groningen, Netherlands, opened a tender for a ten-year service of refurbished furniture for the municipality and, since 2018, all plastic bins within the municipality are made of plastics.
Source: OECD (2020[1]), The Circular Economy in Cities and Regions: Synthesis Report, https://doi.org/10.1787/10ac6ae4-en; Eurocities (2019[7]), “Tackling the problem of plastic pollution in cities”.
Strategic vision
The Circular Economy Route Map for Glasgow represents the first attempt to identify a series of actions to promote the circular economy transition in the city. The route map strongly focuses on the need to foster local jobs, strengthen the sense of community and develop business opportunities linked to the circular economy. As mentioned in Chapter 2, some sectors have high potential within the long-term vision of the circular economy in the city. These sectors are the event and tourism, built environment and food.
Regarding the tourism and events industry, the city could promote the following actions:
Eco-design for events and venues, in view of building infrastructure and equipment with secondary materials (e.g. recycled plastic chairs) or through reused furniture and with repurposing in mind.
Renting, sharing and in service-based business models. Renting equipment for events, hospitality and catering enables it to be kept in use for longer, at competitive prices and minimising waste reduction (for example contracting rental services of sustainable linen and laundry); use sharing services such as mobility; and replace ownership with services, for example renting lights as services rather than buying light bulbs makes the owner of all installations responsible for the performance and durability of the service.
Collaboration across the supply chain. Including circular economy principles in the supply chain of the events and tourism sector aims at: i) fostering local production to reduce the imports of raw materials, focusing on loops and shorter supply chains; ii) creating job opportunities in repairing, maintaining, recycling and reuse; iii) reducing import of primary material; and iv) establishing collaboration to minimise waste production and scale up best practices through know-how exchange. For example, in Amsterdam, a total of 12 hotels have started co-operating with actors along their different value chains to incorporate circular principles in their business models. As such, they jointly purchase and bundle waste streams, contract rental services and share information to provide more sustainable products and services.
Preventing plastic waste. To reduce plastic waste in events and catering, some practices consist in: i) replacing plastics cutlery with reusable or biodegradable versions; ii) encouraging attendants to bring their own reusable bottles; and iii) providing water in glass bottles.
Regarding the built environment, the city could:
Apply smart design to new construction. A smart design consists in using materials with low environmental impact, increasing the material and energy performance of buildings and planning for end-of-life repurposing or reuse of materials when dismantling. In this case, the waste stream can be separated to enable high-value reuse and create a resource bank and marketplace where materials can be exchanged between market players.
Develop a circular profile of buildings. When planning for construction, materials should be identified to develop plans for the end of life of the building and use recycled material when possible. In this case, material passports can be useful. Based on cradle-to-cradle design, material passports are digital sets of data describing characteristics of materials and components in products and systems that give them value for present use, recovery and reuse. They represent a tool for the improvement of transparency on the materials used during construction and renovation stages. They are expected to avoid costs related to the investigation of dangerous materials before demolition and enhance better asset management of constructions since public authorities will have clearer information about materials and potential reuse. There are several companies in the Netherlands and Sweden providing material passports to real estate owners (Cradle to Cradle Products Innovation Institute, 2019[8]; Luscuere, 2017[9]). In the city of Paris, France, construction projects should reach at least 40% of the points established in a “circular economy profile” (e.g. inclusion of a waste management plan, use of recycled materials, development of life-analysis calculations, eco-certification of wood, considering deconstruction processes, establishing synergies with local actors in the surrounding areas, among others) (HGB-GBC, 2017[10]).
Consider the idle capacity of empty buildings for better use of resources. Glasgow can use the 800 properties currently not in use in the city, first to avoid new unnecessary construction sites and second, to be used as a testbed for the circular economy experimentation or for circular-economy-related activities (such as repairing cafés). In Groningen, Netherlands, a project in a disused sugar factory aims to create a “zero-waste” neighbourhood: De Loskade is projected to be a “removable” and “short stay” neighbourhood. As a “pop-up” neighbourhood, temporary properties will be dismantled after the rental period ends in 2030 and rebuilt in other areas. Extensive pilots and testing are taking place at De Loskade, for example gas-free installations and off-the-grid and energy-efficient homes (OECD, 2020[1]).
Plan the end of life of buildings and infrastructure. Three levels of circularity can be identified: i) repurposing an existing asset, components and materials with no major transformations and in the same location; ii) reusing an existing asset for the same purpose but in a different location; iii) reusing components and materials of existing assets, in the same and different location (Stronati, 2018[11]).
Regarding the food sector, the city can:
Promote food waste reduction. In restaurants and canteens, this is possible by replacing buffets with a la carte schemes for example and selling food at a low price on platforms and donating it to food banks. Other solutions to reduce the amount of waste generated could consist of the design of targeted awareness-raising initiatives such as “challenges”. For instance, the city of Groningen, Netherlands, launched Food Battle Groningen, a challenge reducing food waste in which more than 250 households participated (OECD, 2020[1]).
Engage the local community on urban agriculture. This could be done by designing initiatives to stimulate urban agriculture. Glasgow City Council could also make use of some of the existing derelict and vacant land by building small plots for vegetable gardens that could be rented to citizens at low prices or used for free, in accordance with certain regulations. For example, the city of Toronto, Canada, has put in place the Urban Harvest programme to help reduce food waste and benefit the broader community by collecting surplus fruit and vegetables from residents’ backyards and redistributing them to local food banks and programmes (OECD, 2020[1]).
Enhance food security. Glasgow could support food security through food banks, pantries and social enterprises based in the city; which work on improving access to food and tackle food waste. Glasgow could communicate and share good practices of social enterprises on food security and organise workshops to engage local communities. An inspirational example could be the city of Guelph, Canada, which aims to create an inclusive food-secure ecosystem by 2025 to give access to affordable, nutritious food, building on the presence of major agri-food industry players and agriculture research institutions (OECD, 2020[1]).
Awareness and transparency
Targeted communication campaigns could raise awareness of residents and economic actors with the objective to: i) encourage sustainable consumption habits; ii) inform of circular initiatives and encourage participation; and iii) promote reuse and recycling of equipment and appliances. The communication should take into account the different demographic and socio-economic conditions of the residents and reach them with customised messages and the most appropriate means, including social media. There are different examples of awareness-raising initiatives: several cities and regions use online platforms, such as an online portal on the circular economy (Paris, France) and waste-related information in real time (waste operators in North Karelia, Finland) (OECD, 2020[1]).
Furthermore, the city could promote the use of labels and certifications to increase trust. There are already several certifications in place, such as the Revolve certification for second-hand products (used by more than 115 stores in Scotland), B Corporation certification that measures social and environmental performance (with more than 3 000 certified companies in more than 70 countries) and Cradle to Cradle1 (B Corporation, 2021[12]). However, there still an issue in these standards effectively reaching customers as they are only allocated to producers or retailers requesting them. Glasgow City Council could first identify the certifications on second-hand goods and reused materials already in place and, if appropriate to certify closed loops, include them as criteria in public procurement processes. In Glasgow and the surrounding area alone, there are more than 40 Revolve-certified establishments. In the longer term, the city could consider apply the Made in Glasgow label to products and services locally produced, which enhance resource efficiency, reduce waste and close loops. The Amsterdam Made certificate was for example developed at the request of Amsterdam City Council. Its main objective consists in informing consumers about products that are made in the Amsterdam area, while simultaneously seeking to boost creativity, innovation, sustainability and craftsmanship (OECD, 2020[1]). The French Roadmap for the Circular Economy includes the deployment of voluntary environmental labelling in five pilot sectors (furnishing, textile, hotels, electronic products and food products). More precisely, it aims to provide higher visibility of the existing environmental labels, such as NF Environment in France (a collective certification label for producers that comply with environmental quality specifications) and the European ecolabel, as well as the development of a quality label for second-hand products (French Government, 2018[13]).
Co-ordination
Aligning local targets on the circular economy with regional ones for a coordinated vision across levels of government. In Scotland, the circular economy is expected to reduce carbon emissions by 11 million tonnes per year by 2050. By 2025, the Scottish circular economy strategy aims to reduce waste by 15% against the 2011 baseline of 13.2 million tonnes; keep the share of waste sent to landfill at 5%; reach 70% recycling and composting, and prepare for reuse of all waste; reduce all food waste arising in Scotland and on-farm losses of edible products. A multi-level dialogue can help clarify the role of the city of Glasgow in that transition and to harmonise goals and targets. For example, Glasgow can play a role in recovering value from biological resources and promoting sustainable production and consumption. An inspiring example of such multi-level coordination can be found in Spain, where the Federation of Municipalities and Provinces (FEMP) takes part in an inter-ministerial co-ordination body across national, regional and local governments.
Strengthening collaboration across the municipal departments of Glasgow can also contribute to avoiding duplications and aligning funds. Departments that should be primarily involved to implement the Route Map are: the Spatial Planning Department, the Regeneration and Sustainability Department and the City Property Glasgow. In order to strengthen collaboration within the local government, the city could: i) identify how municipal departments can relate to the circular economy in their policies (e.g. public procurement, environment, innovation, etc.); consider setting inter-departmental programmes on the circular economy and ad-hoc coordination meetings; iii) allocate funds for cross sectoral actions across departments, aiming at preventing wasting resources and optimising resource efficiency. At international level, some cities (Rotterdam, the Netherlands) established specific teams in charge of coordinating their circular transition, or set up a co-ordination body within the metropolitan area (e.g. Metropolitan Area of Barcelona, Spain) (OECD, 2020[1]).
Policy coherence
Glasgow should mainstream circular economy principles across strategic policy documents. As such, a holistic approach would help connect energy, heating, transport networks and natural cycles and biodiversity. Glasgow City Council could align the circular economy agenda with other relevant initiatives in the city, such as the Declaration of Climate Emergency to become the first carbon-neutral city in the UK by 2030, Glasgow’s City Development Plan, the Resource and Recycling Strategy 2020-30, the Liveable Neighbourhoods Toolkit, the Climate Emergency Implementation Plan (CEIP) and the Glasgow Economic Strategy 2016-23. To do so, Glasgow City Council could identify synergies and potential overlaps between the initiatives and co-ordinate through an ad hoc working group, as suggested above.
Glasgow’s Housing Strategy 2017-22 set the objective of bringing empty properties back into use, a goal that could be linked to the need for building restructuring in Glasgow. The reallocation of empty properties to be assigned to community projects that struggle to pay their rent could be an interesting area to explore by Glasgow City Council, as a way to localise the economy applying circular economy principles. There are 800 empty properties in Glasgow, which are neither properly used nor profitable. In order to take advantage of these empty facilities, a number of them could be allocated to shops that apply circular criteria (e.g. the use of recycled materials, reusable materials). These spaces could create job opportunities for the people enrolled in circular economy capacity training programmes (Glasgow City Council, 2017[14]).
Integrated policies could take into account localisation and retention: in the first case, this would imply generating products and goods locally, with systems to be operated at the local level to reduce losses in transactions and minimise negative environmental impacts. Second, it could retain used products in the local economy as much as possible (use of assets, resource plans, retain energy locally). For example, there are links with Glasgow’s Development Plan in terms of expanding or replacing energy infrastructures with renewable energy technologies and supporting local circular material flows. Other opportunities linked to Glasgow’s Food Strategy include the reduction of transport costs and greenhouse gas (GHG) emissions through the promotion of local food production. Vertical and urban farming is related to the spatial planning policy of the city.
Stakeholder engagement
As a shared responsibility across stakeholders, Glasgow could further involve stakeholders in strengthening and consolidating the circular vision of the city. The responsibility for the implementation of the Circular Economy Route Map is not limited to the three institutions that are leading the circular transition in the city (i.e. Glasgow City Council, Zero Waste Scotland and Glasgow Chamber of Commerce) but requires the involvement of all stakeholders. Glasgow could establish collaborations around the circular economy with relevant players, including the following:
Universities: Glasgow could identify potential pilot projects that would involve university departments based on the city’s challenges and needs (e.g. economic and health inequalities, regeneration of vacant and derelict land and urban planning). Other ways to collaborate with local academic institutions could consist in signing collaboration agreements or integrating the circular economy into existing educational programmes. Universities could also collaborate with Glasgow City Council to explore the criteria for circular certifications (e.g. life-cycle analysis and material reuse).
Youth: Involving citizens in the circular transition of Glasgow is key to achieve willingness and commitment, as they make constant consumption choices and can influence production. As such, Glasgow could set up initiatives for young people in social and environmental projects, especially in the case of those struggling to get into the labour market. Many social enterprises are already doing this. However, a formalised and systematic inclusion of young people to make Glasgow circular would have a value-added to the circularity of the city in the long run.
Large companies and SMEs: While most efforts to date have focused on SMEs, Glasgow has the opportunity to continue this work and engage with large companies. So far, Circular Glasgow has engaged with more than 650 business representatives, largely SMEs. Building on its experience in supporting SMEs, Glasgow could actively engage large companies, which have already started to adopt circular business models. To this end, it would be necessary to adapt the narrative by identifying the different needs across different categories of companies (e.g. access to funding, sensitiveness to indirect costs and anticipated payback period, flexibility to adapt the business model).
Social enterprises: Social enterprises play a key role in putting into practice circular economy principles such as reusing, repairing and sharing while carrying out social functions. Given their significant social impact on the city and their wide experience in circular economy activities, Glasgow could look for opportunities to collaborate with them to learn from good practices that can inspire other SMEs. Glasgow City Council could provide support to local social enterprises by:
Mapping all social enterprises working in the city, as well as the services they provide.
Disseminating a survey across all social enterprises in Glasgow, identifying the main gaps and challenges of social enterprises and how Glasgow City Council can help.
Promoting the participation of social enterprises in public procurement.
Collaborating with knowledge institutions to design training initiatives for social enterprises.
Another reason for strengthening stakeholder engagement is to broaden the network of actors who are involved in the transition to the circular economy in Glasgow. For example, it would be important to ensure that consultation processes for documents related to the circular economy involve the most diverse range of stakeholders possible. However, putting into practice the above-mentioned actions will require additional human resources to those already in place.
Appropriate scale
One of the problems Glasgow is facing is derelict areas. Their transformation could include circular economy principles at the appropriate scale. Glasgow shows a high concentration of vacant and derelict land as a consequence of its industrial legacy, which negatively impacts on the health, environment, economy and social cohesion of nearby areas. In 2019, 55% of the population in Glasgow lived within 500 metres of a derelict site (54.7%) (Scottish Land Commission, 2020[15]; Glasgow City Council, 2020[16]). Glasgow City Council is now rehabilitating and decontaminating old brownfield and industrial areas, making new and improved green spaces and fostering research and development of sites for food cultivation.
These areas can become experimentations and pilots for circular economy practices. As such, the city could:
Engage property developers and relevant actors in experimentations and pilots to transform some deprived neighbourhoods (e.g. Ruchill and Possilpark) into circular areas. Glasgow could follow the example of Amsterdam, Netherlands, which developed a circular neighbourhood, Circular Buiksloterham. This former ship construction site and one of the most polluted areas in the city is now turning into a circular area through the development and construction of circular and sustainable buildings, receiving sustainable energy supply generated at the local level, experimenting smart grid solutions and creating parking spaces for bicycles and shared mobility options (Box 4.2).
Take stock of the location, condition and barriers for reuse of existing derelict land based on circular economy principles. A possible solution could consist in developing specific agricultural production in the derelict areas. In order to do so, Glasgow could collaborate with universities to analyse the land requirements for urban farming. Derelict land could also be used for the construction of new housing, thus contributing to the objective of adapting the city to an increasing population and to the changes in the structure of households, which will require the construction of 25 000 new houses between 2015 and 2025. This should be done following circular economy principles, looking at the life cycle from construction to end of life.
In addition to establishing eco-parks, urban farming, rewilding and regenerative initiatives in derelict areas, nature-based solutions could be further explored to deliver additional and desired ecosystem services, while containing the phenomenon of flash floods occurring in Glasgow.
Moreover, Glasgow could aim at strengthening the link between the city and the surrounding rural areas, by fostering urban-rural synergies for the circular economy. As such, building on the experience of the Scottish Cities Alliance (SCA), Glasgow could explore opportunities to form partnerships with municipalities in rural areas in order to advance on the circular transition.
De Ceuvel is a former industrial site located in Buiksloterham, Amsterdam North, which was transformed into a residential area, applying circular economy principles. In 2010, given financial constraints following the 2008 economic crisis to concretise the urban regeneration project foreseen by the municipality, the city of Amsterdam, owner of the land, set up a tender for a ten-year lease of the De Ceuvel land, claiming the compatibility with the sustainable urbanisms concept as one of the criteria.
Meanwhile, individuals (rather than housing corporations or developers) were given the opportunity to buy a small number of houses in a non-polluted area of Buiksloterham at an affordable price. Buyers built houses using environmental-friendly and sustainable practices. In 2012, a team of architects won the tender developing an innovative concept to reshape De Ceuvel, which officially opened in 2014. In 2015, citizens, de Alliantie and AGV/Waternet, in addition to the municipality of Amsterdam, several real estate developers and organisations, signed the “Manifesto for a Circular Buiksloterham”. To implement it, a living lab for circular and urban development was created. The lab was the precursor of De Ceuvel as a Cleantech Playground, a platform for people for innovation and creativity. In 2017, it has been named the most sustainable initiative in the Netherlands.
Nowadays De Ceuvel is a unique space where 17 old houseboats have been transformed into offices and creative spaces. Each boat is equipped with a dry toilet, which saves water and produces compost. The quality of the compost has been analysed to make sure the fertiliser can be used without incurring health risks. The type of innovations and solutions promoted by these experiences in terms of urban planning and land tendering (e.g. circular construction, changing of land use regulations) helped overcome the actual administrative, legal and financial obstacles that they face.
Source: Municipality of Amsterdam (Municipality of Amsterdam, 2018[17]), Buiksloterham: Circular City District,
https://www.amsterdam.nl/projecten/buiksloterham/circulair/ https://oecd-opsi.org/wp-content/uploads/2019/02/WP2.3-report-fin.pdf
Regulation
In collaboration with relevant stakeholders, Glasgow City Council could identify regulatory bottlenecks to circular economy practices, such as using secondary materials in new buildings or implementing modular off-site construction models, and initiate a dialogue with the regional government to overcome them, if need be. Chapter 3 identified regulatory barriers in the built environment sector, waste and public procurement. For example, some relevant regulatory frameworks do not specifically address the circular economy within the built environment sector (e.g. the latest draft of the upcoming Scotland’s Circular Economy Bill does not include the built environment sector). Other challenges in terms of regulation include the prevention of reusing waste as a secondary material in new products.
The city could set incentives for effective implementation of green public procurement with circular economy criteria, while making it accessible to new entrants and SMEs with circular economy activities. The inclusion of circular economy criteria in public procurement processes can help to remove perceived barriers to reused/recycled products. In this regard, the message to private companies and citizens could stimulate a behavioural change. In order to do so, the following actions can be taken into account:
Establishing targets with regard to the circular economy: e.g. second-hand furniture of clothes.
Co-ordinating across departments to analyse the potential of the circular economy: e.g. education, spatial planning, etc.
Including the potential community benefit into the contracts.
Developing more sophisticated processes to incorporate different business models (e.g. rental, product-as-a-service models) into tenders.
Creating demand in the market based on the need of the administration and allowing market development: a circular solution can be developed during the duration of the contract. In other words, the company may not offer a certain service at the beginning of the contract but could work with the supplier to achieve a target (e.g. refurbish/remanufacture furniture).
Building capacity on the contract management, not only on the tender definition.
Developing metrics and environmental data to analyse the results.
Expanding the existing public procurement regulation to assess the full life cycle of products, from design to end of life.
Increasing the importance of the use of sustainable materials in the purchasing decision, beyond the current 10% of the existing GPP policy. Moreover, the Sustainable Steering Group could ensure that the objectives included in the Circular Economy Route Map for Glasgow are duly incorporated into the procurement process.
Given the predominance of SMEs in Glasgow’s economy, making public procurement accessible to new entrants and SMEs carrying out circular economy activities is key. As per the OECD Recommendation of the Council on Public Procurement (2015[18]), this requires providing “clear guidance to inform buyers’ expectations (including specifications and contract as well as payment terms) and binding information about evaluation and award criteria and their weights (whether they are focused specifically on price, include elements of price/quality ratio or support secondary policy objectives)”. Glasgow City Council could provide them with the necessary tools (e.g. offering advice and information on regulation and providing administrative support). Moreover, participating in public procurement processes can be particularly risky for SMEs, due to the uncertainty of local government payment timing. This lack of security could negatively affect the liquidity of SMEs. Additionally, suppliers often need to obtain a certificate attesting to the performance of the contract from contracting authorities. Glasgow City Council can promote the participation of SMEs by setting proportionate financial requirements and advance payments before the completion of the contract to ensure their participation in tenders and to overcome potential limitations in terms of time, funding and capacity due to their infrastructure (OECD, 2018[19]). Another potential solution could consist in dividing the tenders into slots and perform the early market engagement to understand what companies are looking for and how they could do to help solve a city problem. Furthermore, when introducing new models such as life-cycle assessment into public procurement processes, some SMEs may find it difficult to deliver the data required to participate due to their limited technical capacity. Therefore, Glasgow City Council could provide SMEs with solutions (e.g. online platform, ad hoc training courses) to ensure their participation in these processes.
Financing
Glasgow City Council could explore fiscal tools and funding options to boost the transition to a just circular economy. There is a range of international practices that Glasgow could consider in accordance with its institutional framework and fiscal power (OECD, 2020[1]):
Discounts on taxes: In 2018, the city of Milan, Italy, developed actions to address food waste, including a 20% discount on waste tax for businesses (supermarkets, restaurants, canteens, producers, etc.) that donated their food waste to charities. The action is co-ordinated by different departments of the municipality (fiscal, environmental, food policy). The city of San Francisco, United States (US), granted discounts on their waste fees to businesses when using separate sorting collection bins, which results in San Francisco being the US city with the least amount of waste going to landfills.
Environmental tax: Kitakyushu City, Japan, applies a tax called the “environmental future tax”. It is a special local-purpose tax imposed on the landfill of industrial waste. Since the tax is not imposed on intermediate treatments, it is also expected to promote the recycling activities of companies and reduce any waste generated by them. This tax is used for an environmental technology development grant.
Tourist city/accommodation tax: This tax is generally paid by the tourist per night spent in a hotel or accommodation facility. In Milan, Italy, the tourist city tax came into effect in 2012, when hotels and other accommodation models started to levy this city tax on their customers. In Iceland, the revenue of the accommodation tax is dedicated to promoting the development, maintenance and protection of nature-based tourist attractions under public ownership (OECD, 2014[20]).
In addition, to support the development of projects on the circular economy by local enterprises, Glasgow could consider different options for funding. For example, the city of Valladolid, Spain, between 2017 and 2020, launched three calls for projects to finance circular economy initiatives aiming to stimulate local businesses and entrepreneurial activities, while raising awareness on the circular economy. The local government-financed a total of 61 projects (22 and 39 in 2017 and 2018 respectively) allocating a budget of EUR 960 000 (EUR 400 000 and EUR 560 000 in 2017 and 2018 respectively). An additional EUR 600 000 were allocated in 2019. The municipality finances between 40% and 85% of the project’s total cost. The beneficiaries of the grants were private companies and associations of private companies. Another example is the Circular Economy Business Support programme by the London Waste and Recycling Board (LWARB). The venture capital fund supports circular economy SMEs for scaling up businesses that are already in the market. Furthermore, the LWARB through the Circularity European Growth Fund operated by Circularity Capital, seeks investment opportunities in circular businesses with proven cash flow and profit, which need significant capital to scale. Notably, while, the city can provide funds to start up circular businesses, it is equally important to set up the enabling conditions for these businesses to be mainstreamed within the local economy, allowing a just transition (Box 4.3).
A “just transition” implies putting in place the necessary policies and social dialogue frameworks to advance the green transition and leave no one behind, generating prosperity for society as a whole from an inclusive approach, while at the same time protecting workers and generating quality jobs.
The transition to a circular economy implies a profound systemic transformation in the functioning of the world’s economies, which is likely to lead to changes within and across economic sectors, affecting different places differently. While the number of jobs is expected to increase in some sectors, such as renewable energy, for other sectors the transition may be challenging. Regions whose economies depend on activities that are expected to either decline or to transform in the future could be particularly affected.
In addition, technological change through digitalisation, automation and other Industry 4.0 technologies with great potential to increase resource productivity, optimise production systems and reduce waste, can also potentially exacerbate wage inequality and displace workers and jobs. Preparing for the reskilling of large numbers of workers will be a major challenge in the coming years and decades.
The path to positive equality outcomes involves carefully considering who might be affected by a given policy and involving these groups or communities in the decision-making process and policy implementation through means such as community consultation. Policy measures with potentially negative impacts on household incomes or livelihoods should be accompanied by corresponding mitigation measures, such as exemptions, subsidies, compensation for losses and concrete support to assist affected individuals and communities.
Some of the actions that local governments can take to move towards a just transition include:
Considering the introduction of active employment policies including well-targeted subsidies to enable workers to access education and acquire skills that improve their employability through work experience and training.
Assessing measures to support businesses and workers severely affected by the transition to environmentally sound economies.
Exploring and identifying an effective combination of taxes, subsidies, incentives, guaranteed prices and loans to encourage the transition to economically sustainable activities.
Strengthening the resilience of enterprises, in particular SMEs, to avoid disruption of economic activity and loss of assets, jobs and income.
Offering financial incentives (grants, low-interest loans and tax incentives) to companies that adopt environmentally friendly practices such as energy-saving and efficiency measures and measures aimed at clean energy sources.
Source: Chatham House (2020[21]), Promoting a Just Transition to an Inclusive Circular Economy; OECD (2020[22]), Managing Environmental and Energy Transitions for Regions and Cities, OECD Publishing, Paris, https://doi.org/10.1787/f0c6621f-en; ILO (2015[23]), Guidelines for a Just Transition Towards Environmentally Sustainable Economies.
Capacity building
Providing public officials and city leaders with adequate knowledge and skills on the circular economy through capacity building initiatives is essential. The acquired skills (e.g. in terms of eco-design, public procurement, circular business models) could allow embedding the circular economy principles throughout public policy strategies, plans and decisions. As such, the city could:
Foster capacity building for the circular economy in all municipal department. Due to the systemic nature of the circular economy, skills related to the circular economy should be developed in all municipal areas and should not be limited to the Neighbourhoods, Regeneration and Sustainability Department. Other departments and arm's length external organisations (City Property Glasgow, City Building Glasgow, the Spatial Planning Department and Waste Management Department) should also have adequate technical and human capacities in developing circular business models and designing public procurement processes that include circular criteria. The economy and public procurement departments should build capacities in terms of strategic planning for the circular economy too. Moreover, in order to take advantage of the opportunities arising from public procurement, public officials need to be aware of models that go beyond the mere purchase of a product or service. To this end, Glasgow City Council could collaborate with local universities to analyse the required skills and capacities for the implementation of the Circular Economy Route Map and for the setting up of a public procurement that includes circular economy criteria. Having identified capacity needs within the municipality, Glasgow should collaborate with local universities and partners (e.g. Zero Waste Scotland, Glasgow Chamber of Commerce) to develop targeted capacity-building programmes such as ad hoc weekly workshops and intensive courses.
Promote training on circular business models for entrepreneurs and youth. Glasgow City Council and its partners, the Glasgow Chamber of Commerce and Zero Waste Scotland, could set up ad hoc capacity-building and mentoring programmes for entrepreneurs to promote the development of skills across the value chain, especially for some key sectors such as tourism, food and construction. Training programmes could take different forms (e.g. academies, training, webinars, workshops, events and conferences). Glasgow City Council could also collaborate with local universities to develop the targeted capacity-building programmes. For example, in Valladolid, while the chamber of commerce is providing capacity-building programmes, enriching consulting services offered to enterprises with a component on the circular economy practices is seen as another way to promote innovation (OECD, 2020[4]). Providing capacity learning opportunities is especially relevant in a post-pandemic scenario, where there is significant potential to equip those who have lost their jobs with the skills needed for jobs related to the green and circular economy (e.g. associated with reuse, remanufacturing, materials innovation and energy recovery). Training programmes in digitisation and technical skills can be of significant support to young people seeking to join the labour market. For instance, digital skills are essential for preventive and predictive maintenance practices in the industrial sector.
Innovation
Glasgow City Council could develop an “incubator” to support the creation of new business models and innovations geared towards the circular economy. There are several incubators and business support programmes in the city but none of them are devoted to circular economy businesses (e.g. Biocity, Business Glasgow, Glasgow City Innovation District, Jobs & Business Glasgow, Tontine business accelerator programme, UHatch). For example, in Groningen, Netherlands, a Circular Economy Hub is planned as an incubator space for small businesses and start-ups, and as an information centre, repair hub and second-hand shop (OECD, 2020[5]). The city of Phoenix, US, together with Arizona State University, created a Resource Innovation and Solutions Network (RISN) Incubator for accompanying businesses in the shift towards a circular economy (OECD, 2020[1]). In 2017, the city of Paris, France, launched a circular economy incubator, Paris & Co, hosting 19 start-ups to promote innovative sustainable solutions for the city.
The city could provide a digital marketplace, matchmaking tools and networking platforms to generate collaborations across large companies and SMEs applying circular economy principles (e.g. rethink the local supply with SMEs, vertical and horizontal integration, input reverse logistic). There are several examples of digital tools that can be used to connect different actors. For instance, the city of Austin, US, has a directory of businesses (Austin’s Circular Economy Story) that allow customers to be aware of circular economy initiatives and adopt circular and sustainable consumption patterns. In Antwerp, Belgium, there is an ecosystem that connects companies from a variety of sectors, such as education, research, living labs, acceleration, digital and industry (OECD, 2020[1]).
Data and assessment
Glasgow could also develop digital maps and material flows analyses to understand material input and output. A digital footprint of buildings and flows would enable the city to analyse buildings in connection with energy, heating and transport networks, and embed them in other city policies (e.g. how does the biodiversity city plan relate to specific assets). For example, Glasgow City Council could explore the solutions that big data, the Internet of Things (IoT), machine learning and blockchain tools can provide to the circular economy (e.g. real-time information to make last-mile logistics more efficient) (Box 4.4). The construction sector in particular would benefit from the digital mapping of key information on construction material to be able to analyse their reuse and assess whether a building can be repurposed or whether it can be deconstructed.
Digitalisation can boost the transformation towards a more sustainable circular economy by providing accurate real-time information on the availability, location and condition of goods, among others. The following digital tools can help boost the circular transition:
Blockchain is a distributed append-only database, which is capable of storing any type of data and is replicated across many locations operated jointly by all users. Once added to the blockchain, a record is encrypted and cannot be changed or deleted without the knowledge of all participants. Some ways blockchain can support the circular economy are:
Enhance information flows along the value chain and improve the transparency and traceability for producers, consumers and recyclers.
Help manage information for waste recycling, material reuse and energy use reduction. Blockchain can also help trace the origin of raw materials and provides essential data in order to promote sustainability within supply chains.
Artificial Intelligence (AI) includes the ability of machines and systems to acquire and apply knowledge, and carry out intelligent behaviour. AI applications hold many promises for the circular economy, creating value in terms of productivity gains, improving and automating decision-making, saving costs and enabling better resources. Some practical examples of the opportunities to support a circular economy are:
The recognition of specific materials through AI and their handling improves the quality and thereby also the amount of secondary materials that can be further reused, thus reducing the demand for and dependence on virgin materials (and the externalities related to their sourcing and production).
AI can also be useful in the process of conducting predictive maintenance, as it can notify when a product requires reparation.
The Internet of Things (IoT) is the inter-networking of physical devices and objects whose state can be altered via the Internet, with or without the active involvement of individuals. Through accurate and remote monitoring, IoT technology ensures that products are managed more efficiently, especially regarding end-of-life collection, remanufacturing and recycling.
Many cities have started to use “smart bins”, which are enabled with IoT sensors to track real-time the level of waste in the bin, providing key information for the collection process.
By automatically and remotely monitoring resources and products along the whole value chain, connected devices can generate valuable data and information that may enable resource efficiency improvements or better end-of-life management.
In the built environment, cities have started to implement IoT monitoring for predictive maintenance or to optimise transport flows with adaptive signal control systems.
Source: IFC (ICF, 2017[24]) Beyond Fintech: Leveraging Blockchain for More Sustainable and Inclusive Supply Chains; and OECD (OECD, 2019[25]), Digitalisation and the circular economy.
A measurement framework in Glasgow would enable monitoring and assessing the progress on the Circular Economy Route Map. Furthermore, the measurement of the progress made and the impacts of the circular economy initiative could help raise awareness as well as give a better understanding of the benefits and opportunities of the circular economy. The monitoring framework could measure the progress made in different dimensions (e.g. economy and business, environment, governance and infrastructure and technology), as well as the results of key sectors for Glasgow’s transition such as waste, resources, repair and reuse activities, or the built environment.
Moreover, Glasgow could conduct a self-assessment of the state of the art of the circular economy in the city through the OECD Scoreboard on the Governance of the Circular Economy. This tool is intended as a self-assessment tool based on the 12 key governance dimensions that would enable a circular economy system to take place (Box 4.5).
The OECD Scoreboard on the Governance of the Circular Economy is a self-assessment tool of governance conditions to evaluate the level of advancement towards a circular economy in cities and regions. Its purpose is to accompany cities and regions in identifying gaps and assessing progress to improve policies and self-assess the existence and level of implementation of enabling conditions. It is composed of 12 key dimensions, whose implementation governments and stakeholders can evaluate based on a scoreboard system, indicating the level of implementation of each dimension: Newcomer (Planned; In development), In progress (In place, not implemented; In place, partly implemented) and Advanced (In place, functioning; In place, objectives achieved). These dimensions include: 1) Roles and responsibilities; 2) Strategic vision; 3) Awareness and transparency; 4) Co-ordination; 5) Policy coherence; 6) Stakeholder engagement; 7) Appropriate scale; 8) Regulation; 9) Financing; 10) Capacity building; 11) Innovation; 12) Data and assessment. The visualisations of the results (Figure 4.2) provide an overview of the level of circularity of a city or region for each of the 12 circular economy governance dimensions.
To carry out the self-assessment, the following procedure is recommended (Figure 4.3): i) clearly identify the lead team to co-ordinate the self-assessment; ii) set objectives and scope of the assessment in advance; iii) map stakeholders that will play a key role in a circular economy system: governmental departments, public, private and non-profit actors; iv) organise targeted workshops with key stakeholders to share, compare and confront views and achieve consensus; and v) repeat the process once a year to verify changes and improvements and to keep stakeholders engaged.
References
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[23] ILO (2015), Guidelines for a Just Transition Towards Environmentally Sustainable Economies, International Labour Organization, https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/documents/publication/wcms_432859.pdf.
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[4] OECD (2020), The Circular Economy in Valladolid, Spain, OECD Urban Studies, OECD Publishing, Paris, https://dx.doi.org/10.1787/95b1d56e-en.
[25] OECD (2019), Digitalisation and the Circular Economy, OECD, Paris.
[19] OECD (2018), SMEs in Public Procurement: Practices and Strategies for Shared Benefits, OECD Public Governance Reviews, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264307476-en.
[2] OECD (2015), OECD Principles on Water Governance, OECD, Paris.
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[20] OECD (2014), OECD Tourism Trends and Policies 2014, OECD Publishing, Paris, https://dx.doi.org/10.1787/tour-2014-en.
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Note
← 1. The Cradle to Cradle Certified Product Standard is rooted in the Cradle to Cradle® design principles established by William McDonough and Dr Michael Braungart. The certification considers five environmental categories: material health, material reuse, renewable energy and carbon management, water stewardship, and social fairness (Cradle to Cradle Products Innovation Institute, 2019[8]) .