Unlocking the Socially Inclusive Potential of the Circular Economy

What is the Circular Economy?

According to the United Nations Development Programme, our current linear economic model is built on a "take-make-waste" pattern - extracting raw materials from nature, transforming them into products, and then discarding them as waste. This model places a heavy burden on the environment, exacerbating crises like climate change, biodiversity loss, and pollution.

In contrast, the goal of the circular economy is to minimize waste by using smarter design, extending product lifetimes, and enabling recycling and reuse. This not only helps address pollution issues, but also plays a critical role in tackling other complex challenges like climate change and biodiversity loss.

It's worth noting that the circular economy is not just about the environmental and economic dimensions, but also requires attention to the social dimension. It involves addressing social inequality, promoting social wellbeing, and ensuring that everyone can benefit from the transition to a circular economy.

Employment Opportunities in the Circular Economy

The transition to a circular economy presents tremendous job creation opportunities. According to EU Commission forecasts in 2020, the EU could see around 700,000 new jobs by 2030 through this transition. Globally, the shift to a circular model could lead to a net addition of 7-8 million jobs.

These employment gains stem from the diverse skills required in a circular economy, ranging from low-skilled recycling and reuse jobs to medium- and high-skilled roles in remanufacturing and bio-refining. However, the transition will also lead to job losses in some traditional industries like construction and raw materials. Therefore, we need to provide retraining and redistribution for affected workers to adapt to the evolving job market.

For example, the "Repair Cafés" in the Netherlands are a grassroots initiative that promotes a culture of repair and reuse in local communities. They provide a space where people can get household items fixed for free. This not only helps divert waste from landfills and reduce demand for new products and raw materials, but also creates employment opportunities and increases social inclusivity and cohesion.

Inclusive and Participatory Circular Transition

Ensuring fairness and justice is crucial in the transition to a circular economy.

Inclusive Access: Ensuring that all socioeconomic groups can fairly access circular products, services, and benefits. This includes providing affordable repair, reuse, and recycling opportunities for low-income communities. We also need to design circular solutions that meet the diverse needs of users.

Inclusive Participation: It is critical to provide opportunities for marginalized groups to participate in circular economy initiatives. This includes offering skills development and job creation programs, supporting traditional workers' transition to green industries, ensuring the fair distribution of benefits and burdens of the circular transition, and supporting inclusive circular entrepreneurship and SMEs.

For example, comparing the informal waste management in Accra, Ghana and Porto Alegre, Brazil, although the contexts differ, waste pickers play a crucial role in implementing waste policies, demonstrating the deep connections between the formal and informal economic sectors.

Fully integrating social equity, inclusivity, and justice is key to unlocking the true transformative potential of the circular economy. This can create fairer access opportunities, provide dignified livelihoods for marginalized groups, empower displaced workers to take on green jobs, build community resilience, and foster cross-sectoral collaboration. By placing these social factors at the core of the circular transition, the transformation can benefit all segments of society, not just businesses and the environment.

Author: Mr. Lester Lam, Certified ESG Planner, ICSD

John Elkington's latest viewpoints on ESG

John Elkington's latest viewpoints on ESG

ICSD UK's market intelligence joined the University of Cambridge Alumni Festival on 27 September 2024.  John Elkington, who coined the term "Triple Bottom Line" and known as "a Godfather of Corporate Sustainability" spoke in the conference on the topics of the growing awareness of climate change and the responses from societies, governments, and businesses.  His latest viewpoints are summarised as follows:

• Elkington discussed the historical tension between environmental groups and businesses, mentioning how groups like Greenpeace initially resisted collaborating with corporations. He emphasised that while regulations are necessary, businesses need room for innovation and creativity to make meaningful changes. 
  

• He noted the radical shift in corporate engagement with sustainability over time, from initial resistance to now seeing companies like BP and ICI developing environmental policies. He highlighted the current trend of appointing Chief Sustainability Officers, many of whom are women, as a positive sign of progress. 
  

• Elkington talked about the cyclical nature of progress in the sustainability field, with periods of advancement followed by down waves. He suggested that these downturns should be seen as opportunities for reflection and improvement, rather than setbacks. 
  

• Elkington stressed the importance of international collaboration to address climate change but also recognised the challenges posed by differing political and economic interests. He warned that shifts in political leadership could hinder sustainability efforts, particularly in the U.S. and Europe. 
  

• He praised the role of youth movements, such as Greta Thunberg’s activism, but expressed concern about the potential for disillusionment if governments and businesses do not act swiftly enough. He predicted that future leadership will come from currently unknown individuals who may drive transformative change in the coming decades. 
  

• Elkington emphasised the role of China in driving technological change and the impact of the Inflation Reduction Act in the U.S. He also addressed the challenges of climate denial and the necessity of personal accountability for climate action. 

Hope you find these insightful.

Revolutionizing Green Mobility: Overcoming Challenges in EV Charging for Older Residential Buildings in Hong Kong

In the ever-evolving landscape of green smart cities, the focus on promoting alternative choices for green and smart mobility is paramount. With mobility being the second-largest contributor to global carbon emissions, it is crucial to embrace the innovation brought forth by companies like Tesla, as well as the fierce competition from emerging Chinese electric vehicle (EV) brands such as BYD, Xiaomi, and others. Thanks to these advancements, EVs have transitioned from luxury goods to consumer goods, becoming more affordable for the masses.

The launch of the first registration tax (FRT) concessions for EVs has played a pivotal role in driving the adoption of electric private cars (e-PCs) in Hong Kong. The percentage of e-PCs among all newly registered private cars (PCs) has surged significantly, accounting for 6.3% in 2019 and an astonishing 52.8% by 2022, surpassing traditional fuel-powered vehicles. However, with such rapid growth in private EV ownership, reliance solely on public chargers is generally not preferred, as revealed by CBRE Research in February 2024[1].

As of March 2024, Hong Kong boasts approximately 87,900 EVs, while estimates suggest there are only 40,000 public and private EV chargers available[2]. Despite the government's EV subsidy scheme since the 2019 Policy Address, only 50 out of the approved 639 residential buildings have completed the installation of charging facilities so far[3]. The major challenge lies within existing residential buildings, particularly in older established districts, where communal electric power surplus is limited.

Addressing the unique needs and risks of older residential buildings necessitates more than just a charging solution—it requires deep expertise in building infrastructure. With most buildings in Hong Kong being high-rises and offering a comparatively limited number of parking spaces, the process becomes even more complex. These buildings often fall under third-party property management, requiring EV owners to seek consent from other owners for the installation of charging facilities at their parking spaces. Additionally, concerns about electricity supply and installation costs of charging infrastructure further complicate matters[4].

To navigate these challenges and obtain safe and efficient EV charging solutions that align with future technology, property managers and private EV owners must seek the assistance of experienced building professionals and alteration and addition experts. Their expertise is crucial in overcoming the hurdles posed by older residential buildings and ensuring compliance with evolving EV charging requirements.

However, it is important to acknowledge the limitation of the current EHSS scheme. While EHSS provides financial assistance for the installation of EV chargers in eligible private residential buildings, it does not offer a solution for residential buildings with no communal electric supply surplus. This limitation keeps these buildings away from the progress of greener smart city transformation, as they are unable to take advantage of the subsidy scheme.

For residential buildings without communal electric supply surplus, alternative solutions need to be explored. This may involve working with utility companies to enhance the electrical infrastructure or considering innovative approaches such as shared charging infrastructure or off-grid solutions. These alternative options require further research, collaboration, and government support to ensure that all residential buildings, regardless of their electrical supply limitations, can participate in the greener smart city transformation.

[1] Electric Vehicles and Real Estate: The Case of Hong Kong | CBRE Hong Kong

[2] Electric Vehicles and Real Estate: The Case of Hong Kong | CBRE Hong Kong

[3] LCQ2: EV-charging at Home Subsidy Scheme (info.gov.hk)

[4] EVRoadmapEng17_3.indd (eeb.gov.hk)

By embracing the collaboration between building professionals, property managers, and EV owners, Hong Kong can pave the way for a seamless transition to green and smart mobility within older residential buildings. This collective effort, along with the recognition of the limitations of existing schemes, will not only contribute to the overall sustainability and progress of the city but also drive the exploration and development of solutions to include all residential buildings in the greener smart city transformation. With the right expertise, partnerships, and government support, Hong Kong can lead the way in revolutionizing EV wall charging solutions for older residential buildings, creating a greener and more sustainable future for all.

Author: Ms. Carol Fung, Certified ESG Planner CEP®, focusing in sustainable communication, LinkedIn: Carol Fung | LinkedIn