Circular economy in France & Employment. Business models & employment transitions

Transcription

1 Circular economy in France & Employment Business models & employment transitions Brussels EEAC Septembre 2016

2 A study on Circular Economy in France Owner : CFDT (French Trade Union) 2014 early 2015 Objectives : Sketching the circular economy in real life + key factors of development Cases : 4 enterprises, 3 local initiatives + personality interviews Assumption : Circular Economy will spread out if supported by business models Employment transitions : Identify new jobs or modified jobs and some existing transitions Few national metrics about the degree of circularity in the French economy - now available No real impact assessment on circular employment or jobs overall at the time the study started some are done now EEAC Bruxelles 15 juin

3 Circular economy is embedded in 3 kinds of models Circular Economy Inspired by cycles of Nature Jobs of the circular economy are the jobs linked to the core competencies of these models (and not only green jobs ) Job transition : from linear to circular models Waste management organisation Recycle, value of primary materials Performance-based payment model Remanufacturing Eco-design, Functional Economy Territory processes, Industrial symbiosis Industrial & territorial ecology, shared products & means EEAC Bruxelles 15 juin

4 Circular Economy & employment metrics for France (1) No official metrics in France about employment in French circular economy Concept is new Now an official concept through the Energy Transition and green growth law (August 2015) Title 4, chap 19 : on the transition toward a more circular economy Objectives are mostly about reducing disposals and waste admitted in landfills Expressed from 2010 to 2020, for instance Reducing waste : -10% for household waste, -30% for organic waste Recycling waste : 55% of organic wastes (in weight ; 60% before 2025), 70% of disposals from the construction sector, new sector of requirement (waste made of wood) Developing Industrial Ecology, reuse, product sharing, eco-design, long-lasting products are also among the objectives of the law (without any figure though) This law is now bringing new light on the necessity of assessment and metrics EEAC Bruxelles 15 juin

5 Circular Economy & employment metrics for France (2) French public service of statistics established a first assessment of employment in different sectors related to Circular Economy (April 2016) employees (FTE) overall (3% of French labour force) Employment in the functional economy model (SSE / remanufacturing) and part of eco-design or reuse employment are not identified according to the authors The repair & refurb sector is mostly made of repair shops for vehicles Employment in the Repair and refurbishment sector Vehicles repairs Professional equipment refurb Household equipment refurb EEAC Bruxelles 15 juin

6 Circular Economy & employment assessment for France Circular Economy Institute Survey Study C-E Item FTE estimated Assumption FTE creation CGEDD, 2013 ; +30% of disposals Recycling to /5.000 ADEME, 2013 recycled ADEME, 2012 Reuse / ADEME 2014 Repair ?? ONEMEV, 2014 ADEME, 2012 FTE in Circular Economy Sustainable procurement Eco-design, Functional Economy, Industrial Ecology Survey of studies made by Institut d Economie Circulaire (2015) tried to gather the complete number of FTE within Circular Economy An estimation of FTE Energy scenarios 2 of the main business models couldn t be evaluated (ADEME) to (Negawatt) optical selecting, automation nd ADEME / ONEMEV to Industrial Ecology ADEME, Eco Design in the furniture's sector Energy transition aside Sustainable procurement has more to do with environmental protection than with Circular Economy as we defined it This survey also pointed out a potential number of FTEs from different scenarios Using ratios commonly accepted, estimating potential development of FTE to on a relatively short term and taken aside the energy transition EEAC Bruxelles 15 juin

7 Circular employment assessment for France : a big potential for employment The Club of Rome Study (The Circular Economy & the benefits for society) Renewable scenario => increasing the ratio of renewable energy in the energy mix, up to 40% at least (France) Energy efficiency ratio : overall 25% more efficient as compared with primary energy demand for the year 2010 Material efficiency scenario : expanding the life time of durable products (doubled), minimizing waste and maximizing the reuse and recycling of materials 25% more material-efficient, substituting half of the virgin materials used with recycled material Club of Rome Study Additional jobs (net) Renewable scenario Energy efficiency Material efficiency All 3 combined Unemployment (people) Sweden up to > > % Finland up to > > % Netherlands up to > > % France up to > > ,5 million 10% Spain up to > > million 20% Unempl. Rate EEAC Bruxelles 15 juin

8 Waste management organisation in France Extended responsibility of the producer Application of the Polluter pays principle Producers pay a tip in order to finance eco-organisations (with State label for 10 of them) : Amount of contributions is 800 M 14 kinds of products / disposals are involved (seen as priorities in an environmental point of view), 16 existing eco-organisations Among which tyres, wrapping, electric & electronic equipment, batteries, textile, unused medicines, furniture (new), vehicles, oils, construction materials, Eco-organisations are financed to collect and select disposals, and mostly organise the way disposals are treated / recycled Recycling is done by private firms, mostly SMEs, consolidating Growing sector, pushed by environmental laws, but slowed down by difficulties to integrate secondary products within processes of production, or by the cost of recycling compared to extraction EEAC Bruxelles 15 juin

9 Waste management & secondary products A real opportunity to enhance employment FTEs in the waste management industry Among which jobs within recycling activities more jobs in activities related to using secondary products (among which steelwork and paper industry) Potential employment-base in a circular economy scheme Poor recycling ratios on certain kinds of products (and really poor on critical materials) An industry which provides many jobs but will need investments in new technological devices and automation to really benefit from a potential growth Difficulties to recruit (image of dirty jobs) Growing qualifications and management jobs Need for technical innovation need for consolidation or / and public investment EEAC Bruxelles 15 juin

10 Functional economy (Product Service System model - the detailed model Functional economy model Selling functions of the product, not the product itself : pricing is related to performance (energy saving, services added, ) Producer stands as the owner of the product Different stages toward a complete FE model Services added around the product (escaping brutal price competition) Life cycle assessment of the product => communication to management, spreading out a new culture New conception for the product (eco-design, introducing remanufacturing) Leasing & location instead of selling => treasury at stake! Reverse supply chain to be organized => needs direct customers relationships Remanufacturing New commercial relationships? (swap, long term relationships, ) EEAC Bruxelles 15 juin

11 New jobs and job transitions with the functional economy model Transition from a linear to a functional business model implies to Modify the objectives of R&D programs : Eco-design oriented innovation at first (life cycle analysis ) Technical (mechanical) disruption is banned (optimizing remanufacturing), innovation puts more weight on services (which could lead to innovation in digital technologies) => different jobs and skills, not necessarily more jobs Less jobs in production : remanufacturing a product needs less manufacturing time than producing it from scratch (but skills are similar) More jobs in supply chain, expeditions and reception, reverse supply chain New skills / more jobs in qualifying products : selecting end-of-life products coming from the reverse supply chain, quality controls More jobs in technical maintenance on site (at customer s office or place) Powerful information systems (traceability of the products, gathering information on customers needs ) and jobs around maintaining et securing the systems EEAC Bruxelles 15 juin

12 Local industrial symbiosis Local industrial symbiosis is gaining ground in France The model : searching for synergies between outputs and inputs from different industries, Waste for one industry might be an input in the production process of another one Proximity is necessary (local industrial areas) to share resources About 50 initiatives in France 30% only are stable and permanent 50% are rather new with some chance to be lasting and durable EEAC Bruxelles 15 juin

13 Jobs and job transitions with the local industrial ecology model? Additional jobs might be created within an industrial symbiosis initiative Ecopal (near Calais, probably the oldest initiative in France) might have created 300 new jobs (services, innovation, quality control ) Interfacing, coordinating, and new shared services are key factors Settling and maintaining an information system a platform to exchange data between firms but main result is to settle employment locally Industry is less inclined to move out in a low labour cost country when synergies are found (gains of scale by sharing resources or services, resources or input efficiency ) Local industrial ecology is part of a non labour competitiveness and a source of innovation EEAC Bruxelles 15 juin

14 Conclusions : Not much of brand new jobs, but growing volumes and impact on skill needs Additional employment is awaited from a transition toward a more circular economy in France More precise and stable metrics are not yet available on employment within the resource efficiency models But more jobs are awaited overall, with a greater impact if material efficiency is combined with energy efficiency and a boost on the rate of renewable energy Some new jobs might appear as well Quality control of entering end-of-life products, within the producer or on the spot Organising the reverse supply chain But most of the job creation relies on developing existing jobs maybe with small evolutions of skills Impact on supply chain, R&D (eco design, shifting needs), development of information systems (already occurring for other reasons), probably negative impact on production et positive impact on recycling and using secondary materials Impact on matching new needs and current skills somewhat depends on the celerity of the transition toward a circular economy as well as commission into a fair transition EEAC Bruxelles 15 juin