Recycling Economy – benefits both work and environment
The by far best way to adjust our civilisation
to the challenges of the future is by adjusting our societies to systems of
recycling. Alas that is not what is currently being done. Both technological
developments and climate issues involve growing challenges. A Switch to circular economy, where recycling and green energy dominates, is necessary.
The discussion about our future jobs needs to be
broadened. The debate today is as if we still live in an industrial society and that jobs will automatically increase with growth in GDP. But such guarantees do not
exist anymore. The digitalization of the economy cancels many conventional rules of economy. Investments in robots and automation is increasing rapidly. People are replaced by machines. Of course new jobs are created, but not at
the pace we have been used to.
As the rapid evolution of technology continues
- with many fascinating opportunities - the tension between economy and
environment increases. It is no exaggeration to say that conventional economic growth
is on a collision course with nature. An increasingly unstable climate and
overexploited ecosystems and natural resources are the most obvious examples.
Environmental measures have so far often been
regarded as threats to both competitiveness and jobs. At the same time it is
obvious that waste of energy and material can not continue as before. The prices
for various commodities have increased rapidly. Material costs (including cost
of energy) amount in some industries to 40-50% of total costs. Moreover, the costs
to society of rapidly increasing climate and environmental impact is steadily
growing. Some resources are moving towards clear problems of scarcity (i. e. peak phosphor and peak oil).
With a growing world population (the basic
problem behind most of our challenges) coupled with a necessary increase in
living standards in low-income countries, the pressure on nature will continue
to increase. A more efficient use of resources would save both money and our nature.
In addition jobs would increase, as we are about to show. The conclusion is
that the agenda for jobs and environment must meet. Sweden
Today's economy is essentially based on the
principle of "buy and throw away". The logic of the last fifty years
has been the faster we replace our gadgets, the better for enterprises and the
economy. This is not good enough.
The vast majority of our products are
discarded today. This waste represents great values that could be used again -
and again. Today it is not OK to allow that valuable, ever more scarce materials
fall into incinerators, often without sorting first, and risking serious pollution of both air and water.
Sustainable development demands that we invest
in an economy where energy consumption is based increasingly on renewable
energy with maximal efficiency. Products should be designed both to last longer
and facilitate recycling, dismantling, recycling and remanufacturing. One example
is electronics designed for longer life and to be easily disassembled, so that components can be reused. Another example is furniture from recycled plastic,
which in turn can be recycled.
Changes in design must be accompanied with new
business models . Selling services is a winning formula. Michelin rent tires
for heavy vehicles and charge per km. The tires are recycled and retreaded.
Renault takes back old engines, renovate them and then use them in new vehicles. At Mud
Jeans and Houdini you can rent clothes instead of buying. Digital Lumens
provides smart lighting as a service as an alternative to purchase.
Not only scientists, but also companies and
unions, who want to protect their business and jobs, now directs interest
towards radical increases in efficiency of resource use during all stages of a
product's life cycle.
Development towards a more circular economy
will not happen by itself. Policy must be made to help with both smart
instruments and public investments to enable the transition. The share
of environmental taxes in total tax collection in Sweden
To create a society with low environmental and
climate impact can be done by building railways and public transport solutions for
the smart grid - investments that the public sector must initiate. With the
right kind of investment – around 100 billion a year, roughly equivalent to 2-3
percent of GDP annually – we would after fifteen years to be on the way to a
more circular economy.
The Club of Rome has recently carried out a
simulation of the Swedish economy. How would Sweden look today if we were
already more energy efficient, had a higher percentage of renewable energy as
well as a far more efficient use of materials? Each of these actions would, in
the model run, lead to a significant reduction in carbon dioxide emissions. The
total would be close to 70 percent. In addition, the analysis showed that more
than 100,000 new jobs would be created. As a matter of fact there would be more
jobs with an economy in harmony with narture and caring for what has already
been produced than in a "buy and dispose economy”.
If we want to move towards a more circular
economy, political action is absolutely essential - both at EU and national
level:
1. Develop
renewable energy. Strengthen the Ecodesign Directive - to include both energy and
material efficiency - and reform the ETS so that the primary objective: "to move away from coal".is
achieved,
2. Sharpen requirements
for recovery and recycling of materials and prevent waste. Increase
taxes on waste incineration.
3. Use
public procurement to attract new business models with focus shifted from
selling products to selling support and services.
4. Tax
Shift: lower taxes on labour and increase taxes on environmental impact and on
exploiting nature
5. Cancel
VAT on recycled materials.
We live in a world where threats of drastic climate
change are increasing. At the same time, unemployment is rising, especially
among young people. The digitalization of the economy presents both
opportunities and problems. The technology helps us to use resources more
efficiently. At the same time there is a risk that many people will be out of jobs, when lots of tasks are taken over by machines. We should not argument against
increased investment in sustainable energy, transport and material systems and
a shift of the tax burden from labour to natural resources. Such actions would stimulate
developments towards exploiting nature in a more responsible manner.
Johan Rockström, professor of environmental
sciences, director of the Stockholm Resilience Centre
Per Olof
Sjöö, Chairman of the GS union
Per Stoltz,
sustainability developerWorks, Ikea Group
Anders
Wijkman, chairman of the Club of Rome
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