Indonesia, Italy, Mexico drive circular economy development
Accelerating Green Transformation and Creating New Growth Targets (International Perspective)
Accenture, an internationally renowned management consulting company, recently estimated that the potential value of the global circular economy is expected to reach $4.5 trillion by 2030. In recent years, some countries have actively promoted the development of circular economy, taking it as an important way to accelerate green transformation, respond to climate change, and create new economic growth points. Indonesia, Italy, Mexico and other countries have introduced and implemented a number of policies and measures to promote the construction of a green, circular and low-carbon economic system in terms of institutional construction, technological innovation and financial support.
Indonesia –
Play the role of a "junk bank".
Pay attention to waste recycling
"Junk banks" are more than 25,000 waste recycling centers located throughout Indonesia. This public service embraces the principles of "reduce, reuse, recycle" and encourages people to reduce waste and recycle. Local people can send the sorted garbage to the "garbage bank" near their residence, and the staff will issue a deposit slip indicating the name, type, weight and other information of the garbage. People can exchange certificates of deposit for daily necessities, cash, etc. Waste stored in the "garbage bank" will be sold to factories or recycling agents for reprocessing. Siti Nurbaya, Minister of Environment and Forestry, said: "The 'Waste Bank' is an important institution in Indonesia to strengthen waste management, and at the same time plays an important role in promoting the development of a circular economy by serving as a public education function. ”
According to data from Indonesia's National Waste Management Information System, about 68.5 million tons of waste were generated in Indonesia in 2022, and the proportion of waste treatment reached 66.58%. The Indonesian government plans to increase the proportion of waste disposal to 70% by 2025. It is predicted that by developing a circular economy, Indonesia is expected to reduce waste by 52% and reduce CO2 emissions by 126 million tons by 2030.
At present, the Indonesian government has included the development of circular economy in the national medium and long-term development plan, and has also set up a special Indonesian low-carbon development office to accelerate the development of circular economy. The Indonesian government has taken strengthening waste management as the first step in promoting the development of a circular economy, and has formulated an extended producer responsibility plan and a circular business strategy, including requiring companies to provide long-term maintenance plans for their products, using recycled waste and by-products as secondary raw materials, and using green industry standards and Indonesian eco-labels.
In 2020, some member companies of the Indonesian Sustainable Environment Packaging and Recycling Association jointly established a packaging recycling organization. Some Indonesian food and beverage companies are also actively recycling and processing the plastic packaging of their products into tableware, building materials, etc. Some start-ups in Indonesia have also created circular economy platforms where people can book a home to recycle second-hand products or waste, including plastic packaging, paper products, metal products, e-waste and more. It is understood that there are currently more than 200 entrepreneurial projects in Indonesia engaged in waste reduction and treatment.
Italy –
Increase investment in commercial R&D
Increase the value of circular economy output
According to the latest circular economy report released by the Italian Foundation for Sustainable Development, the recycling rate of related resource-based materials in Italy is currently 18.4%, and the overall waste recycling rate is 72%, which is among the highest among EU member states. Italian Minister of Environment and Energy Security Fratin, said that the circular economy is of great significance to Italy's economic and social development and environmental protection, helping to improve the utilization of scarce resources and create more jobs.
In 2022, the Italian government developed a national circular economy strategy, proposing state-supported business models and key areas of focus. The Italian Circular Economy Stakeholder Platform, created by the Italian government in collaboration with scientific research institutions and companies, has more than 150 members committed to promoting the circular economy model and creating synergies between the various sectors. The Italian government has announced a total of nearly 220 million euros in concessional loans and subsidies for companies to develop technologies related to the circular economy.
Currently, there are around 24,000 companies in Italy engaged in the circular economy, generating around 2.1 billion euros per year. According to the Italian NGO Cleantech Observatory, in 2023, around 62% of Italian companies investing in the circular economy were profitable, a significant improvement from 41% in the previous year. According to the 2023 annual report released by the Politecnico di Milano, Italy ranks among the highest in Europe in terms of the total number of patents related to the circular economy, with 210 circular economy-related start-ups that have raised around 120 million euros so far.
European automotive company Stellantis has set up a circular economy hub in the northern Italian city of Turin, which aims to extend the life of parts and vehicles, including collecting materials from end-of-life vehicles for recycling and using them to make new parts and vehicles. CEO Tavares said Stellantis aims to recycle 8 million used car parts by 2030, generate more than 2 billion euros in revenue, and become a net-zero carbon company by 2038.
A start-up called "Hub" in Venice, Italy, has developed a new technology for recycling stained glass in cooperation with Ca' Foscari University and other institutions, and has won several national and international technical awards. According to the company's founder, Silvirio said that 8 million tons of non-recyclable glass products are produced every year in Europe alone, and the company wants to give new value to these waste materials and contribute to improving waste utilization.
Mexico –
Launched a fiscal and tax incentive plan
Enterprises are increasing their own actions
According to the Circular Economy Law passed by the Mexican Congress in November 2021, Mexico will vigorously promote the recycling and reuse of waste and promote the construction of a circular economy industrial chain. The Mexican government has proposed a zero waste strategy and a progressive plan to achieve 20% waste recycling by the end of 2025 and 30% by the end of 2030. The Circular Economy Law first came into force on March 1, 2023 in Mexico City, the capital.
The Mexican government continues to introduce fiscal and tax incentive programs to provide a certain amount of financial incentives and tax deductions for companies related to the circular economy, and stipulates that local governments are obliged to give priority to circular economy products in the procurement of goods and services. Mexico City authorities have pledged to allocate 200 million Mexican pesos (US$1 is about 17 Mexican pesos) in 2024 to improve solid waste treatment facilities and expand cooperation between the government and companies in the circular economy chain. In order to encourage companies to actively engage in environmental actions, the Mexican environment department issues "circular badges" to companies and products that meet the requirements.
With the encouragement and support of relevant policies, Mexican companies are more proactive in practicing the concept of circular economy. A Mexican paper mill called Bio-Paper is constantly improving its processes to produce paper products from 100% recyclable raw materials, and is known for its "not a single tree is cut down" and "low water consumption". According to the company's official website, in 2021, the company produced 1.61 million tons of paper from recycling raw materials alone, which is equivalent to "saving" 3.7 million trees and reducing 6.43 million tons of carbon dioxide emissions.
Mexico's Acre Continent has built a constructed wetland in Jalisco that can treat 3 million litres of municipal wastewater per day, which is used for flower and forestry irrigation, benefiting 18,000 people. The company will also build another constructed wetland in the Mexicali Valley, which will be able to treat 4 million litres of municipal wastewater per day, benefiting 28,000 people.
It is understood that in order to protect the environment and improve resource utilization, Mexico will gradually ban the sale of disposable plastic products such as plastic bags and plastic straws, and implement a deposit and refund system for beverage containers.
(Jakarta, Rome, Mexico City, April 28)