Presented by Hermann Erdmann CEO REDISA NPC The Circular Economy REDISAS EXPERIENCE Target by end year 5 Over 3000 jobs created In 3½ years tyres diverted went from 4 to ID: 575714
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Slide1
Making the circular economy work
Presented by: Hermann Erdmann
CEO – REDISA NPCSlide2
The Circular EconomySlide3
REDISA’S EXPERIENCE
Target by end year 5:
Over
3000
jobs created
In 3½ years, tyres
diverted went from 4% to
63%
100%
Over
200
small businesses created
Net positive
impact on GDPSlide4
JOBS AND SMME POTENTIAL
Based on experience with tyres, by 2025:
(
Adjusting for density and complexity)
SMME
potential: 15
jobs/SMME
tons/year
tons/year/job
Jobs
SMMEs
Building rubble
3,970,000
250
15,880
1,059
Packaging
3,096,000
25
123,840
8,256
WEEE
64,000
13
5,120
341
Organic
1,965,000
125
15,720
1,048
Total
160,560
10,704 Slide5
BUILDING VALUE
Value
Cost
Transforming a cost to the environment into
value:
Policy Framework
and ControlsSlide6
MONITOR TO CONTROL
How do you manage creating 160,000 jobs?
Use
modern information technology:
Communicate with all stakeholders
Monitor, evaluate, verify all transactions
Provide direct access to information to all levels of
government
Prioritise compliance:
Good controls and regulation are essentialSlide7
MAKE EXTERNALISED COSTS VISIBLE
Extended Producer Responsibility Organisation (EPRO) is not a subsidy
Assign
lifetime costs where they belong
Without
visibility and measurement, there’s no controlSlide8
EXPORT CREDITS
Export credits:
Protect
international competitivenessSlide9
UNDERSTAND THE STAKEHOLDERS
Waste-pickers
Collectors
Transporters
Storage site operators
Processors
End product facilities
Producers
UniversitiesSlide10
RAPID PAYMENTS TO INFORMAL SECTOR
Direct payments to waste-pickers
Trickle-down doesn’t
work
Rapid payments for cash flow
Twice-weeklySlide11
ENVIRONMENTAL RATINGS
Environmental Ratings link fees to lifetime costs
Better rating
lower fees
Gives Government a tool to stop pollution by setting minimum permissible
ratings
Motivate industry
to design for recycling
Move away from
downcyclingSubsidise upcyclingSlide12
CREATE RECYCLING CAPACITY
Nurture and incubate recycling capacity
Provide financial, technical and administrative
support
Nurture
and incubate downstream production facilities
Create off-take for recyclersSlide13
RESEARCH AND DEVELOPMENT
R&D is key to developing new
markets
5%
of funds to go to R&D
Universities
Build skills
PRODUCT TESTING INSTITUTESlide14
FIXING BAD PRACTICES
Bad practices get locked in:
Look
at
long-term cost/benefit
Allocate funding to removing
themSlide15
ADDRESS HISTORICAL IMBALANCES
We have an opportunity to build completely new industries:
Favour the previously disadvantaged sector without taking away
from
existing industries
Adopt a
collaborative approach
Separate the success of the company from the success of the
entrepreneur
Cumulatively to February 2016 REDISA has invested R789m in 226 businessesSlide16
CIRCULAR ECONOMY AND THE BIOSPHERE
The Circular Economy model is the base for:
Market development
Influencing design
Driving beneficial rather than harmful products
Ultimate integration into the Earth’s biosphereSlide17
EPRO PLANNED OBSOLESCENCE
An EPRO should aim
to:
Develop value
Create
a self-supporting circular system in its industry
Make itself redundantSlide18
JOBS AND SMME POTENTIAL
Based on experience with tyres, by 2025:
(
Adjusting for density and complexity)
SMME
potential: 15
jobs/SMME
tons/year
tons/year/job
Jobs
SMMEs
Building rubble
3,970,000
250
15,880
1,059
Packaging
3,096,000
25
123,840
8,256
WEEE
64,000
13
5,120
341
Organic
1,965,000
125
15,720
1,048
Total
160,560
10,704 Slide19
REDISA’S EXPERIENCE
Target by end year 5:
Over
3000
jobs created
In 3½ years, tyres
diverted went from 4% to
63%
100%
Over
200
small businesses created
Net positive
impact on GDPSlide20
ANY QUESTIONS?