5 activities that can lead to coherent public circularity

• Achieving climate and environmental goals hinges on establishing a competitive circular economy.Yet many public sectors have been slow to embrace the circular principle.By adopting circular practices, the public sector can reduce its environmental impact, achieve financial savings through resource efficiency and minimize waste generation.

Most countries have set ambitious climate and environmental goals and most are focusing on reducing CO2 emissions through alternative energy sources and electrification. The US has even more ambitious goals. It aims to achieve a 50%+ reduction in emissions by 2030, a carbon-pollution-free electricity sector by 2035 and to transition to a net-zero economy by 2050.Recognizing that achieving climate and environmental goals hinges on establishing a competitive circular economy, it is surprising that most public sectors have been slow to embrace the circular principle. Between 2015 and 2021, for example, the average circularity rate for all EU member states increased by a mere 0.4% points.Current public circular initiatives are often siloed, incremental and limited in scope, focusing on emissions reduction, energy efficiency and waste management often from a linear perspective. Although these silo projects have yielded valuable insights, it is imperative for public implementations to scale up now.Instead of siloed initiatives, the public sector must implement coherent circular models across public entities. Given its significance as a major employer, purchaser of goods and services and as a regulator and policy-maker, the public sector must play a pivotal role in transitioning to a circular economic system. The impact of public procurement on the transition to a circular economy could be significant, for example, it is worth around €2 trillion to the European Union, around 19% of GDP. This involves preserving the value of products, materials and resources for as long as possible and minimizing waste. To achieve this, the public sector should lead the transition in making circular products and services more accessible and affordable

Many publicly owned and operated resources, such as cars, trucks, buildings, uniforms, food, medical equipment, computers and office furniture, often remain underutilized instead of being shared. To optimize efficiency and reduce environmental impact, the public sector must embrace a coherent, transverse circular economy promoting sharing, reuse and redistribution. A sharing public sector will encounter cost savings through resource optimization and reduced disposal costs, leading to enhanced efficiencies and a reduced climate impact.

2. Transforming procurement practices

To facilitate public resource optimization by maximizing asset utilization, a shift in procurement practices is vital. Instead of each organization solely purchasing assets, the emphasis should be on renting, sharing and redistributing assets from or with peer organizations.

3. Establishing a coherent circular services market

Promoting a coherent circular service market within the public sector involves tendering circular services, such as repair, redistribution, refurbishment, remanufacturing and recycling, for equipment used across all public entities. This fosters a vibrant market with low-entry barriers and encourages businesses to offer circular services. This approach not only strengthens the circular economy within the public administration, but also serves as a catalyst for the growth of local circular service businesses, creating a positive impact on the environment and the economy alike.

4. Leveraging digital platforms

Coherent digital government platforms are instrumental in accelerating seamless peer-to-peer sharing, renting and redistribution of assets between various public entities. These digital platforms extend beyond tangible assets and encompass intangible human-based resources, such as skills and capabilities necessary for repair, refurbishment and redistribution. The EU’s Right to Repair proposal includes an online matchmaking repair platform to connect consumers with repairers and sellers of refurbished goods.

5. Lead by example

The implementation of coherent public circularity holds the potential to revolutionize resource utilization, fostering greater sustainability and enabling the public sector to become a trailblazer in the circular economy movement. By embracing this approach, public entities can lead by example, demonstrating the benefits of resource sharing while making significant strides toward achieving climate goals.

The need for coherent public circularity is an immediate concern, not a far-off challenge.

The speed with which governments can identify, prioritize and address circularity gaps will significantly impact their ability to achieve their climate and environmental objectives. Successfully closing these gaps will not only make local businesses more competitive in the circular economy, but also strengthen the overall resilience of the economy by reducing dependence on finite resources, minimizing price volatility and decreasing exposure to supply chain disruptions.Transitioning to coherent public circularity goes beyond emission reduction and risk mitigation; it presents an opportunity for governments to invest in the future, spur economic growth, create jobs and enhance services for citizens. The European Commission estimates that applying circular economy principles across the EU economy can potentially increase the EU GDP by 0.5% by 2030, creating approximately 700,000 jobs.