Transcript Circular economic growth - NVVN - Nederlandse Vereniging voor de

VN Forum 2016-3: 17 Sustainable Development Goals: en zó maken we Nederland
duurzaam in 2030!
DOOR: SANDRA VAN DER LEE (YOUNG PROFESSIONAL), JORINDE VERNOOIJ (YOUNG PROFESSIONAL)
A circular economy is needed to decouple economic growth from resource consumption and make economic
development more sustainable. The move requires a shift from our current ‘take, make and waste ‘ system,
to an economy which minimizes the extraction of raw materials. At present a large part of resource use is
inherently linear, whereas the aim of a circular economy is to minimise the use of primary raw materials and
the creation of residue streams. Despite the forecasted potential, implementing the circular economy is very
challenging and will require disruptive innovation.
How do we bring about this change? The circular economy implies a transparent system in which we shift
from material intense “single use” supply chains towards closed loop product systems. The key to this
transition is the transparent depiction of materials and energy flowing in and out of our economy. In order to
make use of the waste stream, we have to locate where these waste streams are and which materials are
included. Current data analysis tools are not able to map the complexity of interrelated material flows. A
mobile phone, for example, already makes us of hundreds of different materials from different countries in
different packaging with different transportation mediums. Mapping these flows for only one phone is already
highly complex. Mapping these flows for our total economy is not feasible with our current technologies.
Therefore the transition to a circular economy requires a radical change in the way data is gathered and
shared.
The design of blockchain technology has the disruptive potential to transform business-as-usual and the
VN Forum digitaal tijdschrift Nederlandse Vereniging voor de Verenigde Naties
Circular economic growth
VN Forum 2016-3: 17 Sustainable Development Goals: en zó maken we Nederland
duurzaam in 2030!
global economy. The technology establishes trust and transparency by creating a peer-to-peer value
exchange platform without the interference of powerful intermediaries. The computational infrastructure of
the blockchain makes it possible to run smart contracts across the network and thereby execute circular
economy principles defined in the exchange. Blockchain technology could be used to make the supply
chains and thereby waste streams traceable and the smart contracts could connect the waste streams to
new users. Besides increasing consumer awareness, blockchain could also be a genuine answer to
corporate social responsibility. The technology exposes the value chain and makes resources traceable.
Imagine you are sitting on the couch scrolling through your Facebook timeline and an advertisement for
Fairphone appears on your screen. Interesting? Yes, but your current non modular phone still has an
approximate lifetime of one year. You care about sustainability and want to limit your future consumption to
sustainable and circular products. Therefore you commit to a smart contract which states that you buy the
Fairphone if the price goes below €520,- in the upcoming year. Fairphone can make forecasts based on their
predicted revenue because the contracts are binding and automatically executed. After eleven months you
get a message that your phone will be sent to your home address. Fairphone asks you to send you old
phone back so that they can reuse the materials. A week later your phone is delivered and you have taken
your first step into the circular economy.
Sandra van der Lee
Master Industrial Ecology, TU Delft and University of Leiden
https://nl.linkedin.com/in/adrianavanderlee
VN Forum digitaal tijdschrift Nederlandse Vereniging voor de Verenigde Naties
Transactions will be permanently connected to a company and green washing will no longer be possible.
VN Forum 2016-3: 17 Sustainable Development Goals: en zó maken we Nederland
duurzaam in 2030!
Master Industrial Ecology, TU Delft and University of Leiden
Eneco Energy Trade Trainee
https://nl.linkedin.com/in/jorindevernooij
VN Forum digitaal tijdschrift Nederlandse Vereniging voor de Verenigde Naties
Jorinde Vernooij