Recording ATC 2 SPP and the Circular Economy

The second SAPIENS Advanced Training course focused on Circular Economy in the context of public procurement as well as circular business models.

Session 1: Introduction to Circular Economy, Sustainable Development Goals and Sustainable Public Procurement

The first session started with a presentation by assistant professor Matteo Fermeglia (Hasselt University). He provided an overview of the relevance of the Circular Economy as a tool to fight climate change. In this respect, it has been underlined that Circular Economy can intervene to address the problems linked to greenhouse gases (GHG) emissions throughout the production process. The implementation of renewable energies and carbon caption sequestration were considered to be two main solutions to render this process more sustainable and not to waste energy at the source.

The second presentation was given by our lead researcher and host of the second Advanced Training Course, professor Steven Van Garsse (Hasselt University) who focused on how Circular Economy could transform public procurement. It has been explained that there is a need to decrease the pressure on the environment and to remain within the carrying capacity of the planet by using material resources more efficiently. For example by repairing products more often or by improving product design and processes. The presentation included an analysis of Product as a Service (PAAS) and Public-private partnership (PPP) as bases for circular business models.

The session continued with the presentation of our lead researcher, professor Bogdana Neamtu (Babes Bolyai University) who provided more insights on the efforts made by the municipalities towards circularity. The presentation was focused on addressing the circularity issues at a city level and the gaps that need to be filled in.  Best practices from cities around the world were shared as well as the circularity framework developed by the United for Smart Sustainable Cities (U4SSC) initiatives.

Next, the external expert Dr. Michael Peeters shared a presentation on the Product as-Service System (PSS, also known as PAAS). The presentation showcased the internal and external benefits of PSS. The constant cash flow for the companies was considered to be one of the most important internal benefits. Whereas many external benefits were underlined.  For instance: new job opportunities and the possibility to give an answer to the increasing social concern about how the products are made and how the use of resources at the origin and during the lifetime can be reduced. The expert has also mentioned the resistance to change by stakeholders and the lack of regulatory support as barriers for the PSS.

Implementing Circular Economy is challenging. New business models can speed up, but this implies a shift from traditional to a relational procurement model and contracts” Steven Van Garsse

PSS may stimulate a change in consumer patterns and behaviours” Michael Peeters

The full presentations of Session 1 can be seen below

Session 2: Introduction to Business Models

The Business models (BM) and the Circular business models have been the topics discussed during the second session. Our lead researcher professor Sebastien Lizin (Hasselt University)provided an introduction to what a BM is and the basic business model archetype. After showing that Business models are relevant due to their impact on economic performance, the presentation focused on when and how a new business model should be created. Prof. Lizin stressed that in order to become more circular or sustainable, a new BM might be required, because of the different logic and doing. It was clarified that sustainable BM and circular business models do not necessarily mean the same thing. The presentation highlighted that moving to circular BM is more challenging as, unlike linear models, circular BM requires being able to test assumptions over a longer time horizon.

The session continued with the presentation by lead researcher professor Malgorzata Koszewska (Lodz University) who showcased some of the official numbers regarding the linear economy. Both the biological and the industrial circular cycles were discussed, as well as the most famous examples of Circular business models: ReSOLVE model, and for the fashion market, the three most used BMs: the rental, subscription-rental and re-commerce of garments.

“To create a business model becomes more complicated the older you are as a company” Sebastien Lizin

“In Europe, the average car is parked 92% of the time” Malgorzata Koszewska

The full presentations of Session 2 can be watched below

Session 3: Business Game

The third session provided the participants we an opportunity to take part in an interactive Business Game (Risk and Race) that put into practice the newly acquired knowledge. The Game tested the possibility of applying the learned concepts in practice. 

The participants were divided into small groups and were given the necessary elements to play the game (workers, money and raw materials) and decide their business model. Professor Tom Kuppens and PhD researcher Lise Janssens (Hasselt University) explained the rules and participated in the game as the bankers from whom players needed to negotiate loans to compensate for their bad or unsustainable business decisions.

For each round, groups were asked to decide: what to buy from the market, which raw materials to use and what investments and recruitments they needed. Each decision had consequences in terms of money, production, waste and of course external factors such as geopolitical tensions which caused price increase or new bank strategies to consider.

The Game ended after 7 rounds and the winning group was the one who started with the best product design and the best investment strategy. They earned more money and produced less waste.

Session 4: Circular Economy and the Public Procurement Cycle

The second day of the Advanced Training Course started with a presentation by PhD researcher Jonas Voorter. Jonas introduced the Circular Economy from a legal perspective. The concept of Circular economy was presented as an umbrella term including core elements: the 4R framework, the time dimension, the pathway to sustainability and the fact that it involves all stakeholders of the society. Moreover, the implementation of Circular Economy within the public procurement cycle has been discussed. It has been pointed out that the public procurement legislation gives several opportunities to include  Circular Economy aspects in the technical specifications, in the selection criteria, in the award criteria and in the contract performance clauses.

The following presentations were focusing on specific examples and case studies based on the Circular Economy.

Environmental biologist Melody Van den Acker (Vlaanderen Circulair, Belgium) presented the Flemish Green Deal Circular Procurement. She explained that the Government of the Belgian region of Flanders has an approach that pushes towards the Circular Economy through 7 strategic levers, and Circular procurement is one of these. She also showed the goals and strategies for circular purchasers by giving specific examples. One of the most interesting was the example of how to maximize the reusability of a product and component i.e. a wall which after using it, the stones it is made of, can be taken back and used to build something else.

Further on, Almut Fuhr (Facilitair Bedrijf, Belgium) described how to create impact in tender documents. As a case study, she discussed the ZIN project at the Brussels WTC towers. The towers have circular characteristics: selective demolition, adaptable building concepts, the use of green concrete and 75% of renewable energy.

Stefano Dotta (Environment Park, Technology Park working with public administrations and companies on innovation and sustainability in Turin, Italy) shared some of the best practices implemented in the Piedmont Region. In particular, he presented the result of one of their projects, the ‘Interreg Alcotra ECO-BATI’. The project has had many objectives: promoting green building and energy efficiency models in public buildings, the implementation of Green public procurement and the boost of the use of raw materials from local territories.

Lastly, Anne Goidts (Kamp C, Center for innovation and sustainable construction in Antwerp, Belgium) showcased a circular office building ‘t Centrum’ and how it has been constructed. She listed the seven pillars for circular buildings that were taken into account and presented the analysis of circular procurement required for the office building.

“Circular Economy is an umbrella term that connects concepts and ideas which were previously unrelated” Jonas Voorter

“Within the procurement journey, the Circular procurement requires to put focus on the beginning phase” Melody Van den Acker

 The full presentations and the cited examples can be watched below

Session 5: Scientific Poster

The fifth session of this ATC aimed to strengthen ESRs’ soft skills. The session focused on developing skills in presenting one’s research in a clear and comprehensible way within the academic context through graphic display in form of a poster. The expert Marijn Straetemans advice:

“A successful scientific poster starts by posing yourself a few questions: who are you, what do you want to tell, and what is your audience. Once you answered these questions you’re half done. The perfect poster has 20% of text, 40% graphics and images, and 40% blank space. Bear in mind that the colors and the font of the text are also tools to seek the attention of the audience”.

Session 6: Policy dialogue on Circular Economy, Sustainable Development Goals and SPP

For the last session of the Advanced Training Course, the group moved to Brussels for a round table with representatives of European Institutions and the third sector. The round table organized together with Aurélie Brochard (European Parliament) and Mathieu Rama (RRUSE) was aimed to analyze the next European Union’s steps towards circularity. The debate included positive and negative aspects linked to Circular Economy, the incoming mandatory environmental requirements and methodologies and specific EU targets. Several practices have also been criticized, as for instance the PAAS model which could lead to negative outcome. An example discussed suggested to consider a product that after being used goes back to the owner, following the PAAS model. The owner might decide to give it a new life by transferring it for remanufacturing or recycling, in a country that doesn’t comply with EU’s social or labour standards.

The last debate as well as the previous sessions gave the attendees many answers. At the same time, it became clear further research and dialogue are necessary and needed.

Written by Aura Iurascu

Aura Iurascu conducts her research on Circular Procurement within the University of Hasselt and she is fully committed to leave a mark enhancing sustainability. She graduated in Law at the University of Turin (Italy) with a final dissertation on comparative profiles of green public procurement. Her big enthusiasm in the field of public procurement and environmental law brought her to work as a trainee lawyer.

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