HELSINKI: A circular economy is likely to benefit the Finnish economy more than previously thought and at the same time it would promote environmentally sustainable economic growth. The final report on the research project ‘Improved competitiveness and green growth from circular economy’ drew the conclusion. The project’s objective is to provide a comprehensive overview of the potential offered by a circular economy and explore ways in which society can progress towards a circular economy.
“However, the circular economy needs to be supported by cleantech solutions conducive to more sustainable consumption and production in order to be able to respond to the objective of mitigating climate change. In the circular economy, the greatest environmental benefits are achieved when material flows are replaced by cleaner and more energy-efficient circulation,” says Professor Jyri Seppälä of the Finnish Environment Institute and the leader of the project.
For instance, petrol could be replaced by bio-gas made from bio-wastes and the new products developed by the Finnish forest industry may play a key role in the circular economy, according to the project leader. Circular economy means a new type of resource-wise economic model in which value is created by using materials for as long as possible and reducing the environmental load by minimising wastage in the use of natural resources.
The project presents a limited set of actions to promote the circular economy, predicting that they would increase Finland’s GDP by EUR 1.7 billion and create 5,000 new jobs in the country while at the same time reducing greenhouse gas emissions and raw material consumption by 2.5% and 0.9%, respectively, by 2030, said a press release.
The positive potential offered by the circular economy for Finland is far greater than previously assumed. In the light of new knowledge and the findings of earlier studies, it is expected that the circular economy will contribute about EUR 3 billion to the GDP by 2030.
At the same time, Finland’s greenhouse gas emissions can be cut by several per cent, if all plastic is recycled efficiently and full use is made of the potential offered by bio-gas in transportation. The circular economy may prove a decisive solution in the efforts to foster green growth, suggest the study findings. Product design, research and innovation activities will play a key role in creating a circular economy, the study finds. Researchers think that the transition to a circular economy calls for a reassessment of values throughout society. “It should be more profitable to use recycled than virgin materials. The possible tax policies to achieve this should be analysed with care,” says Jyri Seppälä.
The final project report proposes that business models based on the circular economy also be promoted through infrastructure construction and public procurement contracts. The project ‘Circular economy in Finland – the operating environment, policy instruments and simulated effects by 2030’ was conducted as part of the implementation of the 2015 Government plan for analysis, assessment and research, according to the release. The project was carried out by the Finnish Environment Institute, VTT Technical Research Centre of Finland Ltd and the University of Oulu.
