In response to the challenges identified in Chapter 2, this chapter suggests some policy recommendations to implement the circular economy in the city of Valladolid, Spain. The policy recommendations are accompanied by a list of actions for concrete implementation, according to international practices.
The Circular Economy in Valladolid, Spain
OECD Urban Studies
3. Policy recommendations and actions for a circular economy in Valladolid, Spain
Abstract
Introduction
A total of 19 recommendations have been identified accordingly to the role of the city as promoter, facilitator and enabler of the circular economy (Table 3.1). These recommendations are accompanied by a set of actions aiming at supporting Valladolid’s transition to a circular economy. The proposed actions are indicative and based on international practices while taking into account the local context. These international practices carried out in the field of the circular economy by cities, regions and national governments can serve as inspiration for the implementation of the recommendations. As such, they are not expected to be replicated in Valladolid but rather provide the municipality with a set of examples for the development and implementation of the suggested actions.
Table 3.1. Policy recommendations for the circular economy in Valladolid, Spain
It is important to note that:
Actions are neither compulsory nor binding: Identified actions address a variety of ways to implement and achieve objectives. However, they are neither compulsory nor binding. They represent suggestions, for which adequacy and feasibility should be carefully evaluated by the municipality of Valladolid in an inclusive manner, involving stakeholders as appropriate. In turn, the combination of more than one action can be explored, if necessary.
Prioritisation of actions should be considered: Taking into account the unfeasibility of addressing all recommendations at the same time, prioritisation is key. As such, steps taken towards a circular transition should be progressive.
Resources for implementation should be assessed: The implementation of actions will require human, technical and financial resources. When prioritising and assessing the adequacy and feasibility of the suggested actions, the resources needed to put them in practice should be carefully evaluated, as well as the role of stakeholders that can contribute to the implementation phase.
The proposed actions should be updated in the future: New potential steps and objectives may emerge as actions start to be implemented.
Several stakeholders should contribute to their implementation: Policy recommendations and related actions should be implemented as a shared responsibility across a wide range of actors. The stakeholder groups contributing to this report and to the identification of the actions are represented in Figure 3.1. They have a key role as “do-ers” of the circular economy system in Valladolid, Spain, along with other stakeholders that will be engaged in the future.
Figure 3.1. Stakeholders map in Valladolid, Spain
Note: This stakeholder’s map is based on the 48 stakeholders that took part in the 2 OECD missions to the city of Valladolid on 25-28 February 2019 and 29 October 2019.
The city of Valladolid can play a role as promoter, facilitator and enabler of the circular economy strategy. Cities act as promoters when they identify priorities, promote concrete projects and engage stakeholders; they are facilitators when fostering co-operation between stakeholders, citizens and levels of government. The city’s enabler role entails setting the necessary conditions for the circular economy (e.g. updating regulatory frameworks, catalysing funds, etc.). In order to boost the circular economy in Valladolid, the municipality could implement the recommendations detailed in this section.
Promoting a vision and a strategy for the circular economy
The city of Valladolid shows a strong willingness to start the journey towards a circular economy with a dedicated team, available funds and a community of circular economy entrepreneurs. These are relevant conditions to promote the circular economy in the city. In order to boost the circular economy in Valladolid, the municipality could implement the recommendations detailed in this section.
Carry out urban metabolism analyses
Urban metabolism analyses would aim to: i) develop knowledge on the material flows of the city to eventually reduce resource input extraction and negative externalities like pollution and waste (output); ii) reuse materials, when possible; iii) identify city’s priorities based on the analysis of consumption and production trends. The municipality could co-operate with the university to carry out the analysis, which should be regularly updated and carried out at metropolitan and regional scale. The urban metabolism study in Paris could be taken as an example (Circular Metabolism, 2017[1]).
Key actions:
Engage with universities and research and development (R&D) centres for the urban metabolism analysis.
Evaluate the scale of the analysis at the metropolitan and regional levels, with the collaboration of competent authorities.
Identify concrete follow-up actions to reduce resource consumption and negative output, such as pollution. In the case of water, materials and energy, for example, digital solutions can be applied (e.g. water meters, mobile data applications for mobility solutions, applications for energy saving), in addition to appropriate policies.
Disseminate the results of the metabolism analysis and clearly communicate them to the public.
Conduct the metabolism analysis regularly (e.g. once a year or biannually), in addition to updating environmental and climatic studies regularly.
Develop a circular economy strategy with clear objectives and measurable targets
A circular city would require designing a vision of how the city should look like in the future. A circular vision for the city entails refraining from a view that conceives the circular economy as a way of optimising the present linear system. Even if several initiatives are already in place in Valladolid, they are fragmented and, as such, it is difficult to determine relevant social, economic and environmental impacts. An overall vision would help to enhance coherence across different initiatives. This implies mapping sectors that apply circular economy principles and finding synergies across them, in order to avoid policy silos or short-term solutions. The strategy should make sure that the activities within the circular economy lead to a rethinking of production and consumption models and collaborations along the value chain. Examples of circular economy strategies at the subnational level are presented in Table 3.2. Once established, measurable targets should be linked to the objectives. Some measurement frameworks for the circular economy, applied at the city level, include the following: Measuring the Circular Economy Developing an indicator set for Opportunity Peterborough (Morley, Looi and Zhao, 2018[2]), Indicators for a Circular Economy (Vercalsteren, Christis and Van Hoof, 2018[3]), Circular Economy Framework Monitoring Report, Greater Porto Area, Portugal (LIPOR, 2018[4]).
Table 3.2. Circular economy initiatives at the subnational level
Source: OECD (forthcoming[5]), The Circular Economy in Cities and Regions, Synthesis Report, OECD Publishing, Paris.
Key actions:
Map existing circular initiatives in various sectors
Identify key sectors (e.g. urban regeneration, tourism, construction, waste, etc.) that could generate relevant economic, environmental and social impacts, establish priorities and possible collaborations.
Identify activities that can be relevant in shifting from a linear to a circular system (e.g. eco-design, services rather than ownership).
Define goals and actions
Define result-oriented and realistic objectives, over the short, medium and long terms (e.g. circular economy-related projects, number of circular buildings to be constructed, etc.).
Align the objectives of the circular economy strategy with the goals of existing policies (e.g. energy transition, climate change, smart city and urban planning).
Engage stakeholders
The circular economy is a shared responsibility across stakeholders that need to be involved from the phase zero of the strategy to build consensus and vision. Steps consist of (OECD, 2015[6]):
Designing a participative methodology to engage key stakeholders to work on the definition and co-creation of a circular economy strategy that reflects their concerns:
Map all stakeholders that have a stake in the outcome or are likely to be affected, as well as their responsibility, core motivations and interactions.
Define the ultimate line of decision-making, the objectives of stakeholder engagement and the expected use of input.
Use stakeholder engagement techniques, ensuring the effective representation of all stakeholders in the process.
Allocate proper financial and human resources and share needed information for result-oriented stakeholder engagement.
Regularly assess the process and outcomes of stakeholder engagement to learn, adjust and improve accordingly.
Embed engagement processes in clear legal and policy frameworks, organisational structures/principles and responsible authorities.
Customise the type and level of engagement to the needs and keeping the process flexible to changing circumstances.
Clarify how the inputs will be used.
Communicate clearly on the responsibility of each actor in the municipality.
Organising communication campaigns and activities in the city to raise awareness among stakeholders on the circular economy’s objectives and benefits and how citizens can contribute.
Creating participation spaces for citizens and stakeholders throughout the different implementation phases of the circular economy strategy. Instruments for stakeholders engagement include:
Multi-stakeholder fora.
Workshops.
Breakfast meetings on the circular economy.
Co-creation methodologies.
Feedback loops.
Develop a financial plan
Design a set of actions for the achievement of objectives, define their expected outcomes and allocate a budget and resources to each of the actions.
Develop a financial plan for the implementation of the strategy
Identify and communicate the costs (environmental, social and opportunity costs) and benefits of circular activities compared to linear approaches (baseline scenario or no action taken).
Monitoring and evaluation
Identify indicators and measurable targets (economic, social and environmental ones) to monitor and evaluate the strategy. The indicator proposed by the OECD (forthcoming[5]) can be taken into account:
Setting the strategy
No. of public administrations/departments involved in the design of the circular economy startegy.
No. of actions identified to achieve the objectives.
No. of circular economy projects to implement the actions.
No. of staff employed for the circular economy strategy’s design within the city/region/ administration.
No. of stakeholders involved to co-create the circular economy strategy.
No. of projects financed by the city/regional government/Total number of projects.
No. of projects financed by the private sectors/Total number of projects.
Implementing the strategy
Waste diverted from landfill (T/inhabitant/year or %).
CO2 emission avoided (T CO2/capita or %).
Raw material avoided (T/inhabitant/year or %)/
Use of recovered material (T/inhabitant/year or %).
Energy savings (Kgoe/inhabitant/year or %).
Water savings (ML/inhabitant/year or %).
Clearly communicate the aim and the expected outputs of the strategy.
Map circular jobs in the city by sector
The circular economy vision could also map possible opportunities for job creation, either from new activities or from changes in businesses, requiring adaptation. This could help to: i) obtain an overview of the future employment situation and detect the most vulnerable sectors; ii) match supply and demand in the job market in the city and its surrounding areas; and iii) set premises to adapt educational programmes and training to the needs of the circular economy transition, including for the business sector to include circularity in production processes and practices. Some approaches to circular jobs at the city level are presented in Box 3.1.
Box 3.1. City approaches to circular jobs
The circular economy transition holds the potential to generate new jobs. By 2035, the European Commission (EC) expects to create more than 170 000 new direct jobs related to the circular economy through the implementation of the Circular Economy Package. The International Labour Organization (ILO) estimates that by 2030, employment will grow the most in the services (50 million) and waste management (45 million) sectors worldwide (ILO, 2018[7]). Below some examples of how cities account for “circular” jobs are reported.
In 2016, the city of Paris (France) has identified 66 500 full-time jobs related to the circular economy. Mostly, jobs are associated with energy management, renewable energies, waste incineration with energy recovery and part of the activities related to transport infrastructure. Moreover, 7 additional categories of activities are considered as related to the circular economy: eco‑design, industrial and territorial ecology, the functional economy, sustainable supply, responsible consumption, extension of service life and recycling. The quantification of jobs is carried out via three approaches: by sector of activity (jobs in rental, repair, second-hand, transport, secondary raw material industries, waste collection with energy recovery); by type of products (e.g. recycled paper); by specific registered institutions (jobs that take place in institutions registered as Producer Responsibility Organisations, PRO).
In 2013, the city of London (United Kingdom) counted 46 700 jobs in circular economy activities. Three types of jobs were considered in: recycling (wholesale of waste and scrap); reuse (repair of metal products, machinery and equipment; repair of computers, electronics and household goods; and retail sale of second-hand goods); and rental and leasing activities. The London Waste and Recycling Board (LWARB) showed that by 2030 sales and customer services jobs would increase by 1.18%, followed by medium-skilled (0.66%) and high-skilled ones (0.30%). The LWARB identifies three levels of job specialisation: i) high-skilled (e.g. managers, directors and senior officials, associate professional and technical positions); ii) medium-skilled (e.g. administrative and secretarial roles, skilled trade occupations and process, plant and machine operatives); iii) low-skilled (e.g. sales and customer services and elementary occupations.
In 2016, the Amsterdam Metropolitan Area (AMA) (Netherlands) counted 140 000 jobs as part of the circular economy (11% of total jobs in the area). Digital technology, circular design and lifetime extension are the most relevant sectors. The AMA defined seven key circular elements for “directly circular jobs”, divide in “core circular jobs” and “enabling circular jobs”. “Core circular jobs” are related to activities that prioritise regenerative resources (e.g. renewable energy sector); preserve and extend what is already made (e.g. repair sector); use waste as a resource (e.g. recycling); and rethink business models (e.g. renting or leasing activities). The “enabling circular jobs” aim to create joint value from collaborations (e.g. professional and networking associations); design for the future (e.g. architecture or industrial design); and incorporate digital technology (e.g. digital innovation). “Indirectly circular jobs” are also identified and refer to all other sectors that offer services to circular jobs activities and that create supporting circular activities (e.g. education, government and professional services). Six groups of skills relevant to future circular jobs are: basic skills (capacities that facilitate acquiring new knowledge); complex problem solving (abilities to solve new, complex problems in real-world settings); resource management skills (capacities for efficient resource allocation); social skills (abilities to work with people towards achieving common goals); systems skills (capacities to understand, evaluate and enhance “socio-technical systems”); and technical skills (competencies to design, arrange, use and repair machines and technological systems).
There are also examples of indicators to measure job creation:
In Peterborough (United Kingdom), “Circular Peterborough” the local circular economy programme developed eight indicators that include socioeconomic dimensions, one of which measure the “percentage of circular jobs and percentage of circular business”. The Measuring the Circular Economy – Developing an indicator set for Opportunity Peterborough report details six sub-indicators to measure the “percentage of circular economy jobs” in the city: retail of second-hand goods in stores; rental and leasing activities; wholesale of waste and scrap; waste collection activities and repair of computers and household goods; repair and installation of machinery.
The city of Toronto (Canada) measures the social dimension of the circular economy through three indicators: the number of green jobs created and secured, the number of city staff trained on circular procurement principles and the asset/sharing utilisation activities.
Source: EC (2016[8]), Circular Economy Package: Four Legislative Proposals on Waste, European Commission; ILO (2018[9]), World Employment and Social Outlook 2018 – Greening with Jobs, http://www.ilo.org/publns (accessed on 29 January 2020); City of Paris (2019[10]), Quantifier les emplois de l“économie circulaire de Paris - Synthèse; LWARB (2017[11]), Employment and the Circular Economy: Job Creation through Resource Efficiency in London, http://www.wrap.org.uk (accessed on 29 January 2020); Circle Economy/ EHERO (2018[12]), Circular Jobs and Skills in the Amsterdam Metropolitan Area, https://assets.website-files.com/5d26d80e8836af7216ed124d/5d26d80e8836af6ddeed12a2 (accessed on 5 February 2020); Morley, A., E. Looi and C. Zhao (2018[2]), Measuring the Circular Economy: Developing an Indicator Set for Opportunity Peterborough; City of Toronto (2018[13]), Circular Economy Procurement Implementation Plan and Framework.
Key actions:
Carry out specific studies to identify future job opportunities in the city by sector:
Develop consultation activities with representatives of various sectors, from retails to hospitality and services, to understand the level of circularity across the value chains and identify gaps and job opportunities.
Analyse the type of skills required, from low- to high-qualification and competency levels by sector.
Strengthen the artisanal sector for products reuse.
Match the financial, human and technical capacities with the identified needs.
Explore the possibility of incorporating the circular economy as a new topic of work into the ongoing social dialogue between the city of Valladolid, business sector institutions and trade unions.
Promote the “circular vision” “leading by example”
The municipality could start to apply circular principles in its activities and services to lead by example. The municipality should be an example of change and make this an explicit target, in order to: i) show the feasibility of moving towards a circular transition through specific actions; ii) “practice what you preach” through concrete examples and activities; iii) raise public awareness of the impacts of the circular economy. This could be done, for example, through: reducing waste generation (banning one-use plastics like cups in municipal events and daily activities); applying the product-as-a-service model through public procurement (paying for a lighting service adapted to the municipality’s needs rather than buying light bulbs and appliances); and promoting the use of secondary materials. Since 2015, Amsterdam, Netherlands has been implementing the “Learning by doing” programme that aims to show with empirical examples that the circular economy is profitable in all aspects by gathering different city departments and diverse stakeholders to define policy actions. Regarding new business models based on renting and sharing, the following examples can be provided: Amsterdam Airport Schiphol rents light as a service, instead of the traditional model of buying light bulbs: with this model, Schiphol pays for the light it uses while Philips continues to be the owner of all installations and is responsible for their performance and durability (Circular Economy Club, 2019[14]). The city of Tokyo, Japan, aims to reduce CO2 emissions produced during celebration of the 2020 Olympic Games by renting and leasing materials, saving resources, minimising waste production and using recycled materials for stakeholders’ uniforms, among other measures (Organising Committee of the Olympic and Paralympic Games Tokyo 2020, 2018[15]).
Key actions:
Apply circular models within the municipality and communicate them clearly to the citizens. Examples of these practices could include:
Green Public Procurement (GPP): award criteria favouring the transition to a circular economy (e.g. reuse, durability, reparability, purchase of second-hand or remanufactured products).
Business models that would shift from ownership to services (e.g. product-as-a-service model through public procurement: pay for a lighting service adapted to the municipality’s needs rather than buying light bulbs and appliances; lease a furniture service instead of buying specific furniture, etc.).
Reduction of waste generation (e.g. plans to prevent waste production; reducing the use of paper or banning one-use plastics like cups in municipal events and daily activities).
Provision of the required containers for separate collection throughout the city.
Clearly communicate to citizens goals, all the circular initiatives that are being promoted by the city and the progress achieved (e.g. percentage of one-use plastic avoided in one year, etc.).
Strengthen the circular community
Thanks to the municipal grants dedicated to the circular economy, there is a growing circular community in Valladolid. It is important, therefore, to build momentum and make sure that the community can be strengthened. This would reinforce the commitment to the transition to a circular economy in various sectors; reduce potential resistances to change to the traditional model of the linear economy and increase citizen awareness of the circular economy. Several tools could be used, such as furthering communication instruments (online and offline platforms to promote projects and initiatives), and creating spaces for meetings and dialogues. For example, an online platform dedicated to the circular economy where different stakeholders can share information on events and experiences could be a way of promoting synergies among them. The online platform should be managed and moderated by an identified reliable entity.
Key actions:
Create a circular economy forum, led by the Agency of Innovation and Economic Development, establishing a dialogue between citizens, businesses, entrepreneurs (that have responded to the call for municipal grants or new companies).
Create a permanent working group or committee composed by different stakeholders (private sector, public administration, unions, business associations, etc.) to propose ideas and exchange experiences. Include a calendar of meetings to guarantee the continuity.
Create an online platform or website with clear and accessible information on existing tools and future opportunities. The online platform should be a dynamic and living tool managed and moderated by an identified and trustable entity (e.g. the Agency of Innovation and Economic Development).
Explore the possibility of establishing a “circular economy pact” in the city, between businesses and local entities, similar to the circular economy pact established at the national level.
Identify incentives, awards and challenges by neighbours to stimulate new ideas and motivate the circular community.
Raise awareness of the opportunities and tools to advance towards a circular economy
It is key to provide examples of successful business cases (e.g. in terms of cost-saving and job creation). One way to do so would be through “circular economy ambassadors”. The city of London, through its Waste and Recycling Board, has started recruiting “circular economy ambassadors” in different companies and local authorities to share information on the benefits of the circular economy for each economic sector and to raise awareness in the workplace (London Waste and Recycling Board, 2017[16]). Architects, urbanists, artists and environmentalists could also offer examples of good practices and multidisciplinary approaches. Another instrument could be the creation of a platform as a marketplace where companies could exchange, sell and buy products and reusable materials. A similar practice is carried out in the city of Austin (United States) through the Austin Materials Marketplace, which is an entirely digital platform.
Key actions:
Several tools can be considered:
Communication campaigns to show the impacts of the circular economy and to explain how citizens and different stakeholders can contribute to it. These campaigns could include real experiences from actors that have already incorporated the circular economy in their processes.
Conferences and seminars at schools and universities in order to raise awareness among children and students in Valladolid.
Dedicated website in order to share knowledge, good practices by sector concerning the circular economy (e.g. create a digital repository of circular economy projects in Valladolid).
Events for knowledge sharing, networking and the promotion of the circular economy.
Social media to update on current initiatives.
Incorporate programmes of healthy habits in the circular economy strategy when suitable (e.g. consumption, elimination of food waste, healthy urbanism, among others).
Consider introducing the figure of “circular economy ambassadors” in the municipality, the private sector and civil society (e.g. companies, local entities, unions) as the delegates responsible for sharing information on the impacts of the circular economy.
Create environmental delegates (delegados de medio ambiente) in work councils (comités de empresa) incorporating circular economy topics under their responsibilities.
Explore tools for favouring reuse and create a circular “culture”, such as:
Platforms for exchanging used good and materials (e.g. furniture, textiles, clean points, etc.).
Fairs and events for the exchange of used goods.
Applications for the exchange of used goods.
Platforms of industry by-products by sector to facilitate inter-company circularity.
Introduce a certification or a label for “circular companies” as an incentive for local businesses
The municipality could consider introducing a certification or a label for companies following circular principles, in order to: help consumers to distinguish companies that are embracing circular economy principles; promote the adoption of circular economy models in the transformation processes of private companies; identify materials produced and used in a circular manner and reward circular companies and incentivise others to start their transition. There are several examples of labels and certificates granted when products are produced locally, with little or no packaging, energy consumption is reduced, waste properly treated according to the best available option, etc. (Box 3.2). Criteria for labelling could be formulated following detailed studies by universities and research centres while incorporating the view of local retailer shops.
Box 3.2. Examples of labelled products for the circular economy
Certifications are made to assure stakeholders and clients that products and services meet requirements linked to the circular economy. Both the private sector and national and local authorities are taking steps in this regard to develop and introduce labels for the circular economy:
OrganiTrust®, a worldwide certification body, issues certificates on the circular economy in the following sectors: food contact material, personal care and cosmetics, furniture, children toys, textiles and fabrics, electronics, building materials, medical safety equipment and household chemicals and detergents. In addition, it also provides this qualification to some service activities, which include transport, construction, telecommunications, cleaning and parking. Once the product or service has achieved the certification, it must be renewed annually.
The Amsterdam Made certificate was developed upon request of the Amsterdam City Council. Its main objective consists in informing consumers about products that are made in the Amsterdam area, while simultaneously seeking to boost creativity, innovation, sustainability and craftsmanship.
The French roadmap for the circular economy, 50 Measures for a 100% Circular Economy, launched by the Ministry for an Ecological and Solidary Transition (Ministère de la Transition écologique et solidaire) in 2018, includes the deployment of voluntary environmental labelling in 5 pilot sectors (furnishing, textile, hotels, electronic products and food products).
The White Paper on the Circular Economy of Greater Paris (Mairie de Paris, 2015[17]) contemplates 65 proposals, including the design and use of circular economy labels. More precisely, it aims to provide higher visibility of existing environmental labels in France, such as NF Environment (a collective certification label for producers who comply with environmental quality specifications) and the European ecolabel, as well as the development of a quality label for second-hand products.
Source: French Government (2018[18]), 50 Measures for a 100% Circular Economy, http://www.ecologique-solidaire.gouv.fr/sites/default/files/FREC%20-%20EN.pdf (accessed on 6 June 2019); Amsterdam Made (2019[19]), Homepage, http://www.amsterdammade.org/en/ (accessed on 6 June 2019); Mairie de Paris (2015[17]), White Paper on the Circular Economy of Greater Paris, https://api-site.paris.fr/images/77050 (accessed on 11 June 2019); Organi Trust (2019[20]), Circular Economy and Organic Certification, https://organitrust.org/ (accessed on 11 June 2019); HQE-GBC (2019[21]), Circular Economy for HQE Sustainable Construction.
Key actions:
Strengthen existing eco-labelling in existing production processes amongst companies in Valladolid, by introducing circular economy principles and monitoring progress.
Take into account the circular economy criteria for certification. For example:
Use of recycled materials.
Development of life-analysis calculations.
Deconstruction processes.
Presentation of a plan for materials reuse.
Extended product lifespan (e.g. long guarantee, availability of spare parts of a product to enable repairs).
Product-as-a-service concept.
Based on the information of international experiences, prioritise certain sectors in order to undertake pilot experiments on circular certificates.
Collaborate with local universities and research centres to analyse the criteria for circular certifications.
Define common guidelines for circular economy products and processes at a local level in order to obtain the certification.
Promote systematic recognition of good practices through audits.
Promote the development of activities to enhance the use and the value of certifications (e.g. a materials bank).
Facilitating multilevel co‑ordination for the circular economy
The municipality can facilitate collaborations and co-operation among a wide range of actors to make the circular economy happen on the ground. Possible actions the city could apply are described below.
Co-ordinate the local roadmap with other strategies at the regional and national levels, in order to maximise synergies and collaborations
This recommendation aims at fostering policy coherence across different strategies/roadmaps that may concern various sectors, from food to mobility to land use, and that have common objectives, from waste reduction to climate neutrality. Therefore, linking existing strategies at the regional and national levels can enable the local government to achieve common goals, while identifying synergies. For example, the Brussels Region Regional Programme for the Circular Economy 2016-20 is co-ordinated by three ministers and four regional administrative bodies (Region of Brussels, 2016[22]); the Public Waste Agency of Flanders (OVAM), took the initiative in 2018 to set up a national platform for the circular economy, through which the top levels of federal and regional environment departments, economy/innovation departments and finance departments meet twice a year to decide on common action in priority policy fields (OECD, forthcoming[5]).
Key actions:
Identify existing strategies and related targets than can be achieved through the circular economy (e.g. UN Agenda 2030 for Sustainable Development, Paris Climate Agreement).
Identify synergies across existing and upcoming strategies of the city (e.g. climate change, housing, energy, urban planning, etc.) to incorporate circular economy principles.
Identify circular economy initiatives available at the regional and national levels and the role of the city in contributing to the achievement of goals.
Create co-ordination platforms, for example:
Organise seminars and workshops, ad hoc meetings to align interests across local, regional and national authorities.
Circular economy network that includes representatives from the municipalities of Castile and León, the region and the national government.
Co-operation agreements between Valladolid, the Castile and León Autonomous Community and other municipalities of the region for the implementation of joint projects on the circular economy.
Explore the opportunities derived from contracts/deals with the regional and the national government as tools for dialogue, for experimenting, empowering and learning.
Connect the local government with universities, businesses and citizens
Improving co‑ordination among key stakeholders would build knowledge on the circular economy, as well as achieve a set of shared, achievable and realistic objectives. For example, academic research could be related to local needs towards a circular economy transition and connected with the local productive ecosystem of small- and medium-sized enterprises (SMEs). This could be also done through “challenges” and “open calls” to solve municipal issues and stimulate innovation. Some international examples can provide inspiration. For instance, Start-up in Residence (San Francisco, United States) and the Amsterdam Circular Challenge (Amsterdam, Netherlands) connect start-ups and businesses to provide solutions to city’s problems through transparent selection processes.
Key actions:
Identify possible pilots and experimentations that would involve R&D and university departments, based on the needs of the municipality (e.g. circular activities in the mobility, tourism, food, waste sector, bio‑economy, etc.).
Collect academic and business proposals to put in place circular activities with social impact and consider support for implementation (e.g. financial support for students).
Collaboration agreements between the municipality and the university to work on prioritised areas related to the circular economy at the local level.
Collaborate with universities to implement the circular economy in the existing educational programmes.
Organise events, workshops and fairs, where companies can share their technology needs and find new partners.
Create interactive online platforms to encourage stakeholders to exchange information with each other on their needs and monitor the activities and updates of the platform.
Create co-working spaces for cross-fertilisation amongst several actors.
Collaborate with businesses and unions to start or boost their transition to a circular economy. Include this matter in the social dialogue between the city, unions and businesses.
Support business development and stimulate entrepreneurship in the circular economy
The city can support businesses through regulatory, financial, and capacity building tools to provide conditions to stimulate circular businesses in start-up and existing companies. Some international practices are: Prodock, the scale-up incubator of the port of Amsterdam, which, since 2016, helps business and companies to co-create solutions in a shared working space in diverse topics, from transforming wet waste into renewable gas, to producing sustainable bio-based chemicals, or recycling plastic and soap waste in the hospitality sector. The London Waste and Recycling Board set up a programme called Advance London to start up and scale up businesses related to the circular economy. Enriching consulting services offered to enterprises with a component on the circular economy practices could be another way to promote innovation (e.g. the Chamber of Commerce could do that or be actively involved). Moreover, facilitating dialogues on the circular economy’s potential by sector across existing business clusters that bring together SMEs and knowledge centres could also promote new business models and innovation. It is key for experts in each sector (e.g. tourism, construction, waste, etc.) to share experiences to have a better understanding of what can be done, where the gaps are and how they can be overcome.
Key actions:
A variety of tools have been identified from international practices, such as:
Tax breaks or social security exemptions for companies that perform environmentally relevant investments related to the circular economy (e.g. sustainable energy technologies such as energy recovery).
One-stop-shop for companies seeking information on circular business models and on regulation and legislation.
Platform to share concrete examples of successful cases and failures in circular business models.
Spaces for experimentation and sharing results.
Pre-incubation services to ensure that entrepreneurs have a reasonable chance of success and incubators to foster knowledge sharing and pilot testing.
Community building to facilitate peer learning.
Establish collaboration with the Chamber of Commerce of Valladolid for ad hoc consultancy services, training and mentoring programmes.
Explore ways to reduce the bureaucratic burdens for circular start-up and circular companies.
Strengthen the exchange of experiences with neighbouring cities
The city of Valladolid participates in several international projects that allow exchanges with European cities. Participating in city networks related to the circular economy and learning from other cities can be an important source of inspiration for Valladolid. This would include specific actions (e.g. return system for plastic bottles, door to door collection) and capacity building, training, communication initiatives. A network of neighbouring cities could be set up in order to investigate the potential of circular economy activities within the area, in which Valladolid could play a leading role, given its experience.
Key actions:
Create spaces for dialogue and experience exchange, enhancing common actions and learning processes within the metropolitan area. These initiatives could include:
Events and workshops to exchange success stories, good practices and barriers.
Thematic partnerships that promote common actions across cities of the metropolitan area and within the region, where Valladolid can take a lead role, having advanced on a series of circular economy initiatives.
Strengthen dialogues regarding the circular economy with the Provincial Council and the Federation of Municipalities and Provinces.
Take actively part in city networks related to the circular economy, sharing knowledge and learning from other cities (regional, national and international levels).
Monitor and participate in events related to the circular economy in cities.
Enabling the economics and governance conditions for the uptake of the circular economy
Implementing a circular economy entails enabling the necessary governance and economic conditions. As such, the city government could adopt the actions detailed in the following section.
Identify the regulatory instruments that need to be adapted to foster the transition to a circular economy
This includes investigating which tools can be used at the local level to enable the transition to the circular economy and those that need coordination with other levels of government. Regulatory instruments include: specific requirements for land use, environmental permits (e.g. for decentralised water, waste and energy systems), regulation for pilots and experimentation. For example, in the Netherlands, the legal and regulatory framework at the local and regional levels is expected to adapt to the National Circular Economy Strategy (OECD, forthcoming[5]).
Key actions:
Identify the available regulatory tools (e.g. land use, urban planning, environmental permits, waste plan) that can allow the transition to a circular economy now and in the future.
Identify regulatory gaps and obstacles, which may go beyond the local sphere as per the competency of other levels of governments.
Identify platforms for dialogue in which the local government can exchange with the regional and the national ones about possible regulatory obstacles that cannot be dealt with at the local level, as well as on regulatory instruments that can encourage circular practices.
Advise companies on circular economy-related legislation.
Identify areas for opportunities to set specific requirements on energy use, water requirements, demolition, circular construction.
Identify fiscal and economic tools for the circular economy
There are several fiscal and economic tools that the city of Valladolid could consider applying to boost the circular economy. This includes local taxes, fiscal bonuses, incentives, etc. These tools can incentivise or disincentivise behaviours towards the circular economy, such as increasing separate collection of waste. Actions can also improve access to finance for circular economy projects in the starting, implementation and scale-up phases. Some international experiences are the following: the Dutch Government’s DIFTAR system is a scheme based on differentiated tariffs in order to provide incentives to improve waste separation at source (pay-as-you-throw); VAT reductions for companies working on circular economy projects in Shanghai (China) and for reused items (Sweden); discounts on waste fees for businesses in Milan (Italy) and San Francisco (United States).
Key actions:
Map the measures that the municipality can adopt according to its fiscal competencies. A range of fiscal tools have been identified from international practices, such as:
Property tax according to the energy consumption of buildings.
Corporate income tax (e.g. based on the waste generation level, water and energy consumption, use of recycled materials as raw materials).
VAT reduction on products labelled as circular (e.g. easy to recycle and reuse, proximity).
Tax reductions on second-hand materials.
Discount on waste fees according to preselected criteria.
Differentiated tariffs for waste separation and recycling (e.g. pay-as-you-throw approach).
Explore the possibility of updating municipal economic tools (e.g. grants) to foster a circular economy local model.
Strengthen the role of the Agency of Innovation and Economic Development
The Agency of Innovation and Economic Development should strengthen his role as key actor for the circular economy in the municipality and co-ordinator across municipal departments. It is important for stakeholders to identify a responsible entity to co‑ordinate, organise and monitor the interaction between stakeholders participating in networking activities and the circular economy community in the city, or soon to be.
Key actions:
Establish clear roles and responsibilities within the agency in co-ordination with municipal departments.
Lead the co-creation process of Valladolid’s circular economy strategy (e.g. organising meetings, engaging with stakeholders, defining the necessary steps to develop the strategy, etc.).
Carry out marketing activities, increase advertising and improve communication with citizens and businesses (e.g. organising conferences and circular talks).
Participate in networks focusing on the circular economy.
Incorporate the circular economy into the formal responsibilities of the agency.
Create a specific team in charge of circular economy-related topics.
Match needs with resources (financial, technical and human).
Evaluate the activity of the agency on a regular basis and improve as appropriate.
Establish partnerships and collaboration with other institutional partners, as appropriate.
Implement Green Public Procurement
Green Public Procurement (GPP) is a fundamental tool for cities to foster the circular transition, reducing the environmental impacts of public purchases at the city level. GPP should promote eco-efficiency, eco‑design and collaborative consumption. For example, the city of Ljubljana (Lithuania) included environmental requirements in its tenders; the city of Paris (France) adopted a scheme for responsible public procurement; the city of Toronto (Canada) set up a Circular Economy Procurement Implementation Plan and Framework to use its purchasing power as a driver for waste reduction, economic growth and social prosperity (City of Toronto, 2018[13]).
Key actions:
Include circular principles in the technical specifications, procurement selection and award criteria, as well as in contract performance clauses (e.g. reuse, durability, reparability, second-hand or remanufactured products).
Adapt the public procurement evaluation system by increasing the value of social and environmental ratings in comparison with the price criteria.
Establish clear requirements in tenders in order to foster change in materials, quality and maintenance (e.g. use secondary materials in publicly purchased goods).
Apply life cycle analysis and develop criteria to evaluate the life cycle of the assets used by each municipal service, and use them to perform analysis of infrastructure, solutions and suppliers to foster more sustainable solutions in municipal services.
Provide training for staff of public institutions responsible for the inclusion of circular criteria in the specifications.
Develop training programmes on the circular economy
The aim of this recommendation is to provide entrepreneurs and employees with deeper knowledge and tools to succeed in their circular projects while enhancing knowledge to develop circular activities. This could be done in co-operation with the Chamber of Commerce to build capacities among entrepreneurs and small business managers and raise awareness of the potential of the circular economy and new business models. For instance, the Chamber of Commerce of Glasgow (United Kingdom) provides capacity building programmes for businesses aiming to transition to a circular economy (Zero Waste Scotland, 2019[23]).
Key actions:
Collaborate with business associations, trade unions and the Chamber of Commerce of Valladolid, to co-create joint training programmes for entrepreneurs and employees, to boost the circular economy and new business models.
Identify existing training and educational programmes at the university level or carried out by research centres and foundations to establish possible synergies and provide support if need be.
Enable small-scale initiatives
Identifying places, areas and communities to experiment and share tools among neighbours for developing small-scale initiatives can be a first step to foster change at the local level, test the viability of circular initiatives with a lower risk, stimulate the creation of new ideas and circular business models and share knowledge on circular economy practices. The project developed in the La Victoria neighbourhood can act as an example for this kind of initiatives (Box 2.5). Since 2010 in Paris, France, the Urban Lab has accompanied more than 200 experiments and consolidated a methodology to support effective experimentation in 4 main stages: i) the definition of the experimental project and its evaluation; ii) a search of the experimental site; iii) the deployment of experimentation; and iv) valuation and transformation. In order to facilitate access to these experimental sites, the Urban Lab has been working for 10 years, in the development of a legal framework that start-ups can refer to for the development of their projects (e.g. a model agreement for using publicly owned spaces for a fixed period of time) (Urban Lab, 2019[24]).
Key actions:
Explore and identify places to implement and pilot initiatives at the neighbourhood level, such as:
Pilot projects to achieve waste separation targets, door-to-door collection systems, food waste reduction and reduction of waste production (e.g. intelligent containers).
Digital solutions to reduce water and energy consumption and water recycling in public buildings as well as commercial activities.
New business models, enhancing waste prevention, reducing resource consumption and fostering local consumption. This can be one by:
Promoting the sharing economy (e.g. for the use of tools and equipment).
Fostering the purchase of locally produced goods.
Encouraging remanufacturing, refurbishing and 3D repair services (e.g. for computer equipment, textiles and furniture).
Promoting reuse (e.g. second-hand markets, exchange of materials and goods).
Strengthen the effectiveness of the municipal grants related to the circular economy While the municipal grants for the circular economy have stimulated entrepreneurship in the circular economy in the city, some improvements can be considered to increase the effectiveness of funds. At the same time, alternative funding sources beyond municipal grants could be explored. Some examples from international practices are revolving funds and funding schemes in co-operation with private and semi-public financial institutions (e.g. banks, business funds) (Box 2.3).
Key actions:
Identify and update a set of criteria that could help select the projects, based on previous calls and evaluate proposals received on the “scalability” of each project.
Make a distinction across applicants, as private-sector and non-profit organisations have different means, resources and scope and can therefore be evaluated on the basis of specific criteria.
Monitor and evaluate impacts achieved by funded projects and the type of collective benefits achieved, e.g. in social and environmental terms.
Share information on funding opportunities after the end of the grant. Possible options could include: soft loans, alternative and non-bank sources of finance, crowdfunding, peer-to-peer lending, business angel networks and venture capital.
Consider the possibility of applying external audits to the projects.
Develop a monitoring and evaluation framework
Identifying how “circular” the city is, what works, what does not and what can be improved is important to progress toward the transition to a circular economy. The OECD scoreboard on the circular economy in cities and regions can contribute to this. These proposed OECD indicators could add to the 16 existing sustainability indicators that the city has defined in 2016 regarding quality of life, mobility, air quality and pollution (Agenda 21, 2016[25]). The proposed OECD indicators for the evaluation of the circular economy strategy in cities and regions are detailed in Box 3.3.
Key actions:
Identify available indicators and data for the monitoring of progress and assessment of the results of the circular economy strategy, such as those proposed by the OECD (forthcoming[5]).
Repeat the evaluation every year.
Box 3.3. The proposed OECD Circular Economy Scoreboard for Cities and Regions
The proposed OECD Circular Economy Scoreboard for cities and regions consists of a self-assessment of key governance conditions to evaluate the level of advancement towards a circular economy in cities and regions. It is composed of 10 key dimensions, whose implementation governments and stakeholders can evaluate based on a scoreboard system, indicating the level of implementation of each dimension (Newcomer, In progress and Advanced).
Table 3.3. OECD Circular Economy Scoreboard for Cities and Regions
According to the self-evaluation, the city/region will identify its own level of advancement toward the transition to a circular economy, identify gaps and set its own targets for improvement. The methodology for self-assessment consists in a scoreboard system that can indicate the level of advancement of circular cities and regions towards the transition. Sub-indicators to better specify each dimension are under development and will be tested in the case studies of the OECD Programme on the Circular Economy in Cities and Regions.
Source: OECD (forthcoming[5]), The Circular Economy in Cities and Regions, Synthesis Report, OECD Publishing, Paris.
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