In response to the challenges identified in Chapter 4, this chapter suggests policy recommendations for the transition to a circular economy in Ireland. The recommendations specify how national and local governments can work together to act as promoters, facilitators and enablers of the circular economy, building on the OECD Checklist for Action on the Circular Economy in Cities and Regions.
The Circular Economy in Ireland
OECD Urban Studies
5. Policy recommendations and actions for a circular economy in Ireland
Abstract
Transitioning towards the circular economy: A Checklist for Action
The transition towards the circular economy is a shared responsibility across levels of government and stakeholders. National governments can support the transition towards the circular economy by providing an overarching policy framework for all levels of government that empower local and regional authorities to build their own vision of the circular economy based on common targets and objectives. National governments can also support the circular transition with regulatory, financial and economic instruments, particularly by correcting unwanted incentives, removing harmful subsidies, pricing in environmental externalities and enhancing regulatory requirements on the ecodesign of products.
The OECD Checklist for Action for the circular economy, based on 12 key governance dimensions, provides guidance to governments to promote, facilitate and enable the circular economy. While this checklist was created for cities and regions, these dimensions can be applied across levels of government. The 12 dimensions are grouped into 3 clusters corresponding to the complementary roles of cities, regions and national governments as promoters, facilitators and enablers of the circular economy (Figure 5.1) (OECD, 2020[1]) These governance dimensions were inspired by the OECD Principles on Water Governance (OECD, 2015[2]) and are accompanied by the OECD Scoreboard on the Governance of the Circular Economy, developed thanks to the collective efforts from case studies on the circular economy in several cities (OECD, 2020[3]; 2020[4]; 2020[5]). The scoreboard is also the result of a literature review that collected over 450 indicators from national, regional and local circular economy strategies (OECD, 2021[6]).
Figure 5.1. The governance of the circular economy in cities and regions: A Checklist for Action
Source: OECD (2020[1]), The Circular Economy in Cities and Regions: Synthesis Report, https://doi.org/10.1787/10ac6ae4-en.
Promoters: Governments at different levels can promote the circular economy by acting as a role model, providing clear information and establishing goals and targets, in particular through: defining who does what and leading by example (roles and responsibilities); developing a circular economy strategy with clear goals and actions (strategic vision); promoting a circular economy culture and enhancing trust (awareness and transparency).
Facilitators: Governments at different levels can facilitate connections and dialogue, in particular by: implementing effective multi-level governance (co‑ordination); fostering system thinking (policy coherence); facilitating collaboration amongst public, not-for-profit actors and businesses (stakeholder engagement) and adopting a functional approach (appropriate scale).
Enablers: Governments at different levels can create the enabling conditions for the circular transition by: identifying the regulatory instruments that need to be adapted or implemented (regulation); mobilising financial resources and allocating them efficiently (financing); adapting human and technical resources to the challenges to be met (capacity building); supporting business development (innovation); and generating an information system and assessing results (data and assessment).
This chapter suggests policy recommendations and related actions for the transition to the circular economy in Ireland. It builds on international best practices identified by the OECD (2020[1]), desk-based research and interviews carried out with over 100 stakeholders during virtual OECD missions to Ireland in March and October 2020 and in July 2021, as well as an online policy seminar on 19 October 2021.
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 government of Ireland, involving stakeholders as appropriate. In turn, the combination of more than one action can be explored, if necessary.
Prioritisation of actions should be considered: Addressing all recommendations simultaneously is neither feasible nor desirable, so prioritising actions is key. Table 5.1 provides an indicative timetable for actions (short, medium and long terms) based on the discussion and results of the Policy Seminar on the Circular Economy in Ireland held on 19 October 2021.
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 suggested actions, the resources required to put them in practice should be carefully evaluated, as well as the role of stakeholders that can contribute to the implementation phase.
Proposed actions should be updated in the future: Potential new 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.
Table 5.1. Suggested policy recommendations, actions and sequence for the circular economy in Ireland
Promoter
As a promoter of the circular economy, the government of Ireland can: i) clarify roles and responsibilities and lead by example; ii) promote and implement a vision for the circular economy by developing a circular economy strategy with clear goals and a timeline for action; and iii) raise awareness and transparency by promoting a circular economy culture and enhancing trust in the circular economy.
Roles and responsibilities: Clarify who does what and lead by example
Clarify roles and responsibilities
Defining clear roles and responsibilities for designing, financing, implementing and monitoring circular economy policy and initiatives across levels of government is key to avoiding gaps, overlaps and duplications of responsibilities. The Waste Action Plan for a Circular Economy (WAPCE), the Whole of Government Circular Economy Strategy (hereafter “the Strategy”) and the Circular Economy Programme (hereafter “the Programme”) have defined these roles:
The Circular Economy Unit within the DECC is responsible for developing the national circular economy policy framework and overseeing its implementation, and for a share of circular economy funding (e.g. Circular Economy Innovation Grant Scheme, CEIGS).
Through the Circular Economy Programme, the EPA supports the DECC in co‑ordinating across levels of government in the implementation of the strategy. It also has responsibilities for policy support (data, insights and monitoring), regulation and funding (e.g. Green Enterprise).
Regional Waste Management Planning Offices (RWMPOs) will continue to be responsible for the regional implementation of the five-year national waste management plans in the local authorities of their respective waste management regions. They will also continue to deliver regional and national circular economy and waste-related projects and initiatives.
Local authorities will continue to have licensing and enforcement responsibilities for waste (e.g. for certain waste treatment facilities) and implement circular economy initiatives locally.
To effectively implement the Strategy, it is suggested to:
Identify the entities responsible for the different objectives of the strategy and enforcement mechanisms. Defining who does what and how is essential to ensure accountability and should be a priority of the second iteration of the strategy.
Consider placing the Strategy under the oversight of the Department of the Taoiseach, the Prime Minister of Ireland, as is the case for the Climate Action Plan (CAP). The performance of different government departments in meeting CAP targets is supervised by the Department of the Taoiseach, ensuring cross-departmental and agency co‑ordination (DECC, 2019[7]). Implementing a similar mechanism for the Strategy could raise the profile of the circular economy and establish it as a pillar of Ireland’s climate mitigation strategy. The circular economy is systemic by nature and requires a holistic vision with strong co‑ordination across government departments.
Make sure that other government departments are involved in circular economy policy and included in the terms of reference of the Circular Economy Working Group. These should notably include the Department of Enterprise, Trade and Employment (DETE), the Department for Agriculture, Food and the Marine (DAFM), the Department of Housing, Local Government and Heritage (DHLGH), the Department of Transport (DoT), the Department of Education (DoE) and the Department of Further and Higher Education, Research, Innovation and Science (DFHERIS). The proposed terms of reference for the Working Group in the Strategy (Annex 7) do not yet specify which departments will be involved. The DECC should publish this information in the final terms of reference as soon as possible.
Consult the Department of Finance on decisions related to the implementation of the strategy, especially to enhance the use of economic instruments and to allocate funding. For instance, in Italy, the Ministry for Ecological Transition shares the responsibility for circular economy policy making with the Ministry of the Economy (see Box 5.1).
Designate a clear role for the regional assemblies to embed circularity in regional and local planning. Regional assemblies have a significant but untapped role to play in the circular transition, as Ireland’s National Planning Framework (and its regional declination, the Regional Spatial and Economic Strategy, RSES) covers social, economic, environmental and cultural development. The mandate of regional assemblies makes them well placed to act as a link between the European Union (EU) and national and local levels of government to embed circular principles in planning policy. Furthermore, their relations with all government departments make them well suited to transcend siloed thinking. The mid-term review of RSES 2019-2031 is a key opportunity to strengthen the role and responsibilities of regional assemblies in the circular transition.
Broaden the role of local authorities in circular economy policy implementation. This can be done by:
Embedding circularity in Local Economic and Community Plans, which set out actions to achieve social and economic development objectives at the local level for five-year periods. The revision of these plans for the next five-year period is a key opportunity for local authorities to promote circular infrastructure, housing, commercial and public spaces, as well as to embed circularity within key local economic sectors such as tourism, retail, manufacturing or agriculture.
Mandating local Action Plans for the Circular Economy via the Circular Economy Bill, as the Climate Action and Low Carbon Development (Amendment) Bill 2021 recently did for local Climate Action Plans.
Broadening spending responsibilities for subnational governments, which are very limited in Ireland, in the longer run (OECD/UCLG, 2017[8]). This would enable local authorities to play a more important role in funding local circular economy initiatives.
A variety of models to distribute roles and responsibilities in circular economy policy exists in OECD countries (Box 5.1).
Leading by example
Define the conditions for local authorities to lead by example. For example, local authorities can:
Prevent waste generation in local events, activities and establishments such as schools, for instance, by banning single-use items such as plastic water bottles, cups and cutlery in local events and meetings.
Increase levels of separate waste collection using bins for recyclables, organics and residual waste in public spaces.
Apply circular criteria to GPP and test circular business models (e.g. product as a service) rather than systematically opting for ownership, for instance by leasing rather than buying vehicle fleets for local public transport, or by promoting local services with circular business models such as car‑sharing among residents.
Promote the use of secondary materials and products (e.g. showcasing upcycled furniture in public buildings) and construct infrastructure and buildings in a circular manner (see Chapter 2).
Nominate circular economy “champions” from local businesses and households to raise awareness among peers.
Support business and community-led circular economy initiatives, with success stories being scaled up to the national level (e.g. Modos).
Box 5.1. Who does what at which level of government on the circular economy?
According to the OECD Survey on the Circular Economy in Cities and Regions (2020), Ministries of the Environment often have a central role in the circular economy. For example, in Chile, Japan and New Zealand, the Ministry of the Environment is the main government body responsible for the circular economy. In other countries, this ministry shares the responsibility with the Ministry of Industry (Colombia and Denmark), the Ministry of the Economy (Italy) or the Federal Ministry of Jobs, Economy and Consumers (Belgium). Local governments generally work in collaboration with state governments under an overarching waste management strategy, although an explicit reference to the circular economy is not always included.
At the regional level, according to respondents of the survey, the circular economy is driven by public environmental organisations, waste management agencies and economic development organisations. The regional governments that answered the OECD survey have allocated the responsibility of guiding the circular transition mainly to: regional councils (North Karelia, Finland, through the Regional Council of North Karelia); publicly funded, not-for-profit environmental organisations (Scotland, United Kingdom [UK], through Zero Waste Scotland); and public waste agencies (Flanders, Belgium, through the Public Waste Agency of Flanders OVAM).
According to the respondents of the OECD survey, the circular economy in cities is led by environmental departments. Beyond environmental departments, respondents flagged responsibilities across economic development and urban planning departments, sustainability and waste management utilities and/or related public agencies. The city council or the central municipal administration also holds responsibilities, as well as innovation area offices and public works departments. In Amsterdam, Netherlands, and Paris, France, the transition is led by urban planning and sustainability areas. In London, UK, this responsibility is assigned to ReLondon (previously the London Waste and Recycling Board, LWARB). The city of Kitakyushu, Japan, has designated the Environmental Industry Promotion Division for the task. In cities, city managers dedicated to the circular economy are flourishing. The increasing importance of the circular economy is visible by the fact that there are specific circular economy managers in cities (e.g. Amsterdam, Netherlands; Brussels, Belgium; Ljubljana, Slovenia; London, UK; Paris, France; and Rotterdam, Netherlands). Circular economy managers are in charge of promoting the setting and implementation of circular strategies, while also building relations with external actors.
Source: OECD (2020[1]), The Circular Economy in Cities and Regions: Synthesis Report, https://doi.org/10.1787/10ac6ae4-en.
Strategic vision: Implement a circular economy strategy with clear goals and a timeline for action
Ireland is at a turning point for the circular economy. This is reflected in the abundance of circular economy policy publications since 2020 and, in particular, the Whole of Government Circular Economy Strategy in December 2021. The Strategy’s main objective is to provide the overarching policy framework for the circular economy in Ireland and to promote public sector leadership in circular policies and practices (DECC, 2021[9]). The Strategy further aims to support and implement measures that bring Ireland’s circularity rate above the EU average by 2030. It plans to do so by: i) raising awareness of the circular economy among citizens and businesses; ii) supporting and promoting increased investment in the circular economy; and iii) identifying and addressing the economic, regulatory and social barriers to Ireland’s circular transition, which respectively constitute the third, fourth and fifth objectives of the strategy.
As it stands in 2022, the Strategy is at its first iteration. Its statutory status and revision every 18-24 months make it a dynamic tool that can adapt to evolving needs. The second iteration of the Strategy, which will exceptionally be published just one year after the publication of the first strategy around December 2022, should provide a solid foundation for a circular economy policy across levels of government.
Ahead of the Strategy’s second iteration, the DECC should clearly set out a whole-of-government approach that involves policy areas across sectors, as its own title suggests. As such, it should build on: i) an analysis of stocks and flows; ii) a compelling mapping of existing circular economy-related initiatives; iii) clear objectives, timeline and action; iv) a dedicated budget; v) a shared vision with stakeholders; vi) a monitoring framework for measuring progress and allow changes in the second phase based on evidence on what worked, what did not work and what can be improved (Figure 5.2):
Figure 5.2. Steps for developing a strategic vision for a circular economy
Source: OECD (2020[1]), The Circular Economy in Cities and Regions: Synthesis Report, https://doi.org/10.1787/10ac6ae4-en.
An analysis of stocks and flows. A scoping exercise for a material flow analysis is planned for the first half of 2022 in the proposed programme of work of the Circular Economy Working Group (Annex 7) within the Strategy. To do so, the working group should involve institutions that are already active in circular economy research across different economic sectors, such as the Environmental Research Institute at University College Cork, to inform the scoping exercise and the analysis itself. Such an analysis would provide a sound evidence base for prioritising sectors (e.g. ahead of the sectoral roadmaps) with high potential for the circular economy transition in Ireland. The national government should provide adequate funds to support universities and research centres involved in this exercise to inform new iterations of the strategy.
A map of existing circular economy-related initiatives. Identifying existing initiatives at the national, regional and local levels in Ireland is crucial to learn from experience and explore cross-sectoral synergies. It also allows national and subnational governments to identify partners for the circular transition. The working group could carry out this exercise building on the economic instruments, initiatives and relevant policies identified in Chapter 2. It can also work with the Rediscovery Centre, which hosts a live circular economy database enabling the mapping of initiatives across Ireland as part of its strategic partnership with the EPA.
Clear and achievable objectives, goals, a timeline for action and expected outcomes. The first iteration of the Strategy contains five objectives, of which just one (to bring Ireland’s circularity rate above the EU average by 2030) is measurable and time-bound. To ensure that the Strategy provides a robust basis for circular economy policy in Ireland, the second iteration should:
Consider adding alternative objectives to the circularity rate. The Strategy’s objective to bring the circularity rate above the EU average is by 2030 is measurable and time-bound, which is a good practice in objective-setting. However, the circularity rate should ideally go beyond measuring the share of recycled and recovered materials to also account also for reuse and repair. The DECC should consider pursuing alternative objectives related to repair, reuse, product lifetime extension, the diversion of waste from landfill and better waste separation among others (see Table 5.2). More broadly, circular economy strategies can pursue climate, economic and innovation-related objectives, among others; Box 5.2 presents examples of objectives contained in circular economy strategies.
Set clear timelines for the achievement of intermediate targets. Targets and objectives should be expressed in absolute terms (e.g. achieve a 50% increase in the recycling rate of municipal waste by 2030) rather than relative terms (i.e. bringing the Irish circularity rate above the EU average by 2030) to set a clear “finish line” for stakeholders and facilitate tracking progress towards the achievement of the objective.
A dedicated budget and resources. The Strategy should plan and forecast the financial and human resources needed to implement the identified actions. The national government could assess the relevance and potentially replicate national and subnational financial schemes from other countries, including EU funds and subnational funding schemes (see Boxes 5.4 and 5.5).
A shared vision with stakeholders. To build consensus on the circular economy vision and move towards its implementation, all relevant stakeholders should be involved from the inception to the implementation of the Strategy. The public consultation and multi-stakeholder Waste Advisory Group that informed the WAPCE is a good practice in line with international examples. The DECC should extend invitations to the Circular Economy Advisory Group1 to stakeholders absent from the first advisory group (e.g. from the design community) to promote an economy-wide strategy that goes beyond waste management (see the sub-section on stakeholder engagement below). As the first Strategy does not include the list of stakeholders the DECC plans to invite, the DECC should disclose the membership of the new advisory group before the second iteration of the Strategy, to ensure transparency and make sure all relevant stakeholders contribute to the implementation of the Strategy.
Explore the application of circular economy principles to food systems and the built environment, as discussed in Chapter 3, to design out waste and pollution, maximise resource efficiency and transform waste into resources. In particular:
Within the food system, the DECC, the DAFM and the DHLGH could:
Map government programmes and price-based and regulatory incentives across the food chain, from production to consumption and disposal, and associated environmental impacts (notably on water resources).
Raise awareness of the economic and environmental benefits of regenerative and circular farming practices among farmers via existing government and non-government programmes, such as the Irish Farmers’ Association Smart Farming programme.
Ramp up efforts on data collection regarding food waste and food loss by strengthening collaboration between the DECC, the EPA, the DAFM and Teagasc, Ireland’s agriculture and food development authority.
Within the built environment, the DECC could consider working with the DHLGH and the Department of Public Expenditure and Reform (DPER) to:
Embed circular economy principles in planning through national (DPER), regional (regional assemblies) and local authorities. The 2017 revision of the National Planning Framework represents a key opportunity to do so.
Raise awareness and share knowledge of circular building practices among businesses in collaboration with the Irish Green Building Council.
Incentivise circular practices and materials by updating regulation on end-of-waste and by‑products, and promoting standards and economic incentives for recycled materials, as well as disincentives for virgin materials.
Shift procurement practices from focusing on capital costs to considering life-cycle costs (i.e. operation, maintenance and end-of-life) to favour the uptake of circular and sustainable solutions, and develop circular criteria for the built environment to be included in GPP.
Regular monitoring of progress made and impact evaluation. The national government and the EPA should introduce an effective system monitoring the progress of the Strategy’s implementation and evaluating its impacts. Tracking progress is crucial to make adjustments and communicate the results to stakeholders and the public, with a view to maximising buy-in. Indicators can include the following: waste diverted from landfill (tonnes [T]/inhabitant/year or %); carbon dioxide (CO2) emissions saved (T CO2/capita or %); virgin material consumption avoided (T/inhabitant/year or %); use of recovered material (T/inhabitant/year or %); energy savings (kilogram of oil equivalent [Kgoe]/inhabitant/year or %) and water savings (megalitre [ML]/inhabitant/year or %) (see further examples in sub-section on data and assessment below). The DECC can use the OECD Checklist for Action, which is based on 12 key governance dimensions for promoting, facilitating and enabling the circular economy, to adopt this approach (OECD, 2020[1]).
Table 5.2. Selected indicators for circular economy strategies
Source: OECD (2020[1]), The Circular Economy in Cities and Regions: Synthesis Report, https://doi.org/10.1787/10ac6ae4-en.
Box 5.2. Examples of the objectives of circular economy strategies
Circular economy strategies can have multiple objectives, including the promotion of sustainable development, waste reduction, more efficient or optimal use of resources, carbon neutrality, stimulating employment and boosting innovation.
The promotion of sustainable development is part of various national circular economy initiatives. It is often related to national and global sustainability agendas such as the United Nations (UN) Agenda 2030 Sustainable Development Goals (SDGs). In the case of Denmark, for example, the circular economy is considered a key step in the government’s action plan to contribute to the attainment of all 17 SDGs.
Waste reduction and more efficient resource use are key goals in several strategies. Waste reduction is often the most prominent environmental goal. In the Netherlands, for example, the circular economy strategy envisages an (interim) objective of a 50% reduction in the use of primary raw materials (minerals, fossil and metals) by 2030 and a goal to use and reuse raw materials efficiently without any harmful emissions to the environment by 2050. France aims to: reduce natural resource use due to French consumption by 30% in relation to gross domestic product (GDP) between 2010 and 2030; reduce the amount of non-hazardous waste by 50% between 2010 and 2025; and recycle 100% of plastics by 2021 and, in doing so, avoid 8 million additional tonnes of CO2 emissions each year. Spain aims to increase the efficiency of water use by 10% and to reduce food waste by 50% per capita at household and retail level and by 20% in production and supply chains from 2020.
Carbon neutrality is also a key part of circular economy strategies. In Scotland, UK, it is estimated that a more circular economy could reduce carbon emissions by 11 million tonnes per year by 2050. The city of Joensuu, Finland, is planning circular economy actions within the ongoing climate programme that aims to transform Joensuu into a carbon-neutral city by 2025. Circular economy is considered as providing one of the most substantial contributions to carbon neutrality in London, UK.
Stimulating employment is one of the aims of several circular economy strategies. Some countries explicitly recognise the employment benefits that a circular economy industry can offer: estimates in France have shown that up to 300 000 additional jobs may be created, in many cases, through the creation of novel professions. The entrepreneurial value of creating a critical mass of new business models and structures as well as infrastructure, with a focus on local production and small- and medium-sized enterprises (SMEs), is explicitly recognised by Colombia and Italy in their respective circular economy strategies.
Circular economy strategies can pave the way for innovation and economic benefits. Some projections show the positive economic impact that the circular economy can have (e.g. Colombia, Finland, France, Italy), while innovation and positive social effects are also highlighted by a number of strategies. It is estimated that in Scotland, UK, action across 8 manufacturing sub-sectors could result in annual cost savings of GBP 0.8-1.5 billion. The circular economy strategy of the Autonomous Region of Extremadura, Spain, sees the circular economy as an opportunity to transform industry by attracting both national and international investments, strengthening tourism, ensuring sustainable rural development, land use planning, urban planning and construction, and improving transport networks and services.
Source: OECD (2020[1]), The Circular Economy in Cities and Regions: Synthesis Report, https://doi.org/10.1787/10ac6ae4-en.
Awareness and transparency: Promote a circular economy culture and enhance trust
Raising awareness among different levels of government, businesses and households is a prerequisite to overcome cultural barriers and increase acceptance of the circular economy. As described in Chapter 3, key players such as businesses, farmers and households have limited awareness and access to knowledge of the circular economy’s potential and opportunities. The acceptance issue stems from a lack of awareness but also trust in terms of the quality of reused products and goods.
The Strategy plans to raise awareness by implementing a national circular economy online platform and a national circular economy brand (DECC, 2021[9]). The working group is expected to make proposals for both in consultation with the advisory group, and implementation to be started by the end of 2022. In addition to the platform and brand, the government can consider targeted communication campaigns to raise awareness and promote trust in the circular economy, and other forms of soft regulation (e.g. certificates, labels and nudging).
A national circular economy platform
The online platform can build on the following elements:
Stakeholder profiles for cities, regions, businesses, knowledge institutions and other stakeholders implementing circular economy projects, initiatives and policies in Ireland, highlighting respective strategies, activities and good practices.
Circular projects, initiatives, news and events from Ireland, from a range of economic sectors and involving relevant stakeholders. Projects, including pilots and demonstrations, can provide valuable information on the regulatory, technical and financial dimensions, among others, of circular solutions to be replicated and scaled up. Circular economy events such as conferences, seminars and webinars in Ireland and abroad should also be shared. The DECC should inject existing resources from key circular economy players in Ireland (e.g. EPA, local authorities, universities, CIRCULÉIRE, the Bioeconomy Implementation Group, etc.) and from the Rediscovery Centre, which already has relevant initiatives such as Circular Economy News.
Support material such as reports and guidance, including toolkits for citizens, different business sectors and the public sector for the implementation of circular economy practices and projects in Ireland and at the European level. The European Investment Bank (EIB) Circular City Funding Guide is a good example, as it provides structured information and examples of funding schemes and commercial lenders of EU Green Bonds, for fund seekers and donors alike (EIB, 2021[10]).
A directory to find rental, repair and second-hand businesses locally. This section of the platform should be developed in collaboration with local authorities, given their knowledge of local circular economy businesses and initiatives. It should build on the existing platform repairmystuff.ie and could further draw from the design of the Longue vie aux objets (Long Life to Objects) platform developed by the French Environmental and Energy Management Agency (ADEME, 2021[11]). The DECC should extensively build on material from existing platforms such as CIRCULÉIRE’s Circular Economy Knowledge Library, mywaste.ie, irishbioeconomy.ie and the Rediscovery Centre and CRNI websites.
A dashboard showing progress towards predefined circular economy targets. This data would be collected through a broader information system on the circular economy allowing policy makers to monitor progress towards the achievement of targets, to evaluate and adjust circular economy policies (see the sub-section below on data and assessment). The dashboard on the platform would promote transparency by allowing all interested stakeholders to monitor Ireland’s progress towards achieving a circular economy. The targets should be defined within the Strategy (see previous section).
National, regional and local contact points for the circular economy aimed at businesses and citizens.
The online platform could serve as a basis for a broader and integrated awareness-raising initiative with an offline component. The government, EPA and other relevant stakeholders could use it as a launching pad for online and in-person events and meetings, and as an outlet for circular economy policy news, including press releases, newsletters, invitations for stakeholder consultations, etc. A broader communications campaign raising awareness on the circular economy (see below) could also promote the platform as a one-stop-shop for all things circular in Ireland.
Communication campaigns
The DECC and EPA could raise awareness on the circular economy, and notably on the circular economy platform and brand, through a dedicated communication campaign. Dissemination efforts should be tailored to the different needs and interests of businesses and citizens via separate supports.
For businesses, the campaign should focus on: i) the economic benefits of circular business models and practices for businesses; ii) toolkits and guidance for applying circular principles in different sectors, both upstream and downstream; iii) information and support on applying for grants and other sources of funding.
For citizens, the campaign should focus on: i) the economic and environmental benefits of circular practices such as reuse and repair; ii) the directory to find local circular businesses and initiatives such as repair cafés; iii) the dashboard tracking progress towards circular economy targets, to enhance transparency and trust. The campaign should seek to promote acceptance and build trust in second-hand shops, repair initiatives and businesses, upcycling services and other circular businesses.
The DECC should co‑ordinate a harmonisation effort on circular economy communication across the department, national government, EPA and RWMPOs to maximise synergies and build on existing practices (e.g. from Rediscovery Centre).
Incentives for behavioural change
Incentives for behavioural change such as brands, labels and standards can stimulate behavioural change conducive to the circular economy among businesses and households. In this sense, it is suggested to:
Develop a circular economy brand to raise awareness and build trust in the circular economy. This action is already foreseen for implementation by the end of 2022 under the Strategy, and aims to increase public awareness as well as identify and reward best practice for publicly supported circular initiatives. The DECC should pay particular attention to defining clear and transparent criteria for the brand, creating a level playing field and maximising buy-in.
Use existing labels (e.g. ReMark and Origin Green) to incentivise businesses to produce and distribute according to circular economy principles and enable consumers to make informed consumption decisions, ultimately leading to more circular production and consumption choices. For instance, the French Roadmap for the Circular Economy includes the deployment of voluntary environmental labelling in furnishing, textile, hotels, electronic and food products. It aims to increase the visibility of existing environmental labels, including the European ecolabel and NF Environment (a collective certification label for producers that comply with environmental quality specifications), as well as to develop a quality label for second-hand products. As part of the roadmap, a “repairability index” has been developed and mandated for five categories of appliances and electronic products by the Anti-waste and Circular Economy Law (Ministère de la Transition écologique, 2021[12]).
Promote the re-engineering of existing standards to promote circular design, circular processes and the incorporation of second-hand material across sectors. Standards can support producer and consumer confidence in circular products and materials, facilitating their wider adoption. They have a key role to play in embedding circular design in procurement and markets under “business as usual” and creating a market for second life assets. As such, government departments that set standards (e.g. DETE and DoT) have a key role to play in standardising a circular approach. The government can promote the incorporation of circularity in current standards by dedicating resources for standard-setters, including the National Standards Authority of Ireland (NSAI) and government departments and agencies that set standards.
Facilitator
As a facilitator of the circular economy, the government of Ireland can: i) implement effective multi-level governance co‑ordination; ii) enhance policy coherence by fostering systemic thinking across government; iii) involve a broader range of stakeholders to take circular economy policy beyond waste management; and iv) adopt a functional approach to identify the appropriate scale for action and take advantage of territorial specificities.
Co-ordination: Implement effective multi-level governance
Co-ordination among different levels of government is crucial to address common circular economy-related issues, align objectives, avoid a lack of information, asymmetries and inefficient duplications (OECD, 2020[1]). Co-ordination mechanisms include:
Co-ordination bodies such as committees, commissions, working groups and task forces.
Meetings, joint circular economy projects.
Shared databases and information systems.
Contracts or deals as tools for dialogue, experimenting, empowering and learning.
The Circular Economy Working Group and the EPA Circular Economy Programme are the two main co‑ordination mechanisms for circular economy policy in Ireland under the strategy (DECC, 2021[9]). The DECC-chaired working group, which is being established following the Strategy’s publication in December 2021, is intended as a horizontal mechanism to co‑ordinate across “priority” government departments, according to the Strategy. The EPA-led programme is a vertical co‑ordination mechanism to support the DECC’s Circular Economy Unit in overseeing national, regional and local activities, to improve coherence and alignment of national and local activities.
To further facilitate horizontal co‑ordination, it is suggested to:
Activate the inter-departmental Circular Economy Working Group to identify how circular economy principles can be applied to different sectoral policies to reduce waste, improve resource efficiency, create jobs and improve access to services. As a priority, the DECC should publish the final terms of reference for the working group, including the list of government departments and agencies involved. Over time, the DECC can consider inviting additional departments to join, as was the case for the inter-ministerial commission for the Spanish Circular Economy Strategy (see Box 5.3). The group can:
Map policies, targets, legislation, regulations, incentives and initiatives relative to the circular economy, to better understand current incentives, disincentives and barriers to the circular economy in the policy landscape and take action to remedy the issues identified. More suggestions relative to mapping can be found in the sub-section above on strategic vision.
Mandate that all government bodies draw up and implement circular action plans, building on the existing Resource Efficiency Action Plans that are required across all government bodies (DECC, 2021[13]). These action plans should set clear, time-bound objectives to be achieved with predefined resources, to ensure accountability across government departments. Transport Infrastructure Ireland (TII) is currently developing a Circular Economy Plan that could serve as a benchmark for other government department or agency strategies.
Co‑ordinate with the DETE to foster the circular economy as an economic agenda, rather than a resource efficiency and waste minimisation tool, across government departments. Co-ordination between the DECC and DETE can be project-based: for instance, the departments can instigate a joint assessment of the potential for the circular economy in Ireland in terms of value-added and job creation. This could further help to build cross-governmental consensus on the circular economy as well as momentum.
Co‑ordinate with government departments and agencies setting standards, notably the DETE, NSAI, DoT and TII, by setting up regular (e.g. monthly) meetings with the DECC.
At the subnational level, enhance co‑ordination between regional and local offices, for instance between RWMPOs, Climate Action Regional Offices (CAROs), local authorities and Local Enterprise Office (LEO) staff. Such co‑ordination can be project-based and build on existing initiatives that explore the economic and enterprise opportunities stemming from climate action (CARO, 2021[14]).
To facilitate vertical co‑ordination, online meetings should continue to be favoured where relevant, to limit the resource intensity of meetings and thus increase local authority participation in circular economy policy. The following actions are suggested:
Establish formal co‑ordination mechanisms between local authorities and the DECC and EPA respectively, which build on current initiatives such as the Local Authority Prevention Network (LAPN) but going beyond the focus on waste. While co‑ordination mechanisms exist between local authorities and the EPA (e.g. LAPN), and between the EPA and DECC (e.g. Oversight Agreement), vertical co‑ordination mechanisms between the DECC and local authorities beyond current quarterly waste prevention meetings are lacking. New mechanisms could include meetings, co‑ordination bodies and reporting on the local achievement of national targets (as in the Climate Action Plan, CAP).
Adapt and extend current regional waste management planning co‑ordination mechanisms between the DECC, the EPA and local authorities, such as Regional Steering Committees and Regional Operations and Task Groups to the circular economy. Similar mechanisms for the circular economy at large or sectors with high circular potential could also be implemented with relevant players.
Box 5.3. The inter-ministerial commission for the Circular Economy Strategy, Spain
The Spanish Circular Economy Strategy (España Circular 2030) was jointly promoted in 2018 by the Ministry of Agriculture and Fisheries, Food and the Environment, and the Ministry of Economy, Industry and Competitiveness. An inter-ministerial commission formed by nine ministries and the Economic Office of the President at that time contributed to it, together with the Autonomous Communities and the Spanish Federation of Municipalities and Provinces (FEMP). After the November 2019 election, the inter-ministerial committee added new ministries (e.g. the Ministry of Education and Vocational Training) to the nine existing members.
The current ministries taking part in the inter-ministerial commission are:
The Ministry of Agriculture, Fisheries and Food.
The Ministry for Ecological Transition and the Demographic Challenge.
The Ministry of Economic Affairs and Digital Transformation.
The Ministry of Education and Vocational Training.
The Ministry of Finance.
The Ministry of Health.
The Ministry of Industry, Trade and Tourism.
The Ministry of the Interior.
The Ministry of Labour and Social Economy.
The Ministry of Presidency, Relations with Parliament and Democratic Memory.
The Ministry of Science and Innovation.
The Ministry of Territorial Policy and Civil Service.
The Ministry of Transport, Mobility and Urban Agenda.
The Ministry of Universities.
The inter-ministerial commission will continue to meet at least once a year to evaluate and monitor the implementation of the national strategy. The inter-ministerial commission created a working group for autonomous regions responsible for forming other working groups to further implement the strategy.
The Spanish strategy on the Circular Economy was approved in June 2020 by the Council of Ministers. The strategy is one of the key elements of the Circular Economy Framework (Marco de Economía Circular), one of the government’s projects that aims to be a lever for economic recovery after the COVID-19 health crisis. The adoption of the Spanish Circular Economy Strategy was foreseen by the Declaration of Climate and Environmental Emergency approved in January 2020, making it one of the priority lines of action and is consistent with the draft bill on Climate Change and Energy Transition, which sets the goal of achieving climate neutrality by 2050.
In addition, on 2 June 2020, the Council of Ministers approved the draft bill on Waste and Contaminated Soils, which addresses the challenge of single-use plastics among other items, and a Royal Decree to improve the traceability and control of waste shipments.
Source: Government of Spain (n.d.[15]), España Circular 2030, Estrategia Española de Economía Circular, https://www.miteco.gob.es/es/calidad-y-evaluacion-ambiental/temas/economia-circular/espanacircular2030_def1_tcm30-509532.PDF; OECD (2020[3]), The Circular Economy in Valladolid, Spain, https://doi.org/10.1787/95b1d56e-en.
Policy coherence: Foster system thinking
The systemic change underlying the circular economy transition requires strong integration across often siloed policies (e.g. environment, regional development, agriculture, industry and enterprise) (OECD, 2020[1]). This calls for embedding circular principles into sectoral policies, plans and programmes. The Strategy recognises the importance of policy coherence and states that further work will be carried out to enhance coherence. To facilitate policy coherence, the DECC should strengthen high-level engagement with relevant government departments to ensure that synergies between the circular economy and sectoral strategies are identified and leveraged and that the circular economy is viewed by other government actors as an economic agenda rather than a resource efficiency and waste minimisation tool.
As such, it is suggested to:
Strengthen policy integration between the circular economy and climate change agendas. There is room to further embed the circular economy in the next CAP as a means of achieving economy-wide emission reductions. Stronger integration of the circular economy within climate mitigation policy is needed before the end of 2023, when the latest iteration of the CAP and the Strategy should be published. This could entail embedding the circular economy within existing climate co‑ordination mechanisms, such as reporting on the local achievement of national targets. At the subnational level, the DECC could facilitate strengthened co‑operation between the CAROs and RWMPOs.
Embed circularity in spatial and economic planning in Ireland via the National Planning Framework (NPF) ahead of the review of the NPF in 2027, which represents a crucial opportunity to integrate the circular economy into Ireland’s territorial, economic, social environmental and cultural planning.
Build the circular economy into Ireland’s Enterprise strategy as a driver of employment, sustainability and resilience. The review of Enterprise 2025 in 2018 (DBEI, 2018[16]) placed a strong emphasis on resilience and sustainability, which are likely to remain relevant with Ireland’s commitment to net-zero, Brexit and the pandemic. As such, the review of Ireland’s ten-year Enterprise strategy can serve as an entry point for the circular economy to become a pillar of Ireland’s future sustainable and climate-compatible growth, job creation and resilience. This exercise can build on enhanced DECC-DETE co‑ordination, notably a prior assessment of the potential of the circular economy for Irish value-added and job creation (see previous section).
Enhance policy coherence and highlight the benefits of circular practices in water, agriculture and the bioeconomy. The government should consider setting up circular economy demonstration projects between the EPA and other related agencies, for instance on circular wastewater treatment with Irish Water, or circular agriculture and circular bioeconomy with the DAFM or Teagasc. These demonstration projects would provide data and insights into the benefits and challenges of circular practices, building momentum for heightened and longer-term policy integration. The Circular Economy Working Group and the Bioeconomy Implementation Group2 can work together to enhance policy coherence between the circular and the bioeconomy, to leverage synergies and avoid overlaps.
Stakeholder engagement: Involve a broad range of stakeholders to move beyond waste management
The circular economy calls for a systemic change requiring all stakeholders from the public and private sector, citizens, knowledge institutions and non-governmental organisations (NGOs) to play a role (OECD, 2020[1]). Beyond public participation, stakeholder engagement “encompasses different levels of governments (multi-level governance), the private sector, regulators, service providers, donor agencies, investors, civil society in its different forms (e.g. citizens, non-governmental organisations, users’ movements, etc.) and other relevant constituencies” (OECD, 2015[2]).
Formal stakeholder engagement mechanisms are essential to inform circular economy policy making. The Waste Advisory Group, whose inputs fed into the WAPCE, is a good example of stakeholder engagement going beyond consultations. The DECC has invited members of the Waste Advisory Group3 to join the Circular Economy Advisory Group as part of the Strategy and plans to invite new members to “provide balanced representation across all sectors of the Circular Economy” (DECC, 2021[9]).
To overcome the legacy focus on waste management, the DECC can focus on (further) engaging with relevant constituencies that were not part of the Waste Advisory Group, in particular:
Local authorities, on an individual basis or through the LAPN. Local authorities have a key role to play in both implementing and informing circular economy policy, given their knowledge of local circular economy businesses and initiatives, and their competencies in policy areas relevant to the circular economy including planning, local and community development, and supporting local economic development and enterprise. The DECC should also consider engaging with LEOs through the DETE to gain insights into the needs and constraints of local SMEs with respect to the circular economy.
The research community (notably universities, research centres and universities and institutes of technology), on both technical and non-technical dimensions of the circular economy transition. Beyond national frameworks for research prioritisation (i.e. DETE Research Prioritisation) and research programming (e.g. EPA Research 2030 ten-year high-level framework), there is little co‑ordination between research and policy making on the circular economy. Formal engagement with the research community is needed to bridge the knowledge-policy gap in the circular economy. Beyond inclusion in the Circular Economy Advisory Group, the DECC and EPA should consider further stakeholder engagement mechanisms to ensure that research feeds into national circular economy policy making (e.g. an annual forum or a research-focused day within the Circular Economy Conference). This could also be done, for instance, by mandating that projects funded by research grants include short policy briefs highlighting the main policy implications of research results.
The design community across sectors, from fashion and product designers to architects, through organisations such as the Design & Crafts Council Ireland, the Royal Institute of the Architects of Ireland and the National College of Art and Design. The design community should be formally engaged in circular economy policy making to provide insights into ecodesign regulations and to ensure that higher education programmes (e.g. industrial design, engineering) and training are adequately designed to build in ecodesign skills.
Irish standard setters, notably the NSAI, DETE and TII, to provide insights into the re-engineering and creation of new standards for the circular economy (see sub-section on awareness and transparency).
Irish trade associations, notably Chambers Ireland and Ibec and their member associations, to gain insights on the implications of the circular economy for workers and businesses, and to co-design adequate upskilling and training programmes for the circular economy across different sectors.
Appropriate scale: Adopt a functional approach to leverage territorial specificities
Adopting a functional approach to policy making that transcends administrative boundaries is important for the circular economy (OECD, 2020[1]). Flows of material, goods and people do not stop at administrative boundaries. By looking at the “functions” of local authorities and regions rather than their administrative boundaries, Irish circular economy policy can better address local issues and leverage local potential for the circular economy. In practice, this involves implementing and learning from circular initiatives at various scales, from the micro to the macro level (see Chapter 2).
The shift to a circular economy can strengthen urban-rural linkages in Ireland, where 75% of the territory is farmland and 40% of the population live in the capital city Dublin. Farmers’ markets, co‑operative stores in cities and towns, neighbour food distribution networks and community-supported agriculture are already well-established in Ireland and contribute to narrowing food loops. Incipient projects also contribute to enhancing urban-rural synergies, such as CircBioCityWaste, which transforms biological waste from urban areas into agricultural fertiliser.
Additionally, a range of circular economy initiatives are in place at different scales in Ireland. Micro-level circular initiatives take place on university campuses (e.g. Green Campus); local authorities implement and support circular economy initiatives and businesses (e.g. Plastic Free Roscommon and repairmystuff.ie); and a regional circular bioeconomy cluster gathers industry, businesses, government and research centres on marine, agriculture and waste-to-value (Circular Bioeconomy Cluster South‑West). Circular initiatives at different scales can be highly instructive for circular economy policy making provided a framework is in place to collect and analyse data, provide insights and ensure lessons learned inform circular economy policy and are disseminated among relevant stakeholders (e.g. farmers).
To leverage territorial specificities for the circular economy, the DECC can provide a framework for setting up circular initiatives at different scales, transcending administrative boundaries. This should include information and guidance (notably via the national circular economy platform), funding and spaces for dialogue, for instance between urban and rural areas. The results of circular initiatives should feed back into circular economy policy making by collecting data through standardised forms. Aggregated insights could be shared on the platform periodically (e.g. annually). Institutions with relevant experience and knowledge (e.g. Munster Technological University and the Rediscovery Centre) could inform and co-create the framework with the DECC. Under this framework, the DECC can leverage the strengths and experience of different actors:
The DECC can facilitate local demonstration projects by supporting alignment with national policy, providing funding and enhancing co‑ordination among key local players, as foreseen by the Strategy. Local authorities can foster experimentations in neighbourhoods that transform local bioresources (e.g. food waste) into compost, create repair workshops (e.g. for bicycles) and facilities to reuse objects easily (e.g. through reuse centres) among other initiatives.
To do so, the DECC can build on early insights from EPA-supported Demonstration Hubs, targeted and time-bound projects to demonstrate circular economy actions at the county scale, which will be based on “an open sharing of learnings” (EPA, 2021[17]). The DECC should co‑ordinate with the EPA to ensure the coherence of Demonstration Hubs within the framework as well as data collection and insights for national circular economy policy and businesses.
The DECC can also get inspiration from international experience. For instance, the Urban Lab in Paris, France, has supported more than 200 experiments since 2010 and consolidated a methodology to support effective experimentation in 4 main stages: i) definition of the experimental project and its evaluation; ii) search for the experimental site; iii) deployment of experimentation; and iv) evaluation and transformation. To facilitate access to these experimental sites, the Urban Lab is based on a legal framework that has been in place for over ten years, including a public space occupancy agreement and a legal framework (OECD, 2020[1]).
The DECC can facilitate local and regional industrial symbiosis and clusters, where appropriate and possible, building on the experience of the existing Circular Bioeconomy Cluster South-West and considering the costs and benefits of the operation.
Enabler
As an enabler of the circular economy, national and local governments can: i) adapt and update the legislative framework and regulatory instruments to create an enabling environment for the transition to the circular economy; ii) make the fiscal framework fit for the circular economy, and mobilise and efficiently allocate financial resources for circular economy initiatives; iii) build capacity on the circular economy across all levels of government; iv) support business development; and v) and create a national circular economy information system to support circular economy policy-making decisions.
Regulation: Make the legislative and regulatory framework conducive to the circular economy
Regulatory framework
The transition to the circular economy requires a paradigm shift in legislation and regulation. A legislative framework conducive to the circular economy should incentivise circular business models and practices across the economy, so that circularity becomes the norm while making linear models increasingly unattractive economically. As part of this overarching framework, the circular economy requires conducive regulation in key sectors such as waste, food and construction (see Chapter 2). Identifying available tools (such as land use requirements), environmental permits (e.g. for decentralised water, waste and energy systems) and regulation for pilot projects (e.g. sandbox regulatory approaches) would help to clarify regulatory uncertainties, gaps and future needs across different entities (OECD, 2020[1]).
Ireland is expected to have a legislative framework for the circular economy by early 2022. The Circular Economy Bill will provide the legal foundation for measures set out in the WAPCE, give the Strategy and the Programme statutory status and amend the Waste Management Act (1996). In December 2020, the Joint Committee on Environment and Climate Action published the Report on the Pre-Legislative Scrutiny of the Circular Economy Bill 2021 (2021[18]). The committee notably recommends strengthening and clarifying the language of the bill, including extending the definition of the circular economy beyond waste and setting out clear targets and responsibilities, which are currently lacking.
Under this new legislative framework, the DECC can:
Set up a regulatory framework conducive to ecodesign, repair, reuse and remanufacturing. Ecodesign regulations should go beyond energy efficiency and consider material inputs more broadly (Ekins et al., 2019[19]). In this vein, the European Commission (EC) has several initiatives underway to improve the reparability and extend the useful life of products, including legislation on the right to repair, a sustainable products initiative and design requirements for electronics, among others (European Parliament, 2022[20]).
Streamline regulatory processes for reusing material considered as waste through end-of-waste and by-product processes. This can be done by shifting towards more performance-based or outcome-based regulation, which specifies the required outcomes or objectives of regulation, rather than process-based regulation, which specifies the means by which regulatory objectives must be achieved. As suggested in the WAPCE, local authorities can take on more responsibilities in end-of-waste applications and by-product notifications. This might support the identification of local opportunities regarding bioeconomy by-products, which is a key action in the National Policy Statement on the Bioeconomy. The fees charged to operators notifying by-products or end-of-waste applications anticipated in the WAPCE should not be set so high as to discourage operators from applying in the first place.
Broaden extended producer responsibility (EPR) to new waste streams and improve existing EPR schemes to favour reuse. According to OECD guidance on EPR, the main issues to consider for the design and governance of EPR schemes relate to: setting and periodically reviewing targets; enforcing EPR obligations (e.g. with registers of producers and appropriate sanctions); resourcing monitoring systems adequately; addressing free-riding (via enforcement and peer pressure); and managing risks such as price volatility and leakage to ensure sustainable funding (OECD, 2016[21]).
Local authorities can also leverage their potential for the circular transition within existing frameworks and as part of the Circular Economy Prevention Network, the new LAPN under the EPA’s programme. As the authorities responsible for overseeing planning permission, local authorities could mandate Resource and Waste Management Plans, which are currently recommended on a voluntary basis (EPA, 2021[22]), for all construction and demolition projects. In London, UK, for instance, the London Plan 2021 requires all referable developments to submit a Circular Economy Statement with their planning application (London City Hall, 2021[23]). The city is working on guidance for developers, to cover the whole life cycle of development.
Public procurement
In Ireland, the Office of Government Procurement (OGP), which sits under the Department of Public Expenditure and Reform (DPER), is responsible for sourcing goods and services for the public sector. The Department of the Environment, Climate and Communications (DECC) has recognised the strategic importance of GPP with circular economy criteria, which should be further developed and applied, including at the local authority level. The Strategy highlights close collaboration between the DECC, OGP and EPA with respect to GPP. The commitment to implement GPP in all tenders using public funds by 2023 is a step in the right direction.
Following on from this, it is suggested to:
Work with the OGP to ensure that circular criteria are included alongside green criteria in GPP. The DECC could aim to ensure that this is the case by the time GPP in tenders using public funds becomes mandatory in 2023.
Shift away from the systematic application of the lowest-price criterion for awarding procurement contracts, as part of a broader shift to GPP that systematically considers the life cycle costs and environmental impacts of goods (i.e. from extraction to operation, maintenance and end of life). To standardise this process, the government can consider using Environmental Product Declarations to enable comparisons between tenders in terms of environmental and carbon footprint (ISO, 2006[24]). According to the OECD (2015[25]), successful GPP requires: a solid legal and policy framework for purchasing entities; planning GPP (understanding market capacity, available technical solutions and GPP costs and benefits); introducing environmental standards in technical specifications, procurement selection, award criteria and contract performance clauses; professionalising GPP; raising awareness on GPP benefits; and monitoring results and providing feedback on policy and regulation.
Strengthen support for SMEs to participate in tenders. This can be done by providing “clear guidance to inform buyers’ expectations (including specifications and contract as well as payment terms) and binding information about evaluation and award criteria and their weights (whether they are focused specifically on price, include elements of price/quality ratio or support secondary policy objectives)”, as argued by the OECD Recommendation of the Council on Public Procurement (OECD, 2015[26]). The EPA could also consider providing guidance for suppliers on GPP as it does for the public sector. Tendered contracts can also be divided into lots to encourage SMEs and self-employed workers to participate. For instance, Austria’s Action Plan on Public Procurement Promoting Innovation calls on authorities to procure lots and to define qualification and award criteria that give more opportunities to SMEs to take part in tendering processes.
Financing and behavioural change: Use fiscal and economic tools to incentivise the transition to a circular economy and ensure adequate funding
The transition to a circular economy requires renewal in the taxation of emissions and natural resource consumption, the removal of environmentally harmful subsidies and the redirection of tax incomes towards lighter taxation of employment and entrepreneurship (Wijkman et al., 2019[27]). The OECD (2016[28]) suggests applying mixes of economic instruments to ensure a coherent set of incentives for resource efficiency along the product value chain. Price-based tools include: environmentally-related taxes, fees and charges, which increase the cost of extractive or polluting activities; tradeable permits, which are used to allocate emissions or resource exploitation rights; and EPR policy instruments that extend a producer’s responsibility for a product to the end of life stage, including Deposit Refund Schemes (DRS) in which an initial payment (deposit) is made by a customer at the point of purchase that is then refunded if the product or packaging is physically returned by the customer to the collection scheme (OECD, 2020[1]).
One of the Strategy’s key objectives is to support and promote increased investment in the circular economy. However, investment in the circular economy should be considered as part of the wider economic landscape in which businesses operate, which includes all fiscal and economic barriers and incentives. As such, the DECC can consider action on three main fronts: fiscal and economic tools to incentivise the circular economy, government funding for the circular economy and supporting private investment in the circular economy.
Fiscal and economic tools
The WAPCE considers several price-based tools to incentivise a circular economy, from the “latte levy” in the short term to incentives for recycled materials in the longer run. These measures are a step in the right direction but more clarity on their application is needed to provide certainty for businesses and consumers and support acceptance. Furthermore, the scope of these waste-focused measures can be broadened. As such, the government can consider the following actions:
Broaden the scope of price-based tools considered in the WAPCE and provide clarity on the timeline for their implementation. The DECC can consider EPR fee eco-modulation, based on detailed product design criteria like recycled content, which can provide producers with stronger design incentives. The DECC can also extend the DRS to glass bottles in addition to the current coverage of aluminium cans and plastic bottles. Another option could be to base coverage of the DRS on products rather than materials. Product-based coverage can help avoid unwanted substitution effects that can occur with material-based DRS policies, whereby producers shift towards exempted materials. In several OECD countries, DRS policies identify a type of product (e.g. for beverage containers) and detail exemptions for particular types of this product category (OECD, forthcoming[29]).
Review and adjust environmental subsidies, to reward circularity and discourage waste. This involves identifying both environmentally beneficial and harmful subsidies. Environmentally motivated subsidies can encourage increased material productivity, reuse and recycling (OECD, 2021[30]). Once identified, environmentally harmful subsidies preventing the application of the waste hierarchy should be progressively removed with a clear timeline.
Review and adjust environmentally-related taxes in the same vein. Environmental taxes can be extended by increasing the rate of existing levies and taxes (e.g. landfill levy, carbon tax) and broadening the scope of materials, products and activities concerned. These taxes, which are widespread in OECD economies, deter the consumption and production of targeted goods and services by making them more expensive. As consumers and businesses seek new, cleaner solutions in response to the price of pollution, investing in more sustainable technologies and products becomes more commercially attractive (OECD, 2020[1]). On the other hand, tax breaks can be introduced for activities supporting desirable outcomes such as waste prevention. Sweden, for example, has introduced tax breaks on repairs for consumer goods, effectively halving the tax rate (Sutherland, 2020[31]).
In the longer term, consider a broader shift of the tax burden from direct sources such as labour to indirect sources such as consumption or pollution, which the OECD has identified as a priority for ensuring long-term growth (OECD, 2018[32]). This would favour sustainable production and consumption models, including the circular economy.
Government funding
The DECC should set up a clear funding framework for the circular economy that fosters both public and private investment. Many government or government-supported funding initiatives for the circular economy are already in place but their interaction with private funding is unclear.
Ahead of the next iteration of the Strategy, the DECC could consider defining a funding framework for the circular economy in Ireland. This would involve:
Ensuring that adequate levels of funding are in place to support circular economy policy objectives and the projects that are needed to achieve them. Under the draft Circular Economy Bill, the objectives of the Circular Economy Fund (replacing the existing Environment Fund) are intended to align more closely with those of the circular economy. It is essential to consider that the fund’s income will depend on the successful implementation of the levies foreseen in the WAPCE, notably the “latte levy” and the waste recovery levy in the short term.
Assisting local authorities and the Local Authority Prevention Network (LAPN) in supporting and scaling up small-scale circular initiatives, as has been the case with Modos for example (see Chapter 2), by setting up dedicated local funding schemes. For example, the venture capital fund Circular Economy Business Support Programme introduced by ReLondon (previously the London Waste and Recycling Board) in the UK supports the scaling up of circular economy SMEs already in the market.
Fostering private investment in the circular economy with alternative funding methods. These include crowdfunding, leasing, equity participation, grants, loan guarantees, green bonds and loans for circular economy projects and businesses (Box 5.4). For instance, there is scope to extend the application of the EU Green Bond framework in Ireland to the circular economy, as this is not currently the case, despite the circular economy being one of the EU taxonomy’s headlines.
Leveraging EU funds such as LIFE and Horizon Europe for circular economy projects (see Box 5.5).
Box 5.4. Use and examples of funding instruments for the circular economy
Several alternative funding instruments can be considered for circular economy projects and ventures.
Funding mechanisms such as crowdfunding and leasing can be used for research and development (R&D) projects characterised by pre-revenue cash flow and very high investment risk. Crowdfunding is also used to support the setting up of one-off community projects with high initial investment and low expenditure or the opportunity to generate income to cover those expenses thereafter. Oneplanetcrowd and Lita are examples of crowdfunding platforms for social and environmental projects.
Equity financing can be applied to: R&D projects with pre-revenue cash flow and very high investment risk; start-up projects with pre-profit cash flow and very high investment risk; scale‑up projects, with pre-profit to profit cash flow and high investment risk; and growth projects with profit cash flow and medium investment risk. Examples of publicly supported equity are the EIB Venture Debt service, which provides a long-term venture debt product for fast-growing innovative companies, and InvestEU, a new EU investment programme aimed at boosting the European economy in specific areas including the circular economy water, waste and environmental infrastructure. InvestEU also provides guarantees and advisory services. Initiatives such as the European Angels Fund (EAF) advised by the European Investment Fund (EIF) provide equity to business angels and other non-institutional investors to finance innovative companies in the form of co-investments.
Grants can be used to finance R&D projects and start-up projects. Examples of grants at the EU level include Horizon Europe, the EU research and innovation programme for 2021-27, and the EU Innovation Fund with revenue from EU Emission Trading System (ETS) credits, which aims to finance the demonstration of innovative low-carbon technologies from 2020 to 2030. Grants can be also introduced at the national and local scales. For example, the Danish Ecoinnovation subsidy scheme is a national subsidy scheme with a general focus on water, circular economy and waste recycling, the environmental performance of the industry and sustainable construction, among others. In Scotland, the Circular Economy Investment Fund provides GBP 18 million in grant funding annually to SMEs to increase the circularity of their business models.
Providing guarantees can also help R&D and start-up projects gain access to private loans. For instance, COSME’s Loan Guarantee Facility (COSME-LGF), the EU programme for the Competitiveness of Enterprises and SMEs, provide guarantees and counter-guarantees to financial intermediaries such as banks and leasing companies to provide more loan and lease financing to SMEs.
Debt can be leveraged to finance scale-up projects, growth projects and mature projects with a post-profit cash flow and a lower investment risk. The Joint Initiative on Circular Economy (JICE), for example, is an initiative launched by the EIB and the EU’s largest national promotional banks and institutions to accelerate the transition to a sustainable and circular economy. It targets an investment of at least EUR 10 billion over the 2019-30 period. Several commercial banks are also active in investing in promising circular initiatives. For example, in 2019, Intesa San Paolo, Italy, invested EUR 2.2 billion (3.7% of all group loans) in green and circular economy investments. Public authorities, including cities, can also issue green bonds and reinvest revenue in circular economy projects. For example, the cities of Gothenburg, Sweden, and Paris, France, issue green bonds.
Table 5.3 summarises respective funding options according to project types (R&D, start-up, scale-up, growth and mature) and their cash flow characteristics and risk assessment.
Table 5.3. Funding types and their use for financing the circular economy
Source: EIB (2021[33]), National and Local Grants and Subsidies, https://www.circularcityfundingguide.eu/funding-types-and-their-applicability/grants-and-subsidies/national-and-local-grants-and-subsidies/ (accessed on 8 August 2021).
Box 5.5. Examples of EU funds to finance the implementation of a circular economy in Ireland
Several EU funds include a circular economy dimension and could be leveraged for the circular economy transition in Ireland. For example:
The LIFE Programme, created in 1992, co-finances projects to demonstrate solutions tackling environmental and climate challenges. It includes two sub-programmes: LIFE Environment, with a focus on the circular economy, and LIFE Climate Action for projects on climate mitigation, adaptation and climate governance and information. In Ireland, the DECC is the national contact point for LIFE.
Horizon Europe is the 2021-27 EU funding programme for research and innovation with a budget of EUR 95.5 billion. Cluster 6 of Horizon Europe includes the areas of intervention on circular systems, bio-based innovation systems and food systems.
The InvestEU Programme is an EU fund focusing on investment, innovation and job creation in Europe over the 2021-27 period. It aims to support a sustainable recovery for a greener, more digital and more resilient European economy.
INTERREG: European Territorial Co-operation (ETC) is an EU funding instrument stimulating cross-border co‑operation. The instrument support EU countries in identifying joint solutions to tackle challenges related to the environment, health, research, education, sustainable energy and transport, among others.
URBACT III is an EU fund supporting cities in improving their capacity to deliver, design and implement sustainable policies and to build and share knowledge. URBACT III includes a specific webpage on circular economy.
The Urban Innovative Actions (UIA) programme, funded by the European Regional Development Fund (ERDF), aims to test innovative solutions addressing urban challenges in European cities. The programme has already funded several projects on the urban circular economy, for example in Antwerp (Belgium), Lappeenranta (Finland) and Sevran (France).
The Emission Trading System Innovation Fund, which is funded by EU Emission Trading System (ETS) credits, aims to support the demonstration of innovative low-carbon technologies between 2020 and 2030. The fund is based on calls for large- and small-scale projects focusing on innovative low-carbon technologies and processes in energy-intensive industries, carbon capture and utilisation (CCU), construction and operation of carbon capture and storage (CCS), innovative renewable energy generation and energy storage.
The European Circular Bioeconomy Fund (ECBF), an initiative of the EIB and EC, aims at investing in late-stage circular bioeconomy companies. It is the first venture fund focused on the bioeconomy and circular bioeconomy in Europe, with a target size of EUR 250 million. The ECBF gives priority to circular areas such as the conversion of biological resources and waste streams into value-added products.
The Bio-based Industries Joint Undertaking (BBI JU) is the EUR 3.7 billion partnership between the EU and the Bio-based Industries Consortium. It publishes and manages annual calls for proposals on research and innovation on bio-based value chains.
The EIB offers medium- and long-term loans for large-scale circular economy projects and indirect financing through local banks and other agents for smaller projects, as well as indirect financing through EU Green Bonds, increasing the accessibility to local banks and other agents for smaller projects.
Source: EIB (2021[33]), National and Local Grants and Subsidies, https://www.circularcityfundingguide.eu/funding-types-and-their-applicability/grants-and-subsidies/national-and-local-grants-and-subsidies/ (accessed on 8 August 2021); EIB (2022[34]), Homepage, https://www.eib.org/en/index.htm (accessed on 2 March 2022).
Capacity building: Adapt human and technical resources to the challenges at hand
Capacity-building programmes for the circular economy should address government stakeholders on the one hand, to build knowledge and skills for circular economy policy making and implementation, and businesses and civil society on the other, to raise awareness, build relevant skills and knowledge, and catalyse business opportunities.
Capacity building for government
Many circular economy capacity-building initiatives for government are in place but most of them focus on GPP and target local authorities. All levels of government should engage in capacity-building programmes to build the knowledge and skills required for circular economy policy making and implementation, starting with the leading department and unit.
The DECC and the Circular Economy Unit should take part in capacity-building programmes for circular economy policy making to enable them to effectively lead the circular transition across sectors, beyond waste. Given that the Circular Economy Unit is born out of the waste management environment, it would benefit from capacity building to support a broader vision for circular economy policy. The capacity-building programme for the DECC could also include a component on circular criteria for GPP.
Regarding local authorities, the following actions can be considered:
Design and implement capacity-building programmes for local authorities to favour a shift from litter and waste management to resources management and circular economy. The EPA is already strengthening local authority capacity by building on existing networks, notably by working with local authorities and the City and County Managers Association to extend the capacity-building role of the LAPN to the circular economy as part of the programme. If LEOs across the 31 local authorities are to act as a single window for circular entrepreneurs and businesses, an adequate capacity-building programme for LEO staff should also be rolled out nationwide.
Promote a culture of excellence and of “learning by doing” among local authorities. The government can build momentum for the strategy by: establishing the circular economy as a national priority; setting clear objectives, targets and reporting at the national and local levels (e.g. reporting on the local achievement of national targets, as is the case under the CAP); and rewarding circular champions (e.g. through an annual prize awarded to the best-performing local authorities or local initiatives). The government should also encourage local authorities to take part in international city-to-city learning networks to favour capacity building through peer learning and the exchange of best practices.
Capacity building for the private sector and civil society
Ireland can build on several well-established capacity-building initiatives for businesses and citizens (e.g. CIRCULÉIRE and the Rediscovery Centre) to further build capacity on the circular economy.
For businesses, workers and private investors, the government can:
Support, scale up and expand existing capacity-building programmes on the circular economy for professionals, namely the Modos Circular Economy Training Programme and the Rediscovery Centre’s professional development programmes and training. Modos offers a training programme, a mentoring and innovation award programme, webinars and business events for micro-enterprise and SMEs (Modos, 2021[35]). It is currently most relevant for construction, food, retail, manufacturing, textiles and fashion, electronics, plastics and packaging businesses. The DECC could work with other departments (e.g. DAFM) to expand the programme to additional audiences, such as farmers. The EPA can continue to support the Rediscovery Centre’s professional programmes as part of their renewed strategic partnership.
Design and implement sectoral circular economy training and toolkits for workers and businesses (especially SMEs) on the circular economy, in partnership with CIRCULÉIRE, the Rediscovery Centre, Ibec and Chambers Ireland, for instance. The DECC can also consider the potential role of LEOs as a relay for disseminating circular economy training and tools among local SMEs. Such material should address the technical, regulatory and financial challenges of circular business models and practices (e.g. ecodesign) across key economic sectors and suggest workable solutions to address them.
Engage with the Department of Further and Higher Education, Research, Innovation and Science (DFHERIS) to design lifelong learning programmes focusing on circular economy skills (e.g. complex problem-solving, resource management, social and system skills among others). This collaboration can build on the momentum generated by the ambitious target of achieving an 18% participation rate in lifelong learning by 20254 in Ireland’s Economic Recovery Plan (Department of the Taoiseach, 2021[36]), which supersedes the Future Jobs Ireland 2019 strategy. The new Economic Recovery Plan does not mention the circular economy as a priority, as opposed to the Future Jobs Ireland strategy, which had the circular, bio- and low-carbon economy at the core of its fifth and final pillar (see Chapter 1).
Develop guidance on circular economy investment for private investors (e.g. investment funds, venture capitalists and business angels) with an appetite for sustainable and responsible investment. This guidance would highlight the economic, environmental and social benefits of successful circular businesses. The DECC can also disseminate the new EU Strategy for Financing the Transition to a Sustainable Economy, which presents opportunities to drive private investment in the circular economy through a taxonomy, a disclosure framework for companies to inform investors and investment tools such as benchmarks, standards and labels. The circular economy is one of six environmental objectives under the EU Taxonomy.
For civil society, particularly youth, the government can:
Integrate circularity into first-, second- and third-level education curricula to build in awareness and to foster skills for a circular economy.5 The DECC can work with the Department of Education (DoE) to continue strengthening the emphasis on sustainability in first- and second-level education through Education for Sustainable Development (EDS) and to identify specific options for fostering circular awareness and behaviour. The DECC should also work with the DFHERIS to embed circular principles in relevant higher education courses and programmes (e.g. industrial design, engineering, etc.).
Support the development of regional circular economy hubs to expand capacity building for citizens nationwide, beyond Dublin. This regional network would help to raise public awareness of the circular economy by sharing information with businesses and citizens, and organising capacity-building activities such as workshops on repairing or upcycling products. With the DECC’s support, the EPA could consider this option as part of the redefinition of its partnership with the Rediscovery Centre, which ended mid-2021 under the National Waste Prevention Programme (NWPP) (EPA, 2021[37]).
Innovation: Support business development
Beyond regulation and financing, the DECC, DETE and local authorities can support market innovation and business development through several initiatives (OECD, 2020[1]), such as:
Creating spaces for experimentation that could be labelled “circular innovation spaces”, in which start-ups, businesses and universities could experiment with circular processes for targeted sectors (e.g. food) and assess results. For example, Amsterdam’s “free zones” provide suitable spaces to test decentralised renewable electricity generation and smart grids.
Stimulating demand by being a launching customer. For example, the Dutch national government implemented the Circular Challenge Project, where the government supports financially viable businesses and can act as a “launching customer” (Government of the Netherlands, 2016[38]).
Creating incubators to promote circular economy projects. An incubator can support innovative projects related to the circular economy by: providing management and business assistance; promoting connections with strategic partners in the private, public and academic sectors; facilitating access to financial opportunities (investors, loans, public programmes); and providing a physical space for projects to develop and people to meet. In Ireland, the Rediscovery Centre’s Circular Economy Academy has played an active role in developing successful circular social businesses in Ireland. As such, the academy could be home to these incubators, particularly if the plans for developing regional Rediscovery Centre circular economy hubs materialise.
Establishing a single window for the circular economy for businesses. This window should offer all services, information and administrative support regarding circular economy projects for businesses, to reduce transaction costs for entrepreneurs and SMEs willing to be part of the transition. In Ireland, LEOs could provide a one-stop-shop for circular economy information and advice for businesses (e.g. information on applications for grants, tailored advice, etc.) (see the sub-section on co-ordination above).
Introducing tailored advisory services to support public and private sector project promoters in making circular economy initiatives commercially viable. Advisory services such as Project Development Assistance (PDA) facilities provide project promoters with the necessary technical, legal and financial advice required for investing in circular economy ventures. PDA activities can include feasibility studies, stakeholder and community mobilisation, financial engineering, business plans, technical specifications and procurement procedures (EC, 2021[39]). These services could be dispensed through LEOs given adequate circular economy capacity building. Implementing authorities can work with national business associations such as Ibec and the Irish Farmers’ Association to gain a wider reach and to adapt and disseminate tailored information among their constituencies.
Data and assessment: Generate a national circular economy information system to monitor and adjust policy
Collecting and analysing data related to the circular economy is key to informing circular economy policy making, assessing the effectiveness of circular economy policies, and adjusting them when needed. In Ireland, the Central Statistics Office (CSO) and the EPA work together to comply with obligations under the EU Waste Statistics Regulation. The EPA provides additional data and analytical insights on indicators of national interest for which there is no obligation yet (e.g. food waste). To enhance policy making based on robust evidence and data, the DECC and EPA can take action on data collection, monitoring and sharing.
Data collection
Harmonise data collection among data providers to feed into a national circular economy information system. This information system would centralise the data required to assess and inform circular economy policy making. The EPA is already working with EPA-licensed waste treatment facilities, the National Waste Collection Permit Office, local authorities and Producer Responsibility Initiatives (responsible for EPR schemes) to harmonise and streamline data collection, ensuring better data quality and timeliness.
Expand data collection from waste-related data to environmental, economic and social data. Indicators should relate to the economy, value-added and employment as well as broader environmental indicators but could also cover well-being and social inclusion dimensions. After identifying priority government stakeholders to be involved in circular economy policy making at the national level, indicators collected by others government entities can be identified, adapted where necessary and used to inform circular economy policy and targets.
Collect locally disaggregated and sectoral data, particularly in key sectors for the circular transition in Ireland such as food and the built environment, to inform circular economy policy. To do so, the EPA and DECC can build on existing mechanisms such as Resource Management Plans for construction and demolition projects, which the EPA currently recommends planning authorities mandate for all construction and demolition projects (EPA, 2021[22]), by mandating their use and digitalising them to enable harmonised data collection. The DECC can also introduce new reporting obligations and calculation methods such as making reuse and repair targets statutory within waste management plans, as foreseen by the Circular Economy Bill (DECC, 2021[40]).
Invest in research to develop methodologies for qualitative and quantitative assessment. For example, the EPA-funded and Clean Technology Centre-led Q2Reuse project, the Rediscovery Centre, the CRNI and the Eastern Midlands Waste Region are developing methodologies for the qualitative and quantitative assessment of the reuse sector that reflects EU guidance but is tailored to the Irish market.
Data monitoring
Track progress on implementing the governance framework required for the circular economy by inviting stakeholders to take part in regular (e.g. annual) assessments using the OECD Scoreboard on the Governance of the Circular Economy (OECD, 2020[1]) (Box 5.6).
Monitor the achievement of the objectives and targets set out in the strategy through a standardised set of indicators feeding into the national circular economy information system. Indicators are crucial for monitoring the implementation of a circular economy strategy towards the achievement of its targets. The current NWPP annual report is set to become an annual Circular Economy Report and allow the tracking of progress on selected indicators such as reuse, repair, resource consumption and contamination levels (EPA, 2021[37]). The DECC and EPA should collaborate to ensure that these indicators are consistent with and relevant for the second iteration of the Strategy.
Data sharing
Encourage data sharing from the private sector, to enable projections on waste, resources and socio-economic and environmental impacts, by ensuring that data shared publicly is anonymised and cannot be traced back to a single company.
Box 5.6. Methodology of the OECD Scoreboard on the Governance of the Circular Economy
The OECD Scoreboard on the Governance of the Circular Economy is a self-assessment tool to support governments in identifying gaps and assessing progress to improve policies and self-assess the existence and level of implementation of enabling conditions. It is composed of 12 key dimensions that governments and stakeholders can evaluate based on a scoreboard system, indicating the level of implementation of each dimension: Newcomer (Planned; In development), In progress (In place, not implemented; In place, partly implemented) and Advanced (In place, functioning; In place, objectives achieved). These dimensions include: 1) Roles and responsibilities; 2) Strategic vision; 3) Awareness and transparency; 4) Co-ordination; 5) Policy coherence; 6) Stakeholder engagement; 7) Appropriate scale; 8) Regulation; 9) Financing; 10) Capacity building; 11) Innovation; 12) Data and assessment. The visualisation of the results (Figure 5.3) provides an overview of the level of circularity of a city or region for each of the 12 circular economy governance dimensions.
Figure 5.3. Visualisation of the OECD scoreboard results
Source: OECD (2020[1]), The Circular Economy in Cities and Regions: Synthesis Report, https://doi.org/10.1787/10ac6ae4-en.
To carry out the self-assessment, the following procedure is recommended (Figure 5.4): i) clearly identify the lead team to co-ordinate the self-assessment; ii) set out the objectives and scope of the assessment in advance; iii) map stakeholders that will play a key role in a circular economy: governmental departments, public, private and non-profit actors; iv) organise targeted workshops with key stakeholders to share, compare and confront views and achieve consensus; and v) repeat the process once a year to track progress and to keep stakeholders engaged.
Figure 5.4. A five-step self-assessment methodology
Source: OECD (2020[1]), The Circular Economy in Cities and Regions: Synthesis Report, https://doi.org/10.1787/10ac6ae4-en.
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Notes
← 1. Under the Whole of Government Circular Economy Strategy, the Circular Economy Advisory Group replaces the Waste Advisory Group created for the Waste Action Plan for a Circular Economy.
← 2. The DECC chairs the Circular Economy Working Group, and the DECC and DAFM co-chair the Bioeconomy Implementation Group.
← 3. A total of 36 organisations were represented in the Waste Advisory Group, including industry associations and federations (e.g. Irish Waste Management Association, Irish Farmers’ Association, Construction Industry Federation), government entities (e.g. Eastern-Midlands Regional Waste Office, Competition and Consumer Protection Commission, Environmental Protection Agency), trade unions (Irish Congress of Trade Unions) and networks (e.g. Irish Environmental Network, Community Resources Network Ireland) (DECC, 2020[44]).
← 4. The participation rate for lifelong learning was 12.6% in 2019, slightly above the EU average of 11.3% (Solas, 2020[43]).
← 5. Six groups of skills are relevant for circular jobs: basic, complex problem-solving, resource management, social, system and technical (Circle Economy, 2020[45]). For more information, see Chapter 1.