This chapter provides an overview of the circular economy landscape in Ireland. Key players in the Irish circular economy landscape include government departments and agencies, local authorities, social enterprises and industry implementing circular projects and initiatives at different territorial scales. Several sustainability and climate policies, programmes and initiatives are in place but tend to conceive the circular economy as a tool to reduce waste. This is reflected in the current Irish circular economy policy, which emerges from and sustains a strong focus on the waste sector. The Circular Economy Bill and the Whole of Government Circular Economy Strategy are crucial opportunities to broaden this vision and establish the circular economy as a climate-compatible economic development agenda for Ireland.
The Circular Economy in Ireland
2. Towards the circular economy in Ireland
Abstract
Circular economy policy in Ireland
The circular economy has risen on Ireland’s political agenda in recent years, particularly as a result of European Commission (EC) action. Indeed, price-based instruments (e.g. extended producer responsibility [EPR] schemes on key waste streams) and levies (on plastic bags and waste going to landfill) have played an important role in shifting towards more circular waste practices. Over the past decade, Irish waste policy has gradually introduced elements conducive to circularity. These include:
Stronger attention to the waste hierarchy through the 1998 Waste Management: Changing Our Ways policy statement.
A focus on the reuse, recycling and recovery of end-of-life vehicles through the 2002 End-of-Life Vehicles sectoral report.
A national programme to prevent waste (National Waste Prevention Programme, NWPP), established in 2004.
A reduction in waste sent to landfills with the Waste Management – Taking Stock and Moving Forward report, considering thermal waste treatment.
A stronger focus on resource efficiency through the 2012 waste management policy A Resource Opportunity.
Ireland is at a turning point for circular economy policy, which is born out of waste management policy. The Waste Action Plan for a Circular Economy (WAPCE), published in September 2020 (DECC, 2020[1]), paved the way for actions to: i) ensure that materials and products remain in use for longer by rewarding circularity and discouraging waste; ii) increase producer responsibility for products and packaging; iii) support sustainable business models; iv) promote a multi-sectoral approach with the voluntary sector, R&D, producers, manufacturers, regulatory bodies and civil society; and v) clarify and strengthen institutional arrangements for the waste sector, including through a heightened role for local authorities. The forthcoming National Waste Management Plan for a Circular Economy 2022-2028 is expected to embed circular economy principles to prevent waste, reduce the consumption of single-use items, incentivise reuse and repair initiatives, maximise recycling and use waste as an energy source to replace fossil fuels. It should also officialise the existing homogeneity between regional waste management plans, which already have very similar targets to one another, by effectively merging these regional plans into a single national one with common objectives and targets (for more information, see sub-section on the role of subnational government in the circular economy below).
Following the publication of the WAPCE, a Circular Economy Unit was established within the Department of the Environment, Climate and Communications (DECC) to lead circular economy policy in Ireland, notably by developing a Whole of Government Circular Economy Strategy (hereafter “the Strategy”) (DECC, 2021[2]) published in December 2021. The strategy is expected to be renewed every 18‑24 months. Following the Strategy’s publication, the Circular Economy Unit is setting up an inter‑departmental Circular Economy Working Group with relevant ministers, government departments, state agencies and local governments. The strategy aims to:
Provide a national policy framework for Ireland’s transition to a circular economy and promote public sector leadership in adopting circular policies and practices.
Support and implement measures that bring Ireland’s circularity rate above the European Union (EU) average by 2030.
Raise awareness about the circular economy and its benefits for citizens and businesses.
Support and promote increased investment in the circular economy to deliver sustainable and regionally balanced economic growth and employment.
Identify and address the economic, regulatory and social barriers to Ireland’s circular transition.
The Environmental Protection Agency’s (EPA) Circular Economy Programme, also published in December 2021, replaced the NWPP. The programme is intended as a vertical co‑ordination mechanism to support the Circular Economy Unit in ensuring the coherence and alignment of activities across levels of government (EPA, 2021[3]). It also aims to support the transition to a circular economy through innovation grants, sponsorships and seed funding, improve national knowledge and provide an evidence base to support circular economy development in Ireland. A Circular Economy Advisory Committee will gather national stakeholders to identify how the programme can best drive the national transition to a circular economy. A mid-term review of the programme will evaluate its effectiveness, alignment with national policy and value added.
Finally, a new Circular Economy Bill is expected by June 2022. The bill should provide the legislative framework for the circular economy in Ireland, ensuing political continuity and accountability for circular economy policy by giving the Strategy statutory status. It should also transpose EU circular economy legislation into national law and effect several WAPCE measures such as the “latte levy” on single-use cups. The bill should also clarify links between the strategy and other policy frameworks: for instance, the National Planning Framework is expected to feed into subsequent iterations of the Strategy. The structure of the bill was approved by the Cabinet on 16 June 2021, after which the Joint Committee on Environment and Climate Action published the Report on the Pre-Legislative Scrutiny of the Circular Economy Bill 2021 (2021[4]).
The circular economy is a component of broader government policy frameworks in Ireland. Notably, the development of a Whole of Government Circular Economy Strategy is an action of the Programme for Government, the Climate Action Plan and the WAPCE (Department of the Taoiseach, 2020[5]; DECC, 2019[6]). The circular economy is also mentioned in several other sectoral policy documents in Ireland. In fact, several government plans and strategies have recognised the circular economy’s role in managing resources efficiently and designing out pollution (Table 2.1). Additionally, the circular economy is often linked to the bioeconomy, which was identified as a strategic priority by Ireland’s 31st government (2017‑2020) in 2018 (Government of Ireland, 2018[7]). However, the term “circular economy” is often used as a synonym for waste management and narrowly considered as a tool to reduce waste rather than a new economic paradigm with environmental and social benefits.
Table 2.1. The circular economy in key policy frameworks of Ireland
Note: The Taoiseach is the Irish Prime Minister and head of Government; DECC stands for the Department for of the Environment, Climate and Communications; DAFM stands for the Department of Agriculture, Food and the Marine.
Source: Author’s own elaboration based on (Department of the Taoiseach, 2020[5]; DPER, 2019[8]; DECC, 2019[6]; DECC, 2021[9]; DETE, 2019[10]; DRCD, 2021[11]; Government of Ireland, 2018[7]).
Institutional map of the circular economy in Ireland
Several institutions across levels of government are involved in circular economy policy making in Ireland, particularly the DECC, the EPA, regional waste management planning offices (RWMPOs) and local authorities (Figure 2.1).
Figure 2.1. Circular economy policy in Ireland
Note: CE: Circular economy; LAs: Local authorities.
At the national level, the DECC1 is responsible for setting out the overarching policy framework for the circular economy. The Minister of the Environment, Climate and Communications leads the strategy with the Circular Economy Unit within the DECC. The unit facilitates intra-departmental and inter-departmental co‑ordination with the Circular Economy Working Group, which is set to involve relevant ministers, government departments, state agencies and local governments. Building on the Waste Advisory Group that informed the WAPCE, the Circular Economy Advisory Group aims to support the Strategy’s implementation and provide input for subsequent iterations, planned every 18-24 months. Exceptionally, the second iteration of the Strategy should be published one year after the publication of the first version, in December 2022. All 36 members of the Waste Advisory Group2 have been invited to participate and the DECC will invite new stakeholders with a view to providing balanced representation (DECC, 2021[2]).
The EPA is an independent public body operating under the DECC. It regulates most waste treatment facilities and other sources of environmental pressure, implements compliance systems, provides knowledge (environmental data, assessments and evidence) to inform decision-making and works with stakeholders to advocate for a sustainable society and economy, notably through the Circular Economy Programme, previously the NWPP.
Other national agencies are also starting to include circular economy principles in their strategies and operations. For example, Transport Infrastructure Ireland (TII) is developing a Circular Economy Plan to embed circular principles in its operations. As the state agency responsible for road and public transport infrastructure in Ireland, TII is involved in the consumption and transport of bulk construction materials in Ireland, both through its own procurement and as the author of standards and specifications used in the Irish construction industry. TII has taken a systems-mapping approach to identify actions, including updates to design and materials standards, industry and supply chain engagement and standard circular economy plans for TII projects and programmes. It identifies actions under five key themes: asset management, procurement, life cycle assessment, stakeholder engagement and data and materials management. Three circular pilot projects are already underway.
At the subnational level, regional waste management planning offices (RWMPOs) and local authorities are involved in circular economy policy implementation. The RWMPOs for the three waste management regions (Connacht-Ulster, Eastern-Midlands and Southern) are responsible for developing and implementing regional waste management plans and promoting waste prevention, reuse, resource efficiency and recycling. Local authorities set up in-house circular economy initiatives or support those led by businesses or communities, ensure compliance with waste management regulations and regulate smaller waste treatment facilities (see below for further details).
Several co‑ordination mechanisms are in place for waste management: between the DECC and the EPA (e.g. a Service Level Agreement establishing key performance indicators for the EPA, and quarterly planning and monitoring meetings on the NWPP); between the DECC and local authorities (e.g. National Coordination Committee and Communications Working Group); and between the DECC, the EPA and local authorities (e.g. quarterly waste prevention meetings). Additionally, the Local Authority Prevention Network (now the Circular Economy Network under the Circular Economy Programme) is a co‑operation programme between the EPA and local authorities in Ireland that facilitates horizontal and vertical co‑ordination to share best practice, identify opportunities for scaling up circular economy initiatives and build capacity.
The role of subnational government in the circular economy
Ireland is one of the most centralised countries of the EU and OECD. The national government administers most of the main public services including policing, education, water services3 and health (EC, 2018[12]). However, the Local Government Reform Act 2014 granted local authorities new responsibilities and replaced the eight regional authorities with three non-elected regional assemblies composed of county councillors and city councils within the region. Although the assemblies have some administrative support, they are not regional administrations as such.
Box 2.1. Subnational governance, reform and finance in Ireland
Subnational governance and reform
Ireland is a highly centralised unitary country where local authorities are the only level of subnational government. Local authorities have limited responsibilities relative to other OECD countries and subnational spending and revenue are low in Ireland, as in other OECD countries with low levels of decentralisation (e.g. New Zealand and Portugal ).
The Local Government Reform Act 2014 merged municipalities and recentralised certain functions while expanding other local authority responsibilities. The reform sought to update and rationalise the country’s territorial structure, increase democratic governance and the spending efficiency of local governments. It merged 114 local councils into 31 local authorities, replaced 8 regional authorities by 3 regional assemblies (not elected by universal suffrage), reassigned water services to Irish Water, recentralised certain functions, and allocated new responsibilities to local authorities for local and community development, business support and economic development. It also created a nationally representative system of sub-county governance, whereby most local authorities (aside from Cork City, Dublin City, Dun Laoghaire-Rathdown, Fingal, Galway City and South Dublin) are divided into 95 municipal districts with councillors representing the municipal district as well as the local authority.
The 2014 reform significantly reduced municipal fragmentation. Ireland is one of the OECD countries with the largest municipalities, alongside Japan, Korea, New Zealand and the United Kingdom (UK). Shared services programmes between municipalities are common in Ireland, notably for waste management.
Subnational government finance
Local government reforms, recentralisation and the 2008 economic crisis significantly reduced subnational spending and revenues. Better local government reforms from 1995, including the Local Government Reform Act 2014, led to a significant decrease in subnational government expenditure. Expressed as a share of total government expenditure, it dropped by almost 25% in Ireland between 1995 and 2016, among the sharpest decreases among OECD countries.
Over the same period, revenues from national government grants and subsidies shrunk by almost 25%. This was compensated to some extent by local tax revenues, which increased by almost 15%. These revenues come from property taxes on commercial properties and, since 2013, a new property tax on residential properties. The elected members of each local authority decide the Annual Rate on Valuation applied to the valuation of each property in their annual budget. Other local government revenues (24%) include service fees and charges, such as commercial water charges, housing rents, waste charges, parking charges, planning application fees and others.
Transfers from the central government include specific (earmarked) grants and a general grant, the Local Government Fund (LGF). Established in 1999, the LGF provides local councils with general funding considering the expenditures and revenues of each local authority. Specific grants finance sectoral public programmes (e.g. housing and roads).
Source: OECD (2017[13]), Multi-level Governance Reforms: Overview of OECD Country Experiences, https://doi.org/10.1787/9789264272866-en; OECD (2018[14]), Ireland Country Profile, https://www.oecd.org/regional/regional-policy/profile-Ireland.pdf; OECD (2019[15]), Making Decentralisation Work: A Handbook for Policy-Makers, https://doi.org/10.1787/g2g9faa7-en; LGMA (2022[16]), Local Government, https://www.lgma.ie/en/irish-local-government/ (accessed 1 February 2022).
Regional assemblies
Regional assemblies co‑ordinate and promote strategic planning and sustainable development at the local level, promote the effectiveness of local government and public services, and manage EU funding for regional development (OECD, 2021[17]). They notably have a statutory responsibility for the development of a 12- to 20-year Regional Spatial and Economic Strategy (RSES), a planning and economic framework that considers future development at the regional level. The RSES serves as a link between national and local planning, as Local Economic and Community Plans are required to align with the RSES, which translates and sets out Project Ireland 2040 at the regional level. Regional assemblies work with local authorities to “future-proof” these plans in view of the evolving EU framework, which regional assemblies are involved in. RSES are strongly aligned with the EU regional development and cohesion policy, which identifies the circular economy as a means of reaching one of its five main objectives on achieving a greener, lower-carbon Europe. As such, the RSES recognises the circular economy as a means of achieving value and job creation, climate mitigation and resilience, beyond waste reduction and recycling. For instance, the Eastern and Midland Regional Assembly (2019[18]) identifies the low-carbon and circular economy as a sector of particular regional importance given its labour intensity and potential for job creation. Regional assemblies are also involved in a broad range of policy areas related to planning at the regional level: for instance, they sit on the boards of Climate Action Regional Offices and of the Regional Enterprise Plans, which are developed by regional stakeholders with a view to enterprise growth and job creation in the eight NUTS 3 regions4 in the country.
Regional waste management planning offices
Ireland has three waste management regions created solely for the purpose of waste management planning: the Southern, Eastern-Midlands and Connacht-Ulster Regions. These regions are different geographically from the regional assemblies. The three Regional Waste Management Plans introduced in 2015 are implemented under the supervision of local offices: the Southern Region Waste Management Office (SRWMO), the Eastern-Midlands Regional Waste Office (EMRWO) and the Connacht-Ulster Regional Waste Management Office (CURWMO). They are notably responsible for co‑ordinating the implementation of the statutory regional Waste Management Plans with local authorities and developing the policy to be implemented by local authorities in collaboration with stakeholders. They are also in charge of: reporting annually on the performance under each plan’s policy headings; preparing applications for grant assistance for projects at the regional level; providing training to support the implementation of the plan across the region; and raising community and local authority awareness of waste management issues. Box 2.2 presents reuse, repair and recycling initiatives promoted by the waste management regions.
The RWMPOs co‑operate with one another to deliver national projects and initiatives, while also carrying out regional projects. Each RWMPO has a co-ordinator, a prevention officer, a resource efficiency officer and a technical officer. In each case, the officers engage across RWMPOs as formal groups to deliver prevention, resource efficiency and technical projects, with a co‑ordinator leading and guiding each group and liaising with the other co‑ordinators as required.
The high similarity of the three regional Waste Management Plans led to the decision to replace them, at the end of their validity period (end of 2021), with a National Waste Management Plan for a Circular Economy 2022-2028. All three Regional Waste Management Plans for 2015-21 include the following common targets: i) achieving a 1% reduction per annum in the quantity of household waste generated per capita; ii) ending the direct disposal of unprocessed municipal waste to landfill (from 2016 onwards) in favour of higher value pre-treatment processes and indigenous recovery practices; and iii) achieving a recycling rate of 50% of managed municipal waste by 2020. Although national, the new waste management plan will continue to be implemented under the co‑ordination of the RWMPOs. The plan aims to translate relevant WAPCE measures into action at the local level and is expected to be based on circular economy principles, considering waste as a valuable resource, ensuring greater resource efficiency and avoiding material losses. A pre-draft public consultation for the new NWMP was opened in March 2021 and will be followed by a post-draft consultation planned in May 2022.
Box 2.2. Circular economy initiatives in the waste management regions of Ireland
The waste management regions promote the reuse, repair and recycling of products and materials. They provide training for citizens to repair furniture and bicycles, workshops for local authorities to increase sustainability in waste management, and technical expertise for the implementation of regional waste management plans. Many different initiatives have been implemented at the regional level.
Southern Waste Management Region
Paint Reuse. In Limerick, members of the local community can collect and use tins of paint at the Civic Amenity Centres for individual or community projects.
West Limerick Resources Furniture Upcycling Project. The project combines waste prevention and training. Furniture items donated by citizens or coming from recycling centres are fixed and improved before being sold to reimburse operating costs. People participating in the project receive training on the techniques to apply.
Upcycling schemes for bikes and children’s toys and clothes. There are several reuse and upcycling schemes for bicycles, children’s toys and clothes in the Southern Region. They contribute to job creation, waste prevention and giving new value to items. They also help households to reduce their spending by providing cheaper second-hand products.
Upcycling workshops. Local authorities organised workshops for citizens and businesses on upcycling processes and solutions to increase sustainability in waste management.
Assistance to local communities and local businesses. The SRWMO supports local communities and businesses in becoming more resource-efficient, saving money and preventing waste. This assistance includes free onsite efficiency audits for waste, energy and water, recommendations for improvement and how to implement change, and staff training and mentoring.
Eastern-Midlands Waste Management Region
Waste prevention. In co‑operation with local authorities, the EMRWO provides several environmental education and awareness-raising programmes. The aim is to improve citizens’ and communities’ capacities to minimise waste, reuse materials and recycle. These programmes are linked with national awareness-raising initiatives such as Green Schools, an environmental management and education programme for schools, Green Campus, which aims to engage campus community members in sustainability on campus and Stop Food Waste, the national public-facing campaign for household food waste prevention delivered by the EPA since 2009.
Resource efficiency. The EMRWO and local authorities support businesses in improving their waste management to reduce costs, avoid resource loss and enhance sustainability. These activities are co‑ordinated with similar national programmes such as the EPA’s NWPP.
Schools Composting Project. As part of this pilot project, in partnership with local authorities, 100 primary and secondary schools are receiving a composting system. The pilot includes a suite of compost training resources including a website, video tutorials, master composter training, an online repository and classroom materials.
Green public procurement training. In partnership with a range of stakeholders, this initiative aims to deliver a nationwide training course for local authority staff on implementing Green public procurement regulations and mechanisms. The training goes beyond procurement staff to include staff in all sections of local government and at all levels of the organisation. While the initiative is nationwide, it is still at a developmental stage and benefitting from EMRWO support in setting up and organising the training.
Connacht-Ulster Waste Management Region
Business and community. The CURWMO supports local communities, businesses and third-level institutions in improving resource efficiency by circulating and distributing guidance, materials and information on commercial waste separation, domestic waste separation, waste prevention and reuse activities delivered through Reuse Month, in addition to expertise and support to local authorities and business networks.
Bounce Back. The CURWMO supports Bounce Back Recycling, a mattress recycling social enterprise combining waste prevention, reuse and training through promotion at the local authority level for the provision of mattress reuse services. Mattresses are provided by citizens or recycling centres and are deconstructed to reuse materials in new products where possible, allowing the diversion of 50 000 mattresses from landfill since 2017.
Source: OECD virtual mission to Ireland, 6-9 July 2021; written input from RWMPO representatives, October 2021.
Local authorities
The Local Government Reform Act 2014 granted new responsibilities to local authorities, with implications for the implementation of a circular economy on the ground. Until 2014, local authorities were responsible for housing, planning, local roads, water supply and sewerage, environmental protection, recreation facilities and amenities, and others. With this reform, local authorities also gained responsibilities in planning, local and community development, and supporting economic development and enterprise at a local level. The reform merged 114 local councils into 31, including 3 city councils, 2 city and county councils and 26 county councils (OECD, 2018[14]) (Box 2.3).
Local councils have limited spending responsibilities but play a key role in public investment. Ireland has one of the lowest shares of subnational expenditure relative to gross domestic product (GDP) among OECD countries (8% in 2016 compared to the OECD average of 9.2% and an EU average of 15.5%) (OECD, 2018[14]). On the other hand, subnational governments carry out more than half of public investment, although this investment is often made on behalf of the national government to implement national investment programmes (OECD, 2018[14]). Local authorities also have a strategic role to play in embedding the circular economy across sectors at the local level given their role in planning through Local Economic and Community Plans.
Local authorities are well placed to identify, map and provide support for circular initiatives at the civil society and business levels locally. Their knowledge of the local context and actors also means that they can play an important role in bridging gaps between sectors, as well as between research, policy and business. However, tasks related to litter control and complaints tend to take up much of local authorities’ human resources to the detriment of promoting the circular economy. Local authorities participate in waste planning through regional waste steering committees. They also exchange information with national government and government agencies (e.g. RWMPOs partnering with the EPA on circularity initiatives). The Local Authority Prevention Network (LAPN) in particular, an EPA network aiming to build capacity on waste prevention and resource efficiency within local authorities, has provided significant support to the scaling up of local initiatives to the national level.
Irish cities, and notably Dublin, are home to different types of circular economy initiatives. Dublin City Council identifies the circular economy as a sector that it wishes to support in its Corporate Plan 2020‑2024, along with green business, tourism and food among others (Dublin City Council, 2020[19]). Dublin will host the Circular Economy Hotspot 2023 conference alongside Santiago, Chile, and Lagos, Nigeria, which will be the occasion to showcase Ireland’s and Dublin’s circular policies, businesses and initiatives (Rediscovery Centre, 2021[20]). Recognising the lack of awareness on the circular economy among businesses, Dublin City Council and the Local Enterprise Office Dublin City are supporting Profit with Purpose Magazine, a biannual publication seeking to raise awareness of and inspire action for a sustainable economy, including the circular economy. Dublin is one of four European cities to host the Circular Cities ClimAccelerator, along with Athens (Greece), Berlin (Germany) and Copenhagen (Denmark). The accelerator recruits and supports European start-ups that want to advance circular economy solutions that contribute to more circular and sustainable urban environments (Trinity College Dublin, 2021[21]). Dublin is also home to the Rediscovery Centre, Ireland’s National Centre for the Circular Economy (see sub-section on capacity building below). Other cities such as Limerick are starting to incorporate circular economy principles in city projects (e.g. Limerick’s Opera Site project; see sub-section on the built environment in Chapter 3).
Smaller towns and rural areas in Ireland are far from devoid of circular economy initiatives. In fact, local authority stakeholders highlighted that small-scale initiatives related to the circular economy are widespread and very popular in rural Ireland, notably second-hand clothes markets and activities linked to crafts and do-it-yourself such as furniture upcycling. The RepairMyStuff website, an online platform that connects people with local repair businesses, is an initiative of Monaghan County Council, supported by other local authorities, the EPA and the repair industry. Many other local projects are in place, such as Plastic Free Roscommon, a civil society initiative supported by Roscommon County Council that helps to raise awareness and take action to reduce the use of plastics locally. The initiative has, for instance, organised exchange events and repair cafés and encourages Roscommon residents and businesses (e.g. butchers, cafés) to subscribe to the “bring your own reusables” principle.
Government-led initiatives on the circular economy in Ireland
Over the past two decades, the Irish government and government agencies, notably the DECC and the EPA, have implemented many waste prevention and circular economy initiatives, including economic instruments incentivising waste prevention, different forms of stakeholder engagement and capacity building on waste and the circular economy.
Economy and finance
Economic instruments
The Irish government has implemented two key price-based measures to reduce waste generation and limit the use of landfills: the plastic bag levy and the landfill levy. The environmental levy on plastic bags was introduced in 2002 under the Waste Management (Amendment) Act, 2001 at a rate of EUR 0.15 per bag, which increased to EUR 0.22 in 2007 (Box 2.3). The tax led to a 97.5% decrease in plastic bag use, from roughly 328 to 8 bags per capita annually in 2018. The levy also contributed to significantly reducing the share of plastic bags in litter, from 5% in 2001 to 0.13% in 2015; however, shopping bags accounted for 0.5% of litter in Ireland in 2020 (DECC, 2020[22]). Additionally, the share of plastic bags in marine litter decreased from 5% in 2001 to 0.25% in 2010. The landfill levy was also introduced in 2002 under the remit of the Department of the Environment, Community and Local Government (now the DECC). As a result, waste incineration with energy recovery replaced landfilling to a great extent, reaching over 40% of municipal waste treatment in 2018 (OECD.stat, 2021[23]). Revenues collected from both the landfill and the plastic bag levy feed into the Environment Fund (Box 2.3). The highest amounts collected were EUR 27 million for the plastic bag levy in 2008 and EUR 52 million for the landfill levy in 2012 (EPA, 2020[24]). In 2019, revenue amounted to EUR 6 million for the plastic bag levy and EUR 12 million for the landfill levy. The decreasing revenue collected from these levies are a testimony to their effectiveness in achieving their respective intended outcomes but it also contributed to environmentally related taxes making up a decreasing share of total tax revenue and GDP in Ireland (Figure 2.2).
Figure 2.2. Environmentally related tax revenue in Ireland, 2000-19
Note: Database last updated in December 2020.
Source: OECD.stat (2020[25]), Environmentally Related Tax Revenue, https://stats.oecd.org/Index.aspx?DataSetCode=ERTR (accessed on 13 December 2021).
Box 2.3. Plastic bag levy in Ireland: Introduction, acceptance and use of revenues
Why a levy on plastic bags in Ireland?
Plastic bag consumption increased alarmingly with economic growth in Ireland in the 1990s. Retail outlets placed no limits on the number of bags dispensed to customers. The disposal of plastic bags created challenges related to their highly visible aspect in litter and slow degradation in landfill. A 1998 study by the Ministry for the Environment and Local Government concluded that a plastic bag levy was the most appropriate and effective means of minimising plastic bag consumption. Ireland was one of the first countries to introduce this levy in 2002. It was intended as an anti-litter measure aimed at reducing the use of disposable bags, accounting for 5% of Ireland’s litter in 2001. Prior to its introduction in 2002, an estimated 1.2 billion plastic bags were dispensed free of charge across the country annually.
Addressing concerns and improving acceptance
The introduction of the levy faced initial opposition. Retailers were concerned about taking the blame for charging for bags by customers and butchers, for example, were worried that the decrease in the use of plastic bags would weaken hygiene standards for meat products. These concerns were addressed by a EUR 358 000 publicity campaign supported by the Department of the Environment, Heritage and Local Government, which significantly reduced public resistance. In addition, the government introduced exemptions, for example, for plastic bags used to separate food for hygiene and food safety purposes. The government also ensured that administration costs were kept to a minimum for retailers. The limited impact on jobs in plastic bag manufacturing, due to the fact that 80% of plastic bags are imported, also contributed to the levy’s acceptance. In 2003, a national survey carried out by the Department of the Environment, Community and Local Government reported that 91% of respondents were in favour of the levy. The survey underlined that the levy’s success was related to its positive impact on the environment and litter, and the positive perception of reusable bags.
Revenue used for environmental projects
Levy revenues feed into the Environment Fund, which aims to finance environmental initiatives in Ireland and cover the levy’s administrative costs. Revenues have been used to finance: environmental projects aimed at preventing, reducing or recovering waste; research on waste management; implementation of waste management plans; promotion of awareness campaigns; education and training for local initiatives for environmental protection. By the end of 2015, plastic bag levies had generated EUR 234 million in revenue but the amount collected decreased from more than EUR 17 million in 2010 to EUR 5 million in 2019 due to the reduced use of plastic bags.
Source: OECD (2021[17]), OECD Environmental Performance Reviews: Ireland 2021, https://dx.doi.org/10.1787/9ef10b4f-en; Anastasio, M. and J. Nix (2016[26]), Plastic Bag Levy in Ireland.
The WAPCE foresees the introduction of several price-based measures to incentivise waste reduction and resource efficiency. Through the new Circular Economy Bill, a “latte levy” should be introduced on single‑use cups and a waste recovery levy of EUR 5 per tonne applying to recovery operations at municipal solid waste landfills, waste-to-energy plants, co-incineration plants and the export of municipal solid waste. Furthermore, the impact of the landfill levy exemption for biowaste will be analysed and potentially removed. The DECC will examine price-based measures to encourage the use of recycled materials in packaging and construction, notably on virgin plastics and construction aggregates. The income generated by these levies is foreseen to support a reconfiguration of the Environment Fund to become Ireland’s Circular Economy Fund, whose revenues will support environment and circular economy initiatives.
Financial support schemes
A number of government-funded financing schemes support the transition to a circular economy, catering to academia, the public sector, businesses and social enterprises. All non-domestic heat users (e.g. commercial, industrial, agricultural, district heating and public sector) can benefit from the government’s Support Scheme for Renewable Heat, which offers operational support for users switching to a biogas-based anaerobic digestion heater, among other forms of renewable heating (SEAI, 2021[27]). EPA Research 2030, the EPA’s research programming high-level framework for 2021 to 2030, supports a green and circular economy through research activities (EPA, 2021[28]). The green and circular economy represent one of the framework’s four interconnected themes, along with climate change, protecting and restoring the environment, and delivering a healthy environment. In October 2021, EPA Research issued a call for projects providing funding of up to EUR 10.55 million in total, of which 24% for 26 projects under “Facilitating a green and circular economy” (Table 2.2) (EPA, 2021[29]). The EPA-led National Waste Prevention Programme (NWPP) also provides funding to micro-level initiatives led by or within local authorities. In 2020, 15 local authorities were successful in obtaining funding of EUR 89 000 to carry out 36 community-based circular economy initiatives including the reuse and repair of musical instruments and paint reuse projects.
Table 2.2. Funded projects for “Facilitating a green and circular economy” under EPA Research Call 2021
Source: EPA (2021[29]), Closed Calls, epa.ie/our-services/research/epa--research-funding/epa-research-calls/closed-calls/#d.en.89556 (accessed 13 December 2021).
On the business side, the EPA’s Green Enterprise: Innovation for a Circular Economy annual funding programme supports the demonstration of sustainable circular economy solutions, designing out waste and pollution and keeping products and materials in use for longer (EPA, 2021[30]). The 2021 call provides EUR 625 000 in funding and a maximum of EUR 100 000 available per grant award, covering between 25% and 95% of total eligible project costs. CIRCULÉIRE, a public-private partnership created by Irish Manufacturing Research, the DECC, the EPA and the European Institute of Innovation and Technology (EIT) Climate-KIC with 25 founding industry members, supports large-scale systems-level circular economy innovation in the manufacturing sector, through its EUR 1.5 million ring-fenced innovation fund (CIRCULÉIRE, 2020[31]). Companies applying for funding are asked to present demonstrations of circular economy solutions for a defined problem, preferably with a high replicability potential and GHG emission reductions. Enterprise Ireland, the government organisation that supports the development and growth of Irish enterprises in global markets, supports Irish companies with Climate Action Vouchers of EUR 1 800, which are fully payable as grants (Enterprise Ireland, 2021[32]). These vouchers give access to up to two days of independent technical or advisory services support related to the current and future operations of the business on four different themes, including one on circular economy thinking. Finally, the DECC‑led Circular Economy Innovation Grant Scheme (CEIGS) focuses on supporting social enterprises and voluntary and community-based organisations. The scheme supports circular economy projects to advance the circular economy in Ireland and raise awareness around the need for a transition to a circular economy. In 2021, the DECC awarded EUR 490 000 to projects promoting the circular economy in Ireland. Initially set to award EUR 250 000 in grants, an additional EUR 240 000 envelope was secured thanks to the quality of successful applications in a variety of sectors such as fashion, marine plastics, reusable food packaging and construction (DECC, 2021[33]).
Stakeholder engagement
Engaging with stakeholders has been a key part of Ireland’s transition from a linear to a circular economy, in line with international experience. The DECC and the EPA have run several communication campaigns and consultation processes to raise awareness and foster stakeholder engagement in circular economy policy making. Eight-week public consultations open to all Irish citizens, businesses and organisations are systematically carried out to inform government strategies, action plans and policy documents, including the Waste Action Plan for a Circular Economy (WAPCE) and the Circular Economy Strategy, among others. For example, the WAPCE received almost 300 contributions from a variety of actors after an 8-week public consultation on its draft action plan in 2020. The DECC and EPA have also favoured participation and partnerships, albeit to a slightly lesser extent. Key examples include the Waste Advisory Group for the development of the WAPCE, and ongoing EPA partnerships with a range of stakeholders (e.g. with local authorities as part of the Local Authority Prevention Network (LAPN), with the Irish Farmers Association for the Smart Farming Programme, and with the Rediscovery Centre as part of the NWPP). The types and levels of stakeholder engagement identified for water governance in OECD countries (2015[34]) are equally relevant for securing the social and political buy-in needed for the transition to a circular economy (Box 2.4).
The EPA-led NWPP, now the Circular Economy Programme, has been instrumental in engaging stakeholders on waste prevention and the circular economy since 2004 (EPA, 2021[3]). The programme delivered national strategic programmes with high visibility, impact and influence to prevent waste and drive the circular economy by funding innovation and demonstration projects but also by partnering with organisations to deliver national initiatives (such as the Rediscovery Centre) and by advocating for waste prevention among businesses and households. As part of one of its three pillars on advocacy and communications, for instance, the EPA has delivered Stop Food Waste, a national public-facing campaign for household food waste prevention, since 2009 (see sub-section on food waste in Chapter 3). In the same vein as the NWPP, two of the four pillars of the revised Circular Economy Programme relate to engagement with policy makers, local authorities, social enterprises, businesses and the general public (advocacy, insights, data and co‑ordination; and delivering through partnerships).
The EPA and RWMPOs are leading communication initiatives to raise awareness of the circular economy. The website mywaste.ie, managed by RWMPOs on behalf of the DECC, is the main information-sharing platform for waste management and the circular economy for households in Ireland, consisting of a website, a mobile phone application and social media pages. It aims to advise citizens and businesses on options for reusing, recovering and disposing of a wide range of materials. It also shares information about initiatives undertaken by the RWMPOs, as well as news and updates on the circular economy, resource efficiency and waste topics (MyWaste, 2021[35]). In addition, the EPA’s Circular Economy Conference (15 and 16 September 2021), previously the National Waste Conference, took stock of progress and recent developments on the circular economy in Ireland and involved a wide range of stakeholders from the public, private and non-profit sectors, to discuss the challenges and opportunities in shifting towards a circular economy.
Box 2.4. Stakeholder engagement mechanisms
Different types of stakeholder engagement mechanisms can be implemented depending on available resources and the desired level of participation (OECD, 2015[34]).
Communication: Aims to make the targeted audience more knowledgeable and sensitive to a specific issue.
Consultation: Aims at gathering stakeholders’ comments, perceptions, information, advice, experiences and ideas.
Participation: Allows stakeholders to take part in the decision-making process and discussions and activities.
Representation: Attempts to develop a collective choice by aggregating preferences from various stakeholders and often consists in having stakeholders’ perspectives and interests officially represented in the management of a project or of an organisation.
Partnership: Consists of an agreed-upon collaboration between institutions, organisations or citizen fora to combine resources and competencies in relation to a common project or challenge to solve.
Co-decision and co-production are the ultimate levels of stakeholder engagement as they are characterised by a balanced share of power over the policy or project decision-making process.
From the 51 cities and regions surveyed in OECD (2020[36]), 27% had organised consultations, followed by communication activities (25%), participation (19%), partnership (13%) and only 10% had implemented co-decision and co-production initiatives.
Figure 2.3. Types of stakeholder engagement for the circular economy in 51 surveyed cities and regions
Source: OECD (2015[34]), Stakeholder Engagement for Inclusive Water Governance, https://doi.org/10.1787/9789264231122-en; OECD (2020[36]), The Circular Economy in Cities and Regions: Synthesis Report, https://doi.org/10.1787/10ac6ae4-en.
Box 2.5. The role of public consultations in the circular economy
The role of bottom-up public consultation mechanisms is significant on the road to circularity, as a starting point to collect ideas and proposals from stakeholders.
In the case of the Finnish roadmap to a circular economy, the process started in 2016 with a general invitation to all citizens to participate in identifying the best pilots, trial ideas and practices. Hundreds of ideas were collected from participants from different sectors, including trade unions, organisations and the corporate field, the Ministry of the Environment, the Ministry of Agriculture and Forestry, the Ministry of Economic Affairs and Employment, environmental organisations, consumers and other stakeholders. This broad stakeholder engagement formed the basis for the key policies, projects and pilots proposed in the initial roadmap published in 2016. Consultation with stakeholders from a wide variety of stakeholders from different sectors was also a key component of the 2019 revision to the plan.
The Italian Ministry of the Environment (now Ministry for Ecological Transition) promoted a two-month online consultation on the national strategic document on the circular economy from 12 July to 18 September 2017. About 3 900 people took part in the consultations and 300 organisations and institutions provided specific comments on the proposed text.
The Spanish Circular Economy Strategy incorporated almost 2 000 observations from Autonomous Regions, the Spanish Federation of Municipalities and Provinces and citizens in 2018.
For the development of the French Circular Economy Roadmap, launched in 2018, stakeholders gathered for two months in four workshops organised around the categories “territories”, “plastics”, “sustainable consumption and production” and “economic instruments”. In parallel, an online platform was opened to collect citizens’ opinions, which gathered nearly 1 800 contributions and more than 16 000 votes.
In Slovenia, for the circular economy roadmap, 7 meetings took place physically in 12 different regions, in addition to 7 interactive stakeholder workshops. The roadmap was also presented for consultation at various events in nine European countries. Over 3 000 stakeholders took part in the design of the roadmap, with communication taking place within the framework of the Partnership for Green Economy and through an electronic newsletter. The public consultation process was reinforced through 19 structured interviews with key stakeholders from government departments, economic agents, interest groups and experts from individual fields.
Source: OECD (2020[36]), The Circular Economy in Cities and Regions: Synthesis Report, https://doi.org/10.1787/10ac6ae4-en.
The DECC, the EPA and Bord Bia, the Irish Food Board, are also supporting labels and certifications to raise awareness, increase transparency and ultimately shift consumption and production behaviours towards more circularity and sustainability. The Community Resources Network Ireland (CRNI) piloted ReMark, a quality standard for reuse organisations, with EPA Green Enterprise funding (April 2017-February 2019). ReMark aims to give consumers the confidence to buy from reuse organisations by addressing quality and safety concerns, two of the main barriers currently preventing Irish consumers from buying more second-hand products. The CRNI has now received DECC funding under the CEIGS to prepare ReMark for a national rollout, aligning with the DECC’s ambition to explore national circular economy branding. The Origin Green label led by Bord Bia, the Irish Food Board, enables food industry players in Ireland to set and achieve measurable sustainability targets that are independently assessed and verified. The programme’s large reach has raised awareness around sustainability in the Irish food system on a large scale. Further information on Origin Green can be found in Chapter 3.
Capacity building
Several government-led or government-supported initiatives provide capacity-building services on the circular economy to citizens, businesses, social enterprise and the public sector. The most far-reaching in terms of stakeholder groups is the Rediscovery Centre, Ireland’s National Centre for the Circular Economy, which hosts a range of capacity-building activities aimed at students, the general public, policy makers and businesses (Rediscovery Centre, 2021[37]). The EPA and the EMRWO provide funding (including grant aid) and support for a range of projects and initiatives at the Rediscovery Centre. The centre works with primary, secondary and tertiary level education providers, and organises workshops for students at all levels of education and offers continuing professional development on the circular economy. It organises thematic workshops (e.g. on upcycling furniture), a Circular Economy Conversation Series and publishes a Circular Economy Blog to raise awareness and build capacity on the circular economy and waste prevention among the public. It also provides policy makers with data and information on the non-waste reuse sector in Ireland and provides information and analysis on circular economy policy at the international, EU, national and local levels. Finally, the Rediscovery Centre’s Circular Economy Academy provides business support services for social enterprises and community organisations on circular business planning, development, funding, diversification and training.
Beyond the Rediscovery Centre’s Circular Economy Academy, the EPA, the DECC and RWMPOs support a wide range of capacity-building services for businesses, including social enterprises and small- and medium-sized enterprises (SMEs). Initiatives range from tools supporting increased resource efficiency (EPA Tool for Resource Efficiency) and GHG mitigation (government Climate Toolkit 4 Business) to mainstreaming community-based reuse, repair and recycling activities (CRNI, which supports social enterprises and local organisations through a range of services including networking, funding support, training and promotion). Micro enterprises and SMEs can benefit from the Modos Circular Economy Training Programme, developed as a joint project between Dublin City Council’s Economic Development Office and the EMRWO, now operating nationwide in partnership with all RWMPOs. Modos offers a training programme, a mentoring and innovation award programme, webinars and business events (Modos, 2021[38]).
Government-supported initiatives are also sector-specific, notably for manufacturing (CIRCULÉIRE) and agriculture (SmartFarming programme and Bioeconomy Ireland week; see further details in Chapter 3). CIRCULÉIRE is Ireland’s national platform for circular manufacturing and a prominent actor in Ireland’s circular economy landscape. Irish Manufacturing Research (IMR) leads CIRCULÉIRE with the support of three strategic partners: the DECC, the EPA and Climate-KIC, which is co-funded by the EU. It offers a range of capacity-building activities, from bespoke industry training to thematic working groups that engage stakeholders from across the innovation ecosystem, and the first accelerator for late-stage circular economy ventures. Since 2020, CIRCULÉIRE has hosted six thematic working groups on topics including circular bioeconomy, industrial symbiosis, circular procurement, circular packaging, circular plastics and circular design. CIRCULÉIRE has disseminated the results of the latter three working groups, carried out in 2021, via webinars. All outputs are published in Ireland’s first open-access Circular Economy Knowledge Library (CIRCULÉIRE, 2021[39]).
Other government-supported capacity-building initiatives target citizens and young people in particular. Reuse Month, which has been led by a range of circular economy stakeholders such as RWMPOs and the CRNI every October since 2016 in Ireland, sees a wide range of activities, events and happenings designed to educate, inform and ultimately enact behavioural change. Citizens are encouraged to repair, upcycle, donate, share and generally extend the life of items. The national Conscious Cup Campaign is a government-funded campaign that specifically encourages citizens to use reusable rather than disposable beverage cups, and encourages cafés to accept and promote reusables (e.g. by slightly reducing the price of beverages for customers bringing their own cup) (Conscious Cup Campaign, 2021[40]). Targeting sports clubs and enthusiasts, the Gaelic Athletic Association (GAA) and a broad range of national stakeholders, including RWMPOs, have set up the GAA Green Clubs Reuse Initiative. It aims to encourage the hundreds of thousands of GAA members across Ireland to move from using single-use plastic reusable water bottles during sports practice, matches and everyday life through communications campaigns and toolkits for sports clubs.
Different levels of government can benefit from capacity-building programmes on waste prevention and resource efficiency. The Local Authority Prevention Network (LAPN) is a key initiative aiming to build capacity on waste prevention among local authorities. As a co‑operative programme between the EPA and local authorities, it provides technical support, training and networking and grant aid funding for local authorities on local waste prevention and circular economy activities (LAPN, 2021[41]). The NWPP also partners with RWMPOs on waste prevention activities: in 2019, these activities included a national survey on behaviours, usage, attitudes and preferences for plastic and the 2019 Upcycle Challenge, a competition aiming to stimulate creativity for reuse (EPA, 2020[42]). At the national level, in 2019, the NWPP provided guidance on developing Resource Efficiency Action Plans that drive government departments to save water, materials and energy, prevent food waste and maximise recycling at work.
Similarly, different levels of government can take part in green and circular public procurement capacity-building initiatives. Ireland sees setting mandatory requirements for GPP as an opportunity for the public sector to lead by example (OECD, 2020[36]). Public sector purchasing accounts for 10% to 12% of Ireland’s annual GDP, in line with the OECD average of 12% (OECD, 2021[43]). As such, GPP has the potential to build a critical mass for demand for sustainable and circular goods and services, effecting changes in markets beyond regulation (EPA, 2020[24]). Current capacity-building initiatives on GPP focus on:
Including green and circular criteria in public procurement. The EPA’s Green Public Procurement: Guidance for the Public Sector (EPA, 2021[44]) provides guidance and a toolkit for public procurers to include green criteria in key sectors for the circular economy such as construction, transport, energy, food and catering, textiles, cleaning products, paper and information and communication technology (ICT) equipment. Training events for procurers, from organisations across the public sector, have been running in 2020 and 2021, aligned to GPP guidance provided by EPA through the NWPP.
Driving eco-innovation through GPP. The DECC is part of the EU Interreg project GPP4Growth, which gathers nine EU countries to exchange good practices and improve capacities in implementing resource efficiency policies that promote eco-innovation and green growth through GPP (Interreg Europe, 2021[45]).
Accelerating the adoption of GPP in local authority procurement processes. A steering group composed of the EPA, the Climate Action Regional Offices, the RWMPOs, the Office of Government Procurement and local authorities are currently organising a training programme for local authorities on GPP. In 2019, the LAPN supported a partnership between Clare, Dublin City, Limerick and Mayo County Councils to deliver eight training workshops on “Designing out waste and sustainable procurement in construction” to local authority architects, quantity surveyors, planners, procurement, design and delivery staff (EPA, 2020[42]). Building on findings of a circular procurement synthesis report and the outcomes of a thematic working group involving over 25 stakeholders, CIRCULÉIRE and IDDEA published Circular Procurement 2020 (CIRCULÉIRE/IDDEA, 2021[46]). It explains core circular procurement concepts and highlights opportunities as well as best practice examples from other EU countries.
Table 2.3. Initiatives related to the circular economy in Ireland
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Notes
← 1. Formerly the Department of Communications, Climate Action and Environment (DCCAE).
← 2. Thirty-six organisations were represented within 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).
← 3. Since 2013, water services in Ireland have been operated by Irish Water, a subsidiary company of Ervia, which is a semi-state company (Irish Water, 2021[47]). All of the company board members, including nine non-executive members and the group chief executive officer, are currently appointed by the Minister for Housing, Local Government and Heritage.
← 4. Regions within the 38 OECD countries are classified on two territorial levels (territorial level 2 [TL2] and territorial level 3 [TL3]) reflecting the administrative organisation of countries (OECD, 2021[48]). For European countries, this classification is largely consistent with the Eurostat Nomenclature of Territorial Units for Statistics (NUTS) 2016 classification.