Green Industrial Development:

Towards a Circular Economy

Dipersiapkan dalam Knowledge Sharing

Ditjen. KPAII, 12 Juli 2019
The Why
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What is Circular Economy
 Principles:
Concept: Linear vs CE 1. Maintain the value of
products & components and
in use as long as possible:
repair, reuse, refurbish,
remanufacture, repurpose
2. Restoration by intention
3. Aims to rely on renewable
energy
4. Minimizes, tracks &
eliminates use of toxic
chemicals
5. Designs out waste
6. Systemic innovation is at its
core
7. Raw & recycled materials are
nutrients
8. Performance business model
instead of ownership: rent,
lease, virtualises
9. Close loops by recycling
(waste is a resource)
Take-Make-Use-Dispose 10. Aim to ban land filling of
waste

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The How
Circular practices are taking root:
• There are a growing number of firms in both the developed and
developing countries that engaging in circular business models
(e.g. EU member states, developing countries (from Latin America
to Africa to Asia), mainly motivated by market signals and support
to voluntary actions
• There is growing demand among consumers and societies for
sustainable and competitive products and services
• Increasing connectedness, awareness about climate change and
the search for the next generation of products and services that
consumers want and are willing to buy are supporting these
trends
• Regulations: waste management and Extended Producer
Responsibility (EPR)
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Extended Product Responsibility

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Eco-design: an approach to designing products & services that aims to reduce
environmental impacts over the full life cycle

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EU Action Plan for CE: Product Design
Established EU Ecodesign Regulations
 Integrated to tie all related policies/directives
together
 Energy using products (EUP)/Energy related
products (ERP)
 Eco-labeling
 Producer responsibilities directives
 Restriction of hazardous substances (RoHS)
 Reach (chemicals)
 Packaging
Ecodesign Standards Overview (in general use continuous improvement cycle
of identity, plan, execute, review)
 ISO 14006 : 2011 (environment management system – guidelines for
incorporating ecodesign)
 BS EN 62430 : 2009 (environmentally concious design for electrical and
elecronic products)
 IEC/DIS 62959 (environmental conscious design – principles, requirements
and guidance)
 IEC 62474 – material declaration for products of and for the
electrotechnical industry
 BS 8001: 2017 (framework for implementing the principles of the circular
economy in organizations)
 ISO/TR 14062: 2002 (environmental management – integrating
environmental aspects into product design and development)
 BS 8887 (design for MADE – design for manufacture, assembly,
disassembly, end of life)
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What Policy Maker Do?
Diagnostics to Policy
1. Identify the right indicator
2. Benchmarking
3. Setting KPI
4. Decide Strategic Orientations
5. Fixing the appropriate policy Tool

Instruments
1. Environmental laws & regulation
2. Incentives
3. Inward flow of green technologies/products
4. Supporting local devt. of green technologies/products
5. Skills devt. for green industry
6. Public procurement
7. Access to finance for SMEs
8. Supporting outward flow of green
technologies/products

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Benchmarking: Country Cases

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