Make room for the circular economy!

Many new homes are needed, preferably in existing towns and villages and, if necessary, by integrating them with employment areas. At the same time, there must remain room for activity in and around cities and villages. In addition, we must leave room for rising water and have insulation during dry seasons. Everything is on the agenda. Governments have not yet given much thought to the space needed for the much-desired circular economy.

At the end of September, the Dutch Environmental Assessment Agency (PBL) presented the exploratory study Studying space for a circular economy, with very disturbing conclusions. Although the government wants the Dutch economy to become fully circular by 2050, governments are hardly preparing for this.

“For a successful and smooth transition to a circular economy, it is important that spatial policy takes into account the circular business activities that will emerge in the coming decades. Looking to the future is also very important given the long lead time for the development and redevelopment of industrial areas and ports.

“This could take many years or even decades. To ensure that there is adequate space for sites with circular nuisance activities – such as recycling and reuse of building materials – by 2050, choices must be made in the coming years,” notes PBL.

High environmental class demand space

It is a follow-up to the previous PBL memo on Spatial effects of circular activity. They have been identified for construction, plastics manufacturing and car sharing, among others.

At the end of April this year, the researchers presented their findings on industrial zones. In general, sharing goods and extending their life can lead to a reduction in the use of space by production and logistics facilities, for example, new electronics, furniture and clothing.

At the same time, there is a greater demand, for example, for commercial buildings with a high environmental class for recycling activities and storage sites for returned materials. Locations must be easily accessible and, in the case of large quantities, easily accessible via multimodal, so preferably by water, rail and road.

“This demand for space is often yet to be determined, while competing space claims from, for example, housing construction, energy transition and data centers are more evident.”

In a circular economy, there will be an increasing need for industrial parks for recycling, processing and repair of (bio)raw materials, as well as locations within cities for repairs and the sharing economy. This much is certain, as researcher Trudy Rudd explains.

Ruud was a guest during a sharing session at the BT Conference’s annual ‘Work Room’, which was held recently at the Sparta Stadium in Rotterdam. “This demand for space is often unidentified, while competing space claims from, for example, housing construction, energy transition and data centers are more evident. As a result, there is a risk that the space needed for the circular economy will not be available.” Within a few decades.

Four scenarios

To illustrate the spatial implications of the Circle, project-based learning uses the four scenarios from Spatial Outlook 2023: increasing global trade, a digitalizing world, a natural Netherlands, and a regional state. On this occasion, Rudd explained the first and fourth scenarios, which depend on greater globalization and economic regionalization, respectively.

Across the board, the circular economy requires locations with multi-modal accessibility, i.e. located next to inland ports, railway lines and highways

In the first case, space requirements for recycling will increase significantly in the core economic areas around Amsterdam, Rotterdam and Eindhoven, but also in industrial areas in other parts of the country, such as Zwolle, Vlissingen and Emesmond. As transportation becomes more sustainable, water and rail transport will become more important, especially for large material flows and heavy goods. Space will be needed in port areas and at railway crossings for large recycling and construction centres, and for repair facilities.

If economic development occurred on a larger scale across regions, the demand for space for circular activities would be more decentralized. Across the board, the circular economy requires locations with multi-modal accessibility, i.e. located next to inland ports, railway lines and highways.

Reserve the municipal space

Fortunately, more and more municipalities believe that there should be room for economic activities in and near cities and villages. Departments dealing with spatial planning and land affairs are often quick to submit new claims when space becomes available somewhere. Especially to bring much needed housing there. They are now waking up to economic questions, having been disturbed in part by anxious businessmen who are sad to see residential areas and other urban activity approaching. Wouldn’t this hamper their business activities in the long run?

A circular community requires reservation of space. PBL has calculated a forty percent larger area

Sustainability colleagues in municipalities and provinces have so far remained largely aloof from these developments, but reports from PBL and other researchers on the circular economy, as well as the government’s ambitions in this area, give them the wind at their backs.

A circular community requires reservation of space. PBL has calculated a forty percent larger area. This space should mainly be located in or near existing towns and villages, because this is where the necessary infrastructure is located, where most businesses are located and where consumers also live. Inner-city circular facilities, such as repair centres, thrift stores and public transport facilities, make behavioral change more accessible, says researcher Rudd.

Spatial policy can therefore proactively address this. The higher environmental category (HMC) requires space at a sufficient distance from residential areas due to inconvenience and hazards

Dual use of space

There will also be a dual-use phase of space, where the new circular system will grow alongside existing production capacity. This transitional phase requires “changing space” to repair and renovate facilities or buildings, move businesses, and create infrastructure. The intention is to take this into account. However, translating this into concrete policy and actual spatial reservations remains a major task. In most municipalities and provinces there is still a long way to go.

“Housing is what the municipal government pays main attention to.”

Renewi experiences what this means in practice on a daily basis. The country’s largest waste recycling company, which has about sixty sites across the country, sees municipalities as yet to embrace the circular economy in practice. We hear it from Roland Amorius, Public Relations Director. ‘It is housing that the municipal government pays primary attention to. We see this when granting permits and when communicating with policy makers.’

He says he is pleased that PBL has put this topic on the agenda, but at a particularly strategic level, choices must be made about the economic consequences of the future before it is too late. Rudd also insists on this. ‘Converting an industrial area for disruptive activities to another destination is often practically irreversible. So be careful when reusing existing industrial areas!’