Periodic Reporting for period 1 - SUSTRACK (Supporting the identification of policy priorities and recommendations for designing a sustainable track towards circular bio-based systems)
Reporting period: 2022-11-01 to 2024-04-30
The transition from linear fossil-based systems to circular and bio-based systems represents an opportunity and a suitable pathway for achieving several SDGs. Indeed, circular bio-based systems depict a great opportunity to reconcile sustainable long-term growth with environmental protection through the prudent use of renewable resources for industrial purposes. This needed transition is a complex process, which does not simply require innovative technologies from the supply-side, but also societal transformations based on a multi actor process. The circular bioeconomy meta-sector may be a good candidate to put forward a new economic model, which requires transformative policies, purposeful innovation, access to finance, risk-taking capacity as well as new and sustainable business models and markets. However, a critical assessment of the environmental, social and economic impacts of the current linear fossil-based economy, as well as of the improvement potential associated with circular bio-based systems, is needed to underpin the identification of policy priorities. Bearing this in mind, SUSTRACK is a three-year project aimed at supporting policymakers in their efforts to develop sustainable pathways to replace fossil and carbon-intensive systems with sustainable circular and bio-based systems (at the EU and regional scale), contributing to achieving the European Green Deal’s objectives. This will be done by: identifying environmental, economic and social limits of a linear carbon-intensive and fossil-based economy; improving existing assessment methodologies; assessing the environmental, social and economic impacts of the EU’s current linear fossil-based economy; comparing multiple transition scenarios focusing on the most carbon-intensive sectors; identifying priorities according to scenarios analysed in the project and develop guidelines and policy recommendations.
WP1: A comprehensive report of the limits of the linear fossil-based economy and of barriers to the transition to a circular biobased economy was conducted. A list of barriers hindering the transition to a circular biobased economy via stakeholder engagement and multi-criteria assessment tools was prepared, and a final list of 31 prioritised barriers was presented.
WP2: A comprehensive literature review was carried out to identify current research gaps in monitoring and evaluating the transition to a circular bioeconomy. Existing indicators, together with complementary methods and information, were collected, organised and operationalised within the Circular Bioeconomy Indicators Repository, an interactive online database developed by SUSTRACK that allows searching for relevant indicators through selected filters. Alongside the CBE indicator tool, a first draft of an online interactive dashboard has been implemented to monitor and analyse the transition to the bioeconomy.
WP3: The selection of 10 case studies belonging to the four sectors: construction, textiles, chemicals and plastics was finalised. A consistency check of the bioeconomy monitoring and assessment framework was conducted assessing its applicability and comprehensiveness with the case studies. For each case study, preliminary identification of the most relevant sustainability indicators was made.
WP4: A complete version of the Green Economy Model (GEM) for Italy, Germany and the Netherlands has been created and parameterized. Industry sub-models for the chemicals sector (Netherlands), plastics (Germany), textile (Italy) and construction (Germany) have been created, parameterized, and integrated into the national GEM. A baseline simulation has been created for all models, assuming a scenario with no intervention options. Two initial Circular Bio-Based Economy (CBBE) simulations have been created (transition and revolution scenarios) for preliminary testing.
WP5: A working definition for CBBE has been created based on a literature review and refined within the SUSTRACK consortium. An extensive literature review on policy instruments has been initiated by selecting scientific and grey literature sources with the help of an AI review tool. A review method has been prepared to be able to identify patterns and gaps in current EU and national policies for a transition to a circular bio-based economy. An overview of EU circular and bioeconomy policies was prepared and the analytical approach to the policy analysis was defined.
WP2: A comprehensive literature review was carried out to identify current research gaps in monitoring and evaluating the transition to a circular bioeconomy. Existing indicators, together with complementary methods and information, were collected, organised and operationalised within the Circular Bioeconomy Indicators Repository, an interactive online database developed by SUSTRACK that allows searching for relevant indicators through selected filters. Alongside the CBE indicator tool, a first draft of an online interactive dashboard has been implemented to monitor and analyse the transition to the bioeconomy.
WP3: The selection of 10 case studies belonging to the four sectors: construction, textiles, chemicals and plastics was finalised. A consistency check of the bioeconomy monitoring and assessment framework was conducted assessing its applicability and comprehensiveness with the case studies. For each case study, preliminary identification of the most relevant sustainability indicators was made.
WP4: A complete version of the Green Economy Model (GEM) for Italy, Germany and the Netherlands has been created and parameterized. Industry sub-models for the chemicals sector (Netherlands), plastics (Germany), textile (Italy) and construction (Germany) have been created, parameterized, and integrated into the national GEM. A baseline simulation has been created for all models, assuming a scenario with no intervention options. Two initial Circular Bio-Based Economy (CBBE) simulations have been created (transition and revolution scenarios) for preliminary testing.
WP5: A working definition for CBBE has been created based on a literature review and refined within the SUSTRACK consortium. An extensive literature review on policy instruments has been initiated by selecting scientific and grey literature sources with the help of an AI review tool. A review method has been prepared to be able to identify patterns and gaps in current EU and national policies for a transition to a circular bio-based economy. An overview of EU circular and bioeconomy policies was prepared and the analytical approach to the policy analysis was defined.
Based on the research conducted under WP1, we identified the most important barriers in the transition from a linear fossil-based economy to a circular bio-based one. First, an analytical hierarchy process (AHP) is conducted and among the six clusters, the economic and governance clusters were allocated as the most important ones regardless of the stakeholders' sector of interest. The order of associated importance for other clusters was environmental, technical, structural and finally cultural.
We also identified the most important barriers under each cluster.
- Economic barrier: investment, financial practices, and cost competitiveness of bio-based products.
- Governance barrier: competing political interest with fossil-based industries and the lack of coherence between policies that can weaken efforts to establish a solid and consistent regulatory framework
- Environmental barrier: the lack of enhanced knowledge, standardised methodologies, and sustainable management practices to effectively assess and mitigate environmental, climate, and sustainability impacts.
- Technical barrier: the lack of recycling capacity, insufficient technology, development, low quality and amount of recyclable materials.
- Structural barrier: the lack of collaboration between value chain actors and the lack of established markets for by-products
- Cultural barrier: the consumers’ confusion and lack of trust due to unclear sustainability claims and/or misinformation, disinformation related to the circular bio-based products.
AHP was supported with a simplified analytical network analysis (ANP). The most significantly influential barriers were from governance and structural clusters, namely (i) competing political interests with fossil-based industries (big lobbies etc.); (ii) social and technical lock-ins to the current linear system and (iii) fragmented regulatory framework across European countries and at national/regional level. These findings can guide efforts and strategies to overcome barriers and promote the transition to a more sustainable and circular economic model.
We also identified the most important barriers under each cluster.
- Economic barrier: investment, financial practices, and cost competitiveness of bio-based products.
- Governance barrier: competing political interest with fossil-based industries and the lack of coherence between policies that can weaken efforts to establish a solid and consistent regulatory framework
- Environmental barrier: the lack of enhanced knowledge, standardised methodologies, and sustainable management practices to effectively assess and mitigate environmental, climate, and sustainability impacts.
- Technical barrier: the lack of recycling capacity, insufficient technology, development, low quality and amount of recyclable materials.
- Structural barrier: the lack of collaboration between value chain actors and the lack of established markets for by-products
- Cultural barrier: the consumers’ confusion and lack of trust due to unclear sustainability claims and/or misinformation, disinformation related to the circular bio-based products.
AHP was supported with a simplified analytical network analysis (ANP). The most significantly influential barriers were from governance and structural clusters, namely (i) competing political interests with fossil-based industries (big lobbies etc.); (ii) social and technical lock-ins to the current linear system and (iii) fragmented regulatory framework across European countries and at national/regional level. These findings can guide efforts and strategies to overcome barriers and promote the transition to a more sustainable and circular economic model.