Blue Economy vs Circular Eonomy Kiss Tibor University

Blue Economy vs. Circular Eonomy Kiss, Tibor University of Pécs, Faculty of Business and Economics SOCIO-ECONOMIC, ENVIRONMENTAL AND REGIONAL ASPECTS OF A CIRCULAR ECONOMY (CE) International Conference for the 75 th Anniversary of DTI 19 -20 April 2018.

LPI – report The Living Planet Index (LPI) is a measure of the state of the world's biological diversity based on population trends of vertebrate species from terrestrial, freshwater and marine habitats. http: //www. livingplanetindex. org/home/index

Steffen et. al, 16 January 2015, Science, Planetery boundaries Biodiversity – nitrogen and phosphorous cycle: already exceeded the boundaries

Blue economy

The Blue Economy • Ecosystems connect, creating networks of networks, where each contributes to the best of its ability and endlessly cascades nutrients and energy using the enduring laws of physics. An economy, consciously built on ecological systems is a blue economy. BE does not live off, but maintains and enriches ecological systems.

An example: coffee (from The Blue Economy – by Gunter Pauli) 1. Living systems can create more abundance – this is against the current economic logic. Blue Economy An example: coffee Traditional or green economy Coffee as a cash crop: 99. 8% ends as waste and only 0. 2% is ingested 7

The Blue Economy - JOBS 2. The Blue Economy is only an opportunity! The Blue Economy Traditional (Green) Economy Basic goods are produced locally from local resources More working place – more jobs An underdeveloped region still have jobs All goods arrive from outside Jobs are only for selected industries An underdeveloped region has less and less jobs 8

Circular Economy

ASAC – Internalisation of external costs • The European Commission introduced a Circular Economy proposal in 2015. Historically, the policy debate in Brussels mainly focused on waste management which is the second half of the cycle, and very little is said about the first half: eco-design. • https: //en. wikipedia. org/wiki/Circular_economy#cite_note-22 • EASAC reports: • … ‘spaceship economy’ where limited resources had to be reused and recycled as a precondition to sustainable life-support systems. • EASAC: Underlying the barriers to shifting from a linear to a circular economy is the failure of current pricing systems to fully integrate all costs (including social and environmental costs), which means that pricing systems are failing to transmit the necessary information to inform individual decisions. A research priority is thus to increase the pace at which these external costs can be introduced. Until this failure is remedied, … • …the evolution of linear economies has been, inter alia, driven by these market failures and the fact that prices typically do not tell the ‘ecological truth’.

When even the CE is a lot … • ‘Planetary boundaries’ … should not be exceeded to ensure a sustainable future for humanity (Rockstro m et al. , 2009) • Such underlying trends are widely accepted, but not all accept that this implies that the most effective solution is to adopt a ‘circular economy’. • Finding an optimum position between these differing perspectives (between the mainstream and the circular economy) • Even so, the circular economy is insufficient to address specific issues such as climate change, ocean acidification, loss of natural ecosystems, soil degradation, species extinction, water supply and shortages, so should not detract from the many separate and targeted national and international policies on those issues. Could we handle a complex system as an element? CE: The lack of systemic approach in a systemic approach …

A mainstream approach • When the economy grows at the same time as domestic material consumption is decreasing, ‘absolute decoupling’ of resource use from economic growth is observed. • Starting the shift in transforming the linear to a more circular and ultimately sustainable economy will thus require the setting of incentives through price changes and regulations. ADVERTS DO NOT CUT THE RAINFORESTS WITH YOUR PETROL POWERED CHAINSAWS! CHOOSE FROM OUR BATTERY POWERED, VERY EFFICIENT CHAINSAWS!

CONSLUSION No chance for sustainable development, while we cannot handle our systems in a comprehensive way, as a one, interrelated complex system. The efforts of EU are far not enough for a sustainable path of the humanity.

Thank you for your attention! Kék gazdaság - Blue Economy 10 év – 100 innováció – 100 millió új munkahely www. akekgazdasag. hu www. ktk. pte. hu