Project Title

Best Practices on Circular Economy: Redefining Growth: From Waste to Worth 

Project Year

2018   

Project Number

CTI 07 2018A 

Project Session

Session 1   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

CTI 07 2018A 

Project Title

Best Practices on Circular Economy: Redefining Growth: From Waste to Worth 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Innovative Development, Economic Reform and Growth (IERG) 

Project Year

2018 

Project Session

Session 1 

APEC Funding

144,168 

Co-funding Amount

Total Project Value

144,168 

Sponsoring Forum

Committee on Trade and Investment (CTI) 

Topics

Trade Facilitation 

Committee

Committee on Trade and Investment (CTI) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Mexico 

Co-Sponsoring Economies

Canada; China; Japan; Peru; Chinese Taipei; United States 

Expected Start Date

01/06/2018 

Expected Completion Date

31/12/2019 

Project Proponent Name 1

Vannessa Tena 

Job Title 1

APEC Coordinator 

Organization 1

Ministry of Economy 

Postal Address 1

Paseo de la Reforma 296, Col. Juarez, Del. Cuahtemoc, Mexico City, Mexico 

Telephone 1

52-55 57299100 

Fax 1

Not Applicable 

Email 1

vannessa.tena@economia.gob.mx 

Project Proponent Name 2

Graciela Narcia 

Job Title 2

CTI Representative 

Organization 2

Ministry of Economy 

Postal Address 2

Paseo de la Reforma 296, Col. Juarez, Del. Cuahtemoc, Mexico City, Mexico 

Telephone 2

52-55 57299100 

Fax 2

Not Applicable 

Email 2

graciela.narcia@economia.gob.mx 

Declaration

Vannessa Tena and Graciela Narcia 

Project Summary

APEC has recognized the need to develop new growth paradigms while launching the APEC Leader’s Growth Strategy in 2010, aimed at achieving balanced, inclusive, sustainable, innovative and secure growth. In 2014, APEC Leader’s introduced the concept of “Circular Economy”, which aims to promote economic and social gain based on: (i) attaching value to residues in the gathering and recycling cycle providing sustainable income to families, mainly driven by women, by facilitating opportunities for entrepreneurship development; while improving labor and environmental conditions; (ii) promoting fixed capital investment and infrastructure projects for gathering and recycling, and; (iii) facilitate the incorporation of informal sectors and reduce child-labor in the gathering process of residues.

The objectives of the project are:

·  To exchange best practices on Circular Economy models focused on maximizing resources utilization and efficiency in production; collection and recycling of post consumption package, particularly in beverage sectors, among others; identify and create new opportunities for economic growth and boost innovation and competitiveness of APEC economies;

·  To build capacity on handling solid waste in APEC economies, in order to limit the environmental impacts due to the use of resources, as well as to develop inclusive models to generate formal jobs.

·  To explore the possibility to develop a draft proposal for a Circular Economy transversal framework.

This project seeks to exchange best practices and develop recommendations during a two-day workshop in Mexico City, and explore the possibility to develop a draft proposal for a Circular Economy transversal framework.

Relevance

Relevance – Regions: APEC has recognized the need to develop new growth paradigms while launching the APEC Leader’s Growth Strategy in 2010, aimed at achieving balanced, inclusive, sustainable, innovative and secure growth. To achieve for expected growth all segments of economies –from micro-enterprises to women- should participate as to maintain economic prosperity while protecting the environment and addressing global environmental challenges. In 2014, APEC Leader’s claimed the phrase “from waste to worth”, meaning that there is a confirmed economic gain coming from waste management, and introduced the concept of “Circular Economy”, a key driver to redefine growth and focus on the positive benefits of consumption and reuse. 

For the coming decades, APEC should continue adding value for the next generations, especially vulnerable groups, as demand trends are raising the number of consumers who are more involved in “going-green” consumption, and the problems related to the management of waste are arising in our societies. In the circular economy model, the economic activity builds and rebuilds overall the system. Within the framework of the UN Sustainable Development Goals, there is an international trend towards greater awareness of the environment and many economies are already creating mechanisms that promote the Circular Economy based on recycling practice to reduce waste, to collect and recover the value of these materials. 

The benefits of this model for APEC developing economies are of great importance, to mention a few:

·  Inclusive: allows the economic activity to build and rebuild at all scales, involving small businesses, organizations and vulnerable groups, at the local and global level. For example: it fosters Micro Small Medium Enterprise s’ -led by women- participation in global value chains while incorporating small businesses in the recycling process.

· Job creator: generates an internal market in the recycling business, developing local corridors for vulnerable groups and communities. In Mexico, this program has created 2,400 direct and 35,000 indirect jobs.

· Benefits the population: opportunity to implement educational programs for children, while reducing CO2 emissions. After 15 years, Mexico has recovered 3.2 million tons in PET, managing to avoid the emission of 10 million tons of CO2 to the atmosphere.

In this context, the present project is of significant importance, since it is oriented to share successful experiences for the implementation of the Circular Economy model while creating new value chains and contributing to the global efforts for the protection of the environment and the transition to green economies, as well as creating new opportunities for economic growth, fostering innovation, competitiveness and inclusion in the Asia-Pacific region. 

Relevance – Eligibility: Under the eligibility criteria of the sub-fund of Innovative Development, Economic Reform and Growth (IERG), the Circular Economy aims to: (i) contribute to the implementation of the APEC Cooperation Initiative for Jointly Establishing an Asia-Pacific Urbanization Partnership; including establishing a cooperative network of sustainable cities in APEC economies, organizing sustainable urban development forums and policy dialogues, and carrying out relevant projects that promote sustainable urbanization objectives; (ii) implement APEC Initiatives on Blue Economy cooperation; and (iii) carry out relevant projects that promote experience sharing, policy dialogue, capacity building and practical cooperation, contributing directly to the objectives and priorities of the APEC Accord on innovative Development, Economic Reform and Growth, and primarily benefit developing economies. 

Relevance – Capacity Building: This project will develop capacity building of APEC member economies by sharing best practices on the benefits of implementing circular economy models in their economies. For example: as a first step, economies could identify through consumption patterns where future collection opportunities may appear and the development of a local value chain is possible, while sharing how the collection and recycling of waste, could facilitate the incorporation of low income groups, particularly women, to formal sectors and generate new jobs, and at the same time improving their labour conditions. In parallel, another step is the generation of new habits in younger generations, including school challenges to reinforce their environmental conscious.

Objectives

1) Economy models focused on maximizing resources utilization and efficiency in production; in collection and recycling of post consumption package; identify and create new opportunities for economic growth and boost innovation and competitiveness of APEC economies;

2) To build capacity on handling solid waste in APEC economies, in order to limit the environmental impacts due to the use of resources, as well as to develop inclusive models to generate formal jobs; and

3) To explore the possibility to develop a draft proposal for a Circular Economy transversal framework.

Alignment

Alignment - APEC:  Under the Second Priority APEC-PNG, “Promoting Sustainable and Inclusive Growth”, it contributes to the global commitments relevant to sustainable development goals. Likewise, it contributes to the achievement of the APEC Growth Strategy of 2010, by sharing best practices of environmentally friendly processes (recycling and collection), promoting Education for Sustainable Development (ESD) and cooperation to address environmental challenges. Similarly, advancing to achieve the objectives set out in the Leaders Declaration of 2014 (Innovative Development, Economic Reform and Growth – Circular Economy) and in 2015 (Key Responsibility Areas – KAA, Growth Strategy with the Sustainable Development Goals). Closely linked to the above, collaborates with the implementation of the APEC Cooperation Initiative for the Joint Establishment of an Asia-Pacific Urbanization Association (Ministerial Declaration of 2015). It also contributes to the implementation of the 2016 Ningbo Initiative, by favoring the construction of smart cities, the development of green cities, urban regeneration and retro-adaptation and innovative urban development. As a final point, it favors greater economic participation of women (Leaders Declaration of 2017) and as it is stated in the Action Agenda Advancing Economic, Financial and Social Inclusion in the APEC Region, empowering all members of society to take advantage of global opportunities. 

Alignment – Forum: The project seeks to contribute to the APEC Leader’s Growth Strategy to achieve economic prosperity, protect the environment and prevent pollution, which are all part of sustainable development. Circular economy seeks sustainable development throughout different strategies, which involve: innovation and design of products and services, global value/supply chains, green supply economic and social inclusion, participation of SMEs, as well as their entry into regional and global markets, and clean energy. The main purpose is to achieve the circularity in the processes, allowing the production and sustainable consumption. 

The development of regional circular economy, will have an adjustment of traditional industrial structure, increase research and development of environmentally sound technologies, and enhance the comprehensive competitiveness of the region. This new paradigm represents a systemic shift that builds long-term resilience, generates business and economic opportunities, and provides environmental and societal benefits. All these actions are part of the achievement of the Bogor Goals as a whole and are part of the current works of the Committee on Trade and Investment (CTI) Agenda. All these actions are part of the achievement of the Bogor Goals as a whole and are part of the current works of the Committee on Trade and Investment (CTI) Agenda such as, but are not limited to: Guidebook for Development of Sustainable Cities, APEC Cooperation Network on Green Supply Chain, APEC Strategic Blueprint for Promoting, Global Value Chains (GVCs) Development and Cooperation (GVCs Blueprint), APEC Global Value Chain Partnership Platform and the economic inclusion agenda.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs:

1) Two day Workshop: This will provide the following benefits for the participants:

a) Presentation by experts of Circular Economy Concepts and examples for Post-Consumption Waste

b) Best practices regarding Models for Collection Systems (ECOCE Model of Mexico)

c) Examples of SMEs that developed capabilities for collection and recycling of PET with inclusion and diversity aspects.

d) Field visit (self-funded) to Recycling Facilities (Bottle to Bottle).

2)  Collection System - Road Map

a) The participants will be provided with a draft “Road Map/ Check list for a Collection System implementation as a tool for the economies to follow up and report progress and update”. The Road Map will also be discussed at CTI.

i)    The roadmap will play the following role before, during and after the Workshop:

ii)    Before the Workshop: The participants will use the Roadmap as a checklist that will provide useful information about their current collection and recycling initiatives.

ii)    During the Workshop: It will be use as guideline to identify gaps of current collection and recycling systems vs Circular Economy Approach and examples.

-  After the Workshop: With the identified  gaps the roadmap will provide some recommendations about how to start a Circular Economy Project with all the aspects explained during the workshop (Collection Models, Recycling Initiatives, Development of SME´s and Gender Inclusion).

3)  Recommendations

a) Documents with recommendations and success stories will be shared to the participants including presentations from the experts.

Outcomes: 

1)  Best Practices exchange on Circular Economy Models focused on maximizing resources utilization and efficiency in production; in collection and recycling of post consumption package; identify and create new opportunities for economic growth and boost innovation and competitiveness of APEC economies;

2)  Capacity Building on handling solid waste in APEC economies, in order to limit the environmental impacts due to the use of resources as well as to develop inclusive models to generate formal jobs;

3)  Recommendation made regarding a draft proposal for a Circular Economy with APEC economies.

Beneficiaries: The direct beneficiaries would be the attendants to the workshop such as: experts in sustainable issues, stakeholders related to PET and recycling business, energy, human resources, women and vulnerable groups (i.e. low-income groups), policy makers from APEC economies working on sustainability policies and gender-perspective government plans, as well as decision-makers whose responsibilities include achieving Sustainable Development Goals.

Women will be encouraged to participate in the workshop, as the model explores the possibility.

Dissemination

No publication will be made. All the materials presented during the workshop will be shared with every participant, and they will be encouraged to present the documents and recommendations to stakeholders in their economies from Ministries of Natural Resources and Economy, in order to illustrate them with the benefits of establishing a Circular Economy Model.


Gender

This project will ensure equitable participation and engagement of men and women by taking the following steps:

· The invitation to the workshop will be sent following a gender perspective encouraging member economies to nominate both male and female experts to be involved in the planning, management, allocation of resources and implementation of the project. In this project, we will ensure representativeness of male and female at every stage of the project. The expected percentage of female participants and speakers is from 40-50%. To fulfill the commitment, as seen below in the work plan, there will be as mentioned in paragraph 9, metrics to measure the gender inclusion perspective, these will consist of: number of formal jobs created for women on collecting and recycling PET; number of women with access to social security as result of working within the PET supply chain; number of women-led SMEs on the Circular Economy field. We will monitor the participation of women to ensure there are no significant gender disparities in all the areas.

· To highlight the close relationship between gender and circular economy and identify how APEC can efficiently raise public awareness on gender perspectives in policy formulation, a special session will take place in the workshop to share experiences of SMEs led by women The cases identified in Mexico’s experience can benefit participants, mostly female, on how to:

· Turn an informal activity into a formal one with all the benefits attached to it (social security, formal jobs, taxes)

·  Identify the most efficient manner to gather women currently working in collection of residues and develop a formal enterprise

·   Build a flexible work environment that allows them to work and take care of their children

· Engage other stakeholders from the business sector and the government in order to ensure financial support and a steady demand 

Mexico’s experience shows that after the implementation of a circular economy model, new market opportunities arise for MSMES led by women, either as creating formal gathering enterprises, or through business that offer final products, either for small consumers or retailers, made from recycled materials. In Mexico’s experience, which the goal is to replicate, there are MSMES offering textile, clothing and apparel, gifts, toys, etc. 

Currently, the SMEs led by women and developed after the implementation of a circular economy in Mexico, not only are formally employed in the collection systems, but have also been assisted into developing additional skills that have allowed them to transform the materials collected (mostly aluminum and PET) and transform it into new products that are being exported to the U.S. and Europe. Therefore, this case illustrates that it is possible to move on from a model where a woman is working in dangerous conditions to a situation where she has a formal job, working around side other women and adding value to products that were once residues and now are export material.

Work Plan

Two-day workshop to take place on October 16 and 17, 2018.  On the first day participants will be presented with the following topics by experts: (i) introduction to Circular Economy (Ellen MacArthur Foundation); (ii) challenges and problems of post-consumption waste handling; (iii) presentation of successful circular economy models in APEC economies (ECOCE, IMER, PETSTAR, National Demonstration Eco-Industrial Parks in China); (iv) inclusive recycling models and women empowerment (BID, AVINA, The Coca-Cola Company). On the second day, there will be a visit (self-funded) to a recycling facility, where they will meet success stories of inclusive recycling models. The recommendations from experts and participants will help drafting a proposal that will include the main learnings from the workshop and a specific set of actions on how to work out a Circular Economy framework within APEC.

Timeline: 

Date

Tasks

Deliverables

April-May

Definition of program, schedule and proposal of experts, speakers and participants.

Project proposal

August

Setting final program.

Invitation of experts, speakers and participants; confirmation of participants and speakers.

September

Preparation of workshop materials.

Expected outputs are (a) program, (b) list of speakers and experts, (c) list of participants, (d) invitation, (e) recommendations to elaborate a Circular Economy Framework.

October

Workshop

Field visit (self-funded).

Recommendations and best-practices for Circular Economy Models, which will serve as the foundation for a transversal framework (see below) and a road map on how to implement a collection system.

Circular Economy is a broader concept that goes from the design of the product all the way to post-consumption collection actions, therefore this Framework will intend to offer direction to APEC economies that are currently dealing with management of solid waste. As part of the results of the workshop, Mexico will gather the main outcomes, recommendations and best practices offered during the two days of discussions and presentations, and present them at the proper APEC for a as a draft proposal for a Circular Economy Transversal Framework. Therefore, considering that the Framework proposal will touch upon each link in the solid waste management chain, it can serve as a starting point for economies wishing to develop a Circular Economy model from scratch, or just using the areas where they can see an improvement upon what they already have in place. The final goal of the Framework is to provide sustainability to APEC economies in their handling of solid waste. 

Program (draft)

Day 1

Day 2

- Circular Economy Models

- Collections systems (Mexico’s experience)

- Presentation of SMEs led by women
- Sharing of best practices in round tables

- Visit to recycling plant: Presentation of best practices for a recycling model

- Return to workshop to develop conclusions and draft for transversal framework

Within two months of the conclusion of the Workshop, event organizers will work on the drafting, endorsement and submission of the Completion Report and all supporting documents to the Secretariat.

Six to twelve months after project end date, organizers will participate in the Long Term Evaluation of APEC Projects conducted by the Secretariat, as required for all APEC funded projects.

Risks

There are few liabilities related to the organization of the workshop as such. In order to guarantee an efficient work during the two days, the organizing committee will work to ensure having the adequate experts as speakers sharing their insight and knowledge. Additionally, in order to assure this information will contribute to the region’s development, a special focus will be placed upon the selection of attendees, prioritizing the economies’ needs in terms of solid waste management. 

The Project Overseer will work with the co-sponsoring economies to get recommendations of potential speakers to reduce the risk of last minute speaker’s cancellations. That risk will be managed by identifying possible back-up speakers in advance of the event. 

The CTI representatives will be the focal point to nominate participants who will attend the Workshop. To assure the workshop will attract targeted participants, invitation will also be sent to other fora involved in the topic such as: EWG, HRDWG, OFWG, PPWE, SMEWG, PPSTI.

Monitoring and Evaluation

The indicators to assess the impact will be divided into two groups. The first one is related to Circular Economy and includes: metric tons PET collected and recycled; PET collected and recycled by each economy as a percentage of its global apparent consumption of PET and reduction of CO2 emissions; number of SMEs that collect and recycle and; number of collecting and recycling initiatives (start-ups) receiving financing by governments and; growth of “social collection” initiatives, which include those efforts aimed at developing environmental education, for example collection in schools, small-populations, etc. On the second set, there will be metrics to measure the gender inclusion perspective, these will consist of: number of formal jobs created for women on collecting and recycling PET; number of women with access to social security as result of working within the PET supply chain; number of women-led SMEs on the Circular Economy field. 

In order to collect these indicators, as part of the draft proposal for a Circular Economy Framework that Mexico will summit to CTI, a section for monitoring and evaluation will be included, with a survey for each of these two groups prior to the workshop. The first survey for APEC economies will be used to determine the current status of APEC economies on their handling of solid waste. The survey will ask them to provide information on the criteria of the first group described above: (1) metric tons of PET collected and recycled, (2) PET collected and recycled by each economy as percentage of its global apparent consumption of PET and reduction of CO2 emissions, (3) number of SMEs that collect and recycle, (4) number of collecting and recycling initiatives (start-ups) receiving financing by governments and (5) annual growth of “social collection” initiatives. These four indicators will provide a starting point to determine if the APEC economy improved its management of solid waste after the workshop, in case it had decided to employ the Framework. The second survey for APEC economies will be used to determine the social impact of the Framework and will ask them to give information on: (1) number of formal jobs, existing at the moment, for women collecting and recycling PET, (2) number of women with access to social security as result of working within the PET supply chain and (3) number of women-led SMEs on the Circular Economy field. These indicators will serve as the starting point to evaluate impact. 

Regarding the effectiveness of the workshop with the participants, two questionnaires will be applied. The first one will be distributed among the participants on the final day in order to determine if:

a)  The knowledge about Circular Economy Models and their benefits are better understood

b)  The speakers’ knowledge and presentations met the participants’ expectations.

c)   The roadmap and Mexico’s experience will be useful for them into implementing a Circular Economy Model

d)  The recommendations on how to implement a Circular Economy Model were useful

e)  There is clarity on which are the next steps necessaries towards achieving an efficient circular economy model 

With the objective to determine the success of the workshop, a second questionnaire will be send to participants three months after the workshop. This second questionnaire will serve to identify:

a)  The information received in the workshop has been shared with other stakeholders within the economies

b)  The roadmap and recommendations are useful according to the economy’s reality

c)  The main problems to follow-up with the next steps 

Additionally, in order to evaluate the impact in the developing economies, a proposed key performance indicator will be to measure, after a year of the workshop, the number of initiatives for collection systems within the economy.

Linkages

The project seeks to promote cross fora collaboration with CTI and ECOTECH working groups. The activities which will be carried out in this project are aligned with Mexico’s top priorities for sustainable smart cities and the proposal doesn´t duplicate the work related with other projects. The project will seek to collaborate with the EWG, HRDWG, OFWG, PPWE, SMEWG and PPSTI through sharing the outcomes. Collaboration with related CTI initiatives will also be sought including with the APEC Green Supply Chain Cooperation Network, and Sustainable Materials Management (SMM) to gain synergies among the initiatives. Specifically, this effort serves as guide and reference for future work on recycling and managing of waste.

Sustainability

The impact expected after the APEC funding includes changes in policy, in order to share responsibility concepts and incentives for increasing the collection and recycling of post-consumption waste.

The Framework proposal Mexico will present will include each of the links and steps APEC economies must oversee in order to set up a Circular Economy model. This document will provide the main support action for the economies since it will offer guidance through the process. The indicators included in the evaluation sector will serve the APEC economy to measure its progress.

Additionally, it is expected that this will result in collection systems, value chain development, development of new business, mostly entrepreneurs as part of the collection and recycling systems, an Increase the installed capacity of the recycling Industry. Finally, environmental and social benefits, such as: Increase the domestic rates of collection, recycling and declining of plastic leakage to oceans and water basins, and job creation.

The beneficiaries will be supported with the following:

1)  They will have direct contact and details from experts so they can explore to install and implement elements of Circular Economy with guidance from the experts.

2) The economies and stakeholders will also have the Road Map for implementation.

A Checklist will be circulated for agreement to CTI, in order to have it as part of the follow up and commitment every delegate from the APEC economies will report progress and update.

1) Changes in Policy: The purpose is to reflect in current policy the Circular Economy Models, Shared Responsibilities concepts and incentives for increasing the collection and recycling of post-consumption waste.

2)  Progress in Circular Economy Models for Waste Management

a) Collection Systems: The possibility to replicate Collection Systems at local level.

b) Value chain development: Development of new business, entrepreneurs as part of the collection and recycling systems.

c)  Recycling Industry: Increase the installed capacity

d) Environmental Benefits: Increase domestic rates of collection, recycling and declining of plastic leakage to oceans and water basins.

e) Social Benefits: Job creation, Inclusion and Diversity rates.

Project Overseers

Ms. Vannessa Tena / Mrs. Graciela Narcia / Mr. Omar Mérida
APEC Coordinator / CTI Representative / stakeholder representative

Organization: Ministry of Economy / Coca-Cola FEMSA

Postal address: Paseo de la Reforma 296, Col. Juarez, Del. Cuauhtemoc, Mexico City

Tel: +5255 5729 9100 E-mail:  vannessa.tena@economia.gob.mx /graciela.narcia@economia.gob.mx

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Not Applicable.

Waivers

Not Applicable.

Are there any supporting document attached?

No 
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Project No.

Project Title

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Publication (if any)

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Project Year

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Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

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Fax 2

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Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

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