ReTraCE Newsletter _ Issue 3

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NEWSLETTER - ISSUE 3  [email protected]
IN THIS ISSUE
Halfway through!

The ReTraCE project is now in its third Development Unit at the Ministry of Kandinsky and the Circular
year. Initial results have been presented in Territory and Sustainability of the Economy by Sofia Greaves
deliverables and publications on Directorate-General for Environmental Page 2
international journals. Policy and Natural Resources of the
Government of Catalonia, Spain. Mr You may want to change the way
The ESRs are offered an intense training McDonald and Ms Cañellas shared their you buy clothes…
programme and world-leading experts have experience in promoting circular economy by Azar Mahmoum Gonbadi, Mariana Oliveira, and
been invited to deliver webinars on a range strategies within their contexts, motivations, Tommaso Calzolari.
of topics. challenges, and hopes. Page 4

Alfons Pérez, author of the book “Green Prof. Bleischwitz discussed the increasing Trust is key
deals in a time of pandemics”, with Steffen demand for natural resources, often framed
Boehm, partner of the ReTraCE project, on in terms of a ‘nexus’, which is perhaps at risk by Mariana Oliveira Page 6
of becoming a buzz word and tried to
11th May 2021 will reflect on the dangers of answers questions such as: “A nexus between Is Europe’s new agenda for
reinforcing the growth model with the
arguments of absolute what? Over what sustainable growth and Circular
scales? And what are Economy Action Plan going to
decoupling, the the consequences of spread prosperity or concentrate
impacts of deepening such a nexus?”
extractivism in the
interests of obtaining it? Page 7
the critical raw On 10th February,
by Sanja Arsova

materials for a green Professor Kallis Is there life beyond GDP?
and digital presented his
transformation, and recent book, where by Josep Pinyol Page 8

the risks of over- he revisits the The Untapped Potential of
indebtedness. notion of limits in a
context of de- Biogas in Africa
Silvio Funtowicz and growth environmentalism, which calls for Page 9
Jerry Ravetz coined the term ‘post-normal’ by Amos Ncube
to refer to scientific activities appropriate for
the new tasks of ‘clean-up and survival, and, collective self-limitation as the only way Furniture Refurbishment: what
on 7th April 2021, Silvio, will address the towards egalitarian abundance.
question: “Covid-19 has generated, in many, a
nostalgic desire to return to the previous normality, A conversation with Janez Potočnik, about social implications? Page 10
but even if we could, should we?” Former European Commissioner for the by Akis Bimpizas and Andrea Genovese
Environment, who provided a fundamental
contribution to the establishment of the Circular Economy: A potential
Circular Economy agenda, examined policy- thrombolytic for global supply
The paper “André Gorz’s Labour-based Political making for the transition towards a Circular chains?
Ecology and Its Legacy for the Twenty First Economy. Page 11
Century”, which critically reviews the French by Akis Bimpizas and Andrea Genovese
social philosopher’s thought was discussed
by Emanuele Leonardi. The full progamme of webinars is available on the Publications, Awards and Special
A Virtual Round table, “Building the Circular ReTraCE project website Issues Page 12
Economy through public policy; perspectives from
Ireland and Catalonia” hosted Paul and the recordings of the webinars are available on the
McDonald, Principal Officer at the ReTraCE_ITN YouTube channel.
Department of Climate, Environment and
Communications. Waste Policy of the
Government of Ireland, and Mireia Cañellas
Grifoll, Head of the Sustainable

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This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

Kandinsky and the Circular Economy
Guest blog post by Sofia Greaves,
PhD Researcher in Italian Modernism and urban planning at University of Cambridge

Recycling is typically understood through triangles and circles. "Wait a minute", says Kid 1. "There are two bins, and one of them has a picture
on it. What do you think it means?".
“Using just a few spare lines, Gary Anderson encapsulated Kid 2 is very confused.
the fundamentals of recycling, producing a logo that ably Mr. Sammy explains, "Recycling is when we take old trash and make it into
demonstrates just how vital it is to reuse the finite resources something new.”
we have at our disposal” Kid 2: "Wow! That's amazing".
Mr. Sammy: "The recycling bins go to a special place called the Recycling plant.
Gary Anderson came up with the triangle image in 1970. The circle is much That's where the magic happens. Bottles, cans, plastic and paper are chopped
more recent; it has been promoted by the European Commission since 2016, into TINY BITS. Then they are melted or turned into mush. Now, they can
which calls for a transition to the Circular Economy. CE emphasises reuse, be used to make new things! That's recycling!"
repair and recycling. These easily legible symbols stand in for a process which
is obviously much more complex. When viewed instead as a formula, Unfortunately, that is not what recycling is, as Trevor Zink explained at a
‘recycling’ determines the actual environmental and economic benefit derived seminar with the ReTraCE project, which seeks to analyse 'the circular
from this system. But circles and triangles brand recycling and consumption economy paradigm'. Here Zink raised the depressing fact that material does
as ‘closed systems’. In such diagrams, there is no line between consumption not perpetually cycle; one aluminum can does not produce another aluminum
and its effects. The primary problem with these symbols, therefore, is their can. If, 'the primary reason we recycle is to displace primary production because primary
failure to properly communicate the essential reasons why recycling happens production generates CO2/', displacement does not happen 1:1. Therefore the
at all. trajectory of raw materials is ultimately linear. (Zink, 2017).
Nor does consuming second hand prevent the major problem. Primary
The Circular Economy vision and approach production, which extracts raw material, is often not diminished by the
(adopted by Ellen MacArthur Foundation) secondary markets which recycled goods create. There are now two markets -
secondary production creates a market from recycled goods. Their interactions
are far from cyclical, and produce "Circular Economy Rebound": 'when
circular economy initiatives, which have lower per unit production impact,
increase levels of production and so reduce the benefit.' It's not that recycling
is bad or ineffective per se; it just doesn't make consumption in itself ok.

Kids Academy has a video on recycling.

Recycling is therefore not a magic circle; it is more of a Kandinsky painting.

There are two bins.

2

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

The Circular Economy suggests Wassily Kandinsky, Composition VIII, after the atom was split in 1911, it seemed like the makeup of the whole
that the earth can contain the 1923. universe could be questioned. Kandinsky equated this event “with the collapse
effects of its many markets, of the whole world” [1]. Science, in his words, ‘was destroyed’. He became a
like Circles in a Circle, 1923. This pioneering abstract artist and wrote ‘Concerning the Spiritual in Art’, a
is not true. Recycling is more like manifesto which laid out abstract principles for interpreting and representing
the unpredictable ‘Composition nature – “Nature, has her own language and a powerful one, this language
VIII’ above. Thinking like Circles cannot be imitated”.[2] In Concerning the Spiritual, Kandinsky emphasized
in a Circle, links a cosmic symbol the importance of self-understanding to interpretation. It took work to
to an increasingly consumptive understand ‘the principle of inner need’ – a responsibility he gave to both the
activity, as if to suggest that artist and the viewer.[3]
the two can exist in harmony.

In sum, the circle is too flexible,
because it promotes what it seeks to
prohibit (Genovese and Pansera,
2020). Triangles and circles de-
stigmatise waste such that it is
possible to feel good about both
consumption and excretion. But if
recycling were not a circle or a
triangle, what would it be? A symbol
would have to indicate, unlike the
circle, that consumption does not
grow in any sphere without distorting
other elements of the biosphere. But
the problem with visualising
any system, as Kate Raworth
Wassily Kandinsky, Circles in a Circle, has raised in her Doughnut
1923 Circular economy at a Economics, is the very
crossroads?
function of an image: it
provides a model which both explains processes, and becomes how they are
understood. It is a cyclical process. Any image must therefore be questioned Adolph Gottlieb, Penumbra, 1959.
for its ability to shape more ‘scientific’ systems. Putting a sad or ‘bad’ face on Circular economy and its effects?
bins is one possible answer to these problems. Bins have traditionally been References
happy consumers – a device which encourages bin use. Perhaps the opposite [1] Kandinsky, W. (1913) 1994. "Reminiscences." In Kandinsky. Complete Writings on Art, edited
should be true. Seeing the bin as a magical hearth which transforms waste by K. Lindsay, and P. Vergo, 364. New York.
disconnects ‘what goes in’ and ‘what comes out’ – therefore, some have [2] Kandinsky, W. (1911) 1946. "The Pyramid." In Concerning the Spiritual in Art, edited by H.
suggested transparency to expose the bodily juices mixing within the bin body. Rebay, 36. New York. Accessible online: https://www.wassilykandinsky.net/book-
Visualising this material encourages joined up thinking, by making waste more concerning_the_spiritual_in_art.html
of a spectacle. [3] See Ashmore, J. 1962. "The Theoretical Side of Kandinsky." Criticism 4 (3): 175-185. Retrieved
February 22, 2021, from http://www.jstor.org/stable/23091068; Ashmore, J. 1979. "Vasily
also used Bin Juice / Kandinsky, Composition V, 1911. Kandinsky Kandinsky and His Idea of Ultimate Reality." Ultimate Reality and Meaning 2 (3): 228-256.
to The first abstract painting produced by abstraction https://www-utpjournals-press.ezp.lib.cam.ac.uk/doi/pdf/10.3138/uram.2.3.228
Kandinsky. Genovese, A., and M. Pansera. 2020. "The Circular Economy at a Crossroads: Technocratic Eco-
challenge Modernism or Convivial Technology for Social Revolution?" Capitalism, Nature, Socialism.
existing scientific https://doi.org/10.1080/10455752.2020.1763414
paradigms. He sought to make the invisibile visible by painting sound. Grohmann, W. 1958. Wassily Kandinsky: Life and Work. New York.
Kandinsky, W. 1895. Letter to Chuprov, November 7, 1895. Archives, Stadtische Galerie, Munich.
Zink, T. and R. Geyer. 2017. “Circular Economy Rebound.” Journal of Industrial Ecology 21 (3):
593-602.
Zink, T., Geyer, R., and R. Starz. 2017. "Toward Estimating Displaced Primary Production from
Recycling: A Case Study of U.S. Aluminum." Journal of Industrial Ecology 22 (2): 314-226.
"Transparent recycling bins would make residents 'face their waste." June 20, 2019.
https://www.abc.net.au/news/2019-06-20/transparent-recycling-bins-proposed-for-adelaide-
council-area/11227906
"Circular Economy Action Plan." https://ec.europa.eu/environment/circular-economy/
"It's Called the Circular Economy." Ellen McArthur Foundation,
https://www.ellenmacarthurfoundation.org/circular-economy/what-is-the-circular-economy
"The Circular Economy. A New Economic Model for the Future?" July 3, 2020. https://blog.armor-
owa.com/circular-economy-new-economic-future

Incidentally, Kandinsky was trained as an economist. As he explained, “for a
long time, I believed in Science and maybe for this reason, I loved it.” But

3

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

You may want to change the way you buy clothes…
by Azar Mahmoum Gonbadi, Mariana Oliveira, and Tommaso Calzolari, ReTraCE ESRs

What would you do if you knew that behind the clothes you wear… common: violent repression followed her requests to managers, as a founder
…there are low-wage workers without basic rights, people dying from diseases of her factory’s labor union. Scissors and chairs were used to hit workers, and
caused by chemicals and pesticides and suffering from psychological illnesses their heads were kicked and crashed to the wall. Like many of her colleagues,
caused by mass media propaganda? Shima is also unable to keep her 5yo daughter, Nadia, with her in Dhaka (no-
one can take care of her). For this reason, Nadia lives in a village outside the
I would say, is this (1) A science-fiction scenario? (2) An impossible dystopian city, and Shima only gets to meet her daughter once or twice a year. She has
future? Or (3) one of the realities of the global capitalist industry? no choice! She works hard to give Nadia an opportunity for education and a
better future.
The True Cost (2015) – written and directed by Andrew Morgan – explores Shima wants better working conditions for her and for the 4 million garment
how the fast fashion industry affects economic systems, the environment, and workers in Bangladesh, of which over 80% are women: “We work all day long
societies. And, unfortunately, the right answer is the third one! to do clothes that people wear. People do not have an idea of how difficult it
is for us to make these clothes. They do not think about it: they just buy and
The garment industry is the second-most-polluting industry globally and wear them. These clothes are made with our blood: many garment factory
the most labour-dependent one: 1 every 6 people globally work in some part workers die in accidents, like in Rana Plaza. This is painful. It is unfair that
in the fashion industry.
someone wears something
This industry has changed a lot: while in the 1960s, clothes in the western that has been produced with
world were produced our blood.”
mainly internally (for 2- Dr. Pritpal Singh is an
example American Indian scientist who
fashion industry explores the effects of
manufactured 95% of the chemicals, fertilizers, and
clothes its people wore), pesticides on human health.
in the 2010s, almost His report shows a dramatic
100% of it was rise in the number of birth
outsourced to defects, cancers, and mental
developing economies, illness in the region. And
where wages are kept low, here is where all begins, the
and workers’ rights are not cotton fields.
respected. The demand for more
material, cotton specifically,
The Fashion industry had has led to genetically
exponential financial modified agriculture that is
growth when the new fast systematically poisoning the earth. Nowadays, 80% of the cotton land is GMO
fashion model has (Genetically Modified Cotton). Most of it is rounded up ready, meaning that
transformed the way instead of the farmers’ spot-spraying seeds occasionally in their field or hiring
clothes are produced and labourers to walk the field and eliminate the weeds, they’re now spraying
used. With quick changes in fashion (from 2 seasons new collections – whole areas. Moreover, GMO seeds need specific chemicals to grow and to
summer and winter – to 52 – one per week) and extremely low prices, new keep productivity. Monopolies on patented GMO cotton means farmers are
buying habits emerged: people passed from buying 2-4 T-shirts per year to forced to pay higher prices for seeds and chemicals that usually don’t deliver
one every weekend. And from keeping clothes for years to throwing them on their promises, causing a need for even harsher pesticides. Most of India’s
away without thinking about it. cotton is grown in the Punjab region, which has quickly become the largest
pesticide user in India. Unsurprisingly, there is an increasing rate of cancer in
However, this production and consumption model is causing many hidden cotton farming areas because of those pesticides, with suicide rates also on the
and unaccounted costs on the societies and on the environment. The rise as farmers face mounting debt while struggling to keep prices low enough
end of life clothes disposal causes land and water pollution (as most attire is for fast-fashion clients. If the farmer cannot afford these production costs,
made from non-biodegradable materials) and huge socio-economic problems their land is taken as a payment form. Subsequently, the sad story is that the
(i.e., loss of skills in developed countries, where clothes donated by western demand for cotton – and the voraciousness of multinational seed and pesticide
throwaway societies cannibalise the market of local artisans). companies – has wreaked environmental devastation and caused 250,000
The movie is a backward journey of a fast fashion garment, from the shiny farmers in India to suicide However, in every village, you can find hundreds
shops of New York through the garment producer sweatshops in Dhaka and of patients suffering from cancers. As an example, there are 60 mentally
to the intensive agriculture cotton fields. retarded kids and others 70 to 80 kids facing severe mental retardation and
You might be surprised to know that most of the fast fashion brands physical handicaps in one village. Therefore, it’s a hazardous phenomenon in
cannot say that their supply chains are free from exploitation, violence, Punjab. Poor people, farmers, labourers, and small farmers have maxed their
or environmental contamination. Therefore, the protagonists of the story labour means, so they can’t afford treatment. Ultimately, they have accepted
might be behind what you are wearing now! the death of their kids. Besides that, what kind of impact is that having on

1.Shima is a 23 years-old worker in one of the 5000 garment factories in
Dhaka (Bangladesh). She earns less than $3/day, working incredibly long
hours. At her workplace, abuse, humiliation, and exploitation are very

4

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

their soil? What kind of impact is that having on the people in their a voice (farmers, garments workers, distributors, customers), in which risks
communities? Where is the cost of that? The documentary also shows the and profits are distributed fairly. And, finally, an economic system which is
other side of the coin – initiatives for the fair fashion industry. organised in such a way to reward who cares. Can global industries evolve
so that they become fair to people and to the planet? How initiatives as
3. Orsola de Castro – Fashion Revolution co-founder, is another character the Fashion Revolution can reach and involve more and more people?
of this documentary: She dreams about clothes that do not exploit people or
destroy our planet, instead of clothes that conserve and restore the To be honest, the film is genuinely eye-opening. All stories made us think
environment and people’s values over the about our role as responsible consumers,
growth and profit. She lighted up the business “The weakest links in these global supply chains carry made us think about our consumption
interests over the productive processes. the burden of these costs]” behaviour, and changed how we buy clothes.
What are you going to do now that you know
Fashion Revolution respects cultural all those things?
differences, involves small productive communities, valorise their work in a
collaborative process, respects the environment by choosing natural colouring Responsible consumption is not only related to consuming less or just buying
processes, and provides a fair financial return. She calls for a radical and what is strictly necessary. It is a broader concept involving socio-
revolutionary change in communication, information, regulations, and fashion environmental responsibility in all phases of the chain, from the cotton fields
industry policies. and inputs consumed until the retail shops, final consumer, and disposal
Have you ever thought about these stories? Do processes. Inform yourself about your consumption’s adverse effects,
you feel they are so far from you? Just think
about how much of an impact fashion is having choose responsible brands, and think with your
own head. We can have information and make
choices based on them!
on our world. Some costs are clearly not
considered in product prices we pay or cannot be This does not apply only to clothes, but also to
priced – dignity, wellbeing, and happiness. When all markets and goods we use to consume in our
you save your money by buying cheap stuff, modern lives. For example, technology (are
usually someone else is paying your share you aware of the socio-environmental impact of
throughout the productive chain. The weakest rare earth metals extraction and processing?),
links in these global supply chains carry the food (what is the amount of chemicals used to
burden of these costs (people with no voice, produce your meal? How much water is needed
trapped in a system, which does not preserve to produce a hamburger? How far do your fruits
their rights, their natural environment, and their travel?), personal care, bottled water,
resources). This translates into economic kitchenware, furniture, cars…. Everything
activities with no dignity, no wellbeing for actually. The degree of freedom, justice, peace,
workers, no environmental care, and no policies dignity, fraternity, and happiness are respected
or regulations. also depends on our next T-shirt. And not
What we should understand is that the “true accepting these injustices is also a matter of
cost” exists. If we are not paying for it now, we will all pay for it soon or leave choice.

it to be paid by future generations. It won’t be easy for them. No money will Final notes: after the last review of this blog, initiatives as the Fashion
fix extreme weather events, reverse the harmful high temperatures for life on Revolution started to pop up in our minds. Would we be more aware than
earth (human lives, extinction of other species, food insecurity due to before? Check the initiatives and tell us if you know any other!
decreased productivity of crops), and provide wellbeing. Is it worth it to keep InnoTherm – ReTraCE industrial partner that produces acoustic & thermal
producing and consuming at this ever-growing pace? Should we keep natural fibre insulation from recycled denim;
producing in that way? Fairphone – smartphone producer that believes a fairer electronics industry is

Who is responsible for this? There is not an easy answer. Fast fashion brands possible.
benefit from cheap female labour (Shima is among the lowest-paid garment
workers globally), which allows them to create massive profits. At the same
time, multinational brands remain free of responsibility for the effect of
poverty wages, factory disasters, and violent treatment of workers. The system
is structured in such a way they do not own any of the factories or employ the
foreign workers directly. To avoid these situations, voluntary codes of conduct
are put in place, but factory owners often do not respect them. And
developing economies governments often keep wages low and don’t enforce
or control the respect of existing regulation, to be more attractive to foreign
brands investments, which create local jobs and economic growth. Should we
keep leaving the control of human respect only to voluntary codes of conduct?
Or put them as requirements for brands, as an essential condition to play in
the market?

Imagine a world in which we can buy only brands that accept the responsibility
for the production phase, in which they respect the environment and respect
the people throughout the supply chain. Imagine a world where everyone has

5

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

Trust is key

by Mariana Oliveira, ESR at Parthenope University of Naples, Italy

According to the keynote speakers on the first day of the MCAA 8th Annual Feature image from wikipedia.org – Louise Michel (1830-1905) Revolutionary, Teacher, Medic
Conference, collaboration, connection, and trust (with peers and community)
play fundamental roles on “Research in times of crisis” – the theme of the References
conference. [1] Rothblum ED. Leaving the Ivory Tower: Factors Contributing to Women’s
Voluntary Resignation from Academia. Front A J Women Stud. 1988;10 (2, Women and
Scientists wouldn’t find a vaccine for a new virus in just one year without Worth):14-17. doi:10.2307/3346465
collaboration. Times are changing. [2] Frith U. Unconscious bias. R Soc. 2019:74-78. doi:10.1163/9789463511438_014
[3] Pronin E, Lin DY, Ross L. The bias blind spot: Perceptions of bias in self versus
The final lecture of Dr. Sudip Parikh, Chief others. Personal Soc Psychol Bull. 2002;28(3):369-381. doi:10.1177/0146167202286008
Executive Officer and Executive Publisher, Science [4] European Institute for Gender Equality. Promoting Gender Equality in Academia
Journals at American Association for the and Research Institutions: Main Findings.; 2016. doi:10.2839/260518
Advancement of Science (AAAS), discussed open [5] Partnow E. The Quotable Woman: 1800-1981. 1st ed. New York: Facts on File;
sources and made science 1983.
available for everybody. Again,
times are changing. “In rebellion alone, woman is at ease, stamping out both
prejudices and sufferings; all intellectual women will sooner or
“In times of crisis, trust is even later rise in rebellion.”
more important” said Nicole Louise Michel, 1890 in The Quotable Woman: 1800-19[5]
Grobert, Chair at Group of Chief
Scientific Advisors to the European Commission, build a trust environmental
apply to every area, any relationship, any interaction or collaboration.

Are times changing?

Look around and ask yourself: Am I working in a trustful and collaborative
group? Can I do something to improve trust and collaboration in my
workplace?

If you are in doubt or your answer is negative to the second question, you are
probably not in charge. A healthy work environment comes top down, by
attitudes against unethical and abusive behaviours, injustices, and examples
given by the leaders to the team.

If you are not the boss, you are probably carrying a heavy burden because the
vulnerable suffer the most in times of crisis. Being vulnerable in a scientific
world is even harsh if you do not fit into the changing-time academy. Still, a
dominant male place that is not yet prepared for real gender equality. It’s not
about how many we are; it is about equal opportunities to work, study and live
well.

Anyway, let’s talk about numbers! Comparing voluntary resignation index, the
women rate was almost four times compared to the male ones, this back in
‘80s [1] – for more recent publications, the European Institute of Gender
Equality website is a good start. The reasons for that are not unfamiliar
nowadays, among others: barriers to conducting research, unsupportive
environment, unsympathetic colleagues, lack of feedback, anxiety about
evaluation by others, and heavy advising loads. Additionally, the unconscious
bias, strong cultural stereotypes, as maternal and sensitive, undermine
women’s careers [2–4].

In conclusion, we urge a structural change to create an inclusive, collaborative,
and trustful work environment. Such principles should be felt and learned
(from) inside to be reflected outside.

6

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

Is Europe’s new agenda for sustainable growth and Circular Economy
Action Plan going to spread prosperity or concentrate it?

by Sanja Arsova, ESR at SEERC, Greece

The economic development, social cohesion and political stability in the EU sustainable growth and Circular Economy Action Plan going to spread
have been imperiled by the regional[1] economic divergence[1]. The last 50 years prosperity or concentrate it?
have seen increasingly rapid technological advances, globalisation and policy
choices that gave rise of the so-called “great inversion” and “the new References
geography of jobs”[2], [3]. Once thriving rural and middle-to-small metropolitan [1] The level 2 of the EU Nomenclature of territorial units for statistics (NUTS 2) is
areas are facing job losses, decreasing labour force participation or decreasing referred to as European regions.
income per capita compared to the national average. In other regions an [1] Iammarino, S. and Rodríguez-Pose, A. and Storper, M. (2018) Regional inequality
increasing employment might be observed on first sight, but in essence it is of in Europe: evidence, theory and policy implications. Journal of Economic Geography.
low quality, concerning tedious and low-skilled occupations. On the other ISSN 1468-2702. Available at:
hand, a lot of large metropolitan areas along with their suburbs are ranking https://academic.oup.com/joeg/article/19/2/273/4989323
high as most vibrant places with lavish and lucrative employment [2] Storper, M. (2013) Keys to the City: How Economics, Institutions, Social
opportunities [1]. Interaction, and Politics Shape Development, Princeton: Princeton University Press.
Intra-country territorial polarisation has broadened – with a tendency of [3] Moretti, E. (2012) The New Geography of Jobs. Boston: Houghton Miffling
accumulating economic activity and wealth in large urban agglomerations, Harcourt.
frequently capital cities; and numerous regions being stuck in “development [4] Rodríguez-Pose, A. (2020) The Rise of Populism and the Revenge of the Places
traps” [4]. So far, the majority of economic policies and channeled funds have That Don’t Matter. LSE Public Policy Review, 1(1), 4. DOI:
been directed towards two types of regions: the most prospective ones in http://doi.org/10.31389/lseppr.4
terms of economic growth and development, and the indigent ones with Available at: https://ppr.lse.ac.uk/articles/10.31389/lseppr.4/
substantial need of all types of endowment. Many regions have “fallen [5] Rodríguez-Pose, A. (2020) The geography of discontent. INFO – THE
between the cracks”, since they were “neither large nor dynamic enough to QUARTERLY MAGAZINE OF THE COUNCIL OF EUROPE
attract investment, nor were they poor enough to warrant attention” [5]. DEVELOPMENT BANK, 1-2, 2020. Available at:
Geography of discontent, an emerging phenomenon is observed in such cases, https://coebank.org/media/documents/CEB_Info_1-2_2020_Web_EN.pdf
[6] Rodríguez-Pose, A. (2017) The revenge of the places that don’t matter (and what to
A new growth strategy, which among other things, (a) has the goal to do about it). Cambridge Journal of Regions, Economy and Society, 11 (1). pp. 189-
“transform the EU into a fair and prosperous society”; (b) needs to 209. ISSN 1752- 1378. Available at: https://eprints.lse.ac.uk/85888/1/Rodriguez-
ensure a “transition that must be just and inclusive. It must put Pose_Revenge%20of%20Places.pdf
people first, and pay attention to the regions, industries and workers [7] European Commission (2019) Communication From The Commission To The
who will face the greatest challenges”;and (c) is “an opportunity to European Parliament, The European Council, The Council, The European Economic
And Social Committee And The Committee Of The Regions. The European Green
put Europe firmly on a new path of sustainable and inclusive growth”. Deal. COM/2019/640 final. Available at: https://eur-lex.europa.eu/legal-
content/EN/TXT/?qid=1576150542719&uri=COM%3A2019%3A640%3AFIN
denoting the unhappiness and dissatisfaction of people living in these regions
that experience a “development trap” [5].
Nevertheless, according to Iammarino et al., (2018) “the issue is not whether,
at any particular moment, there is perfect regional convergence and equality
in development levels: there never is. But rather whether the economy is
spreading prosperity or concentrating it” [1].
As put forward by the World Economic Forum, the 21st century is marked by
prosperity, inclusion, partnership and sustainability [6]. The environmental
and climate-related concerns are positioning high in every political agenda, and
related strategies addressing these pressuring challenges became intertwined
with existing policies or stand-alone action plans. The European Commission,
aiming to turn an urgent challenge into a unique opportunity, put forward the
European Green Deal. A new growth strategy, which among other things, (a)
has the goal to “transform the EU into a fair and prosperous society”; (b)
needs to ensure a “transition that must be just and inclusive. It must put people
first, and pay attention to the regions, industries and workers who will face the
greatest challenges”;and (c) is “an opportunity to put Europe firmly on a new
path of sustainable and inclusive growth”[7].
Many conceivable questions are arising which remain unanswered at present.
Is the Europe’s new agenda for sustainable growth and Circular Economy
Action Plan going to decrease regional disparities, narrow intra and inter-
country territorial polarisation, restrain “development traps” and reduce
geography of discontent? Or is it going to increase regional divergence,
widen intra and inter-country territorial polarisation, impel “development
traps” and upsurge geography of discontent? Is the Europe’s new agenda for

7

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

Is there life beyond GDP?
by Josep Pinyol, ESR at ABIS, Belgium

How should we measure economic performance and success? friendly priorities, instead of just focusing on indicators based on economic

We keep using GPD and economic growth and we keep ignoring all the growth.

critiques that point out how wrong are both concepts. Most of economists, In 2018, France passed the EGalim law to promote a socially and

citizens, and policymakers still use GDP and economic growth as the most environmentally sustainable farming, prioritizing environmental protection

important references to evaluate the good performance of the economy (Van over free enterprise. Also, grassroot approaches are gaining force as

den Berg, 2009). Although both ideas, as growth and GDP had been alternatives to address the social and environmental challenges caused by the

extensively contested in the academic literature (Victor, 2010; Stiglitz 2019), growth-driven economy, as the case of the Solidary Economy in Brazil.

most of economic policies and governmental documents still use these Are there implemented alternatives to growth and GDP?

measures as the main referents to evaluate economic performance. This has Few examples showcase that is possible to calculate the

an effect to all the policies that we analyse and help economic performance of a country beyond the use of

to implement, including the circular economy itself. GDP. Some indicators try to incorporate elements to

On the last International Mother Earth Day, 22 the use of GDP to nuance its results, as the Human

April 2020, the President of the General Assembly Development Index an indicator developed by the

of the United Nations, Tijjani Muhammad-Bande, United Nations Development Programme (UNDP), or

emphasized that Mother Earth would only be the Green National Product, but these indicators still

preserved “through a paradigm shift from a human- do not challenge the use of GDP and therefore, still

centric society to an Earth-centred global encourage growth as a goal.

ecosystem”. In other words, human centric A handful of countries are also developing alternatives

priorities, as economic growth, should not be the to GDP and growth. In the case of Bhutan, the Gross National Happiness

first priority in a context of an existential environmental crisis caused by the (GNH) Index has been used to calculate the performance of an economic

economic system and an excruciating social crisis resulting from the COVID- approach based on collective happiness and wellbeing. The GNH consists of

19 pandemic. This context obliges scholars and practitioners to redefine how four pillars: environmental preservation, sustainable and equitable

to evaluate economic performance to include environmental preservation or development, preservation and promotion of culture, and good governance.

social satisfaction. Although there are plenty of proposals and discussions in In Canada, the Canadian Index of Wellbeing (CIW) is composed of eight

the academic literature on how to build new indicators and propose new interconnected domains that focus on how wellbeing of Canadians evolves

priorities, the king of indicators still is GDP, invulnerable to its critiques and over time. The CIW aims to measure societal progress instead of productivity

counterproposals. Or at least this is what we tend to believe. Are GDP and and is composed by a set of subjective and objective indicators that include

growth as perennial as we think they are? Has all the literature on alternative domains as democratic engagement, environment, public health, living

economic framings been written in vain? Is it true that it is easier for standards, and leisure. The state of Vermont, in the USA, adopted the Genuine

policymakers to imagine an end to the world than an end to the growth-based Progress Indicator in 2012 by legislation and

capitalism? “Harmony with Nature programme commends all many states had emulated Vermont and adopted

Are politicians ready to challenge GDP? efforts to develop and implement alternatives to the the same indicator ever since. With regard to
On July 2020, the Secretary-General of the UN dominant growth-insistent economic model and the growth, the city of Amsterdam adopted the
released a report called Harmony with Nature that harnessing of lessons from the present moment in Doughnut Economics approach as a substitute
explores how countries around the globe try to human history to develop regenerative systems. It to the global attachment to economic growth.

overcome the productivist paradigm quantified in emphasizes the need for jointly imagining and Also, the Chinese premier announced that China
creating a new normalcy that prioritizes planetary
health and human well-being for all.”
GDP and growth. As this report says on its will abandon the GDP growth target for this

paragraph 92 “Harmony with Nature programme year due to the context of the COVID-19 and

commends all efforts to develop and implement alternatives to the dominant the world economic trade environment.

growth-insistent economic model and the harnessing of lessons from the And what about the EU?
present moment in human history to develop regenerative systems. It At the moment of writing this post, the EU still did not announce the
emphasizes the need for jointly imagining and creating a new normalcy that promotion of any alternative to GDP to redefine and measure economic
prioritizes planetary health and human well-being for all.”. performance. The launch of the EU Green Deal and the second Circular
Although governments are yet not overcoming GDP and growth economic Economy Action Plan (2020) were historical opportunities to reopen the
models, policymakers and practitioners are understanding that the era of GDP debate of economic objectives. However, reports and internal documents of
will soon or later be over. The First Minister of Scotland, Nicola Sturgeon, the EU institutions may start to recognise the need to re-contextualize GDP
declared that collective wellbeing, not GDP, should be the most important and to acknowledge its limitations. This November, a briefing of the
measure of a country’s success. Also, New Zealand’s PM Jacinda Ardern Directorate-General for Internal Policies, from the European Parliament,
advocated to promote a “well-being” agenda, and Katrin Jakobsdottir, acknowledges the shortcomings of the decoupling approach and that GDP is
Iceland’s prime minister has urged governments to adopt green and family- a mean to an end, but not an end per se, therefore, sufficiency-oriented

strategies should be considered to meet the EU environmental targets. Of

8

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

The Untapped Potential of Biogas in Africa
by Amos Ncube, ESR at Parthenope University of Naples, Italy.

Amos co-presented with Jonathan Cocker (Borden Ladner Gervais) on the topic “Biogas Opportunities in Africa” at the recently held one-day
capacity-building webinar “Africa and the Circular Economy: Opportunities, Benefits and Trends” hosted by the World Trade Centre Accra.

course, we are just talking about a small report, but in any case, we should Biogas as Renewable Fuels
keep a close observation on the EU’s position towards issues as growth and In looking at other regions with hurdles in the delivery of biogas energy, a
the potential that new debates open up. success story emerges in south and east Asia. In India, for instance,
The pathway to a low carbon economy for many countries across Africa compressed biogas (CBG) has been promoted as a transportation fuel, with
appears as a long and winding road. There remains a predominance of fossil guaranteed government off-taker agreements and gas delivery centers to
fuel-based heating and transportation energy within many cities, combined facilitate its use in automobiles.

with a rural dependence upon the use of traditional fuels, such as firewood The benefits of commercial scale CBG, produced with whatever technologies
and charcoal. Meanwhile, substantial biomass and other organic material for and organic feedstocks private industry so chooses, include:
potential conversion into biogas is readily available in many regions of the • Cheaper transportation fuel costs
continent. And there has been an exponential growth in biogas energy, across • Improved waste management,
a myriad of applications, in other parts of the world. So why isn’t biogas • Additional revenue source for farmers
technology more prevalent within Africa today? • Local opportunities, including in the informal waste sector, as well as the

Two Familiar Development Foes rural economy
At first blush, the challenges facing biogas development might be equated with
those facing many other types of development projects, including other • Reduction in the import of natural gas and crude oil
renewable energies: • Buffer against crude oil/gas price fluctuations
• Insufficient regulatory drivers and financial impetus for broad-scale • Reduction in carbon emissions and pollution
• Support to national commitments in achieving climate change goals
implementation in most African countries; and • Improved energy independence
• limitations in the delivery of the resulting energy to many communities,
particularly outside of urban areas. All these benefits will resonate across Africa and it is encouraging to see that
Are there opportunities for biogas deployment across Africa that other India projects growth of no less than 5000 private sector CBG plants over a
renewables, such as solar and wind energy, do not have? five-year roll-out period. Its resource development, economic opportunities,
and waste management – all local, delivered at commercial scale by private
An African Biogas Circular Economy industry.
Biogas generation models, often funded through
international development monies, have been “Are there opportunities for biogas deployment The Role of Biogas in Energy Security and
developing across Africa which appear to avoid across Africa that other renewables, such as solar Independence
these common development challenges: Finally, it is worth noting that widespread
and wind energy, do not have?” adoption of biogas resources as renewable

Financing: one solution seems to be project size – many biogas development fuels would also fit nicely within the broader goals of the African Union’s
projects focus on small or even micro-scale generation, based upon local Agenda 2063, a strategic framework aiming for inclusive and sustainable
community resources – this lowers, but does not eliminate, the hurdles for development within Africa, promoting African unity, self-determination, and
many to access biogas. collective prosperity. A mix of local and regional, urban and rural biogas
production and distribution may well be a foundational pillar of this strategy,
Energy Delivery: as the generation is very localized, and sometimes within and the substantial replacement of imported petroleum with locally-generated
individual households, piping from generation to hearth has been the focus of renewable fuels would be a quantum leap towards realizing the 2063
some NGOs, such as the Africa Biogas Partnership Programme. There has ambitions. Given the many energy and environmental pressures felt across the
also been some growth in consumer recyclable biogas cylinders which can be continent, including the growing waste management challenges of Africa’s
refilled at point of generation. cities, biogas’ transformative potential should be unlocked and a significant
But the benefits of these local models also highlight the opportunity for first step may well be renewable fuels.
commercial scale biogas production, which may service Africa’s growing
cities. But how can they be incentivized?

Carbon Market Redux?
One solution which seems to have some currency among the biogas industry
stakeholders is the idea of financing continental projects using carbon
markets. It will be remembered that the Clean Development Mechanism
under the United Nations Framework Convention on Climate Change created
the right conditions for several biogas projects (of various technologies).
With the shift towards regional and continental carbon reduction obligations,
and the effective stranding of many emissions reductions projects, including
biogas projects within Africa, there is some thinking that maybe it’s time for
an African-specific carbon market, created through mandated emissions
reductions and offset opportunities, such as biogas plants. Whether there is
sufficient liquidity in the market to finance full-scale infrastructure such as
urban landfill gas facilities and anaerobic digesters is an open question and
will, no doubt, depend upon the regulatory drivers. But where to start?

9

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

Furniture Refurbishment: what about social implications?
by Akis Bimpizas and Andrea Genovese, Sheffield University Management School, UK
also available on Circular Conversations

IKEA, the world’s biggest furniture retailer, recently announced a furniture buy- cities. The growing number of such stores justifies their consideration as a
back and resell scheme offering customers vouchers to spend in store. The scheme, stable source of income, a hypothesis that is further supported by the high

which will be available to customers from 24 November to 3 December in 27 level of mobility across and within national borders for professional or
markets, marks the company’s most important initiative focusing on climate educational purposes.

change. The potential of the Circular Economy (CE) paradigm to extract value by

According to the company’s guidelines, customers wishing to participate can extending the useful life cycle of products has led many businesses to
log online their unwanted piece of furniture, request value estimation, and implement corresponding practices into their operations. Furthermore, the
return it fully assembled to their nearest IKEA store. Depending on the concept’s association with all three pillars of sustainability—environmental,
condition of their returned furniture, customers
will get a voucher which they could spend in- economic and social—constitutes an appealing
store. This scheme is part of IKEA’s People & marketing message that can enhance a company’s
Planet Positive sustainability strategy, launched brand name, particularly among younger
in 2012, that aims to transform the company’s consumers. The adoption of refurbishment and
franchise and value chain to a fully circular product-as-service models by multinational
business until 2030. corporations is a significant step towards the
Following the development of Designing for dematerialisation of the global economy. However,
Circularity Guide in 2018, which describes how while from a material flow perspective such
the reuse, refurbishment, remanufacturing and practices have a clear positive environmental and
recycling of IKEA products could be facilitated, economic impact, there is a high-potential rebound
effect associated with the social pillar.
pmaotRarmtrbtscoftdmsrmtThhohhaeeeoumoeffuroecltssaaoaoieeobuvmosnrfeoaioinitduduirsilpennnxhflkcnieuuupccerelgtorurttpogevioieerarfbnleoeonhplcsaciemasotplnnitpndwgtf,opeenescsfolaauoteutpshwrtodaaihnrndur.onsmicfoamywntetieecceritdthnmnsnifntddioseesneteuthunFeyg-oiredpaonvbg3rtcegiaarcwcnhtbsyerewtnto0anpnoebhto,elsuelisasamsadrdmneusetamndefrtosrhmvsnlerarhddiutdnsrttdec.eeamrwceehrsue.cesosaplruftDdfaaptanseIehktuuelitacltesanttxalanteeeirpructlnssbpictnoetxg(htdrirlavaetcsplealroiiipnaiiouidsnanatcsomsasenrwrdieull.endthdliggyvefpudriscurceiinrqittreenetetrlntneotiftaosiaguhshissshghooelgtniiu—ediieemetmhmerrngergphacudeegmnin,sshpegseefuascoNrn2eaitourhnelntnoth0cwermias-irfaaeftfadegfclb2apenbysltnnitidese,essr0ehue—adivspm-asivasr.csecptrasasedthwaetihertpaeirabsrternirelaomlptylevreotriratuedrklivnoysitiaenorcttaesctoeriofioonif,cacsdctnairlbdrpapuoaltsencspetal,iertawis,bovvsrcenc(rattoafoeloemkhidienteoPonnrgoestepadsrpohdpdsgae)grfsmerua“fcllrcrioeTaffnmopaaocailxinvhtcogrpnpmotiimdimiie)otdgodlreoyypdinbneessngseaiaica—ucnttetoncnaihosihysgcoonofyda.ifatswngnnihts“tAotanoerToueefrSIdap.sldfolscmhKtwoldspoehtohueweriaihreEaempegtradsdaiiesshtsAtcocccoeiisnaauonntoiinodosgnieilsnganvss,feucwtcliasitlopgsiaotmeesa,orincrmlhmremenmtafcaoadiesivfntfnaegoplrdeeadieennroatchrrrdounseaiinlkw-we—rinlngeupntsaealiodoggeaosraotttrhyuttielotpdnhnrtegeiocCpfTcfMlalrtoaoiesasolecoanflfrooiackqotnororsarkrkwirrecuecetvrddgiea-bupeiibafbiuefabagreutoeltcuooveeaycieliafrohnvrdturfeftisbcpmwbniieis.lnkociei(oprslitsiee,idElvpsn,npaehrt.erheflghocncriameeonemna”.oeoccfmfrngefutsemynceehpcsdtsnreootnaecorbasenhatbnimlttectsnniletp,slsisoteptcednyhurchdneiwor,guampiaomsnfceppwilftucetcpigeeascaahmeiorssettcctniasirehnersnionps(doetprnieoeeyrdatnfietAl.crassimeqipmeghottnerylmmaouaurs.aeesniosleeapcfsabopi.icutsstmsconiomsueoilontIuronomugnicytobpprtopergnytiedpbrioirfidlanwnenpmmnsedneesowludvitghlmlvsonffatyitreespeuuoocihhnobautgninaretoaorrnunteacsllhlynngtbbclivodtrleteeeeoidhod)ttliieaoccsdt,assaandpatdthrsaokwhhbrnhtrh’ireirleishnntenmemeoacoscuoeahfditdednceeufobnrcsuuouearro,s.a-greucoeclrefnshdcmrdesnoiopoT-lavtmtsreaasmchsnirlneeeplnehmwniagheesea,anwfestradepogmai,oelt.rionggsdcoentmeibsTwrudtuneugteariqetsoimnarhesurskrpmgvbtucteatuteorttc.eaoiheohioildhtiitdcatrgsieoeittrievrnnseanotihewarvaennueitsatsvkndnrretatsreregtrpehyeaaa.lesateedfmhlgirfecstinucpaueoshawetrebisandHescrrenrsetuhqlbe)iedllisodltaoonsisoulvwicahonapsticcwoteirueenneefhtotrhrtdyantlnfleediehiedomhdrtenpetghosvpikepprecloctsriebaeitreainommoavinhnocnonrmlpruutfmiei,iseontcsacianlesotrroeoramecetcitnsmytrfwnsentsdtuoamutitorofseooienlbhnlioooooooseasrslaalnndeeyeessssrrfffffftll
Tapping into the opportunity to capture otherwise evasive value, a new, discarded products from consumers.
parallel market segment dedicated to second-hand products has emerged over
the last few decades. Particularly in sectors such as consumer electric and Another implication that should be taken into account is the impact on the
electronic devices and fashion, refurbishment services have seen a remarkable large number of small firms that are already involved in the second-hand
increase with businesses solely dedicated to the collection, repair and market. As a symbiotic concept, circular economy can only be achieved
marketing of second-hand products. through effective partnerships, thus it is important to consider the
implications of actions beyond the remit of the firm. The entry of
Eurostat’s most recent (2017) distributive trade stats at the EU-27 level multinational firms would reduce the market share of smaller firms, and
indicates that the repair of personal and household goods industry, including probably expel them from the market.
furniture and home furnishing, is overwhelmingly comprised of small business Therefore, it is important to consider the role of these existing informal
(79.7%), generating 1.8 billion euros of added value. This segment does not structures in the transition towards circular business models and their potential
include the small local second-hand retail stores (vintage, second-hand clothes, to be integrated into respective processes. For instance, they could be utilised
furniture, house appliances) that are increasingly making their presence felt in as a node in a decentralised network of refurbishing operations, focusing on

10

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

the collection and delivery of second-hand products through franchise of serious failings at the social level and thus to the identification of effective
agreements – or simply by being acquired by manufacturers. remedial actions.
Circular Economy is not a paradigm that offers an unconditional enhancement Large corporations’ pilot initiatives are an opportunity both for the businesses
of all three pillars of sustainability. While current legislation puts emphasis on involved and the circular economy as an economic model, and thus taking into
environmental aspects, the associated economic costs and social implications consideration such externalities is important. The size of their market share
that accompany the transition towards a circular economy also matter. Despite and the different geopolitical contexts in which they operate could be an
the optimism accompanying the growing number of large corporations that opportunity to identify related barriers, implications, benefits and strategies
are adopting waste prevention practices, the rebound effect is often that could accelerate the transition towards a truly circular reality.
overlooked. This can be attributed to the technocratic reductionist approaches
that characterise the assessment of circular practices, resulting in the disguise

Circular Economy: A potential thrombolytic
for global supply chains?

by Akis Bimpizas and Andrea Genovese, Sheffield University Management School, UK

The thrombosis incident weather events and natural disasters, to regulatory changes, mergers,
acquisitions, trade and geopolitical conflicts.
March 23rd found the Suez Canal, one of the world’s key waterwa ys, blocked
in both directions by a 400-metre-long container megaship crippling
international trade and causing multi-billion-dollar losses. Opened in 1869, the Considerations in selecting thrombolytic therapies
artificial sea-level 193.3km waterway in Egypt is the shortest link between the The recent Suez Canal blockage is just a reminder that such “blood clots” are
East and West, offering a more direct route between the North Atlantic and likely to be repeated in the future, disrupting global value chains.
northern Indian oceans by connecting the Mediterranean Sea and the Red Sea. Unfortunately, the response so far is not equal to the challenge of such events.
With around 12% of global trade flowing Faithful to the dogma of offshoring and outsourcing as the key to increase
through it, the canal offers passage to
approximately 90 vessels on its profit margins, companies are postponing the
Westbound and Eastbound lanes per inevitable by perpetuating the same
day, with an estimated daily container prescription; either a few number of surgeries
value at $9.7bn. The six-day blockage by constantly changing suppliers, or have a
resulted in a total trade loss of $54 bn, few arterial bypasses by creating different
while the state-owned Suez Canal logistical routes. In the case of the Suez Canal
blockage, the issue was confronted through a

Authority (SCA) estimated the lost fees 3,500-mile detour round Africa that while it is
for the Canal at around $90m. However, uncertain whether it will save time, it will for
the extent of the actual economic sure increase fuel costs by hundreds of
damage at a global scale is likely to be thousands of dollars – a cost that will be
even higher considering the effect of escalated across multiple supply chain
global shipping prices increase on networks until it finally reaches the final
commodity prices. The incident is expected to put additional pressure on customer. Nonetheless, this is not the first and definitely not the last “arterial
global supply chains which have already been strained by the pandemic, bypass” that has taken place in recent years. In
exacerbating the shortage of empty containers over the last year and leading 2014, the Egyptian government started the 35 km (22 mi) expansion and
to an increasing number of port delays. widen of the Ballah Bypass in order to reduce the canal’s transit time. The

Past symptoms $9bn “New Suez Canal” was
With almost 80 per cent of global delivered to service in the mid-late
trade taking place through the sea “So, the “Capitalist Thrombosis” linked to the Suez Canal crisis has been summer of 2015, nearly doubling the
routes, maritime transport is the apparently resolved. However, our Global Value Chains will make “blood capacity of the passage from 49 to 97
backbone of international trade clots” like this more and more likely in the future. As a solution, either we ships per day. The recent crisis also
have quite a number of surgeries, to have a few “arterial bypasses” installed,
and the global economy. Driven or, we undergo a strict “diet” to rethink resource flows. An ambitious Circular revived past talks about alternative
by cost efficiency, the last few Economy, relying on closed, narrower, slower and shorter resource loops routes, such as the Ben Gurion
years have witnessed the might be what we need to avoid a disaster.” waterway between the Red Sea and

development of container mega- the Mediterranean through Eilat,
ships, with a capacity larger than 20,000 TEUs. In addition, over the last while providing a first rate chance for other countries to promote the value of
decade, technology has also progressed, making supply chain management an their own, such as the Northern Sea Route to Asia along its Arctic coast.
easier task, thanks to powerful data analytics techniques and real-time tracking. Attention has also been shifted to land alternatives, placing the attention on
However, even assuming 2020 to be an anomaly due to the unprecedented the Belt and Road Initiative (BRI or B&R) which involves overland routes for
nature of the coronavirus pandemic, 2019 recorded the highest rate of supply land and rail transportation through Central Asia along the historical Silk Road
chains disruptions in the last three years. Corporations managing complex routes that connected it with the Western Regions. Acknowledging the need
global supply networks found themselves up against even more challenges, for urgent solutions, BRI saw the demand for its cross-border cargo trains
ranging from factory shutdowns, changes in business ownership, extreme significantly growing. While it will be impossible for trains to replace maritime

11

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)

ReTraCE- Newsletter | Issue March 2021  [email protected]

transport due to the carrying capacity of the latter, the BRI proposition as a structures has also been exacerbated, as mentioned above, by the recent empty
reliable alternative is reaching a growing audience, cutting delivery times from container shortage crisis that has more than doubled shipping costs across
China to Europe in half. Given the involvement of different countries, their continents. In a circular economic system, supply chains could serve a
conflicting interests, and the economic importance of these alternative routes different model of production and consumption where products are more
to them, it is clear that all alternatives are associated with deep structural durable and designed in such a way to facilitate reparability, thus resulting in
changes in geopolitical balances, thus further increasing the already high shorter supply chains, which require much less trans-continental
volatility and uncertainty in global supply chains. transportation. Upon this new thinking, global production could focus more
Circular economy as a radical thrombolytic therapy? on what is needed, putting not only less stress on transcontinental supply
Hitherto, it seems that similar supply chain thrombosis incidents have been chains but also mitigating the conflicting effects resulting from the pot shots
dealt with by performing a few arterial bypasses, in order to preserve the at macroeconomic targets. However, such a radical therapy, an extreme diet
organisation of global production networks for the pursuit of perennial for our contemporary production systems, cannot take place without the
economic growth through maximalist and frictionless free trade. However, as adoption of economic planning approaches, according to the needs of the
pointed out above, this approach just postpones the problem rather than majority of the population, which should guide governments in shaping
offering a viable solution. At the same time, continuing along this path industrial policy and structural interventions aimed at redesigning supply
disregards the environmental implications of global value chains; the finite chains, also through public support aimed at fostering the production of
resources reality and associated environmental pollution and degradation essential and durable goods minimising resource consumption. Of course,
externalities are regarded as heresy. A radical therapy against the risk of such within such a framework, global value chains are not going to disappear;
“blood clots” would be to reduce the volume, speed, and mileage of material however, they should not be based on imperialist principles, but rather on
flows. In contrast to the traditional “take-make-use-dispose” linear business long-lasting international partnerships and peaceful relationships.
model of production and consumption, Circular Economy (CE) offers an A global market reform based on the circular principles of slowing and
alternative and suitable proposition by replacing the end-of-life concept with narrowing the loops would require a wide international political consensus.
restoration. Redefining business model strategies according to the This idea needs to be embraced not only by academics and think-tanks, but
mechanisms the resources flow within a system, CE aims at slowing, closing, also by political organisations and trade unionists. At this stage, it might sound
and narrowing resource flows. Rethinking these mechanisms could mitigate as a utopian dream. However, it is practically impossible to lay the concrete
the market’s expanding dependence on global sourcing, whose deficiencies foundations for a truly sustainable future, if we do not acknowledge the reality
became even more apparent during the recent pandemic. The problematic of current “economic system failures” and look for radical solutions, rather
nature of these long, geographically fragmented multi-tier supply chain mega- than adopting temporary fixes.

Publications, Award, and Special Issues

We are glad to share that not only all ReTraCE ESRs have passed their first year exam, but also that they have produced a number of publications, with the
support of their supervisors.

Among the latest, is a study by WP2 on the necessity of building integrated and non-reductionist approaches for evaluating the transition towards a Circular
Economy, published in the newly launched journal "Circular Economy and Sustainability" (published by Springer):
Oliveira, M., Miguel, M., van Langen, S.K. et al. (2021) Circular Economy and the Transition to a Sustainable Society: Integrated Assessment Methods for a New Paradigm.
https://doi.org/10.1007/s43615-021-00019-y

The definition and application of economic efficiency within a CE context is assessed in Bimpizas-Pinis, M., Bozhinovska, E., Genovese, A., Lowe, B.,
Pansera, M., Pinyol Alberich, J., Javad Ramezankhani, M. (2021) Is efficiency enough for circular economy? Resources, Conservation and Recycling Volume 167,
April 2021, 105399. DOI: 10.1016/j.resconrec.2021.105399
A literature review on the role of the consumption side in the CE is presented in Georgantzis Garcia, D., Kipnis, E., Vasileiou, E., Solomon,A.
(2021) Consumption in the Circular Economy: Learning from Our Mistakes. Sustainability 2021, 13(2), 601; DOI: 10.3390/su13020601
The potential for resource efficiency and cleaner production in the brick industry in Zimbabwe and alternative green options as interventions to minimize
environmental damage are presented in Ncube, A., Matsika, R., Mangori, L., and Ulgiati, S (2020). Moving towards resource efficiency and circular economy in the brick
manufacturing sector in Zimbabwe. Journal of Cleaner Production, 125238. DOI: 10.1016/j.jclepro.2020.125238 DOI: 10.13140/RG.2.2.33343.74405
Prof. Renato Passaro and ReTraCE ESR Kevin van Langen from the University of Parthenope (Naples, Italy), will be the leading guest editor and assistant
guest editor respectively, in MDPI Sustainability‘s Special Issue on “Beyond the Recycling Economy: The E-Waste Reverse Supply Chain in the Transition
to the Circular Economy Perspective”, now open for submissions.
Sanja Arsova, ESR at SEERC and PhD student at USFD, participated at the First International Conference Strategies toward Green Deal Implementation –
Water and Raw Materials (ICGreenDeal2020) with a work on “Mapping stakeholders interactions for designing and implementing Circular Economy
policies in regional contests” and she was awarded the 2nd Best Presentation.

Congratulations!

The full list of ReTraCE publications is available at http://www.retrace-itn.eu/publications/

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This project has received funding from the European Union’s Horizon 2020 research and innovation programme under the Marie Skłodowska-Curie
Innovative Training Networks (H2020-MSCA-ITN-2018) scheme, grant agreement number 814247 (ReTraCE)