Energy and the Circular Economy: How to Fill the Integration Gap?

21 Pages Posted: 8 Feb 2021 Last revised: 9 Feb 2021

See all articles by Stefano Pareglio

Stefano Pareglio

Catholic University of the Sacred Heart of Milan

Roberto Zoboli

Catholic University of Milan

Massimiliano Mazzanti

University of Ferrara

Laura Bonacorsi

Fondazione Eni Enrico Mattei (FEEM)

Elisa Chioatto

University of Ferrara

Alessio D'Amato

University of Rome Tor Vergata - Faculty of Economics

Claudia Ghisetti

Catholic University of Milan

Mario A. Maggioni

Diseis & CSCC, Università Cattolica del Sacro Cuore

Susanna Paleari

CNR

Emy Zecca

affiliation not provided to SSRN

Date Written: December 30, 2020

Abstract

The Circular Economy can be seen in a broader NEXUS framework, in which the relationships between the CE transition, the decarbonization transition, and the bioeconomy transition are at the core of sustainability strategies and policies. The CE can save large amounts of energy in ‘closing the material loops’ (recycling), but the net effects of business models in the ‘slowing down’ and ‘narrowing’ loops (e.g. sharing economy) can be uncertain depending on technologies or systemic effects. Energy production within the CE loops is still much based on virgin biomaterials, which can have more value in innovative non-energy uses (e.g. green chemistry), while the production of energy from waste arising from ‘closing the loops’ is limited also as a consequence of EU policies. Before the EGD, there was a weak integration between energy and the CE within the EU legislation. The EU-level definitions of CE criteria for funding business suffers for a ‘material circularity’ bias, which gives little attention to energy production from CE loops. However, CE and energy are increasingly connected within the EGD. The concepts of CE and ‘CE business models’ are increasingly holistic. Direct surveys indicate that this approach prevails in practice and firms adopt CE strategies that involve energy management and materials in an integrated way. The energy industry shows a mounting interest in the CE, both as an internal management approach and as a source of new market opportunities. Approaches and initiatives from major market players are heterogeneous and largely based on the appropriation of specific innovative businesses. The measurement of CE inside the companies is still challenging, and this issue must be addressed in front of the future adoption of ‘CE criteria’ by European policies and the financial system. The development of ‘integrated’ CEenergy business models can be needed to get the opportunities arising from the increasing CEenergy integration expected from the EGD.

Suggested Citation

Pareglio, Stefano and Zoboli, Roberto and Mazzanti, Massimiliano and Bonacorsi, Laura and Chioatto, Elisa and D'Amato, Alessio and Ghisetti, Claudia and Maggioni, Mario A. and Paleari, Susanna and Zecca, Emy, Energy and the Circular Economy: How to Fill the Integration Gap? (December 30, 2020). FEEM Policy Brief No. 22 - 2020, Available at SSRN: https://ssrn.com/abstract=3780091

Stefano Pareglio (Contact Author)

Catholic University of the Sacred Heart of Milan ( email )

Milan, Milan
Italy

Roberto Zoboli

Catholic University of Milan ( email )

Largo Gemelli 1
Milan, MI Milano 20123
Italy

Massimiliano Mazzanti

University of Ferrara ( email )

C.so Ercole I° d'Este 37
Ferrara, 44100
Italy

Laura Bonacorsi

Fondazione Eni Enrico Mattei (FEEM)

C.so Magenta 63
Milano, 20123
Italy

Elisa Chioatto

University of Ferrara ( email )

Via del Gregorio 13
Ferrara, 44100
Italy

Alessio D'Amato

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy

Claudia Ghisetti

Catholic University of Milan ( email )

Largo Gemelli 1
Milan, MI Milano 20123
Italy

Mario A. Maggioni

Diseis & CSCC, Università Cattolica del Sacro Cuore ( email )

Largo Gemelli, 1
Via Necchi 9
Milan, MI 20123
Italy

Susanna Paleari

CNR ( email )

Bologna
Italy

Emy Zecca

affiliation not provided to SSRN

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