3FOOD
TIR-CG_Luxembourg-Final-Report_Long-Version TIR-CG_Luxembourg-Final-Report_Long-Version
Third Industrial Revolution Consulting Group EcoInnovation Cluster will play a key role in advancing a circular economy across all of Luxembourg’s industrial sectors as the country transitions into a low-carbon sustainable economy. LUXEMBOURG STATE OF PLAY AND VISION Our thinking is largely dominated by linear mindsets where the increase in consumption is at the center of economic growth. Most of the companies operate their businesses based on traditional economic concepts, and existing infrastructure is designed around this linear model. Continuing to design, construct and operate the economic infrastructure and built environment in a linear fashion incurs greater risks and expenditures, increasing opportunity losses and costs, including failures to future proof against system shocks, uncertainties and surprises. In sharp contrast, shifting to a circular model in designing, constructing and operating infrastructure and the built environment goes beyond restorative features and enhances the qualities of resilience, robustness, flexibility, and anti-fragility, that are best positioned to respond to future uncertainties and surprises. Neglecting or delaying the shift results in more expensive retrofits in the future or passing on opportunities to retrofit because of excessive costs. A crucial aspect of circularity is to perform penetrating assessments of why and what infrastructure is needed – the (multi-)functional benefits to be gained – and then apply deep design practices integral to achieving circular economy outcomes. The objective is to establish design principles that lead to “feeding products, components, and materials back into the appropriate value chains,” resulting in “a healthy economy that is inspired by and in balance with nature.” 298 The positive attributes resulting from shifting to a circular economy are applicable to the entire throughput stream of economic activities, processes, and supply networks. Existing supply chains are very often highly complex and long and make it almost impossible for the final producers to identify all the materials, components and ingredients, which have been used in the goods they sell. Most companies have suppliers from outside Luxembourg, and even from outside Europe. The awareness of these issues is increasing and there are several promising initiatives currently underway to incentivize a circular economy in Luxembourg. Actors from government and private research institutes have been pooling their skills through a technology platform established within the "Luxembourg Institute for Science and Technology" (LIST) to boost the 298 Circle-Economy (2014) Designing for a circular world: circular design principles, October 06, 2014, www.circleeconomy.com/designing-circular-world-circular-design-principles/. 348
Third Industrial Revolution Consulting Group development and processing of innovative materials in fields like the automotive industry and aeronautics. It is estimated that the composite materials sector in Luxembourg is already generating a turnover of almost € 400 million per year and employs 1,600 people. Launched in 2016, the future National Competence Center will employ 60 people when fully operational. Today, it is nearly impossible to know the exact composition of end user consumer products (down to parts per million [ppm] levels). If the goal is to maintain a high quality throughout the use and re-use (up-cycling) phase, it is essential to know the exact composition of the material. This issue is further complicated by the protection of intellectual property. Moreover, implementing circularity across the value chains in Luxembourg is complicated by the issue of storage and security of data. Widespread protection of product recipes by the companies prevents a transparent exchange of information. As a result, many of the components that make up the supply chain remain unknown even to the final manufacturer of a finished consumer good. Blockchain could be a solution. A decentralized collection of data allows every enterprise across a specific supply chain to track information on materials and to store it in a secure way. Due to Luxembourg’s strong ICT commitment, the country boasts several young ICT companies actively engaged in research on blockchain processes. At this stage the development is highly Fintech oriented but could easily be adaptable to general data storage and material information tracking. Luxembourg’s IT infrastructure is among the best and most secure in Europe and the world and is complimented by excellent network coverage. The investments in the digital infrastructure over the last decade should be fully exploited to generate economic activity on a cross sectorial basis. The recently announced “Important project of common European interest on high performance computing and big data enabled applications (IPCEI-HPC-BDA)," in which Luxembourg will play a key role, will further strengthen the ICT ecosystem of the Grand Duchy by adding a strong HPC (High Performance Computing) competence and granting access to exceptional computation power for simulation and data processing purposes. While the current thinking in Luxembourg is technology-driven, there is not enough focus given to biological resources; i.e. how biological materials flow back and forth through the technical supply chain cycle and the subsequent impacts on biological resources that result from overreliance on a linear consumption model. Environmental and social burdens and costs are rarely internalized in the process/product but, rather, transferred to the public sector or society at large. The post-consumer material cycle illustrates that there is, as yet, a lack of a common view on what is ‘waste’ and how it should be treated. Moreover, current regulations and the large number of actors in the decision making process may significantly delay the implementation of new ideas. Indeed, current national and international regulations often 349
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Third Industrial Revolution Consulting Group<br />
development and processing of innovative materials in fields like the automotive industry and<br />
aeronautics. It is estimated that the composite materials sector in Luxembourg is already<br />
generating a turnover of almost € 400 million per year and employs 1,600 people. Launched in<br />
2016, the future National Competence Center will employ 60 people when fully operational.<br />
Today, it is nearly impossible to know the exact composition of end user consumer products<br />
(down to parts per million [ppm] levels). If the goal is to maintain a high quality throughout the<br />
use and re-use (up-cycling) phase, it is essential to know the exact composition of the material.<br />
This issue is further complicated by the protection of intellectual property.<br />
Moreover, implementing circularity across the value chains in Luxembourg is complicated by<br />
the issue of storage and security of data. Widespread protection of product recipes by the<br />
companies prevents a transparent exchange of information. As a result, many of the<br />
components that make up the supply chain remain unknown even to the final manufacturer of<br />
a finished consumer good. Blockchain could be a solution. A decentralized collection of data<br />
allows every enterprise across a specific supply chain to track information on materials and to<br />
store it in a secure way. Due to Luxembourg’s strong ICT commitment, the country boasts<br />
several young ICT companies actively engaged in research on blockchain processes. At this<br />
stage the development is highly Fintech oriented but could easily be adaptable to general data<br />
storage and material information tracking.<br />
Luxembourg’s IT infrastructure is among the best and most secure in Europe and the world and<br />
is complimented by excellent network coverage. The investments in the digital infrastructure<br />
over the last decade should be fully exploited to generate economic activity on a cross sectorial<br />
basis. The recently announced “Important project of common European interest on high<br />
performance computing and big data enabled applications (IPCEI-HPC-BDA)," in which<br />
Luxembourg will play a key role, will further strengthen the ICT ecosystem of the Grand Duchy<br />
by adding a strong HPC (High Performance Computing) competence and granting access to<br />
exceptional computation power for simulation and data processing purposes.<br />
While the current thinking in Luxembourg is technology-driven, there is not enough focus given<br />
to biological resources; i.e. how biological materials flow back and forth through the technical<br />
supply chain cycle and the subsequent impacts on biological resources that result from<br />
overreliance on a linear consumption model. Environmental and social burdens and costs are<br />
rarely internalized in the process/product but, rather, transferred to the public sector or society<br />
at large. The post-consumer material cycle illustrates that there is, as yet, a lack of a common<br />
view on what is ‘waste’ and how it should be treated. Moreover, current regulations and the<br />
large number of actors in the decision making process may significantly delay the<br />
implementation of new ideas. Indeed, current national and international regulations often<br />
349