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Third Industrial Revolution Consulting Group<br />

Initial investments may be higher than those for the linear model and full benefits can only be<br />

realized once all the elements are in place. Currently, the linear model is encouraging the use of<br />

cheap raw materials to advance short-term financial gains. Therefore, it is difficult to anticipate<br />

a business change, which competes with the linear thinking. The public sector could easily play<br />

a key role in encouraging the “pay for performance” concept in which return on investments<br />

are secured by the increase in aggregate efficiencies and productivity and reduction in marginal<br />

cost and ecological footprint.<br />

Luxembourg is also developing the logistics infrastructure. Luxembourg’s mobility landscape is<br />

changing rapidly. The national telematics project, the new tramway and a new railway station<br />

granting direct access to the business center of Kirchberg are three visible examples of this<br />

evolution. At the same time, mobility is changing globally. Car and bike sharing initiatives are<br />

emerging in ever more cities, hybrid and electric buses and cars are appearing on our roads<br />

while owning a car is becoming less and less attractive. Access to mobility starts to replace<br />

ownership.<br />

Luxembourg’s Circularity Vision<br />

Luxembourg will be the first circular nation, where new business models based on the productas-a-service<br />

principle become standard. All public procurement will be aligned around the<br />

circular economy. Contracts will be performance-based. Luxembourg will have developed<br />

know-how around eco-design and product life assessment. Luxembourg will have an adapted<br />

resilient infrastructure that promotes local renewable energy production, storage and sharing,<br />

short and local resource loops, a continuous water loop and reverse logistics. In addition, the<br />

new infrastructure, designed to fully integrate CE principles, will be able to manage (in terms of<br />

storage and calculation) a large set of data, linked to each product. Luxembourg will have<br />

created a legal framework that allows the exchange of product related information between<br />

suppliers, by guaranteeing a level of confidentiality. The national tax system will support<br />

companies implementing a circular approach. Luxembourg will have gained the technical<br />

experience to make life cycle assessments and to evaluate how circular a business is.<br />

Moreover, Luxembourg will have a detailed national measurement system in order to<br />

determine both quantity and quality of the different material flows. Luxembourg needs to<br />

become a key actor in the greater region in order to establish regional and/or local supplier<br />

communities and will contribute significantly to close these loops. In addition, Luxembourg will<br />

implement a series of seamless biological loops.<br />

The above-stated goals will be achievable if we make eco-design and the basic principles of the<br />

circular economy part of our education and life-long training system. With the circular vision,<br />

the word ‘waste’ no longer exists. Circular education will teach the students the necessary skills<br />

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