Circular and Bioeconomics

Principles of Circular Economy

Reduce, Reuse, and Recycle

It is based on the goal of minimizing the amount of waste, which is becoming an increasingly significant problem. Today, more money is spent on recycling and dealing with the consequences of recycling than on the production of goods. For this reason, it is not only environmentally, but also economically advantageous to reorient production toward the reuse of materials, as well as to make new goods from recycled ones.
The essence of the circular economy is its desire to replicate a closed natural system, where everything produced or used is completely recycled within the system so that no environmental problems arise. Its goal is to maximize the efficiency of each process in the life cycle of a good or a service.
One striking example is the Finnish oil refining company Neste. Today, more than 80% of the company’s “green diesel" components consist of waste diesel oils and non-recyclable components of food-grade oils. “Green diesel fuel" brings Neste more than 50% of net profit.

The circular economy is a phenomenon of sustainability

Sustainable development, which is so desirable for all countries without exception, is based on the economic state of the nation, its technological level and perfect organization of society, but all these factors must necessarily consider the ability of the environment to meet not only the immediate needs, but also those expected in the future. In other words, the goal of sustainable development is to meet the needs of future generations at a level no lower than the existing one.

What does it mean to be part of a circular economy?

• Considering the eco-friendliness of products as a key aspect
• Limit competition from the food industry
• Reduce the environmental impact of biofuels
• Promote recycling of raw materials based on waste

Leading industry experts estimate that by 2030 biotechnology will provide:

• 7% of GDP in developed countries; for developing countries, biotechnology’s contribution will be even greater
• 80% of medicines
• 35% of the chemical industry
• 50% of agricultural production.

By 2050 the world bioenergy market will be $150 billion. 30% of the total world energy demand will come from renewable sources. The market of biomass for meeting the demand by 2050 will make $150 billion. According to experts’ estimations, the world market of biotechnology in 2025 will reach the level of $2 trillion.

The volume of European bioeconomy is currently about 2.200 billion euros, which corresponds to 17% of GDP of the EU. Europe’s bioeconomy employs 21.5 million people.

MARKET VISION UNTIL 2030:

• Overall demand for biofuels will increase as aggressive renewable energy policies are pursued worldwide
• In the automotive sector, biodiesel and bioethanol requirements are increasing (e.g., the goal is 14% by 2030 in Europe according to RED II)
• In the aviation sector, CORSIA will impose strict greenhouse gas reduction rules on airlines worldwide
• In the maritime sector, low-sulfur fuels will become the norm under IMO 2020
• There is massive investment in production capacity for higher-quality biofuels, such as hydrotreated vegetable oils (HV0)
• Securing feedstock sources will be vital in the context of commercial tensions (e.g. China-US tariff war, EU anti-dumping rules…) and political developments (Brexit, growing protectionism, product bans…)
• New competitors enter the market for alternative fuels, such as Recycled Biogas, Electric Vehicles, Hydrogen Fuels.

The European Biodiesel Board (EBB) is a non-profit organization founded in January 1997. Today EBB has 65 members from 21 member states, which is 75% of European production. Biodiesel is the main European solution to reduce emissions from transport and dependence on imported oil. EBB aims to promote the use of biodiesel in the European Union and strives to meet international standards for greenhouse gas emissions and sustainable raw materials.

What does bioeconomics mean for Russia?

• modernization of industry and agriculture
• sustainable development
• social stability
• new jobs
• stabilization of the population employed in agriculture
• alleviation of social problems in remote communities and monotowns

Furthermore, the bioeconomy can contribute to the conservation of non-renewable resources for our and future generations.