A Circular Economy Framework Proposal
for EV's Industry

Chun-hsu Lin 林俊旭, Ph.D.
Research Fellow, Deputy Director
Center for Green Economy
Chung-Hua Institution for Economic ResearchAugust, 20171

CGE in CIER
 Chung-Hua Institution for Economic
Research (CIER)••

Established in 1981
A think tank on the research of economics, mainly serving for
Taiwanese government for the policy making and analysis

 Center for Green Economy (CGE)•••

Established in 2013 under CIER
Specialized in environmental ecoomics, international trade andgreen policies.
2222Outline• Circular Economy, how to circulate?
• Status and industries of circular economy inTaiwan• Current Issues• Strategies to linking circular economy withemerging green/low carbon solutions

3

Circular Economy?

4Concept of Circular Economy 1
A recycling oriented society

Ex. Basic Law for Establishing the Recycling-based SocietyJapan, 2000

5

A Recycling and Reuse Oriented Manufacturingand Consumption Economy

6

Circular vs. Linear Economy
Linear Economy

Circular Economyrawmaterials

設計
produceconsumetrash

CircularEconomy

產品PRODUCTS

消費CONSUMERS
GOODS
7

Concept of Circular Economy 2
Kalunborg Symbiosis, Denmark

Source: Indigo Development website

89Concept of Circular Economy 3Green Economy and Green Growth
The term 'Green Economy' first appeared
in a pioneering 1989 report for theGovernment of the United Kingdom by agroup of environmental economists, ledby Professor David W. Pearce.

1989

1990

The authors released sequels to thefirst report in 1991. The sequels
extended to the problems of theglobal economy, including climatechange and ozone depletion.

1991

10

Green Economy and Green Growth
The term 'Green Economy' was revived
and was viewed as a response tomultiple global crises. The UNEPchampioned the idea of 'green stimulus
packages' and identified specific areas
where large-scale public investment
could kick-start a 'green economy'.

Ministers and Heads of Delegation of theUNEP Global Ministerial Environment
Forum acknowledged that the green
economy concept 'can significantly address
current challenges and deliver economic
development opportunities and multiple
benefits for all nations.'

20082010

2009

In Oct. 2008, the UNEP launched
its Green Economy Initiative toprovide analysis and policy
support for investment in green
sectors and for greening
environmentally unfriendlysectors.

2011

The term 'Green Economy Report'
was firstly defined by the UNEP.
'Green Economy' is the one that
results in 'improved human wellbeing and social equity, while
significantly reducing environmental
risks and ecological scarcities.'

11

Status of Taiwan in Circular Economy

12Recycling Management Policy
Market-driven
recycling only

SEA for waste treatment•Construct Biomass-energy Center•Reactivate landfill site

2004

2005 2007

Source reduction restriction of Plastic
Shopping Bags and Disposable
Tableware
Waste Home appliances recycling
enterprise setup

Resource Recycling Act initiatedProspects and evaluation on MSW
treatment program•Resource regeneration and reuse•Zero waste

Zero waste policy

Mandatory garbage sorting – keep
trash off the groundResource recycling promotion plan forgeneral waste

2003
1997

MSW policy initiated - landfill

Polluter Pays Principle”
introduced

MSW policy adjusted – shift to Incineration

Four-in-one Recycling Program

Garbage open dump

1990131987

Waste Household appliances collectionand Storage

2002

2010

1999
1984

The eight recycling funds are administered by EPAT’s Recycling FundManagement Board
Producers pay
recycling fees toeight recycling
funds
Producers wereresponsible forrecycling physicallyand financially

Resource Recycling Act (RRA)
Waste Disposal Act (WDA)Garbage Generated & Recycled

100.7550.70

0Volume of Garbage Generated Per Capita Per Day (Kg)

%

2014

0.80

2013

15

2012

0.85

2011

20

2010

0.90

2009

25

2008

0.95

2007

30

2006

1.00

2005

35

2004

1.05

2003

40

2002

1.10

2001

45

2000

1.15

1999

50

1998

kg

1.20

Garbage Recycled (%)

Source: Yearbook of Environmental Protection Statistics, Taiwan, 201514

Recycling Rate for Selected Products
Metal Containers
90%

89.60%

80%

Information Productions

70%

Glass Containers

49.20%

60%

43.10%

50%40%
30%

Home Electrical Appliances
66.20%

Tetra Pak Containers

20%

43.70%

10%0%22.60%

38.20%
VehiclesPaper Containers

39.70%
66.80%
Tires

57.50%
Plastic Containers

Batteries
Source: Recycle Management Fund, Environmental Protection Agency, Taiwan, 2015 (http://recycle.epa.gov.tw/Recycle/)

15

The Industries of Circular Economy
In Taiwan

16

Shirts
made with recycled PET bottles

Source: http://www.soccerbox.com/blog/how-nike-manufacture-football-jerseys-from-recycled-bottles/

Far Eastern New Century• The Food Grade recycled polyester materials from PET bottles

17

Blanket or Scarfmade with recycled PET bottles

DA.AI Tech. Corp.

• Eco Blanket

18

Fuel made fromrecycled plastic waste

EVP Group• To convert plastic waste into valuable regenerative oil

19Glass Stones
for walls and floors

Spring Pool Glass Industrial Corp.

• Glass stone is durable and elegant for walls and floors

20Trendy stools
designed with recycled rubber tires

Renato Lab• Sustainable solutions through reuse, reduce and recycle.

21

Elastic Grass Brick considering both waterretaining and security from slipping

Jia-Qian Rubber
Technology Co.,

• It could be constructed and paved directly on the earth’s surface, and make way for 22
therains to infiltrate naturally into the earth.

Energy bricks made from recycled LCD
fragments and cement

Spring Pool Glass Industrial Corp.

• Energy-saving bricks, made from recycled LCD fragments and cement, canwithstand temperatures of up to 600 degrees. These bricks also offer excellent
23
soundproofing and are only a fifth of the weight of conventional bricks.

Precious and Rare Metal Refinement

Solar Applied Materials
Technology Corp.

• Taiwan largest precious material refiner (market share 60%)
• To dilute the waste material to metal by a recycling refinery platform.

24

Issues and Strategies in promoting CircularEconomy

25Incomplete Circular Economy• Lack of appropriate recycling schemes andtechnology for green and low carbon products after
their retirement– Solar photovoltaic modules– EVs• Emphasis on collection and treatment more thanvalue-added recycling operation– Down-cycling vs. Up-cycling– Cradle-to-Cradle practice not or scarcely existing26

Strategy 1: cluster-based approach
Strategyand
Deployment
Alliance

FinancialInstitutions

Financial andTechnical
Alliance

Technical
Alliance

RecyclersEVManufacturers
27Principles and Goals
Manufacturing-Recycling-Financing Alliances• CGE/CIER as a platform for domestic, regional and international
alliances– Taiwan Green Economy Network• Inventory analysis for recycling technologies and capacity building• Business model study and implementation– Global cradle-to-cradle services for new technology, such as EVs• Certification and verification systems– Secondary materials standards, reuse percentage etc.

• Global partnership in technology, marketing and finance• Public-Private Partnership
28

Strategy 2: indicator systems•Indicators for reviewing the performance ofcircular economy at different levels: country,regional, city, enterprise.

•Indicators to encourage circular manufacturing
practices•

Promotion of use of secondary materials•

Increase the value-added from circular economy

29Performance Indicators•

Resource Recovery Rate
= Collection Rate X Recycling Rate X Cyclical Use Rate••collection rate： waste taken back／ waste generated•

recycling rate： secondary materials generated ／ waste taken back•cyclical use rate： secondary materials used/ (secondary materials used + virginmaterials used )Production Value Per Unit of Waste Taken Back
= Production Value of Recycling Industry / Waste Taken back30

Indicators in Manufacturing•

Material Use Efficiency= Virgin Material used／ Production Value of Manufacturing•

Secondary Materials Percentage（cradle to cradle）= Secondary Materials Used / Total Materials Used•

Circular Economy Production Percentage= Circular Economy Production Value / Total Production Value31

Strategy 3: Cluster Networking
Mega-Cluster Network, Global Cleantech Cluster Association
GCCA - Making Local, Global•53 Cleantech Clusters, 29 countries, 10’000+companies•

9 Digital Deployment HUBs (Europe, Asia, North
America, MiddleEast)•

GCCA Later Stage Award: 700+ Nominees, 180 Top
30 Finalists,60 Top 10 Winners since 2011

•Focus Finance Innovation: Large scale deploymentof proven low
carbon technologies, Multi-Asset Renewal
Fund/MARF Programs

32

Taiwan Bluebird D-Hub as a Digital Platform
http://bd-hub.skipsolabs.com/en/
企業
Corporates

Outsource Innovations by using our Call Catalyst Tool Efficient and easy way
to find solutions for renewal and for your R&D and growth strategies

投資者
Investors

Bluebird D-Hub offers investors the top deal flow from Taiwan and GCCA
global network. Easy to Sign up, find the perfect match and connect directlywith companies.

群聚會員Clusters

Taiwan Bluebird D-HUB is part of the GCCA D-HUB Network digitally connecting
global clusters and their member companies with each other and with investors
and markets

33

Bluebird D-Hub Functions
Call Catalyst
Innovation calls ofcorporates are published on
Bluebird D-HUB, and SME’sand Start-ups are invited tosubmit their best-matchingsolutions. This proven open
innovation process resultsin personal engagementand dialogue between
entrepreneurs and decisionmakers at corporate
executive levels

With access to top deal flowfrom Taiwan and ourworldwide network you canfind the perfect match of yourinterests and connect directlywith the companies. Easy touse search tool gives you quick
access to companies that fit
your domain. Match Maker isavailable for all investors:
Seed-funding, VC, Corporate
Venture Capital, Institutional
etc. Create a profile andconnect with companies andother investors

Match Maker
34

Call Project Process
CALL CATALYST: FIVE PROCESS STEPS
1. Preparation

2. Initiation

Define project goals,
Call question andmarketing concept

Project goes online,
targeted communication and Solver
involvement

3. Realization
Project online moderation,
project PR & marketing,pre-evaluation of solutions

5. Implementation

4. Evaluation

Contract negotiations
Seeker - Solver,
start internal implementation

Analysis & assessment,
pitch sessions, selection of
best-matching solution/sCall Project Steps
USP: DEMAND-SIDE DRIVEN, BEST MATCH, FINANCIAL LINK
STEP
1Large Corporate

STEP
2
Large Corporate

STEP
3
Large Corporate

Technology
Need (PULL)

Solutions(BEST MATCH)

New Business
Partnership

SME

Startup

SME

Startup

SME

StartupFunding(DE-RISKED)
Investor
Call Catalyst and Match Maker complement existing business accelerator models:• Demand-side driven: PULL instead of PUSH
• Fast implementation: best-matching solutions instead of most innovative• Finance innovation: linked to Multi-Asset Renewal Fund/MARF Programs• Digital and physical ecosystems: global instead of local network

Partner Matching Process
CALL PROJECTS: AVERAGE 80% SUCCESS RATEA Call project - on average - leads to the following results (ExampleNIA, Helsinki: 7 new partnerships in 2 year pilot phase):

120-30Qualified online submissions
from technology providers(SMEs, Startups) per Call,within 3-4 months

5Company pitchesfrom selectedtechnology providers to
executive teams at large
corporate

New business partnership
between large corporate
and best technology
provider in
4 of 5 Call projects

37

Global Rollout: D-HUBs by Aug 2017

CHINOOK
March 2017

CTSD
(April 2017)

NIA
since 2013

YODEL
Dec 2016

GTED2.0(Ready)

Munich(May 2017)

CCC China(March 2017)

Kuwait(May 2017)
TaiwanAugust 2017
GTI India(March 2017)

Thank You
Center for Green Economy
Chung-Hua Institution for Economic ResearchContact Information

Dr. Chun-hsu Lin:
chlin@cier.edu.tw39