Circular cities
Cities of tomorrow
3rd edition
October 2020

Contents

Foreword / p 4
Introduction to the third edition / p 7
1
 . Circular cities:
what is the status? / p 9

 . Realising the circular2transformation / p 15

1.1 A holistic approach
1.2 The circular economy vision

2.1 Definition and scopeof the circular economy

1.3 Governance

2.2 A circular economy strategy
2.3 Where should
the control room be?

3. The benefits / p 23
3.1 Cities’ circular recovery after
Covid-19- Futur Food Institute- Intesa Sanpaolo- Arup3.2 Impacts on competitiveness2.4 Planning: top-down or bottom-up?

3.3 Environmental impacts

2.5 Stakeholder engagement:
the public-private collaboration

3.4 Social impacts

2.6 Metrics and objectives

4. Conclusions / p 36

2.7 The role of innovation
2.8 Awareness and participation

 ocus. Best practices from aroundF
the world / p 39
São Paulo
Santiago de Chile
Bogotá
Montevideo
BostonPittsburgh

“What is the city but the people?”
Shakespeare, Coriolanus, Act III, Scene I

Foreword00

It is within cities that our civilisation pulsates with life andevolves. Cities all differ in their architecture, culture and historicalbackground, but were all created from our ancestors’ impulse togather and form communities. Be they small provincial villages oran agglomeration of glistening skyscrapers, they are the humanhabitat par excellence and, along with us, they change over timeto protect the communities that inhabit them, to rise again whenstruck by catastrophe, to indulge changes in our lifestyle and intechnological evolution.
Confirming the continued relevance of the “city paradigm”,
urbanisation has sharply accelerated in recent years: cities today
are home to over half of the world’s population and generate
more than 80% of global economic output as well as the majorityof pollutant emissions. Inevitably, cities are also where global
trends release built-up tension: from demographic and migratory
issues to the growing demand for energy and the damaging
effects of climate change.

Michele Crisostomo
Chairman of the Enel GroupFOREWORD | 5

The Covid-19 emergency has demonstrated the inextricable link
between cities and the social vitality that shapes and inspires
them. Squares and streets, suddenly voided of their community,
became urban coordinates of archaeological sites before theirtime. Being forced to stay at home confined us to a sort ofresident nomadism in which, to protect the community, we had
to negate all its manifestations, as if we were living, within ourclosest family units (couple, family, etc.), in the middle of thedesert but with no way to move.

In looking to sketch out this new idea of development, there isabsolutely no way we can exclude sustainability. Only by evolving
sustainably will our cities be able to renew their essential purpose
to develop and protect communities. This is why it is essential
to promote economic competitiveness, social inclusion andrespect for the environment, considering these objectives not asalternatives or opposites but as synergistic elements, in a visionthat brings innovation and sustainability together – and which ismost effectively expressed in the circular economy.

Even in this dramatic situation, cities gave us some indication of
how they need to evolve in order for the communities that live inthem not only to better prepare to face a health emergency but,
more in general, to initiate evolutionary change.

Thus, the transition towards more circular models for living
and producing is the best solution to the growing problems in
the cities of today, and an essential step to avoid even greater
economic and social imbalances in those of tomorrow.

If a city is destroyed by fire or an earthquake, it will probably
be rebuilt with fire-resistant materials or according to antiseismic criteria. So cities have to emerge from the pandemic
on a different footing. During the emergency, cities became
networks, connections, services, assistance, solidarity. Pollution
emerged as a risk factor, also from a health perspective. As
resident nomads, with the invisible enemy on our doorstep,
we became more aware of how important it is to improve thequality of our cities – which, once again, returned to being
the anthropological and physical context for a new idea ofdevelopment.

We are convinced that in order to meet such a huge challenge,
and more than ever to recover from the recent health emergency,
we need to engage with all stakeholders: institutions, companies
and citizens. We can count on a huge range of available
technologies, innovative business models and significant
investment capacity, but none of this will be of any use unlesseveryone embraces common objectives and fully commits totheir achievement.

FOREWORD | 6

For Enel, defining a coherent, long-term vision for the city of
the future, as a framework for the contribution we can make,is a strategic priority and a constant commitment. To this end,
we have worked for years to turn the circular city concept intoa reality. To do so, wherever Enel is present, we are in constantdialogue with the ecosystem around us, not just collaboratingwith the industrial supply chain but opening up to a wider
vision that facilitates continuous exchange with institutions,associations, startups, research centres and universities.
We are convinced that breaking down cultural and industrial
barriers, removing red tape and trying to find, through dialogue,
possible synergies between different sectors are key to bringing
about an effective model for circular cities and a level ofwellbeing that’s genuinely shared and enjoyed by everyone. With
everyone’s commitment we can build a better future for our cities
as well as a fairer and more resilient society.

Introduction to the third edition

When we published the first edition of this position paper, at the
beginning of 2018, the circular city model wasn’t the subject ofmuch debate. In recent years, circular economy as a theme hasrecorded remarkable development, in terms of both definition
and importance, while at the same time its potential has become
increasingly evident, also for the cities of tomorrow. However, thejourney has still only just begun.
Our intention was to contribute to the development of this vision
for the future. To do so, we started from the goal of bringing
together economic development, environmental sustainability andsocial inclusion. To achieve such an objective, it is not sufficient
to approach the issue from a purely technological perspective:
it must be tackled holistically, taking into consideration all thesectors and elements that together constitute a city. This alsomeans including many aspects that fall outside the specificactivities of a utility company, which however, by its very
nature, utilises a cross-sector approach and collaborates with all
stakeholders. In this sense, this need for a holistic vision is fully inline with our mission. Furthermore, many of our business activities

already impact cities directly, contributing to the economic,
social and environmental development of various local areas; thecircular approach described in the following pages is capable ofsignificantly increasing these positive effects.
Having focused the first edition on technologies and the second,in 2019, on circular business models, in this third edition we want
to explore another key aspect for the transition towards circularity:
the public-private collaboration and its crucial role in implementing
a circular economy at city level. What can institutions, companies
and citizens do to make the urban context in which they live andwork more circular? What contribution can each of them make andwhat benefits can their collaboration bring?
Many of the necessary conditions for circularity are now withinreach: in many areas the technologies required to bring thistransition to fruition are available and competitive, and there
are numerous solid business cases and interested financial
players. To accelerate the process, a key element is therefore thecollaboration between institutions, companies and citizens. To
explore this relationship, in the first part of this document we lookat some of the major enablers that can ensure this collaboration is
fruitful: governance, strategy and metrics. In the second part, we
present and analyse concrete cases from around the world which
we believe stand as exemplars of the direction that is to be taken,
to ensure that cities can truly transform.

INTRODUCTION TO THE THIRD EDITION | 8

The global Covid-19 health emergency, with its tragic humanitarian
impact and its social and economic consequences, exploded
while we were drafting this document, and further reinforced
questions about the current development model and the need torevisit it. Whilst the challenge involves sustainable developmentin its widest possible sense, dealing with the economic modelis part of the general equation. How the circular economy canbe part of the solution, to reduce the risks of an unsustainable
development model, and what role it can play in the rebuilding
phase are fundamental questions we must pose to conceive thecities of tomorrow. Although it is too early to fully understand theconsequences of the current pandemic, these aspects must still
unavoidably be taken into consideration.

Once again, for this third edition we asked the institutions, organisations and companies who share
our commitment to the cities of tomorrow to make a brief contribution related to their areas ofexpertise. Such contributions do not represent an endorsement, by them, of the entire document, theresponsibility for which rests solely with Enel.

1.

Circular cities:
what is the status?

1. CIRCULAR CITIES: WHAT IS THE STATUS? | 10

Circular cities:
what is the status?

1.

As highlighted in the second edition, cities
are currently facing increasingly criticalchallenges and the awareness of theseissues is growing. In this context, thecircular economy represents the solution
for redesigning the cities of tomorrow.
The extent of the phenomenon is best
demonstrated through data: the world’s
consumption of raw materials saw a
12-fold increase between 1900 and2015, and is expected to double again
by 2050; furthermore, cities consume
approximately two thirds of all energy
and are responsible for a similar share ofemissions1.
The challenges that cities now faceare diverse in nature: economic(competitiveness and employment),

environmental (air, water and soil
pollution and waste management) andsocial (marginalisation, inequalities anddisintegration of the social fabric). These
are interconnected issues that are difficult
to tackle with isolated actions: they requirea systemic approach, tying in with thevision of city one is looking to achieve.
We believe that to do so there are anumber of important steps that need to betaken in terms of governance, strategy andlines of action.
Indeed, when faced with these difficult
challenges, cities have a series ofopportunities and strengths that canpotentially make them key players in thetransition towards circularity. Indeed,
the sense of physical community thatexists within cities facilitates people’s
engagement in political change, comparedto the regional or national level: decisionmakers are closer to the interested parties
and the impacts choices have are more
directly felt.

We are already witnessing numerous
city initiatives from around the world thatare based around the circular economy
concept. Each addresses the matter in aparticular way – based on the priorities,
context and evaluations made by local
decision-makers on how best to tackle thesedimentation of centuries of decisions
and the economic models which havefavoured linear models for the past
decades.
In Europe, in particular, it is worth
mentioning the importance given by theEU’s recent Circular Economy Action Plan2
to the role of cities and local territories
in implementing the transition towards a
circular economy model. The purpose of
the circular economy is to reformulate theeconomic model, and cities, as the place
where the majority of the population lives
and where the majority of resources are1

World Economic Forum, Circular Economy in Cities. Evolving the Model for a Sustainable Urban Future, 2018.

2

European Commission, Circular Economy Action Plan, 2020.

1. CIRCULAR CITIES: WHAT IS THE STATUS? | 11

consumed, have a key role to play. The
solutions developed within cities havea direct and potentially key bearing on
utilisation and consumption, as well as onreuse and value recovery.
However, cities’ approach to the circular
economy, aimed predominantly at
resolving local issues, must be viewed
within the much wider context of possible
systemic impacts; cities are an integral
part of their regional and global fabric,so any improvements at their level havethe potential to generate further impacts
on a wider scale. More generally, cities
are where the strong interconnection
between people enables continuous
innovation and idea generation: they
therefore represent an accelerator inwhich new models can be constantly
tested, combined and improved.
The concept of circular city emerged after(and, in some ways, stemmed from) thatof smart city. While labels are not always
clear enough to make a sharp distinction
between the two, in Enel’s vision the shift
from smart cities to circular cities requires

moving away from a point of view that ismainly focused on new technologies andtheir benefits, to one where technology
continues to play an important role but
is integrated into a holistic vision witheconomic competitiveness, environmental
sustainability and social inclusion goals.

1.1 A holistic approach
When considering their circulartransformation, we must see cities
themselves in all their dimensions andwith respect to the overlap between
traditional and new layers, linked to
new technologies, digitalisation andthe Internet of Things (IoT). Although,operationally speaking, we will focus on
specific priorities, an overarching visionthat evaluates the benefits and impacts
that are generated3 is necessary.

3

Enel, Circular cities. Cities of tomorrow, second edition, October 2019.

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Providing customers with a service
rather that a product

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Shared use

USE

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Increased product life
Through modular design, predictive
maintenance, etc.

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Until a few years ago, the expression“circular economy” was often only
mentioned in reference to the waste
sector, whilst today it is commonly
understood to mean a substantial
reappraisal of the economic model in its
entirety, starting from the initial phases(see paragraph 2.1, Definition and scopeof the circular economy).

 ustainable inputs
S
Inputs from renewable sources, reuse,recycling

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1.2 The circular economy vision

The classic representation of the fivepillars of the circular economy includes:

ERVICE
SA S
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PR

Until a few years ago,the expression “circular
economy” was often
only mentioned inreference to the waste
sector1. CIRCULAR CITIES: WHAT IS THE STATUS? | 13

When scaled up, thistransformation, in addition tothe obvious economic andenvironmental benefits, can also
lead to the creation of new jobs
and services
To generate an impact on the final partof the value chain, it is still necessary
to start with the earlier phases andsystematically analyse where we
can increase flow circularity. Whenscaled up, this transformation, in
addition to the obvious economic andenvironmental benefits, can also lead tothe creation of new jobs in sectors suchas manufacturing, reuse, repairs andservices – activities which generally callfor close proximity with clients, and cantherefore represent a further opportunity
for development at the local level.

EMISSIONS

Renewable
ENERGYEXISTING STOCK

MATERIAL
WASTE

Repair / Sharing
PaaS

Maintain
Regenerate

COMPETITIVENESS

RecycleRemanufacture

ENVIRONMENTAL
IMPACTSNEW SKILLS/JOBS

1. CIRCULAR CITIES: WHAT IS THE STATUS? | 14

1.3 Governance
Governance, together with strategy andlines of action, is an essential hinge in
implementing a transition towards thecircular economy. Designing a modelthat makes it possible to manage
and lead this change is crucial, fromstrategy definition to implementation.
Indeed, different models generate
different impacts on the decisionmaking processes and on actions, andthey influence, to varying degrees, howdecisions are carried out4.

The fact that public-private collaborationand open (i.e. transparent andparticipative) governance can enhancethe effectiveness of economic models
emerges recurrently. This is explored infurther detail in the following section.

4K ate Raworth, Creating City Portraits: A Methodological Guide
from the Thriving Cities Initiative, July 2020.

Governance, together withstrategy and lines of action,is an essential hinge in
implementing a transition
towards the circular economy

2.

Realising the circulartransformation

2. REALISING THE CIRCULAR TRANSFORMATION | 16

Realising the circulartransformation

to progressively break up – in terms oftime and space and through a series ofintermediate steps – a wide and longterm vision into a sequence of targeted
actions.

2.1 Definition and scope2.

Many local institutions from across theworld are currently grappling with theimplementation of measures to bringabout an effective transition towards a
circular economy model. The solutions
and approaches adopted can differ
significantly: such differences are due inpart to the specific situations and in partto different definitions and visions of thecircular economy. Realising atransformation of this magnitude
requires a multitude of conditions, all ofwhich need to be analysed in an
integrated manner since they are
insufficient taken one by one. The
challenge is also to combine a new,radical vision in the medium term with aseries of precise, specific andincremental initiatives. To do this, asystematic, shared approach is neededof the circular economy
The first step is to define what we meanby “circular economy”. In some cases,
you start with specific areas (often thefirst sector concerned is waste or water),to then gradually expand the approach. In
other cases, you start from a wider, morestrategic vision.
Despite there being a variety ofdifferent paths to take depending on
the contingent situations, the starting
point must be the definition of a circular
economy vision that encompasses
the entire urban context: this enables
an effective transformation, towards asituation where the interests of both
citizens and stakeholders converge (thecities of Amsterdam5 and Paris6 provide
excellent examples of this).

Paris, a fine example of the circular economy in an urban setting.

5

To find out more

6

To find out more

2. REALISING THE CIRCULAR TRANSFORMATION | 17

The circular economy cannot be identified
with a specific sector or a single phaseof the value chain, because it represents
an overall vision and is an approach toreappraising the entire economic model.
If the objective is indeed transformative,
whichever sector you start from, theapproach must inevitably encompass theentire value chain: to have an impact on
the issue of waste management and toachieve noteworthy results, you cannot
merely intervene at the final recycling
phase, but must go all the way back to thedesign and production phases. Similarly,
to reduce the consumption of materials
and energy from non-renewable sources,on the one hand it is necessary to target
the resources used, moving from nonrenewable to renewable sources or torecycled inputs, and on the other hand it
is essential to promote reuse, sharing or
Product-as-a-Service models.

2.2 A circular economy strategy
Since effective action is not possible
unless the issue is tackled in a systemic
and structured way, a circular economy
strategy requires an approach that
includes:a n overview of the sectors and areasthat make up the urban context and anassessment, as far as is possible, offlow levels;a n understanding of which sectors are
the priority for intervention activities;t he definition of the objectives to beachieved in the medium-long term.

Defining a clear strategy and objective
creates a general framework that supports
the commitment and collaboration of
all the parties involved and, as we will
see later, is necessary to ensure all
stakeholders are engaged.
An ambitious medium- and longterm vision is essential to generate
the right level of engagement fromall interested parties, whilst stable
leadership is fundamental for the coherent
implementation of the strategy.
From this standpoint, Paris andAmsterdam are once again outstanding
examples of well-developed plans thatincorporate these two requirements.

7

Circle Economy, The Role of Municipal Policy in the Circular Economy, 2020.

The circular
economyrepresents anoverall vision andis an approach toreappraising theentire economic
model2. REALISING THE CIRCULAR TRANSFORMATION | 18

2.3 Where should
the control room be?
As of today, the question regarding wherebest to locate the management of thecircular economy is still up for debate
within all sectors: institutional, corporate,
academic, etc.
The crux of the problem is that the circular
economy represents a cross-sector
approach, so assigning responsibility for it
to a specific sector significantly limits its
range of operation and, as a consequence,
its effectiveness. There are many different
possible solutions, each with its own
strengths and weaknesses.

There are manydifferent possible
solutions, each with
its own strengths andweaknesses

Scenarios

1

Circular
EconomyAssigning responsibility to a specific area(typically the one focused on environmental,
development or finance aspects). A vision
which is too sectorial might be considered theweakness in this solution

Circular
EconomyAssigning responsibility to a specific area
but in collaboration with other areas that areconsidered pertinenti. Compared to the previous
solution, this approach may help to render thecircular policies more coherent and effective.

Top management

Division 1

2

Division 2

Division #Top management

Division 1

3

Division 2

Division #Circular
EconomyCreating a control room that reports to top
management. This overcomes the cross-sector
issue and problems stemming from a lack ofoverarching vision, but introduces a new problem:
a potential lack of decisiveness within each areaof activity.

Circular
EconomyHybrid solutions, for example a control roomthat reports to senior management but which
also has a light, cross-sector structure that
ensures representation of all the key areas,thus facilitating the realisation of the strategies
defined centrally.

Top management

Division 1

4

Division 2

Division #Top management

Division 1

Division 2

Division #2. REALISING THE CIRCULAR TRANSFORMATION | 19

2.4 Planning: top-down
or bottom-up?
The circular economy may be conceptuallydeveloped according to two different
guidelines: there are the more systemic
projects which must be developed “topdown” and there are many projects,
relating to more specific solutions, thatcan be developed “bottom up”.
For this reason, having broad
participation in strategy definition andmaintaining engagement also during theimplementation phase is beneficial, as itincreases the potential associated withboth the above-mentioned lines of action.
In addition, there are many levers thatallow entities to intervene in supportof the transition towards the circular
economy.
At national government level, forexample, one can envisage a regulatory
framework that enables or supports theimplementation of innovative solutions– the so-called future-proof legislation –and which regulates opportunities; forexample, requiring one sector’s waste
to be used by another sector as material
input, support for the repairs sector or theuse of renewable sources.
Furthermore, other intervention levers
can have both a national and a local
reach. A typical example is Green
Public Procurement – and its evolution
into Circular Public Procurement –, aninitiative which pushes the supply chain
towards the achievement of circularity
objectives8 by establishing certain criteria
for the assignment of public procurement
contracts. This type of initiative canalso have systemic effects: on the one
hand there is an impact on the entire
chain of sub-contractors, and on theother hand synergy may be created withsimilar proposals being implemented bycompanies. These are instruments thathave the potential to become an essential
driving force to promote the transition andfacilitate innovation.
Another key lever might be theinvolvement of startups in identifying
specific solutions, which can later bescaled up through Circular Procurement.
Finally, there are specific intervention
models at the local level: linked to theidentification of lines of action and of themain projects to be implemented in thearea, they can also serve as accelerators
by supporting the transition and actions
implemented by citizens and companies tofoster circularity.

Broad participationin strategy
definition

To go back to a broader view and to
implement the vision of circularity ona larger scale, local efforts must be
integrated and included in a more generalcollaborative framework, taking advantageof the collaboration between institutions,the private sector, universities, research
centres and citizens9.

8

To find out more

9Ellen MacArthur Foundation, Cities and Circular Economy for Food, 2019.
Ellen MacArthur Foundation, Cities in the Circular Economy: The Role of Digital Technology, 2017.

2. REALISING THE CIRCULAR TRANSFORMATION | 20

2.5 Stakeholder engagement:
the public-private collaboration
Given that the circular economy concept
itself is linked to the identification ofsynergies and closed loops between
sectors, it is vital to effectively engage all
stakeholders.
Amongst them, central and local publicauthorities and institutions are particularly
important, because the concept of circular
city does not end with the technologicalmodernisation of infrastructure alone:it demands a complete redesign of all
the phases and activities inherent in theurbanisation process. The creation ofdigital infrastructure and new technologies
facilitate more transparent and interactive
city planning and management
mechanisms, in which the participationof citizens plays an increasingly importantrole, both in the ascending phases(definition of policies and incentive
mechanisms) and in the descending
phases (expressing consensus on planningor redesigning the city in a circular sense,
as well as on its functioning).

However, the circular model goesway beyond the simple operationaltransparency guaranteed by digitaltechnologies to citizens and companies,
and also tends to help to reshape thepublic-private relationship, taking itfrom an initial level of openness to
one of collaboration and co-creationthat is more mature and informed,
focused on innovation and sustainability.
Projects centred on electric car sharing
or consumers choosing energy fromrenewable sources, for example, do
not stem exclusively from companies’
offerings, but require the existence ofconditions that not only do not prevent
citizens from pursuing a shift towards newmodels based on reuse and recycling, but,where possible, actively incentivise themto fully embrace this evolution.
Based on this rationale, the publicprivate collaboration is no longer one of
the many enabling factors for a modelof more sustainable development andmore inclusive growth. Instead, it has
become an essential cornerstone of
the circular paradigm, allowing thehorizontal subsidiarity within the urban
context, as well as the foundation forthe development of business solutions
designed to improve the quality of life in
the cities of tomorrow.
For the public administration it is about
superseding an organisational andmanagement model that is typicallyvertical, opting for an approach that allows
for horizontal interaction with various
parties, public and private, during theplanning and management of state-of-theart services. This greatly accelerates theevolution of the urban system towards
distributed governance10, which is more
effective in terms of facilitating the city’s
circular development and encouraging
contributions from all stakeholders, andespecially companies.

10

 he term “distributed governance” was coined by Stephen
T
Goldsmith and Neil Kleiman in A New City O/S: The Power ofOpen, Collaborative, And Distributed Governance, Ash Center
Series, Innovative Governance in the 21st Century, Brookings
Institution Press, Washington, 2017.

2. REALISING THE CIRCULAR TRANSFORMATION | 21

Because levels of intervention activities
can vary significantly, it is necessary
to find solutions that allow for all
stakeholders to be engaged in a coherent
project whilst simultaneously giving
everyone a sufficient amount of freedom.
The collaboration of different stakeholders
is essential in the pursuit of more
ambitious objectives; furthermore,
given the closeness between policy
makers, companies and citizens at citylevel, it can be another useful factor
in driving the transition. For example,
local administrations can encourage
circular companies by providing themwith incentives or by removing subsidies
that favour the consumption of energy
from non-renewable sources, or evenby defining clear roadmaps towards
circularity. In turn, companies can test
new circular business models andfacilitate skills adjustments. Finally,
citizens can also contribute by changing
their consumption habits and behaviours11.

2.6 Metrics and objectives
Metrics are as important as they arecomplex. Given that goals can be
set and improved upon only if they
are measurable, metrics cannot be asecondary aspect but must instead be
an integral part of the strategy. Indicators
must be selected so they are coherent
and functional to the strategic objectives
and must represent their progress, so as
to ensure that the achievement of thetargets associated to them leads to theattainment of the objectives themselves.
Many indicators can be associated withdifferent aspects of the circular economy,
but a one-size-fits-all approach does notexist. What matters is that the totalityof the monitored values represents agenuine decoupling of economic activity
from the consumption of energy from
non-renewable sources: adopting values
and indicators that are scarcely relevant,or even incorrect, can lead to choices thattake you away from the circular economy
rather than towards it. Furthermore,whilst a final indicator associatedwith emissions exists for the issue of
decarbonisation, a single indicator for thecircular economy does not exist: in linewith the definition of circular economy
as the decoupling of economic activities
from the consumption of energy from
non-renewable sources, a variety ofvalues must be analysed relating to boththe cycle’s input, design and closure
phases and the mode of use.
With respect to including metrics in theoverall strategy, there are a number ofpossible approaches that are increasingly
structured depending on the level ofambition and engagement: o ahead with the first phase withoutgrecourse to a metrics system, waiting
until the following phase before
doing so;identify one or at least a few high-levelindicators, which may be considered
representative in the context;a dopt a structured metrics system since
the beginning.

11

 orld Economic Forum, Circular Economy inW
Cities, op. cit. (see footnote 1, page 10).

2. REALISING THE CIRCULAR TRANSFORMATION | 22

Whichever approach is adopted, if ametrics system is identified, it is always
useful to define one or more short- andmedium-term objectives, in order to thenmonitor their progress and, above all, toidentify any necessary corrections anddefine the next steps in the strategy.
Metrics are a central aspect in thetransition towards the circular economy onwhich Enel has placed significant attention
right from the outset. Indeed, in 2017 Eneldeveloped and published a theoreticalreference model that contributed toadvancements on the subject on theinternational level and, more recently, has
defined applicative models that also focus
on the urban context12.

2.7 The role of innovation

2.8 Awareness and participation

Innovation is the engine of the circular
economy: this transition cannot be
achieved simply by optimising the existingmodel, and instead requires careful
rethinking of its every facet. This includes
the technological, organisational andbusiness model aspects, in addition to
any specific solutions that call traditional
consumption attitudes into question.
Some of these aspects develop at anational or international level, whilst
others have a more local dimension but
must still be seen under the light of open
innovation.

The critical environmental protection
issues that have arisen in recent years
are now well known, from the climate
crisis to pollution to waste disposal.
However, there is often a lack ofshared understanding regarding theapproaches and solutions that need to be
implemented. In this context, the circular
economy risks being perceived as aconcept that is evocative, but vague.

Let’s not forget, the leading role played bycompanies in circular innovation has also
recently been highlighted by the European
Commission in its Circular Economy
Action Plan13. Promoting and supporting
innovation, with the goal of identifying
new ideas and solutions to tackle andsolve cities’ problems and challenges, is
one of the key drivers to encourage thistransition.

For this reason, supporting and facilitatingwider awareness of the issues relating tocircularity, in terms of both the problems
and the potential solutions entailed, iscrucial to build consensus regarding thecommitment required and to create acontext in which everyone can actively
collaborate and make a contribution.

12

Enel, CirculAbility Model, 2017.

13

See footnote 2, page 10.

3.

The benefits

3. THE BENEFITS | 24

The benefits

3.

3.1 Cities’ circular recovery after
Covid-19
The explosion of the pandemic at the
beginning of 2020 had a significant andimmediate impact on city life, and its
consequences will continue to be felt inthe medium and long term.
Recent events have helped toconsolidate people’s awareness –which was already growing prior to thepandemic – of the need to transition
towards a sustainable model, but also
introduced new aspects that will haveto be taken into consideration in the
future. The early months of the year were
peculiar because they took us beyond
abstract reflection: most of the world’s
population suddenly faced daily reality in

a completely different context, as if some
sort of experiment was being conducted
on a global scale (unfortunately, withtragic events reminding us of how
serious everything really was).
Three issues, in particular, emerged
clearly.
1. Transition towards a sustainableeconomic model
The need to transition towards asustainable development model, onethat is compatible with the planet’s
environmental limits, clearly emerged as
the only possible solution, in the medium
term – to prevent, as far as is possible,
new major disasters (pandemics, effects
of global warming, etc.) – as well as in the
short term, to limit the negative impactsof cataclysms that are already inevitable14.
As regards the medium term,
without going into detail as to theorigins of the current pandemic,
there is wide consensus15 on the factthat destabilisation of the planet’s

environmental equilibria, from theclimate emergency to the destructionof ecosystems, contributes to causing
these kinds of phenomena. The dramaticconsequences of a pandemic of this typeincrease our awareness of the potential
impacts linked, for example, to the effects
of climate change.

14

C40 Mayors’ Agenda for a Green and Just Recovery, July 2020.

15

 here is an endless number of scientific studies attesting to this. David Quammen’s
T
Spillover: Animal Infections and the Next Human Pandemic (W. W. Norton & Company,
New York 2012) provides an informative, highly readable report on this subject.

3. THE BENEFITS | 25

As for the short term, however, theextension and fragmentation of logistical
chains, together with the systemic
insecurity that was generated, haveunderlined the lack of resilience inherent
in the current economic model. A different
model, one that is less dependent on
imported fossil fuels, goods and products
and that is more based around local
supply cycles and chains, renewablesources, the recovery of end-of-life
asset value and so on, would guarantee
increased resilience and adaptability.
Moreover, from the point of view of autility company looking at consumer
behaviour during the coronavirus
pandemic, it is obvious and almost goes
without saying that consumers spent
more time at home, changing theirpurchasing habits and behaviours in
response to their new needs. First andforemost, people became more aware ofdifferent aspects: their domestic energy
consumption; their need to monitor
such consumption to limit costs, also by
seeking out energy-efficient solutions,
flexible and eco-friendly plans for day-to-

day energy use; and the digital solutions
available to manage any difficulties –including financial ones – arising fromthe economic crisis caused by the healthemergency.
2. Cities as engines for development
The lockdown to which the vast majorityof the world was subject gave rise to
new considerations regarding physicalinteraction thanks to digitalisation, themanagement of living and working spaces,
and the use of means of transport.
These considerations also included,
more generally, the role of the city andits evolution. The possibility to work
remotely, together with the desire forlarger green areas and the (already inprogress) reappraisal of the “megacity”
concept, have led to discussions on
different solutions: from “sprawling
cities,” i.e. cities covering a wide areawith suburbs made up of single, distinct
residential dwellings, to the more radical
idea of completely doing away withphysical nearness altogether.

With respect to this last point, it is worth
remembering that, historically, cities werethe context where human civilisation
developed thanks to the continuous
exchange of ideas and knowledge, thecreation of initiatives and opportunities,
and constant innovation. It is important toremember that all this was made possible
thanks to the physical proximity between
people, enabling constant dialogue andinteraction. However, unsustainable
development models combined with
rapid urbanisation have, slowly but surely,
created and intensified certain conflicts:
considering the importance of physicalnearness for human interaction, there areproblems related to low quality of life andthe impacts of negative environmental,
economic and social factors.
This conflict can also be found in the
sprawled city model: the need for people
to distance themselves from the city
centre – so as to enjoy larger open areas
and live in a more habitable context –contrasts, from a number of perspectives,with issues relating to a lower qualityof life (travelling distances and times)

Historically,
cities were thecontext where
human civilisation
developed thanks
to the continuous
exchange of ideas
and knowledge,
the creation of
initiatives andopportunities, andconstant innovation

3. THE BENEFITS | 26

and to impacts that are environmental(increased emissions resulting from extra
travelling and heating/cooling homes thatare more isolated and larger on average),
administrative (management of services
for a more widely dispersed city andrelated costs) and social (reduction orabsence of the social fabric required forhuman interaction).
While obviously not conclusive thus
far, these considerations highlight theexistence of needs that do not go as
far as pushing for the city concept
to be superseded but do require its
reappraisal. The benefits connectedwith the opportunities presented by theurban dimension must be balanced withquality of life in terms of work-life balance(digitalisation plays a key role from thisstandpoint), environmental health andthe creation of a social fabric. On the one
hand these opposing forces guarantee
the city its key role, but on the otherthey push for a return to a dimensionthat is more conducive to liveability in its
broadest sense.

In this context, rethinking mobility andbuildings will be crucial both for cities’
life and for the environmental impact
they will generate on a global scale. Thisis the direction taken by various cities(such as Paris and Amsterdam) that havemade circularity the cornerstone of theirtransition. There are many and various
different possible solutions and policies,
but a particularly interesting initiative
has been conceived and developed in
Paris: the so-called Ville du quart d’heure(Fifteen-minute City), based on theconcept of reorganising urban areas toimprove conditions for both people andthe environment16.
3. Flexibility and liveability
Given these emerging considerations, it
seems plausible that public spaces will
become, by necessity, more versatile andflexible, but also healthier and greener.
It is clear we need compact areas
where services are easily accessible, amore flexible use of buildings (to avoid
gatherings) and a reduction in daily
commutes to work.

In this period, but also in the future, themodularity and adaptability of private andpublic buildings will become fundamental,
structural features: the evolution of work
methods will require a careful reappraisalof how spaces are managed.
Moreover, resilience will undoubtedly
be one of the most important elements
to relaunch cities and breathe new life
into their economies after the pandemic.
Change will take shape in different ways,
depending on the specific solutions
implemented to contrast the spread of
infection: from the types of materials
used to the design of technologies suchas heating, ventilation and air conditioning(HVAC) systems. Circular cities, and evenmore so circular districts, will be capableof greater resilience also in terms ofresources and their use, closing the loop16

 eveloped by Carlos Moreno, professor ofDarchitecture at the Sorbonne in Paris, andembraced by many cities in post-Covid times
and by C40 (c40.org), the Fifteen-minute City
initiative proposes a model where people cansatisfy all their daily urban needs, from work
to leisure, within fifteen minutes by bicycleor on foot.

3. THE BENEFITS | 27

at the local level and avoiding some ofthe difficulties faced in these months,
during which the lockdown plunged the
procurement systems of entire supply
chains into deep crisis.
The challenges relating to mobility, a key
issue for cities in terms of both emissions
and traffic, will not be met simply by
reducing commuting through digitalisation.
A first important step, which is rapidly
evolving, is the shift towards adopting
electric means of transport (both private andpublic) and the development of the related
infrastructure, in addition to increasingly
widespread incentives to micromobility17.
Public transport in particular, which was
also heavily impacted by the recent
Covid-19 crisis, can rely on many
alternative options – from rail transport toelectric buses to electric mobility within
Mobility-as-a-Service or sharing models– and it will play a central role in reducing
congestion in city centres.

17

To find out more

FOCUS

Covid-19: new scenarios
for some sectors

During the Covid-19 health emergency,
shortcomings in the food supply
system clearly arose in all phases ofthe supply chain. The need to radicallyreview these systems, using a holistic
and systemic approach, is now
inescapable.
The impacts of the coronavirus
pandemic on the food supply systems
can be grouped into three main areas:
domestic, urban and agricultural.
Starting with the domestic area,
first and foremost we witnessed adramatic shift in consumer behaviour
after a long period in which at least theworld’s wealthier regions spent theirmoney on convenience, accumulationand the pleasure of eating, with noconsideration for the unsustainabilityof production models. The pandemic
forced the global population back to
Maslow’s hierarchy of needs: foodas an essential good, with local
and nutritious ingredients, became
the new norm. Kitchens have beenrediscovered as an important place
where families prepare and sharemeals, revive the human interactions
that we had almost forgotten
due to the frenzy of daily life, andreconnect with each other throughfood. Especially after the pandemic,
the kitchen of the future will be
increasingly regenerative: it will be aplace where ingredients are chosen tofurther sustainable food choices andused responsibly to reduce waste.
With respect to the urban area,
redesigning cities’ food systems
means reshaping habits while still
guaranteeing the food purchased

The kitchen of the future will
be increasingly regenerative:
it will be a place where
ingredients are chosen tofurther sustainable foodchoices and used responsibly
to reduce waste

3. THE BENEFITS | 28

relationships between farmers andfinal consumers. A shift that can only
occur with the support of a profoundchange in mentality.
Incentives and the so-called “pop-up cycle lanes” (which are temporaryroutes that serve as “safety lanes”) have emerged as one of the firstemergency measures adopted in various European cities

by citizens and consumers is safe.
Local food banks, vertical farming andcloser ties between urban centres
and their hinterland are just a few
examples of the solutions being
developed. The pandemic also hit
canteens and restaurants, while datain the Nielsen report (regarding the2020 Spring Festival in China) point
to the flexibility and resilience of theretail sector. Figures are similar in
Italy: local shops and the growing
collaboration with digital platforms
provide communities with essential
points of reference.
Finally, regarding agriculture, theprolonged lockdown provided theworld with an opportunity to relearn

the value of food and to reconnect
with those who produce, distributeand process it, as well as withthe people they share it with. The
pandemic shone a light on thedysfunctions in the current foodsupply chain (harvesting, transport,
distribution and storage): waste andlosses increased, putting the security
and work of farming businesses atrisk as well as compromising foodquality. This obvious lack of resilienceand flexibility in the supply chain
underlines the need for a deep
analysis of the food sector, calling fora radical shift – away from centralised
systems towards disintermediation,
decentralisation and direct

The drastic and dramatic change
currently underway, as a result of
the coronavirus, has triggered manytransformations.
 e have understood that it isWbeneficial to change positioning andbusiness model during this phase.
Although this is a period of growthfor certain sectors – particularly thefood, digital, delivery, health andtelecommunications sectors – manyothers are suffering greatly: thinkof tourism and events, automotive(and therefore fuel production anddistribution), culture and leisure,catering and manufacturing, as well
as sectors providing products andservices to companies.

 ublic transport, short-term car hireP
and car sharing all saw drops of
60% to 90%, with a bleak outlook
for the long term if targeted support
is not put in place. However,micromobility sharing, withpriority road lanes, could provide
a way to meet user demands: forexample, incentives and the socalled “pop-up cycle lanes” (which
are temporary routes that serve
as “safety lanes”) have emerged
as one of the first emergency
measures adopted in various
European cities.
 uring this period, working fromDhome (remote working) has
quickly become more widespreadin companies and public
administrations, giving rise to anumber of critical issues: fromthe availability of remote work
devices and suitable network
infrastructure to the repurposingof domestic spaces to enable thecoexistence of various work andstudy activities within the family

3. THE BENEFITS | 29

the opportunity to digitalise theirrelationship with clients, reachingout to them via e-commerce.

The retail sector – after a sharp drop in in-store
sales – has seized the opportunity to digitalise theirrelationship with clients, reaching out to them via
e-commerce

context, to managers’ ability tosupervise and assess their teams’
work remotely.
If, on the one hand, local shops’
revenue has grown much more
quickly compared to large
supermarkets, on the other hand
the retail sector – after a sharp
drop in in-store sales – has seized

To support Italy’s recovery, Intesa
Sanpaolo has prepared a series ofconcrete measures to accelerate
and facilitate the transition offamilies and companies out of theemergency phase and into therelaunch and recovery. In addition
to extending lines of credit andproviding government-backed
loans, the Group’s initiatives include
providing a total of 50 billion euro ofcredit for the country and 10 billion
euro dedicated to the Programma
Sviluppo Filiere (Supply Chain
Development Programme). We
also continue to support innovative
startups, some of which are
involved in sectors and businessmodels that are driving a substantial
transformation in response to thepandemic.
This crisis represents an opportunity
to drive innovation, and in orderto facilitate the recovery we havesupported a number of startups,
which we believe are developing
solutions that will be important tomeet the challenges we mentioned.
We have selected and supported
two we consider to be particularlyinteresting for the world of work.
BEACONFORCE offers a digitalsolution that uses an algorithm toanalyse employees’ motivation andengagement on a daily basis.
YOBS is a remote recruiting platform
based on artificial intelligence, asupport tool for HR offices to screen
and select applicants and create
teams.

UQUIDO offers augmented reality,
Internet of Things and artificial
intelligence solutions to improvecustomer experience in theretail sector, both in person andremotely.
SISTEM-EVO provides software forsetting up intelligent chatbots thatcan digitally respond to customers.
ULISSE has invented a device thatis able, through computer vision, totrack customers’ movements insidea shop and regulate accesses
in order to comply with physicaldistancing protocols.

During these months we have also
worked with six innovative startups in
the retail sector.

ZEROGREY/KOOOMO is a digitalplatform that strives to becomea one-stop-shop by enabling
access to a multitude of global
marketplaces.

MEDIATE has developed asmall, motorised robotic trolleythat performs home deliveriesautonomously.

QBIT is a platform that uses virtual,augmented and mixed reality totransport customers into a 3D
e-shop.

3. THE BENEFITS | 30

The idea of“adaptive reuse”
must prevail overdemolition andnew construction inorder to satisfy themarket’s demand for
different uses

During this phase, someentrepreneurs need to reposition
their business, understand how toshift towards the sectors that canbest tackle the crisis and maintaina good level of competitiveness,or transform their activity in an
innovative way. The pandemic
emergency must be seen as atransformation spiral that will nevertake us back to what was normal
previously but will instead give us
the opportunity to discover new
dimensions for development.

The current Covid-19 pandemic hasforced all sectors, including theurban construction sector, toreassess their situation. In thiscontext, Arup opened aconversation, among others, with
StopWaste, a public agency that is
supporting Alameda county, in
California, in its transition towards a

circular economy. Alameda
comprises 14 cities located in theeastern region of the San Francisco
Bay Area and is one of the few
members of the Ellen MacArthur
Foundation’s network of circular
cities that represents small local
governments. StopWaste focuseson energy, water and all types ofwaste, including conventional solid
urban waste.
The emergency made it all the moreevident to the agency that buildings
need to be able to “adapt” and bereused for different purposes. For
example, converting empty parking
facilities and office spaces (nowvacant as a result of remote working)to residential use can help to alleviate
the critical need for new housing
in the San Francisco area. These
resources are often located in urban
centres close to communicationroutes and other services, thus
reducing the demand for additional
infrastructure to reach less built-up
areas that are further away.

Arup is supporting StopWaste increating a checklist for the evaluationof the potential additional effort theconversion activities may requireand of the necessary measures toencourage such activities. In themeantime, the county of Alameda
has understood that the presenceof a well-consolidated network of
in-city areas could provide a suitable
response to the need to repurpose
buildings during periods of crisis.
As far back as 2018, StopWaste
identified local administrations as
leaders in the transition towards
a circular built environment,
providing planning, permits, financial
incentives and training for owners
and developers. This led to thedevelopment, jointly with Arup, ofa primer for local administrations:
Circular Economy in the Built
Environment: Opportunities for Local
Governments 18. Focusing on a very
localised scale (single buildings), thedocument by StopWaste and Arup
presents the increase in use andoccupation, both for existing and newbuildings, as a priority. The idea of“adaptive reuse” must prevail overdemolition and new construction inorder to satisfy the market’s demandfor different uses. Where possible,
vacant houses should be completelytransferred to sites where there is ademand for them, and new buildings
should be designed to be flexible andadaptable, so that they can be used
for different purposes in both theshort and the long term.

18

To find out more

3. THE BENEFITS | 31

3.2 Impacts on competitiveness
Creating new job opportunities,
supporting the development of newcompanies and attracting larger
investments are the challenges thatcities are currently facing and that willbe crucial for their development in the
coming years. The overall economictransition is hitting many companies
also within the urban fabric. A complete
assessment of the economic potentialof the circular economy is yet to be
carried out, but the general underlying
principle is well understood and shared:
by focusing on maintaining the value ofmaterials and resources, improving theuse of renewable sources and fosteringstrong interest for innovation, the circular
economy could generate economic
opportunities for large corporations,
small companies and individual
entrepreneurs alike.
Economic opportunities derive, inparticular, from the use of new renewableand electrical technologies, a new
approach to designing assets that

focuses on maximising their potential,
and the adoption of new business models
like sharing and Product-as-a-Service (seeparagraph 1.2, The circular economy vision)
to offer citizens solutions that are both morecompetitive from an economic standpointand environmentally sustainable.
Essentially, circular economy solutions
should base their competitiveness on thefollowing key drivers.

 ransition to more competitiveTsources for energy andmaterials, for example bysupporting the adoption ofrenewable energy sources.
 roducts designed to extend
P
their useful life and easily
recover their end-of-life value.
 euse of materials andRproducts that are otherwise
wasted.

Focusing on maintaining the value of materials
and resources, improving the use of renewablesources and fostering strong interest for
innovation, the circular economy could generate
economic opportunities est use of goods: manyB
goods and products in cities areunderexploited, from businessbuildings (offices and spaces used
for work purposes or financialtransactions) to vehicles toinfrastructure. Although there aresporadic actions already in place, asystematic evaluation of the overall
untapped potential would lead tofurther savings.

3. THE BENEFITS | 32

The impact on competitiveness may beseen on multiple levels.
1. Direct impact on administrations
through Circular Procurement: managing
contracts using a circular approach, i.e.
introducing adjustment metrics andfactors that guide long-term effects andmanagement, promoting innovative
solutions that ensure competitiveness.
2. Corporate investment: providing aclear vision and the necessary support toachieve a circular transition may attract
private corporate initiatives that act as
accelerators in creating a local ecosystem.
3. Startup and SME development: thecreation and encouragement of anenvironment characterised by circular
economy principles can help to foster new
startup and SME initiatives, whilst cities
can serve as incubators to support further
expansion phases.
4. Citizen-led business initiatives:
individual citizens might also identify othersectors that can generate value. Again, in

this case, the economic benefits derivingfrom the circular economy are not limited
to a single sector, but span throughout theentire portfolio of initiatives that support
each other. Therefore, the innovation
process can be amplified through circularpublic contracts or corporate investments.
To capture this value at city level, we must
activate many different levers.

3.3 Environmental impacts
With respect to the environmental
benefits generally associated with thecircular economy, it is important tounderstand that the expected advantages
cannot derive simply from recycling
waste, but rather from completely
overhauling the economic model, startingwith its earliest phases. The aim is todecouple economic activities from theconsumption of non-renewable resources:in other words, to ensure that all activities
use renewable materials and energy,
or completely reuse non-renewable
resources, so as to – ideally – completely
eliminate all impacts on the environment.

Recycling represents a step forward but
is not enough. To generate benefits along
the entire value chain, it is essential tostart with the design phase.
Consumption of materials. In theurban context, this central aspect in thecircular economy vision can result in acomplete overhaul of material flows:
the construction and food sectors
provide particularly good examples inthis sense, due to the large volumes ofraw materials they consume and thewaste they generate. Furthermore, it
is important to note how strong theinterconnections between sectors canbe: this is perfectly illustrated by thefact that energy consumption is strongly
influenced by the choices made in theconstruction industry.
Local and global emissions.
Decarbonisation objectives must be
achieved not only through renewablesources, electrification and improved
energy efficiency, but also by including
other sectors in the circular economy:
recent studies estimate that 45% of3. THE BENEFITS | 33

global emissions derive from how we
produce and use products and how we
produce food19. Furthermore, designingcompact, flexible areas at city level makes
it possible to reduce travelling time, noise,
air pollution and energy consumption.
Today, having understood the urgency ofthe situation, many cities have identified
the concept of “zero emissions” as theirmost important commitment
Waste generation. The impact would be
more immediate in this area, because
goods at the end of their lifecycle would
be reused or recycled in a kind of closed
loop.
Pollution and health. Reducing waste,
improving wastewater treatment andreducing water contamination and air
pollution are all measures that generate
positive impacts, for health and more.
Even the redistribution of food to people
in need, on top of reducing waste, has
positive effects on health and pollution
because the environmental impact
deriving from food production andprocessing is reduced20.

3.4 Social impacts
Although the circular economy’s mostdirect impact is on the environment,
we can expect it to also have a positive
impact from a social standpoint.
In general, an economic model basedon the exploitation of natural, nonrenewable resources, consumption andthe generation of waste is characterisedby a significant level of automation, long
logistical chains for supplying materials
and semi-finished products, and highlyconcentrated energy consumption. The
product, at the end of its useful life,
constitutes a problem for disposal thatcan either be handled locally or further
afield.
In contrast, a circular approach is more
focused on maintaining the value ofstock, closing loops and using renewablesources. This entails, from a design
standpoint, a shift towards inputs thatare at least partially local (renewableenergy, reused materials, etc.), reduced
production and extended product life

(repairing, maintenance, services), newbusiness models (Product-as-a-Service)
and, consequently, activities that close
loops in the cycle (regeneration andrecycling)21.
A special mention should also be madeof sharing and reuse through selling:these models enable private citizens’
direct participation, and do not lead tojob creation but are a way to supplement
income.
It is worth noting that the 2020
pandemic had a significant negative
impact on asset sharing initiatives (inparticular sharing and Product-as-aService models) and on the sale ofproducts between private individuals(reuse) because, as they require assets
to be used by more than one person,

Ellen MacArthur Foundation, Completing the Picture: How the
Circular Economy Tackles Climate Change, 2019.

19

World Health Organization, Circular Economy and Health:
Opportunities and Risks, 2018.

20

21

Circle Economy, Jobs and Skills in the Circular Economy, 2020.

3. THE BENEFITS | 34

they indeed require some form of
direct interaction. We must therefore
take into consideration the fact thatany continuation of social distancing
measures will have an impact on thedevelopment of these business models.
In addition, the assessment of the overall
impact must consider the numerous
cross-sector interactions encouraged by
the circular economy approach, including
various jobs that enable circularity – suchas the design of new products consistent
with the circular approach, activities
that are actually circular in nature, likeremanufacturing, and activities that areindirectly linked to the circular economy,such as those tied to reverse logistics22.

ROUGH ESTIMATE OF THE IMPACT OF THE CIRCULAR ECONOMY
ON EMPLOYMENTGLOBAL
LOCAL
BASE

Production

Use

Close
the loop

No impact

Although quantifying the impact of thecircular economy on the job market is notpossible yet, the dynamic of creating new“green” jobs, together with the gradualreduction of those production sectors thatare characterised by intensive resource use
and the requalification of existing works,
will probably lead to a rise in employment,
albeit somewhat modest.

BASE

OVERALL IMPACT
ON EMPLOYMENTEXAMPLES

Design

Shift of focus

Input

RES/Local loops

Production

Less demand for new goods

Life extension

Repair/Maintenance

Sharing*

Part time share

PaaS

Services

Reuse*

Second life

Remanufacture

Reverse logistic/Remanufacturing

RecycleReverse logistic/Remanufacturing

Slightly negative impact

Slightly positive impact

VS.

Very negative impact

Moderately positive impact

It is worth mentioning that, however,recent studies associate the mostencouraging results in this sense withthe adoption of a gradual increase in tax
on materials and – leveraging these newrevenue streams – a reduction in labour
taxation23.

Positive impact

22

Circle Economy, Launch of the Circular Jobs Initiative, 2020.

23

OECD, Labour Market Consequences of a Transition to a Circular Economy, 2020.

* More than job, income opportunity

3. THE BENEFITS | 35

This transition therefore creates newchallenges and opens up choices, atboth national and local levels, that can besummarised as follows.

 axation
T
The fiscal lever helps to guideeconomic choices. For example,
increasing taxation on the useof non-renewable resources andthe generation of waste, with asimultaneous reduction in labour
taxation, would accelerate thetransition towards circular solutions
based on renewable materials andenergy or on maintenance, repair
activities and services (ultimately
this would mean elevating
and supporting human labour,
recognising it as the renewable
resource par excellence 24).

 usiness ecosystems
B
Since, as mentioned above,
innovation has a key role in thecircular economy, investment
can facilitate the creation of
new startups and SMEs, a local
production sector characterisedby a high concentration ofindustrial companies, mostly small
and medium-sized, and highly
specialised production. This canlead to a virtuous circle between
research facilities, companies andpublic and private funding, which isessential for cities’ resilience anddevelopment, and could stem fromspontaneous networks or could
be supported through local tax
incentives.

This triggers further systemic
considerations: for example, apossible tax on work performedby robots similar to the one
applied to human labour. Then
there is the issue of fiscal
incentives, another lever that
could be used to promote theuse of renewable sources andactivities to extend products’
useful life (such as repairs) or toregenerate end-of-life products(such as remanufacturing).

 raining
T
With certain old sectors being
substituted by new ones, wemust create new skills andsupport workers during thetransition phase, with educationand training programmes.

24

Walter R. Stahel, The Circular Economy. A User’s Guide, Routledge, New York 2019.

4.

Conclusions

4. CONCLUSIONS | 37

Conclusions

4.

Having analysed in previous editions thetechnologies, circular business models
and wide range of competitive solutions
available today, this third edition of ourposition paper focuses on a more complex
and multi-faceted aspect. In particular, we
focus on how to implement cities’ circulartransformation through collaboration
between stakeholders and public-private
collaboration.
Using the kind of tools that can be
expected from government intervention,
institutions have a key role in stimulating
this potential; from strategy definition
to drawing a shared roadmap, orfrom regulatory and financial levers(for example, Circular Procurement)
to training and activities to support
innovation.

This central role played by institutions will
become even clearer in light of the recent
pandemic, because overhauling the citymodel requires a shared and participatory
vision, so as to enable all parties tocollaborate with other government bodies
at the local, regional and national level.
Without this vision, opportunities might bewasted or come to fruition in a way thatis incoherent or fragmented. This is why
the many initiatives that exist, around theworld, to coordinate different cities’ efforts
for sustainability and the circular economy
are so important: they demonstrate howeach city is not a separate reality, but adifferent application of a common vision,
whose impacts have global relevance andscope. As big as they might be, thanks
to their local dimension and specificcharacteristics, cities are contexts where
people feel a sense of belonging and may
have a more direct impact; therefore, they
are an essential hinge in solving the global
challenges that await us.
Cities will also continue to be, each with
its particular characteristics, places ofcongregation, culture and development,

identifying as cultural hubs or commercial
and production centres depending on thecase. At the same time they will change
the way they operate, evolving in waysthat cannot possibly be analysed without
considering the main trends outlinedin this document: from urbanisation todigitalisation to climate change.
As is outlined in the final section of thispaper, which highlights best practices
around the world, this dynamic is starting
to clearly come through, paving the way
for new projects that no longer appear as
single incoherent initiatives, but as stages
in a transition towards a circular citymodel, tiles in a mosaic where we catcha glimpse of the ambition to redesign thecity through key sectors such as mobility,
construction, urban planning, food andwaste.
Of course this is no single, one-sizefits-all approach: the common vision ismoulded in each case to suit the local
characteristics and conditions. The
objective is to combine the opportunities
offered by the city with environmental

4. CONCLUSIONS | 38

sustainability (at the global and local
level) and social interconnection, as afundamental prerequisite for improving
urban liveability.
Understanding the causes, impacts andconsequences of the current pandemic
will be at the centre of activities forthe coming months, as well as a key
element to consider in any subsequentconclusion. When facing a new issue
as vast and complex as this, it is
impossible to cover the subject in its
entirety. Nevertheless, we believe it isstill important to periodically share ourthoughts and ideas regarding circular
cities, taking it as an opportunity toconsolidate and reflect upon what has
been achieved and as a starting point for
further development.
For years, Enel’s commitment has
been to contribute, through its businessactivities, to the transition towards asustainable economic business model,
and to do so openly by collaborating withall stakeholders and with those who share
our vision. Everything we are doing, andwill do, for the cities of tomorrow is an
essential part of this commitment.

What we are doing now– and what we will do – forthe cities of tomorrow isa fundamental part of ourcommitment to contributeto the transition towards
sustainable economic
development

FocusBest practices fromaround the world

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 40

Best practices
from around the world

Focus

The European Commission’s adoption of the Circular Economy
Action Plan in 2020, and the role conferred to cities and regions withrespect to this new approach, have been, without doubt, among
the most significant drivers for the implementation of the circular
economy at the European level. The strong calling for circularity
expressed by European cities like Amsterdam25 and Paris26 is abenchmark for many other urban centres.
Around the world, there has been a lively debate on the subject of
the circular economy, not limited to Europe. For this reason, withthe aim of exploring the public-private contribution in implementing
circular strategies and projects at the urban level, we now take adetailed look at what has been happening recently in some cities inNorth and South America, starting with those where Enel is carryingout projects that are hugely significant in terms of their impact.

25

To find out more26

To find out more

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 41

São Paulo

Focus

Its territory’s considerable size, high levelof biodiversity and particular cultural andsocio-economic context make Brazil aninteresting testing ground for circular
dynamics and models, where single
initiatives can trigger a multitude ofeffects.
To this end, we have decided to analyse
what is happening in São Paulo, also
through the eyes of two of our partners:
Intesa Sanpaolo and the Future Food
Institute. In studying projects such
as Urban Futurability, led by Enel andfocused on areas like infrastructure anddigitalisation as well as two different
aspects on the issue of food, we look at
the different levels involved in creating acircular city

Urban Futurability
in the Vila Olímpia district
Developing a new approach to the city
forms the foundation of Enel’s Urban
Futurability project, a state-of-the-art
solution to digitalise the network, reshapethe energy sector and create value for
cities and their inhabitants.

Launched in 2019 in Vila Olímpia, SãoPaulo’s financial district where tensof thousands of people live and work
every day, the project will become fully
operational in a couple of years. Basedon the electricity network, one of theprincipal and most widespread urban
infrastructures, projects such as Urban
Futurability can contribute to creating theFOCUS | BEST PRACTICES FROM AROUND THE WORLD | 42city of the future by combining innovativetechnologies, which improve the
network’s resilience and automation withstakeholder engagement in what can be
regarded as a genuine natural laboratory
for co-designing and developing newcircular services.

The circular approach

The project involves the use of entirely
innovative industry-4.0 solutions,
including around 50 initiatives that
introduce Brazil to new technologies(from predictive maintenance tohyperreality for maintenance activities
and on-the-ground training, and fromsmart metering to artificial intelligencefor safety) and new services that will
impact on asset management and daily
work activities.

For example, the replacement of 4.8
kilometres of overhead lines with
underground cables was carried out via
a sustainable worksite model, which
improves the sustainability performanceand the reuse of materials such as
water and soil deriving from digging
activities. Ways in which concrete
might be substituted with polymers
recycled from plastic waste (eitherpurchased or deriving from Enel waste)
are also currently being tested, in orderto reduce environmental impact andresource consumption whilst ensuringsavings and investing in safety at thesame time.

Centred around stakeholder engagement
and the pillars of the circular economy,
Urban Futurability will enable the creationof cities which are more liveable,
resilient, and able to adapt to the effects
of climate change, in line with theobjectives set out by the United Nationsin the 2030 Agenda.

Urban Futurability is allowing for the reexamination of the “business as usual”
way, and for the integration of circularity
into the production process right from theinitial design phase.

Regarding process revision activities,
a new and sustainable process has
been established for tree cutting

Regarding processrevision activities, a newand sustainable process
has been established
for tree cutting which,amongst other things,
utilises a new circularsupply chain (suppliers,
NGOs, startups,
universities and otherassociations) to transformthe waste from cutting
into new products

which, amongst other things, utilises
a new circular supply chain (suppliers,
NGOs, startups, universities and otherassociations) to transform the waste fromcutting into new products. In addition
to circular solutions such as biomass
and composting, the new process isalso exploring additional open-loop

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 43

Municipality, enabling quicker responses
to any problems that might occur.
Taking into consideration the importanceof connectivity for the operational
dynamics of a circular city, Wi-Fi internet
connection points will be installed. In
addition, 5G speed tests are also planned
to facilitate the exchange of information
within the area.

solutions on the one hand – like getting
local craftsmen to create products using
leaves and branches (thus promoting local
growth) – and closed-loop solutions on theother.
A contribution to global decarbonisationand electrification objectives is also being
made through the implementation of new
business models. A good example of thisare e-mobility initiatives that influence afundamental aspect of people’s lives andtheir relationship with the surrounding
environment. In the Vila Olímpia area, 10
electric vehicle charging stations and 1

electric bike sharing and charging station
are due to be installed, strengthening
the circular business model of sharing.
An electric bus (e-bus) line will run in thearea, improving the way in which people
move around.
The project will also include smart traffic
lights to improve traffic flows, reduce timespent in traffic within the area and reduce
emissions. Enel will be installing Smart
Lighting on streets to make the area safer,more modern, efficient and attractive:
the system is completely digital and canbe remotely managed in real-time by the

Network Digital Twin®, a new virtual
network model, is creating an open data
platform in Vila Olímpia to encourage thelocal interested parties to contribute toand potentially co-finance new solutions(urban planning, safety, etc.) based on
infrastructure data. Approximately 70
stakeholders have already participated inco-creating a list of possible services that
could generate value for both businesses
and citizens. Thus, from an urban context
with advanced smart services (frommobility to street lighting) we shift
towards the information city: wherereal-time data teach cities how to think
and, within the industry 4.0 and energy
4.0 frameworks, enable them to improve

In the Vila Olímpia
area, 10 electricvehicle charging
stations and1 electric bikesharing and charging
station are due
to be installedFOCUS | BEST PRACTICES FROM AROUND THE WORLD | 44

person-data interactions so as to foster
efficiency, resilience and sustainability
whilst simultaneously placing the finaluser front and centre.

FinancingSignificant results, such as those
expected from implementing this project,
necessarily require the contribution
and collaboration of all the involved
parties. The finance package includes
the investment from Enel as well as
public funds for innovation and local
development provided by ANEEL, theBrazilian Electricity Regulatory Agency,
totalling 25 million euro. Financial
sustainability is expected to be achieved
within a five-year time horizon, enabled
by cost savings intrinsically generated
through the project and by the economic
value deriving from the new models andservices.

Economic, environmental
and social impacts
Urban Futurability is an ambitious project
striving to transform a megacity district
into a more sustainable reality, taking
advantage of circular economy concepts
and state-of-the-art technologies as anengine for generating added value for thecity and its citizens.
Positive impacts are expected foreverybody living in the area, going way
beyond the 100,000 São Paulo residents
who are Enel customers. This number
is expected to grow throughout the city,and extend beyond its borders. Indeed,a more resilient electricity grid meansa better-quality supply and – taking
advantage, through artificial intelligence,of real-time understanding of the resource
situation and predictive maintenance – asubsequent mitigation of environmental
risks resulting from extreme weather,fires, floods, etc. Digitalising and remotecontrolling activities can effectively aid in
reducing environmental impacts, carbon
dioxide emissions and noise pollution.

The data platform is a gateway forthe future sharing of information:
making a vast array of data available,
obtained through the IoT, sensors, andcareful 3D infrastructure mapping,
Urban Futurability can generate job
opportunities through the creation of a
new ecosystem of startups, suppliers
and other companies.
Following the pandemic emergency, theproject is also exploring how to support
São Paulo’s recovery by looking toutilise solutions offered by the circular
economy. Starting, for example, fromregenerating waste such as cables andplastic to make new equipment, or fromthe new circular supply chain revolving
around urban tree cutting, Urban
Futurability is also exploring possible
new solutions, including temporary
ones, to foster a new value chain aroundregeneration.

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 45

The city promotes
regenerative farming
practices in compliancewith the FAO’s principles
for agroecology

The circular food system: an enabler
for food security and an engine
for the local economy
The region around São Paulo is facing
significant challenges as a result of
the wide disparities that exist within
the city.
The food system is increasingly
considered as a key vector for
economic, social and environmental
development. A thriving food andrestaurant industry and the highcapacity for innovation of its many
research institutes, universities andcompanies, among other things,
suggest that São Paulo is in aunique position to develop a regional
distributed and inclusive food system

based on the three principles of thecircular economy, as underlined by
the Ellen MacArthur Foundation in2018 in its report Cities and Circular
Economy for Food 27:
1. s ource food grown regeneratively,
and locally where appropriate;
2. make the most of food;3. design and market healthierfood products.
The city of São Paulo is surrounded by
the metropolitan region of São Paulo,
which includes important industrial
hubs as well as residential areas,

farmland and indigenous vegetation(which covers 37% of the metropolitanarea, despite high urbanisation rates).
Food production is mainly
concentrated in the southern andeastern areas of the city, which areconsidered “rural” and represent
approximately 30% of the urban
territory. This is the area where anagroecology movement has been
progressively expanding, with thesupport of city and state initiatives.
Evidence of this phenomenon canbe seen in the Parelheiros foodproduction district, towards the far
south of the city, where farmers
moving over to agroecology methods
benefit from the technical support
offered by eco-friendly farming
companies, as well as from the firstpublic procurement contracts issued
as part of the city’s school meals
programme.
The city promotes regenerative
farming practices in compliance with
the FAO’s principles for agroecology,

27

To consult the reportFOCUS | BEST PRACTICES FROM AROUND THE WORLD | 46

systems that optimise the interactions
between plants, animals, people
and the environment, taking into
consideration the social aspects thatmust be tackled in order to achieve asustainable and fair solution.
The farmers in São Paulo who are
already applying (or switching to)regenerative practices are supported bya number of initiatives. The following
are some of the most notable.

Agroecology involves an integrated approach
aimed at designing food systems that optimise
the interactions between plants, animals, people
and the environment

such as biodiversity, efficiency,
resilience, food culture and traditions,and responsible governance.
Agroecology involves an integrated
approach aimed at designing food

Ecological farming companies.
Two centres located in São Paulo’s
main food production areas offer
specialised assistance to local farmers
switching from conventional farming
methods to agroecology. They
manage greenhouses which produce
seedlings that help to improve soil
health during the transition process
and provide refrigerated storage tosupport the logistics process.
Special fund to support theenvironment and sustainable
development. A specific fund isdedicated to supporting civil society
projects aimed at improving the city’snatural environment. It has alreadyassigned millions of Brazilian reais toagroecology initiatives.
Agroecology transition
certificates. The state andcity of São Paulo have signed abest agroenvironmental practice
protocol to encourage regenerative
agriculture around the city’s water
resource protection areas. Under
this agreement, certificates areissued to identify farmers switchingto agroecology production methods,
both at direct points of sale andin government procurement
processes, thus making the
global transition more financiallysustainable.
School meals programme. The
city has included specific objectives
to introduce food products fromfamily-managed farms and from thelocal, agroecological supply chain
into the public procurement process

for school meals. In 2015, 1,747
family-managed farms benefited
from food procurement contracts
with the city of São Paulo totalling
2 million dollars in value; since then,new offers for local and organic
farming and for agroecology havebeen guaranteed. The programme’s
implementation plan envisages
all procurements for public school
meals being 100% organic or from
agroecology by 2026.
In conclusion, local and regenerative
food production is starting to playa more central role in the city ofSão Paulo’s agenda, acting as anenabler for nutritional safety andan engine for the local economy aswell as for social and environmental
development in rural areas.

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 47

and strategic position, the city ofSão Paulo offers great examples ofcircular city projects.

The circular food system:
resilience and reduction of inequalities
In terms of governance, the closeinterdependence between energy
and food systems must not be
underestimated. Irrigation andthe use of chemical products forfarming, but also the harvesting,processing and transport of food, alldepend on energy. To waste food,therefore, is one of the most obvious
ways to waste precious natural
resources: a model that is costly andsimply unsustainable.

food in cities, which will be the most
relevant places to model new foodsystems with a view to improving
the future. Indeed, considering by
2050 we expect 80% of all food will
be consumed in cities, the latterare ideally positioned to leverage
their huge buying power to redesign
food systems so they become more
resilient to external shocks whilst
regenerating the environment they
rely on.

It is of paramount importance toanalyse the link between energy andGiven its potential for innovation,
thriving food and restaurant scene

Indeed, in this context, by leveraging
its power as a major public investor,São Paulo procures food from local
farms to serve up to 2.3 million meals
per day to public school pupils. During
the Covid-19 lockdown and school
closures, the Municipality quickly
redirected these food supplies to asystem of food banks, which gave out
food baskets to more than 1 millionfamilies around the city.
Banco de Alimentos is an NGO,
operating in São Paulo since 1998.
With a vision that goes way beyond
simple food waste reduction, it
follows three main pillars for action
to counterbalance food inequalities
through reallocation, education
and awareness. The particularly
innovative aspect of its approachis the urban collection of food,drawn from excess supplies in foodcompanies and supermarkets andDuring the Covid-19 lockdown
and school closures, theMunicipality quickly redirected
these food supplies to a system
of food banks, which gave out
food baskets to more than
1 million families around the city.

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 48

from social institutions feeding
the communities that are most in
need. The fact that collection anddistribution are completed within
the same day ensures the food –while deemed unsuitable for sale– still maintains its nutritional value
and properties.
Every day, Banco de Alimentos
reaches more than 20,000 people.
In addition, through dedicated foodeducation courses, it provides
training to social institutions (toprepare meals that maximise food’s
nutritional value, in appropriate
portions for recipients) as well as
to companies and schools, toincrease awareness regarding thevalue of food.

A similar approach is followed
by Mesa Brasil Sesc, a national
network of food banks sharing
Banco de Alimentos’s same
objective, to reduce hunger andfood waste. The work is organised,also in this case, on a collaborativebasis. It all starts with food donors
offering their excess food supplies;
in return, they can benefit from tax
breaks and reduced food disposal
costs, in addition to an improvementin terms of brand image tied totheir active engagement in socialand environmental causes. Oncecollected and transported to theMesa Brasil facilities, food ispackaged and stored to provide
additional nutrition for thoseaffected by food vulnerability.

Therefore, this represents an
institutional collective effort toimprove quality of life and social
inclusion, starting from foodsecurity and nutritional safety.
The Mesa Brasil network
has managed to create amultidisciplinary web ofconnections, extending out fromthe central role of the collective
effort and shared educational
projects. Its presence withinevery single Brazilian state is
ensured by multidisciplinary teams
which combine and link together
the organisation’s four principal
areas of interest: food security,social assistance, multi-company
partnerships and partnerships withsocial institutions.

An institutional
collective effort toimprove quality of lifeand social inclusion,
starting from foodsecurity and nutritionalsafetyFOCUS | BEST PRACTICES FROM AROUND THE WORLD | 49

Santiago de Chile

Focus

On 6 May 2020, the Chilean Minister of theEnvironment, Carolina Schmidt, launched
the work of the strategic committee for thecreation of a circular economy roadmap, an
initiative led by the Eurochile Foundation tobring this new economic model to fruitionin the country by 204028.
“Going from a linear to a circular
economy requires a change of modeland a huge shift in the ways we produce
and consume. For this reason, we
have decided to lead the creation of aroadmap, inviting a cross-sector groupof organisations to help us to define
concrete objectives for making Chile acircular country”, explained Schmidt29.
A strategic committee made up of
25 representatives from the public

sector, private sector (unions and tradeassociations), the academic world andNGOs, in addition to national experts in thisfield, will define the development plan’s
final structure. The implementation of thisstrategy is anchored on the collaboration
between the various parties involved
who, through innovation, have alreadycommenced activities focused on relevant
technological areas, with dedicatedhuman capital, high private participation
and balanced governance, thus helping tofacilitate local development.

Public transport with electric buses
Mobility is one of the pillars underpinning
the transition towards circularity inChilean regions and cities and contributes
to achieving the objective of carbon
neutrality by 2050.
In 2018, an alliance between Enel,
Metbus and BYD introduced the first 100
electric buses into Santiago de Chile’s
public transport network. The following
year, with the integration of more vehicles

28

To find out more29

To find out more

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 50

in the metropolitan region, Chile became
the first country in Latin America toimplement a sustainable electric corridor
where a total of 285 zero-emission buses
are currently running. These vehicles
use innovative technology to provide ahigh level of passenger comfort, Wi-Fi
connectivity, chargers for smartphones
and air conditioning. Above all, they
are zero-impact in terms of polluting
emissions and offer a more cost-effective
alternative operationally, since runningthem costs 60% less than conventional
diesel buses.
The results achieved by this initiative
have been so remarkable that the Chilean
authorities immediately included electricbuses as part of the requirement for
tendering processes, in order to gradually
renew public transport contracts.
The success of this collaboration was
also underlined by Hector Moya, directorof Metbus, when he said the project “hasmade it possible to obtain somethingunthinkable for public transport. In thecustomer satisfaction survey carriedout by the Ministry of Transport andTelecommunications (MTT), the service
provided by the route operated using
electric buses achieved a score of 6.4
out of 7” – much higher than the scorecustomers gave the traditional service in2017 and 2018 (4.9 and 4.8 respectively).
“In countries like Chile, the sector inwhich electric mobility will consolidate
more quickly will indeed be publicpassenger transport”, Moya continued,“because existing contracts are expiring
and approximately 4,000 buses havealready come to the end of their usefullife, and will soon have to be updated”.

Electroruta de Chile
In January 2020, Enel announced theElectroruta de Chile plan, involving an
investment of 13 million euro to install
1,200 recharging points all over Chile
by 2024.
It is estimated that by 2025 there will beapproximately 82,000 electric vehicles
in the country, so the early installation of

An investmentof 13 million euro
to install 1,200
recharging points
all over Chile
by 2024charging stations will enable the company
to support such a transition and become
the market leader for recharge services.
Every city in Chile with more than 50,000
inhabitants will have at least one charging
station, in addition to those positioned
along the road network, which will be nofurther than 100 kilometres apart. Thus,
Enel will guarantee 5,000 kilometres ofcoverage – surpassing the entire lengthof continental Chile (4,270 kilometres).
In parallel, user interaction will be
designed and fine-tuned to improve theirFOCUS | BEST PRACTICES FROM AROUND THE WORLD | 51

Focus

experience: using an app, clients will beable to find the closest charging stations,check for availability, book and pay for therecharging.

will also provide green energy torecharge electric cars and bicycles,
helping to fight climate change and todecontaminate the city.

In implementing this programme, Enelcan count on successful examples
such as the alliance developed with thelocal administration of Las Condes (amunicipality in the metropolitan region ofSantiago de Chile), which in 2018 waived
local taxes on the installation of 8 charging
stations on its public roads.

The project includes the design,
equipment supply, installation and set
up of an on-grid photovoltaic generation
system, with an installed capacity of
186.30 kWp.

Nueva Cordova Building

Air pollution is a serious problem in
Santiago de Chile, with pollutant levels
above the stipulated limits for manydays during the year. A traditional woodburning stove, for example, produces
emissions equivalent to 5 dieselpowered buses. Hence the importanceof the project to replace woodburning stoves with air conditioning
equipment, involving a variety ofparties: companies exceeding emission
limits must present an environmental
compensation project, while families

Santiago de Chile is an example ofinnovation and circularity in the urban
context also thanks to a distributed
generation system created using
photovoltaic panels, installed on the
façade and roof of the Nueva Córdova
building (in Las Condes). The additionof the photovoltaic modules into thebuilding’s façade will guarantee thebuilding’s energy self-sufficiency,
thus reducing operational costs, andReplacementof wood burning stoves

The additionof the photovoltaic
modules into thebuilding’s façade
will guarantee thebuilding’s energy
self-sufficiency, thus
reducing operationalcosts, and will
also provide green
energy to recharge
electric cars andbicyclesFOCUS | BEST PRACTICES FROM AROUND THE WORLD | 52

can voluntarily join the programme,
which is coordinated through the local
municipalities. The latter schedule aninspection by a qualified technician toevaluate the feasibility of installing an
inverter air conditioning unit; if possible,
the system is installed and the family
receives training on how to best use theequipment so as to maximise energy
efficiency. Finally, the wood-burning
stove is collected for dismantling, and its
components are recycled and put to newuse to create other products.
From the beginning of the project in2017 to the end of 2019, a total of 5,261
stoves were replaced throughout Chile,amounting to 17,098 tonnes fewer
carbon dioxide emissions and 105.22
tonnes fewer PM 2.5.

Santiago 2041
Since 2010 Enel Chile, in collaboration
with the faculty of Architecture andCity Planning at the Universidad delDesarrollo (University for Development)

Since 2010 Enel Chile, in collaboration with the faculty of Architecture
and City Planning at the Universidad del Desarrollo and Siemens, hasbeen organising Santiago 2041, one of the main forums for city planningissues at the national level, based on the idea of inviting citizens to
consider and discuss the kind of city they desire

and Siemens, has been organising
Santiago 2041, one of the main forums
for city planning issues at the national
level, based on the idea of inviting
citizens to consider and discuss the kindof city they desire. The objective is to
give them the opportunity to discuss,with authorities and opinion leaders,the public policies that the capital will
implement to celebrate the five-hundredthanniversary of its foundation in 2041.
The central themes of Santiago 2041

are: the response to natural disasters,
emerging technologies for the realtime management of the city’s biggest
challenges, the role of Municipalities
and projects that contribute to cities’
sustainability. The event represents
an additional example of collaboration
between stakeholders and institutions tobuild a path towards circularity.

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 53

Bogotá

a “green growth” strategy with the main
objective of achieving environmental
sustainability, facilitated by innovation andthe circular economy.

Fenicia

Focus

Colombia, and specifically its capital
Bogotá, is also becoming one ofSouth America’s leading lights in theimplementation of the circular economy.
Having a national circular economy
strategy approved was key to guiding thecountry in this direction, with the goal of
combining environmental protection witheconomic growth.
In 2018, the Colombian government,
via the Ministry of Environment andSustainable Development, published
its Estrategia Nacional de Economía
Circular 30, a plan whose aim is to analyse
the use of resources (the so-called“urban metabolism”) and to improve theefficiency of production processes. In
addition, particularly for Bogotá, the 20202024 District Development Plan31 defines

In Bogotá’s urban plan, the Triángulo de
Fenicia – a densely populated area at theheart of the city, with great variations inliving conditions and significant problems
of inequality, where the city’s historicalcentre (La Candelaria) and university area
converge – was singled out as the focus
for an urban redevelopment strategy.
Thus the Plan Parcial Triángulo Fenicia32
was launched, led by one of the area’s
key players, the Universidad de losAndes, which promotes the Proyecto
Progresa Fenicia33 to develop an arrayof social, environmental and economic
management activities (construction of
67,000 square meters of commercial
area, hotels and offices; 25,500 square
meters of residential area; 3,500 square
meters of renovated public facilities; 900
new houses).

30

To find out more

31

Plan de Desarrollo Distrital Bogotá 2020-2024.

32

Plan Parcial de Renovación Urbana Triángulo de Fenicia.

33

Proyecto Progresa Fenicia.

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 54

Enel will invest over
5 million euro during the2020-2024 five-year period

In this context, in collaboration with the
Universidad de los Andes, Enel defined
this area’s potential to implement ahighly digitalised circular city model
anchored on technological innovation.
To bring this project to fruition, Enel will
invest over 5 million euro during the2020-2024 five-year period. The project,based on smart grids, follows circular
economy criteria and the principles
for creating shared value between thecompany and the stakeholders involved.

A simplified representation of this complex project includes:
Network modernisation: remotemonitoring and control.
Network digitalisation: electricity
infrastructure modelling anddigitalisation.
Internet of things: sensors for theelectricity infrastructure and the
management of information.

 dvanced Measurement
A
Infrastructure (AMI): energy
telemetry and remote network
management.

Telecommunications

 uman Machine Interfaces (HMI):
H
augmented and virtual reality tosimplify and safely conduct many
activities.

 istributed Energy Resources
D(DER): solar panels and slow/fast
charging stations.

Living lab: a space for discussion,
innovation and the development of
implemented technologies.

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 55

Thanks to a structured plan for urban
redevelopment, electricity infrastructure
modernisation and technologicalinnovation to generate value andimprove citizens’ quality of life, thisproject has the potential to quickly put
Bogotá on the road towards becoming acircular city.
This is a vision also shared by the
Universidad de los Andes, which has
underlined how “the smart, circularand sustainable city of the Triángulo
de Fenicia project aims to contributeto the wellbeing of the community,
as well as to strengthen the role of
the University as a beacon in Latin
America. Indeed, the Proyecto Progresa
Fenicia will contribute to a betteruse of communal areas in buildings,
improve their environmental and waste
management, contribute to the safety of
public areas and generate new insights
into the subject of energy efficiency andgeneration from renewable sources.
The sustainability of the project will
also be reflected in other aspects:
redevelopment work, for example,

Enel also contributes
to individual means oftransport, through thepromotion, sale andinstallation of charging
systems for private andpublic electric cars, inhigh-influx private andpublic locations aroundthe city

will be managed so as to reduce
environmental and social impacts to aminimum, promoting the recycling andreuse of materials and offering newopportunities to local residents. The
objective is to create a living laboratory,
a collaborative, open platform forinnovation, an immersive environment
for experimentation to create a sharedvalue ecosystem”.

Electric mobility
The Municipality of Bogotá’s generalmobility plan34 puts forth a “hierarchical”
public transport scheme , which includes asynergy between high-capacity passenger
transport systems (articulated buses

34

Plan Maestro de Movilidad de Bogotá.

35

Esquema de Transporte Público Jerarquizado.

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 56

and underground trains) and mediumcapacity systems (buses). Both high- andmedium-capacity systems include electric
mobility solutions supported by Enel, thus
making the company a strategic ally of the
Bogotá Municipality for the city’s circulardevelopment. But Enel also contributes
to individual means of transport, throughthe promotion, sale and installation of
charging systems for private and public
electric cars, in high-influx private andpublic locations around the city, thus
facilitating the introduction of more
electric vehicles into the country.
Electricity supply for Bogotá’s firstunderground line
The organisation of the current project todevelop an underground system in Bogotá
started in 201636, when the national andlocal governments, led respectively bypresident Juan Manuel Santos and mayor
Enrique Peñalosa, decided to create
Bogotá’s first underground line.
To implement the Primera Línea delMetro de Bogotá (PLMB) project, whichforms part of the general mobility plan,
Peñalosa requested the development of
an electricity infrastructure to enable its
construction and operation. The following
activities are planned: the constructionof 3 new substations, the displacementof high-voltage networks at 7 crossing
points with the PLMB viaduct and, finally,
the displacement of secondary networks,36

An interesting chronicle regarding Bogotá’s underground system.

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 57

for which Enel will invest in excess of 80
million euro over a 6-year period.
Taking into consideration the project’s
size, a regulatory framework and clear
roles were defined at the institutional
level: from the responsibility of public
institutions and public service companies
for financing and executing the transport
infrastructure projects, to the definition of
the above-mentioned PLMB by the mayorof Bogotá, to the creation of a company
to manage the budget and coordinate thecompanies entrusted with carrying out thework, including the building consortium,
Enel and other public service companies.
The scale of this project, along with its
impact on the functioning, development
and dynamism of the city of Bogotá,
make it one of the largest infrastructural
challenges ever faced by both Enel andthe Colombian municipality.

Electric vehicle recharging infrastructure
In the context of mass public transport,
buses play a key role in Bogotá’s generalmobility plan, because they are an
integral part of the medium-capacity
public transport system. To this end, Eneldeveloped an infrastructure project tocharge public buses, which is essential forthe growth of e-mobility due to the long
distances covered every day by each bus(over 250 km).
The objective of this project is toestablish, by the second half of 2020, 4
electroterminals (electric bus charging
areas) for Bogotá’s integrated public
transport system, in which a total of 477
electric buses will operate – making theColombian capital’s fleet of electric buses
the biggest in Latin America. Enel’s overall
investment in this project will total 35
million euro.
These 477 electric buses will operate
within three large municipalities(Fontibón, Suba and Usme) where theelectroterminals will be installed, eachwith an installed capacity of 8-10 MVA,
with an energy consumption close to 40
GWh per year, resulting in approximately
40,000 tonnes fewer carbon dioxide
emissions per year. Indeed, this type of
project promotes decarbonisation in thetransport sector, as well as improves
the air quality in cities and, as a directconsequence, residents’ quality of life.
Finally, passengers will see improvements
in terms of comfort on board the vehicles:
a reduction in vibration, noise and, as
already mentioned, harmful pollutants.

A total of 477
electric buses will
operate – making
the Colombian
capital’s fleet ofelectric buses thebiggest in Latin
AmericaFOCUS | BEST PRACTICES FROM AROUND THE WORLD | 58

Montevideo
Circular economy and resilience, by Arup,
Global Resilient Cities Network and the Intendancy of Montevideo

Focus

In recent years, Arup and the Global
Resilient Cities Network have exploredthe various ways in which the circular
economy can support, enable andimprove cities’ resilience. Results showthat the circular economy can contributeto reducing unemployment by creating,through closed, regenerative loops,
new business opportunities, supportingsocial cohesion with shared access togoods and services and creating shorter,
less complex supply chains, which areless susceptible to external shocks.
In summary, the fact that the circular
economy is distributive and diversified bynature helps to build a city that is more
resilient to shocks and stress.
The project described below shows how
Montevideo’s local administration has
worked hard to adopt circular economy

strategies with a view to making the capitalof Uruguay more resilient.
The analysis revealed the city was facing
many challenges, including social andregional inequality, aging infrastructure,
coastal flooding and vacant housing. At thesame time, it was observed that Uruguay
as a whole has much higher domestic
material consumption (a production-side
measure of the use of materials within an
economy) and a household solid waste
generation rate compared to neighbouring
countries suggesting a consumption based
economy.
To guide the collaboration between
different municipal departments, fourareas for cross-sector collaboration wereidentified to help to achieve the city’s
resilience objectives.

1

2

3

4

 aterials
M
Reduce the pressure on the waste management
system by adopting a cradle-to-cradle approach
to extend resources’ lifecycle and prevent waste
production.

 uildings
B
Reverse the constant expansion of unauthorised
construction, by using existing empty or underusedbuildings instead of adding new ones.

 ransport
T
Increase the capacity of the existing transportsystem by improving public service, implementing
shared transport systems and encouraging active
mobility options.

 aterW
Mitigate flood risks through adaptive, nature-based
measures.

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 59

In the following section, we showcase
some of the priority initiatives identified
within each area of analysis.

Reuse and repair hubsthat are created. Support policies,
quality certifications, tax reductions on
repaired goods and online activities wereidentified as possible enablers to facilitate
successful implementation.

such as for municipal services, community
services, retail and co-working spaces.
Such initiatives would also be a solution
to the uncontrolled expansion of thecity’s suburbs. They would encourage

Meanwhile spaces

companies to return to more central
locations and create job opportunities inboth the short and the medium term.
A key factor is the incorporation of spaces
owned by the local administration andof digital platforms that can match theavailable spaces to demand.

In Montevideo less than 2% of thesolid urban waste goes to landfill via
the waste collection system. Reuse andrepair centres could contribute to further
avoiding disposal of waste in the landfill,
to extending the useful life of clothing andsmall electrical and electronic devices, tofinding new users for unwanted items,
and to offering work opportunities tocitizens with experience in traditional
professions.
The proposal is for reuse and repair
hubs to be strategically located within
the more densely populated areas.
These hubs could be managed locally by
private individuals or by a newly createdcooperative, a social organisation or by
the city itself. The initial funding could
be allocated by the city on the basis of
the job or waste reduction opportunities

The empty, unused areas in Montevideo
have been estimated to be worth over
10.5 million US dollars. Meanwhile spaces
could be exploited financially and utilised
for new permanent or temporary uses,

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 60

Public transport rental
The city’s public transport system wasinefficient and obsolete. A leasing or
performance-based procurement model
for a new fleet of hybrid, electric orhydrogen-powered buses would reduce
the total expenditure related to thoseassets and allow the local administration
to invest in modernising other means oftransport.
The local administration (via the urban
mobility department) would clearly be themost interested party in such scheme,
but the private transport supplier and thenational government could collaborate toimplement a pilot project.

Sustainable drainage system
networks
Sustainable drainage systems canimprove rainwater drainage, increasean area’s biodiversity and offer betterinteraction between blue and green

infrastructures; they also contribute to
managing the growing flood risks and to
reducing pressure on the conventional
drainage system. The combinationof existing drainage systems (green
roofs and rain collection barrels) withnew sustainable ones (bioswales, i.e.
drainage canals with vegetation, andrain gardens) can create a solid networkof sustainable drainage systems within
Montevideo.
The administration should engage
landowners, by highlighting the benefitsof these systems and developing new
infrastructure together with them on
their plots of land. The administration’s
support would consist of identifying theflood risk areas, delimiting theplots to be earmarked for thedevelopment of sustainable drainage
systems, and promoting development.
Engagement with landowners,
residents, companies and otherstakeholders in the identified flood-riskareas would require building sufficientconsensus around the activity.

Sustainable drainage systems can improve rainwaterdrainage, increase an area’s biodiversity and offer betterinteraction between blue and green infrastructures; theyalso contribute to managing the growing flood risks and to
reducing pressure on the conventional drainage system

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 61

Progress thus far
Arup’s support has enabled the local
administration in Montevideo to better
understand the meaning of the circular
economy, how it can be implemented
within the city, and the key role it can playin making the city more resilient. One of
the most important recommendations of
this strategy was to develop a more holistic
circular economy strategy for the city.
The attention attracted by the abovementioned activities contributed tosecuring financing to further explore
the implementation of three of the four
initiatives identified through Ciudad Vieja
Circular37, a pilot project in the city’s
historical centre, which encompassed thefollowing activities:M apping all the reuse and repair centresin the area. A digital hub will contributeto creating connections between people
and the mapped organisations.

R eclaiming empty buildings throughout
the city. Structures could be renovatedand then repurposed for a variety of social
uses, such as rented council housing,social housing, day shelters for thehomeless and community centres forminorities’ activities. The reuse is intended
to be permanent, not temporary.
Construction of new small-scale rain
gardens around the city. A feasibility
assessment is also being carried out
for large-scale, natural solutions such as
wetlands along waterways. Preliminary
projects to consider aspects relating
to biodiversity, ecosystem services,and quality of water have also beendeveloped. Before choosing which
projects are to be implemented, costs
will be calculated.
P lanning a new initiative aimed at
facilitating the reduction of waste
generated by the food and hospitality
sectors. The initiative will be encouraged
via incentives, training and skills
development, to integrate the principles ofcircularity via new business models.

Beyond the individual activities andprojects, the main success factor iscommitment from the local administration
to adopt a circular economy approach,with the objective of making the city
resilient.
Indeed, as declared by the Montevideo
Intendancy: “A resilient city is open to
innovation and is capable of recognisingalternative ways of utilising resourcesin pursuit of its objectives. Montevideo
is exploring the possibilities offered bycircular economy principles to achievea different kind of development. It has
set out a roadmap to incorporate thesecircular economy principles, with the goalof obtaining a territorial system which isregenerative right from the design phase”.

37For further details

A resilient city is
open to innovationand is capableof recognisingalternative ways ofutilising resourcesin pursuit of its
objectives

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 62

BostonFocus

Boston is leading the way on energy
efficiency in the United States: in 2013,
mayor Marty Walsh made it one of
the first six cities to commit to C40’s
Deadline 2020 project.38 Furthermore,
the city was recently included in the listof the ten most walkable cities in the
country.39 Through the Climate Action
Plan, with its objective to achieve carbon
neutrality by 2050, and an agenda toreach the zero-waste goal, the mayor’s
team has committed to the vision of asustainable, circular future. As a key public
institution within the city, the University of
Massachusetts Boston (UMass Boston) is
doing its part.
These objectives pose a significant
challenge to the Commonwealth of
Massachusetts’ main energy consumers:

being exposed to elevated electricity
costs over time. Energy storage isseen as the optimal solution, since itallows users to store electricity to use
in periods when relying on the network
would be much more expensive. UMass
Boston believes that this solution willlead to cost reductions and to alignment
with the plan set out by the city andthe campus to achieve ambitious
sustainability goals.
UMass Boston has therefore integrated a
1 MW photovoltaic system on the top ofa parking garage, with a 500 kW / 2 MWhlithium-ion battery energy storage system,
which will allow the campus to generateclean energy as well as to store andconsume excess energy on demand, thus
reducing its reliance on the grid during
periods when energy tariffs are higher.
Equipped with Enel’s DER optimisation
software, the storage system will alsoenable the campus to earn revenue
through regional demand response
programmes, and to qualify for incentives
through the Solar Massachusetts
Renewable Target (SMART) programme.

Furthermore, the project includes theinstallation of 11 smart, electric vehicle
charging stations: an infrastructure that isuseful to both the university and the city,in the context of a reduction in traffic andassociated emissions. The stations aredesigned to avoid recharging during periods
when the high demand on the grid would
determine higher overall expenditure and,potentially, emissions. Finally, thanks to thepartnership with Enel, the university has
financed the entire project on the basis of
its expected value, thus avoiding high initialinstallation and hardware costs.

38

To find out more39

To find out more

Boston is leading
the way on energy
efficiency

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 63

Pittsburgh

Focus

During the first half of the 20th century,
Pittsburgh, Pennsylvania was home to ahuge industrial production sector; withhalf of all US steel produced there, it was
nicknamed “Steel City”. Pittsburgh today
has changed completely, and is now set
on facilitating a just transition towards asustainable future.
In 2013, the urban planning commission
analysed the area’s energy flows to
identify opportunities for increased
efficiency and to plan the future ofenergy generation and use. The analysis
highlighted the inefficiencies in theconventional system (40% loss during
the generation phase, 20% during
the distribution phase and 5-7% at
the point of consumption). Reducing
system losses and losses withinsingle buildings was central to thedevelopment of the Pittsburgh Climate
Action Plan, which strives to cut
consumption by up to 50% to create
2030 Districts and use district heating,microgrids (as a tool for improving
efficiency and as a way of integrating
renewable energy) and solutions suchas sensors and monitors.

The City of Pittsburgh’s collaboration with the US Department of Energy
and the Danish Ministry of Energy, as well as its partnership with othercompanies and with the Pittsburgh Energy Innovation Center, has led
to the formation of the Ecoinnovation District of Pittsburgh. This is an
initiative that combines environmental sustainability and innovation40

 he 2030 Districts Network (2030districts.org) is an initiative currently involving 20 cities in the United States
T
that are committed to combining environmental sustainability with economic growth. For Pittsburgh, visit

FOCUS | BEST PRACTICES FROM AROUND THE WORLD | 64

This strategic approach led to thecollaboration with the United States
Department of Energy (Sandia NationalLabs and National Energy Technology Lab)and with the Danish Ministry of Energy,
in addition to a partnership with othercompanies and the Energy Innovation
Center in Pittsburgh. This collaboration
between the private sector, politicalinstitutions and the academic world
has enabled the creation of Pittsburgh’s
Ecoinnovation District, an initiativethat brings together environmental
sustainability and innovation. The
Ecoinnovation District is living proof
that redevelopment can improve theenvironment, support residents’ needs
and increase entrepreneurship and job
growth.
Grant Ervin, the city of Pittsburgh’s
Chief Resilience Officer, underlined theimportance of public-private collaboration:“Creating a just transition is possible
when all partners have a seat at thetable. In Pittsburgh, we used R&D tounderstand our energy system andpromote an ecosystem that includes

public and private partners, as well as thecommunity, in identifying the strategic
actions necessary to design and create a
21st-century energy grid”.
All this has led to the creation of theWestern Pennsylvania Energy Consortium(WPEC), which aggregates the electricity
demand from 29 different governmental
areas, represents 154 million MWhof annual electricity consumption at
approximately 365 locations and offers
year-on-year price stability, guaranteeing
members certainty in their annual costs.
The WPEC Energy Board is working
with Enel to create a so-called “PJM
subaccount” with a model for sharing andaggregating demand, enabling the WPEC
to manage the portfolio so as to supply
exclusively renewable energy on behalf of
its members.
Mayor Bill Peduto summarised thebenefits of the new agreement: “Thecity will be meeting its renewableelectricity goals for its facilities for the
next year – a critical milestone fromour climate action plan created in 2018[…]. Equally important, the extension isboth environmentally friendly while also
reducing energy costs for our Consortium
members, demonstrating that goodenvironmental and economic decisions
can go hand in hand”.
The 2030 Agenda objectives are set out
in the Pittsburgh Climate Action Plan andinclude various commitments towards
achieving city circularity, such as thezero-waste objective, a 50% reduction inemissions throughout the city, the supplyof 100% renewable energy for the city’s
activities, the creation of a task force ofelectric vehicles and the use of a fleet
which does not use fossil fuels.

For further information
circulareconomy@enel.com

Città circolari.
Città di domani
Seconda edizione
Ottobre 2019