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1、BASELINE STUDYCIRCULAR ECONOMY FORINDUSTRIAL DEVELOPMENTIN UKRAINE Baseline StudyAcknowledgements This report has been produced by the United Nations Industrial Development Organization(UNIDO)subcontractor Circle Economy under the general guidance of Tatiana Chernyavskaya.It was drafted by Morgane V

2、eillet Lavalle,Marijana Novak and Anastasiia Konstantynova,with contributions from Andrii Vorfolomeiev,Ricardo Seidl da Fonseca,and revised by Edward Clarence-Smith(circular economy issues).Circle Economy would like to thank the funders,authors,contributors and interviewees for their contribution to

3、 the preparation of this report:Circular Economy for Industrial Development in Ukraine.Authors,contributors and interviewees have contributed to the report in their individual capacities.Their affiliations are only mentioned for identification purposes.This activity the Baseline Report on Circular E

4、conomy in Ukraine is managed by UNIDO,under the EU-funded EU4Environment Action,with additional funding from the German Federal Ministry of Economic Cooperation and Development(BMZ).DisclaimerThis document was produced with the financial support of the European Union and German Government co-financi

5、ng.Its contents are the sole responsibility of UNIDO and do not necessarily reflect the views of the European Union.This document has been produced without formal United Nations editing.The designations employed and the presentation of the materials in this document do not imply the expression of an

6、y opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization(UNIDO)concerning the legal status of any country,territory,city or area or of its authorities,or concerning the delimitation of its frontiers or boundaries,or its economic system or degree o

7、f development.Designations such as“developed”,“industrialized”or“developing”are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process.Mention of firm names or commercial products does not con

8、stitute an endorsement by UNIDO.The opinions,figures,and estimates set forth are the responsibility of the authors and should not necessarily be considered as reflecting the views or carrying the endorsement of UNIDO and its Member States.The responsibility for opinions expressed rests solely with t

9、he authors,and the publication does not constitute any endorsement by UNIDO of the opinions expressed.Graphic sources Images used under Standard license from S.Citation:UNIDO(2024).Baseline Analysis of Circular Economy in Ukraine:Final Report.Vienna,UNIDO.(available on http:/www.recpc.org/circular-e

10、conomy/)2024 UNIDO.All rights reserved.Licensed to the European Union under conditions.Layout and design by Sahora Connect StudioTable of Contents1.EXECUTIVE SUMMARY62.INTRODUCTION93.FRAMEWORKS FOR CIRCULAR ECONOMY ANALYSIS104.OVERVIEW OF THE CURRENT STATE OF CIRCULARITY IN UKRAINE14 4.1 Policies su

11、pporting the circular economy14 4.2 Waste infrastructure16 4.3 Material efficiency across sectors16 4.4 Uptake of circular business models throughout the economy175.PRIORITY SECTORS FOR CIRCULAR ECONOMY IMPLEMENTATION18 5.1 Circular sectors in Ukraine18 5.2 Methodological approach18 5.3 Main results

12、20 5.3.1 Manufacturing22 5.3.2 Agriculture,forestry and fishing24 5.3.3 Construction25 5.4 Alignment with other sectoral prioritisations26 5.5 Sectors as part of value chains276.OPPORTUNITIES FOR CIRCULAR ECONOMY IMPLEMENTATION IN UKRAINE29Core elements29 6.1 Prioritise regenerative resources29 6.1.

13、1 Regenerative materials29 6.1.2 Regenerative energy29 6.2 Preserve and extend whats already been made29 6.2.1 Maximise the lifetime of products in-use and after use29 6.2.2 Maximise the lifetime of biological resources30 6.3 Use waste as a resource30 6.3.1/6.3.2 Valorise waste streams(open and clos

14、ed loop)30 6.3.3 Energy recovery from waste30 6.4 Enabling elements31 6.4.1 Rethink the business model31 6.4.2 Design for the future31 6.4.3 Collaborate to create joint value31 6.4.4 Strengthen and advance knowledge31 6.4.5 Incorporate digital technology327.CIRCULAR ECONOMY METRICS FOR UKRAINE 7.1 S

15、tatus of indicator monitoring in Ukraine34 7.2 Key metrics for circular industrial development in Ukraine34 7.2.1 Economy wide indicators34 7.2.2 Sector specific indicators368.INTERNATIONAL BEST PRACTICES FOR CIRCULAR MANUFACTURING38 8.1 Food and beverages39 8.2 Textiles404CIRCULAR ECONOMY FOR INDUS

16、TRIAL DEVELOPMENT IN UKRAINE 8.3 Electronics41 8.4 Metals42Annex I Sector prioritisation44 Nexus 1:Sector development44 Nexus 2:Resilience44 Nexus 3:Circular Economy45 Methodological approach45 Nexus Weights45Annex II Detailed results per sector47 Manufacturing47 Sectoral development(ID)48 Resilienc

17、e(R)49 Circular economy(CE)50 Agriculture,forestry and fishing50 Sectoral Development(ID)52 Resilience(R)52 Circular Economy(CE)53 Wholesale and retail53 Construction53 Labour53 Energy use54 Waste54 Trade54Annex III Priority circular strategies for Ukraine56Annex IV Recycling capacities,relevant inf

18、rastructure and relevant industry considerations 62 Metals63 Plastics63 Electrical and machinery63 Textiles64 Construction waste and war debris64Annex V Data sources66Data used66Data limitations66Annex VI Project Context685BASELINE STUDY6CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINEUkraine,

19、a middle-income country,is currently embroiled in a state of war,significantly disrupting its economy and causing a substantial decline in labour force participation across various sectors.The enduring conflict has inflicted profound scars on the civilian population,both economically and psychologic

20、ally.Moreover,the environmental devastation resulting from the war is unprecedented,further exacerbating the countrys challenges.The combined effects of these factors necessitate urgent action,urging a reconstruction effort that aims to improve and rectify the inefficiencies of Ukraines pre-war econ

21、omy,which heavily relied on a linear and fossil-based economic model.The concept of a circular economy in Ukraine has gained traction,largely influenced by European frameworks like the European Green Deal.Despite policy developments intended to increasingly align with EU standards,such as the adopti

22、on of the Law of Ukraine on National Waste Management in June 2022,challenges persist in effectively implementing circular economy principles.While regulatory advancements have taken place in the construction sector,a comprehensive national strategy is lacking;whats more,unreliable data and low recy

23、cling ratesexacerbated by a low landfill waxremain pervasive challenges for waste infrastructure.Material inefficiencies plague various sectors,driven by outdated infrastructure and inadequate investment,hindering progress towards circularity.Despite initiatives like the RECP Centre fostering circul

24、ar business practices,access to financing remains a significant obstacle,particularly for small and medium-sized enterprises(SMEs).Overcoming these challenges and driving sustainable economic practices in Ukraine will require a well-coordinated management system,improved financing environments,and h

25、eightened awareness of circular economy principles.This report explores in which sectors circular economy strategies can best be leveraged in Ukraine.Our methodology provides an approach for sectoral prioritisation in the context of circular economic development in Ukraine,drawing upon standard econ

26、omic theory and utilising commonly used indicators from organisations such as the Organisation for Economic Co-operation and Development(OECD)and the World Bank.Building upon Circle Economys City Scan Analysis framework,this reports methodology compares economic activities based on key metrics such

27、as jobs,greenhouse gas(GHG)emissions,and economic output to prioritise sectors for circular economy strategies.Additionally,to contextualise sectoral prioritisation within the context of a war-torn environment,we have incorporated additional indicators for sectoral development,resilience,and circula

28、rity.This triple nexus approach,commonly used in humanitarian and peacebuilding efforts,underscores the interconnected nature of these endeavours,particularly relevant in Ukraines pursuit of lasting stability through integrated sustainable development strategies.This report evaluates each sectors pe

29、rformance across these parameters to guide strategic decision-making.The Manufacturing sector,and particularly subsectors like Food and beverages,Electrical and machinery,and Metal products,is the top priority for implementing circular economy solutions.This is due to its significant economic output

30、 and high material footprint.Agriculture,forestry,and fishing follow closely behind,highlighting the importance of addressing material dependency and fossil fuel reliance within this sector.The construction sector also stands out for its low CO2 efficiency performance and material dependency.These r

31、esults align with European strategies and particularly the sectoral focus of the Circular Economy Action Plan(CEAP),which focuses on the following key product value chains:Food,water,land;Clothing,textiles;Electronics&ICT;Household appliances;Automotive,batteries;plastics,packaging;and Construction

32、and buildings.This research builds on the Key Elements Framework,a framework developed by Circle Economy to categorise circular economy strategies.The strategies proposed for Ukraine encompass a wide range of initiatives aimed EXECUTIVE SUMMARY17BASELINE STUDYat optimising resource use,promoting ren

33、ewable energy,extending product lifetimes,and repurposing waste streams.These strategies include prioritising regenerative materials and energy sources,maximising the lifetime of products and biological resources,and utilising waste as a valuable resource through recycling and energy recovery.Achiev

34、ing these core strategies will require rethinking business models to prioritise durability and circularity,collaborating across industries to drive change,and strengthening knowledge and digital infrastructure.By implementing these strategies,Ukraine can foster innovation,reduce environmental impact

35、,and promote long-term economic prosperity.These can serve as a starting point from which to develop a circular economy roadmap for Ukraine and should be appropriately tailored to the most relevant sectors,as detailed in this report.Several key metrics were chosen to monitor circular industrial deve

36、lopment in Ukraine up until 2030.These include material consumption,material efficiency,circular material use rate,share of renewable energy,energy intensity per GDP,GHG emissions per capita,CO2 efficiency,and waste going to landfill.Material consumption,measured in tonnes per capita,and material ef

37、ficiency,calculated as GDP produced per kilogram of material inputs,reflect Ukraines economic output relative to its material use,with targets set to align with global and EU standards.The circular material use rate aims to measure the proportion of recycled materials flowing through the economy,wit

38、h a target aligned with global goals.Additionally,targets for share of renewable energy and energy intensity per GDP aim to diversify Ukraines energy mix and reduce GHG emissions.CO2 efficiency indicates emissions relative to economic output,while waste going to landfill assesses waste management pr

39、actices,with targets set to align with European directives and global environmental quotas.The sector-specific indicators for monitoring the circular performance of Ukraines key economic sectors encompass agriculture,manufacturing(food and beverages,plastics and electronics),and construction.Drawing

40、 from the EUs Farm to Fork Strategy,Fit for 55 and various EU Directives,targets have been established for each sector.For agriculture,targets include reducing GHG emissions to align with EU goals,increasing organically farmed land to enhance competitiveness and environmental sustainability,and decr

41、easing fertiliser use to match EU recommendations.In the manufacturing sector,goals entail reducing waste generation,increasing circular material use rates in textiles,and addressing plastic packaging waste by aligning with EU directives on recycling and reduction.Additionally,targets for waste elec

42、trical and electronic equipment(WEEE)recovery and construction and demolition waste(CDW)recovery aim to improve waste management practices in line with EU standards.These metrics provide a comprehensive framework for evaluating Ukraines progress towards a circular economy,and aligning as much as pos

43、sible with European ambitions.A selection of international best practices for circularity were hand-picked to inspire key Ukrainian stakeholders.They include initiatives in the food and beverages sector,innovative collection systems for domestic recycling,an initiative in the textiles industry that

44、tackles post-consumer textile waste,and two additional case studies in the electrical and machinery sector as well as the metals sector.Together,these best practices serve to inspire and offer practical illustrations of how circular initiatives can be used to drive industrial development,reduce Ukra

45、ines material footprint and address policy challenges in the country.A mix of different data sources were used to complete this report.We relied on SCP HAT,State Statistics Service of Ukraine,and EORA between 2020 and 2022.Detailed sectoral data availability in Ukraine poses a challenge overall.Nume

46、rous data gapsparticularly relating to material footprints and waste footprintslimit the detail of analysis possible.Recent updates from the UNEP SCP HAT database(2024)consider the impacts of the war and indicate an improvement in CO2 efficiency for several sectors in Ukraine.However,as specified in

47、 the report,this data cannot be considered fully reliable and warrants further investigation and complementary research.8CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINE9BASELINE STUDYThis report aims to provide a comprehensive analysis and strategic framework for the implementation of circula

48、r economy principles in Ukraine,addressing current challenges,identifying opportunities,and outlining specific actions to enhance resource efficiency and sustainability across various sectors.As an integral component of the EU-funded EU4Environment Action and Output five within the “Industrial capac

49、ity-building,policy advice and diagnostics for the green recovery of Ukraine”project funded by the German Government,its objective is to streamline the examination of existing conditions within the country and to advocate for the integration of circular economy principles.This initiative aims to hig

50、hlight the potential advantages for various stakeholders,including:businesses,experts,governmental bodies,academic institutions,and civil society organisations.This report is outlined as follows:1.Chapter three provides an introduction to the circular economy framework and serves as an aide-mmoire,o

51、utlining key circular principles and their relevance to the Ukrainian context.2.Chapter four presents a short overview of the current state of circularity in Ukraine,highlighting existing practices,challenges,and potential opportunities for advancement.3.Chapter five summarises the priority value ch

52、ains for circular economy application,outlining their significance and potential impact on circularity efforts.4.Chapter six gives an overview of the current circular opportunities within the prioritised sectors of the economy.5.Chapter seven provides a long list of indicators for monitoring circula

53、rity progress,including guidelines on measurement approaches,with a baseline established and projections for the year 2030 in Ukraine.Several additional annexes provide further information:Annex I and Annex II provide further explanation on the sector prioritisation methodology for Chapter five,and

54、also include more in-depth information on the priority sectors.Annex III is closely linked to Chapter four and provides further information on the state of industrial and technological infrastructure capacity pertinent to circular economy initiatives within Ukraine for the key sectors.Annex IV provi

55、des a table with a comprehensive overview of the different circular strategies explored in Chapter six.Annex V illustrates the different sources of data used as well as the associated data gaps and limitations of the study.INTRODUCTION210CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINEThere ar

56、e multiple frameworks used to define and describe the circular economy concept.All share the understanding that the circular economy aims to reduce waste1 and decouple the current economic system from the current take-make-waste model,while facilitating positive benefits for the environment,people a

57、nd the economy.Since its start,the circular economy has always aimed at yielding holistic environmental,economic and social benefits.In Ukraines context of war and economic uncertainty,a circular economic model can be used as a means to recover and stabilise the economy,while at the same time ensuri

58、ng compliance with European regulations.Generally speaking,the circular economy can support industrial development in a number of ways:1.Resource efficiency:Circular economy practices aim to optimise resource use by promoting reduced consumption,recycling,refurbishing,and remanufacturing.This reduce

59、s virgin material consumption and minimises waste generation.2.Enhanced resilience:Diversifying supply chains through circular economy practices can enhance the resilience of industries by reducing dependence on scarce resources and minimising the impact of price volatility.3.Job transformation and

60、creation:The transition to a circular economy often requires new business models,technologies,and skills.This can result in the creation of new jobs in areas such as recycling,remanufacturing,and waste management.4.Innovation:Circular economy approaches encourage innovation in product design,manufac

61、turing processes,and business models.This can lead to the development of sustainable and environmentally-friendly technologies.5.Cost savings:Adopting circular economy principles can generate cost savings for industries.Recycling and reusing materials can be more cost-effective than extracting and p

62、rocessing virgin resources.6.Environmental conservation:By reducing the demand for virgin materials,limiting pollution,and decreasing the need to landfill waste,the circular economy contributes to environmental conservation and helps address climate change.7.Social benefits:Circular economy practice

63、s can have positive social impacts if theyre designed with this in mind,such as improved community well-being,better waste management practices,and reduced environmental pollution.Within the framework of the EU4Environment project,the UNIDO framework has been used to describe the circular economy,fo

64、cusing on four key strategies:Reduce the environmental footprint Generate increased income Reduce resource dependency Minimise WasteIt is a useful tool to consider the way in which the public as well as private sector can consider developing circular economy policies or business models.It is also a

65、useful tool to consider transforming existing sectors and value chains.FRAMEWORKS FORCIRCULAR ECONOMY ANALYSIS31 Waste here is understood in its broadest sense,i.e.,including all forms of leakage into the environment,rather than solid waste alone.11BASELINE STUDYFigure 1 UNIDOs outline of circular e

66、conomy principles(2019).At Circle Economy,the Key Elements Framework(KE Framework)is used to describe the circular economy.The development process of the KE Framework involved mapping terms and definitions used by various frameworks and organisations(for example,the 10R framework,the Flow Framework

67、devised by Bocken et al.,and the Ellen Macarthur Foundations principles of the circular economy),which resulted in eight key elements that make up the circular economy.This framework is constantly being updated and improved.The KE Framework is designed for a broad audience,including policy makers,ed

68、ucators,researchers and businesses,and thus proves useful in the context of this analysis.The framework comprises three core elements and five enabling elements.The core elements focus on shifting physical flows,while enabling elements to tackle obstacles to implementation.12CIRCULAR ECONOMY FOR IND

69、USTRIAL DEVELOPMENT IN UKRAINEPrioritise regenerative resourcesUse waste as a resourcePreserve and extendwhats already madeEnsure renewable,reusable,non-toxic resources are utilised as materials and energy in an efficient way.While resources are in-use,maintain,repair and upgrade them to maximise th

70、eir lifetime and give them a second life through take back strategies when applicable.Utilise waste streams as a source of secondary resources and recover waste for reuse and Table 1 outlines the core elements of the KE Framework and shows how these align with other circular economy frameworks.Circl

71、e Economys core elementsBockens Flow Framework10RFramework5RframeworkEllen Macarthur Foundations principles of the circular economyUNIDOs Circular Economy FrameworkPrioritise regenerative resourcesRegenerate flowsNarrow flowsRefuseReduceRethinkReduceRegenerate ecosystemsDesign out wasteRenewable res

72、ourcesResource efficient and cleaner productionOptimized distributionReduced consumptionDesignStretch the lifetimeSlow flowsReuseRepairRefurbishRemanufactureReuseRepairRefurbishKeep products in use for longerSharingRemanufacturing and refurbishingRepair and maintenanceReuseUse waste as a resourceCyc

73、le flowsRepurposeRecycleRecoverRecycleDesign out wasteSegregationCollectionRecycleRegenerationThe three core elements are:13BASELINE STUDYThe enabling elements aim to address the persistent obstacles to the implementation of core circular economy strategies.They are:Rethink the business model:Consid

74、er opportunities to create greater value and align incentives that build on the interaction between products and services.Design for the future:Account for the systems perspective during the design process,to use the right ma-terials,to design for appropriate lifetimes and to design for extended fut

75、ure use.Team up to create joint value:Work together throughout the supply chain,internally within organisations and with the public sector and communities to increase transparency and create joint value.Incorporate digital technology:Use digital,online platforms and technologies that provide insight

76、s to track and optimise resource use,strengthen connections between supply chain actors,and enable the imple-mentation of circular models.Strengthen and advance knowledge:Develop research,structure knowledge,encourage innovation net-works and disseminate findings with integrity.The KE Framework will

77、 be used throughout this study to best assess the most promising opportunities for the circular,sustainable development of the Ukrainian economy.14CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINEAlthough the circular economy has achieved more policy attention in Ukraine in recent years,it is s

78、till in an early stage of development.4.1 Policies supporting the circular economy Since the onset of the war,a number of policy developments have taken place.These have been largely inspired and supported by the European framework for a circular economy and the European Green Deal,with the conditio

79、n of Ukraine-EU integration.The earlier Association Agreement of 2014 between the EU and Ukraine have already supported the adaptation of Ukraines regulatory body to the EUs.In the Agreements section Economic and Industrial Cooperation,it outlines that Ukraine needs to adapt its legislation to numer

80、ous Directives and Regulations.The most relevant piece of legislation for the circular economy is the adopted June 2022 Law of Ukraine on National waste management2,regulating the relations in connection to the management of waste generated in Ukraine,transported through the territory of Ukraine,exp

81、orted abroad and imported into Ukraine for the purpose of recovery or recycling.The National Waste Management Plan until 20303,adopted in 2019,identifies tasks and practical measures designed to enable Ukraine to switch to a new model of waste management by 2030.Now that the June 2022 law on a natio

82、nal waste management architecture has been voted on,regional administrations are in the process of developing regional plans for waste management,up to 2025,as demonstrated by the Zaporizhzhia Oblast4 and the regulation for regional waste management as well as local waste management plans.These shou

83、ld be developed and approved in 2023 and 20242025,respectively.Nevertheless,it has been noted that the understanding and application of the circular economy across legal and regulatory documents in Ukraine is still limited.According to our research,some of the persistent problems relating to the pro

84、per implementation of circular economy policy include:No comprehensive strategy for transitioning to a circular economy in Ukraine;Limited or nonexistent sectoral circularity objectives or regulation,particularly for the construction sector(see Box 1);Fragmented inter ministerial/agency/municipal co

85、llaboration;and Lack of a coordinated approach for monitoring waste statistics.OVERVIEW OF THE CURRENT STATE OF CIRCULARITY IN UKRAINE42 DLF.(2023).Waste Regulation in Ukraine:New Legal Regulation.Retrieved from:DLF Website3 Ministry of Environmental Protection and Natural Resources of Ukraine.(2019

86、).Ostap Semerak:Government approves National Waste Management Plan until 2030.Retrieved from:The Cabinet of Ministers of Ukraine Website4 (2024).2035 ,.Retrieved from:Zaporizhzhya Regional State Adminis-tration Website15BASELINE STUDYBox 1 outlines evolving regulations for circularity and waste mana

87、gement in the construction sector.The construction industry in Ukraine has undergone regulatory changes to align with EU standards.Initiatives such as the National Strategy on Waste Management until 2030 and the National Plan on Waste Management were introduced before the warin 2017 and 2019,respect

88、ively.Notably,the law On providing construction products to the market was passed in 2023,emphasising sustainable resource use,and Ukraine adopted over 500 national standards aligned with EU construction product standards in 2021,including:The prohibition of asbestos in new building materials in 202

89、2;New procedures regarding demolition waste;New updates to national building standards regarding energy conservation and thermal modernisation.However,despite these positive steps,a comprehensive national strategy for circularity in the construction industry is still lacking.5 The recently enacted l

90、aws have been deemed moderate and more recommendatory than prescriptive,with control mechanisms either undefined or ineffective6.For instance,challenges persist in addressing hazardous waste,such as asbestos in existing buildings.According to experts,more attention is needed to establish national st

91、andards for secondary and recycled building materials,outlining requirements to transform these materials into marketable products.BOX 15 Niemeyer,M.,&Kozub,N.(2023).New European Bauhaus,circular housing in Ukraine(Project B).Retrieved from:New European Bauhaus Website6 Ibid16CIRCULAR ECONOMY FOR IN

92、DUSTRIAL DEVELOPMENT IN UKRAINE4.2 Waste infrastructure Ukraine lacks reliable statistics and data on waste management overall,so it is difficult to present a complete picture of reuse,recycling and disposal rates in the country.Reports7 have pointed to the fact that Ukraine had no effective waste m

93、anagement in place before the war.The war has further complicated this situation,with rising levels of construction debris and toxic and hazardous waste.Overall,most of Ukraines domestic waste is either landfilled or incinerated,and its industrial waste is largely landfilled or abandoned.According t

94、o data from Ukrstat,the vast majority of household waste was landfilled in 2020.8 Secondary recovery/recycling rates were very low(below 1%),and it should be noted that statistics do not always distinguish between energy recovery use and other recovery methods,such as recycling.The composting rate w

95、as unavailable.Comparatively,in the EU,nearly half of municipal waste is recycled.It is important to note that the landfill tax in Ukraine is far below EU levels(0,15 per tonne versus for instance 107 per tonne in the Netherlands).10 Increasing this tax,however,would necessitate caution so that the

96、burden of the economic handling of waste is not borne by the consumer but rather by the companies placing the products/materials on the market.4.3 Material efficiency across sectorsAcross various sectors in Ukraine,low efficiency persists as a significant challenge.Ukraines material efficiency is cu

97、rrently low:a recent study from UNIDO points to above-average CO2 emission intensity in the manufacturing sector,as well as raw material consumption intensity in comparison to neighbouring EU countries and even Turkey.11 In the industrial sector,outdated infrastructure and technologies are contribut

98、ing to inefficiencies in production processes,leading to higher resource consumption and increased environmental impacts.Additionally,inadequate investment in research and development has limited innovation and technological advancements,further exacerbating the sectors inefficiencies.12 There are c

99、urrently no indicators being reported nationally on material efficiency across industries.In agriculture,outdated farming practices and a lack of modernisation are hindering productivity and sustainability efforts.Farming practices prevalent in rural areas contribute to low yields and inefficient la

100、nd use,perpetuating food insecurity and economic stagnation.Furthermore,insufficient access to capital and credit for farmers impedes investment in modern equipment and agricultural techniques,perpetuating a cycle of inefficiency in the sector.13In the energy sector,reliance on outdated and ineffici

101、ent coal-fired power plants is contributing to high levels of pollution and GHG emissions,exacerbating environmental degradation and health risks.Limited investment in renewable energy infrastructure and the slow adoption of clean energy technologies have further impeded progress towards sustainable

102、 energy production,although it can be noted that Ukraine made progress in its green energy industry,particularly solar,before the war.14 Moreover,inadequate energy efficiency measures in residential and commercial buildings have led to excessive energy consumption and higher utility costs for consum

103、ers.15Inadequate regulatory frameworks and enforcement mechanisms have also contributed to low efficiency across sectors,allowing unsustainable practices to persist without adequate accountability.7 Lindskog,T.The Present State of the Circular Economy in Ukraine.Retrieved from:Circular Innovation La

104、b Website8 .(2020).2011-2020.Retrieved from:UkrStat Website9 European Environment Agency(EEAS).(2023).Waste recycling in Europe(2020).Retrieved from:EEA Website10 Ministry of Agriculture in the Netherlands.(2018).Circular economy in Ukraine.Retrieved from:Ministerie van Landbouw,Natuur en Voedselkwa

105、liteit Website11 UNIDO.(2024).Executive summary:Ukraine industrial country diagnosis 2023.Retrieved from:UNIDO Website14 Ibid12 European Commission.(2023).Ukraine 2023 report(pp.1-152,Rep.).Retrieved from:European Commission Website 13 Ibid15 Ibid17BASELINE STUDY4.4 Uptake of circular business model

106、s throughout the economy The establishment of the RECP Centre has accelerated the implementation of circular economy practices in Ukraine.Founded in 2013 and based on the previous UNIDO cleaner production initiative of 2007,with support from UNIDO and Switzerland,the Centre plays a pivotal role in h

107、elping companies integrate sustainable practices into their business models.A recent UNIDO enterprise survey from 202316 shows that mentalities may be changing in the private sector,as 41%of firms indicated they opted for strategies that use resources more efficiently in response to the conflict.Nev

108、ertheless,challenges persist for Ukrainian firms transitioning towards sustainable business models.The main challenge is access to financing.As reported by the EU4Environment programme,barriers include high interest rates,collateral requirements,and documentation processes.17 Although interest rates

109、 have decreased in recent years,obtaining loans remains difficult and expensive for many businesses.With SMEs increasingly seeking loans,targeted improvements are needed to enhance the financing environment and support larger production-related investments.Overcoming barriers to circular business pr

110、ojects,such as limited access to bank financing,still requires the development of a unified framework for assessing project effectiveness,payback,and risks,while also raising awareness and education levels.This is still lacking overall.16 UNIDO.(2024).Executive summary:Ukraine industrial country dia

111、gnosis 2023.Retrieved from:UNIDO Website17 EU4Environment.(n.d.).Boosting circular economy in Ukraine through resource efficiency(pp.1-6,Rep.).Retrieved from:EU4Environment Website 18CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINE5.1 Circular sectors in UkraineThe selection of priority sector

112、s to introduce a circular economy plan for economic recovery and development of Ukraine is one of the main objectives of this study.The sections below present the methodological approach that was followed as well as the main results.5.2 Methodological approachOur approach for designing this methodol

113、ogy relies on standard economic theory for sectoral priorisation,relying on most commonly used indicators to measure the importance of a sector in the economy,such as the OECDs18 and the World Banks19 main economic indicators.This approach echoes the approach employed in our City Scan Analysis,which

114、 helps to prioritise sectors for circular economy strategies by comparing the countrys economic activities and their impact on key metrics such as jobs,emissions and economic output.20 As this analysis aims to focus on circular economic development in the context of war,we have added additional indi

115、cators in order to further contextualise the sectoral prioritisation and focus on sustainable development.This resulted in the construction of three indicators covering a triple nexus:sectoral development,circular economy and resilience.The triple nexus is commonly used in humanitarian and peacebuil

116、ding efforts,to show the interconnected nature of humanitarian,development,and peacebuilding efforts.This approach seems to be very relevant for Ukraine,where an integrated approach to sustainable development can hopefully contribute to lasting stability.21 The research team then assessed how each s

117、ector of the economy performs across these different parameters.22PRIORITY SECTORS FOR CIRCULAR ECONOMY IMPLEMENTATION518 OECD.(n.d.).Main economic indicators(MEI).Retrieved from:OECD Website 19 World Bank.(n.d.).Indicators.Retrieved from:Word Bank Website20 The subsequent stages of the City Scan an

118、alysis,such as the Material Flow Analysis,are not employed in this study.21 Howe,P.(2019).The triple nexus:A potential approach to supporting the achievement of the Sustainable Development Goals?.World Development,124(104629).doi:10.1016/j.worlddev.2019.1046222 ISIC Level 119BASELINE STUDYPhoto:Kyiv

119、,Ukraine,201920CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINEFigure 2 Methodological approach for selecting priority sectors in Ukraine,triple nexus(Sectoral development,Circular economy,Resilience)Examining sectoral development,circular economy principles,and resilience together is crucial

120、for identifying priority sectors that can sustain long-term economic and environmental benefits.As illustrated in Figure 2,each of the three indicators was assigned a slightly different weight,but this weighting scheme does not substantially alter the resultant outcomes.Sectoral development(SD)is es

121、sential for fostering economic growth and job creation,but it must be approached with a focus on sustainability and resource efficiency;Integrating circular economy(CE)principles,which prioritise the reduction,reuse,and recycling of materials(in the form of whole products and product parts as well a

122、s raw materials),ensures that industrial processes minimise waste and environmental impact;Additionally,resilience(R)is a key factor in adapting to unforeseen challenges,such as supply chain disruptions or economic crises.By combining these three perspectives,Ukrainian decision-makers can pinpoint p

123、riority sectors that not only drive economic prosperity but also contribute to environmental sustainability and withstand shocks.This holistic approach acknowledges the interconnectedness of economic,environmental,and social factors,fostering a resilient and sustainable industrial ecosystem that ali

124、gns with the needs of the present without compromising the ability of future generations to meet their own needs.A detailed methodology is presented in the Annex II.5.3 Main results Table 2 shows the performance of each sector of the economy for each of the three indicators.When interpreting the fol

125、lowing results,please note that the percentages reflect ordinal rankings,not actual proportions.Scores equalling 0%do not mean that there is no potential for the circular economy,but rather that the current performance is low,or that data for this indicator is limited or not available.Refer to the f

126、ull methodology section in Annex II for more information.The Manufacturing sector,and in particular Food and beverages,Electrical and machinery and Metal products,emerges as the clear priority sector to 21BASELINE STUDYimplement circular economy solutions,followed by Agriculture,forestry and fishing

127、.Several sectors then rank similarly overall,although they perform differently across the three key indicators.These are:the Water supply,sewerage and waste management sector,the Construction sector,the Wholesale and retail trade,the Transportation and storage as well as Accommodation and food servi

128、ce activities sectors.We have nevertheless chosen to prioritise Construction as the third priority sector for this study,due to the major challenges posed by the construction war debris and the essential role of the construction sector in preparing for and rebuilding in a circular way.Table 2 gives

129、an overview of the performance of Ukraines economy against the three indicators(Sectoral development,circular economy,and resilience)Please note that conditional formatting was applied to this table.The shading is darker for higher numbers.Blue shading is indicated for the indicators,and yellow for

130、the overall result.Detailed results for each sector are available in Annex II,including a rough trade analysis for each sector.2323 A rough trade data analysis(explored in further detail in the subsequent sections)shows that Russia was Ukraines main trading partner before the war.The new situation a

131、nd road to reconstruction and recovery will push Ukraine to develop new trading relationships and explore new markets.Many inflow and outflow components will be reoriented and restructured as a consequence.Ukraine must therefore prepare its industry to be more competitive,innovative and efficient,no

132、tably to meet the requirements of the EU market.22CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINE5.3.1 ManufacturingKEY FINDINGSThe Manufacturing sector,and in particular the Electrical and machinery,Food and beverages and Metal products subsectors,emerges as the clear priority sector to impl

133、ement circular economy solutions,driven primarily by its low CO2 efficiency per unit GDP and high material footprint.The different sectors show contrasted levels of innovation expenditure,and overall,a relatively high material import dependency,suggesting that many materials are imported to meet the

134、 needs of this sector.Seeking alternatives to imports as well as developing local,circular products will be key to boost the economy and employment,as well as lowering sectors material footprints.DETAILED FINDINGS24The manufacturing sector shows some common characteristics across its subsectors:It p

135、redominantly produces and exports low-tech intermediate products,underlining the resource-heavy aspect of the economy.The Food and Beverages and Textile sectors notably exhibit low innovation expenditure according to our data from the State Statistics Service of Ukraine for 2020.It demonstrates rela

136、tively low levels of CO2 efficiency,signalling chronic inefficiencies in resource utilisation and energy consumption.It exhibits a high material footprint across sectors,with waste generation comprising an overwhelming portion for metal products(85%).Labour growth rates have shown considerable fluct

137、uations over time.Statistics from the International Labour Organization(ILO)indicate that the manufacturing labour force in Ukraine shrunk by 5.8%overall between 2019 and 2021.Worryingly,all of the prioritised sectors show a declining labour force,which has likely not improved since the start of the

138、 war.Between 2019 and 2021,the Textiles and Wearing Apparel sector fell by 9.06%,metal products by 6.40%and electric and machinery by 20.12%.None of the other manufacturing sectors grew,save for the petroleum products sector(0.30%),strongly driven by pharmaceuticals and plastics,as well as other man

139、ufacturing,including furniture(8.13%).In contrast to these recent declines,ILOs projected scenarios for employment growth between 2022 and 2032 in the manufacturing sector is of 14.2%25,the second highest estimated rate of growth after the Wholesale sector.Manufacturing also demonstrates an above-av

140、erage education level for the country.In terms of trade,European countries such as Poland,Hungary,Germany,and Romania are primary partners for Ukraines exports of agrifood products,metals,electrical,and machinery goods.Notably,the US also serves as an import partner for metal products.In 2022,the to

141、p four importers by value for manufacturing products were Turkey,China,Poland and Slovakia.24 Please note that the detailed results of the analysis are available in the Annex II for each sector.25 ILO.(2023).Prospects for achieving Ukraines GDP targets for 2032 in the context of the labour market.Re

142、trieved from ILO Website23BASELINE STUDYFurthermore,specific subsectors within the manufacturing sector display distinct traits:Food and beverages:This sector scores highly across all indicators and should be prioritised for designing circular solutions.It is characterised by a high material footpri

143、nt,substantial labour force,and low innovative expenditure.It is strongly tied to the agricultural sector,making this manufacturing sector less dependent on imports than the others.Electrical and machinery:This sector showcases high innovation expenditure and final demand,with notable import depende

144、ncy,particularly from China.Despite being a significant contributor to the countrys economic output(12%in 2021,$US37.3 billion),a significant portion of goods is imported(48.8%of the sectors imports are coming from China).Metal products:The sector displays a high export dependency and waste footprin

145、t.It contributes significantly to the countrys economic output,second to electrical and machinery($US25.7 billion in 2021).The waste footprint of the sector is enormous,dwarfing that of all other subsectors.Textiles:The sector exhibits a high import dependency and labour force,with minimal innovatio

146、n expenditure,26 suggesting reliance on conventional methods.The import data highlights that a substantial portion of post-consumer textiles are being imported with less than 2%being effectively repurposed.By value,close to 50%of all exported waste to Ukraine originates from China,although by volume

147、 the biggest country of origin for post-consumer textiles is the United Kingdom in 2021.Wood and paper:The sector demonstrates reasonable CO2 efficiency but lacks significant innovation.Despite contributing to the overall labour force,its economic output remains comparatively low.The sector heavily

148、relies on imports while maintaining moderate levels of exports,suggesting that more could be done to reduce dependency on imports and boost a local market for recycled wood and paper.There is a notable absence of information regarding waste data management within this industry.Transport equipment:Th

149、e sectors CO2 efficiency performance is relatively satisfactory,yet innovation remains low.Despite this,the sector makes a substantial contribution to the countrys economic output.However,it heavily relies on imports,although it also plays a role in exports.Similarly to other sectors,there is a lack

150、 of available data regarding waste management practices or material footprints within this sector.26 Several different indicators can be considered to measure innovation.When looking at the share of innovative enterprises,i.e.share of enterprises reporting some kind of innovation,the percentage is q

151、uite high in manufacturing,as high as 50%for pharmaceuticals and 40%for computer products.However,actual expenditure isnt high in the currency.24CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINE5.3.2 Agriculture,forestry and fishingKEY FINDINGSThe Agricultural,forestry and fishing sector appear

152、s in second place as a priority sector for circular solutions.The prioritised subsectors include the production of grain,wheat,and maize as well as ruminants.The sector boasts a large number of workers and has a particularly heavy material footprint as it imports a significant portion of its raw mat

153、erials.The sector is still too reliant on fossil fuels,such as gas and oil,to operate.It needs to boost alternative energy sources,notably by tapping into its huge biomass potential,as well as turn to developing local,organic fertiliser to reduce its dependence on imports.DETAILED FINDINGS 27The Agr

154、icultural,forestry and fishing sector shows some common characteristics across its subsectors:The agricultural sector is still heavily reliant on oil and natural gas to operate.Overall,three subsectors,Cereals,Vegetables,Roots and tubers,and Raising of cattle are responsible for over 50%of the secto

155、rs consumption of oil and natural gas,making these three subsectors a priority for the energy transition in the agricultural sector.28 The agricultural sector employs a large number of workers.Although the sector has experienced a labour decline in recent years,its expected growth rate between 2022

156、and 2032 to meet expected GDP targets is 12.6%,one of the highest overall.The sector relies on a predominantly low-skilled workforce overall.29 Ukraines vast fields have a huge capacity for extensive biomass usage,which is currently extremely underutilised(less than 2%in the countrys overall energy

157、mix).Ukraine ships its wheat,cereals and oil seeds all over the world.Its agricultural exports are overwhelmingly dominated by the export of cereals,followed by various oil seeds.Its key markets include China,Turkey,various EU Member States as well as countries in the Middle East.The sector is also

158、reliant on several imports,namely fertiliser,fish,fruit and nuts as well as beverages/drinks.There is hence a wide opportunity for Ukraine to develop local,sustainable organic fertiliser through circular approachesby utilising local waste to create compost,for instance.Waste data was not available f

159、or the various subsectors,which does not allow us to gather further insights on the different agricultural waste categories(for example,organic,solid,liquid,gaseous)that can be repurposed for environmental purposes.Data is also missing on the significant amounts of manure generated from poultry and

160、ruminant animal farming.Furthermore:Cereals have the most important waste footprint,pointing to a considerable need for reducing waste and finding avenues to valorise it.Considering the growing of cereals represents the bulk of the material footprint,and consequently the bulk of energy requirements,

161、small innovations in this space may have the most impactful savings overall.That being said,smaller overall energy consumers in the agricultural sector have relatively higher energy requirements per tonne produced.Producing wheat requires approximately 2.6 gigajoules per tonne,which is on par with b

162、ut slightly behind Germany and the Netherlands.30 There is an opportunity to diversify sources of energy and to tap into the vastly underutilised biomass.27Please note that the detailed results of the analysis are available in the Annex X for each sector.28 UNEP(2024).SCP-HAT database v3.0.UN Life C

163、ycle Initiative,UN One Planet Network,UN International Resource Panel.Paris.Retrieved from Website 30 Ibid29ILO.(2023).Prospects for achieving Ukraines GDP targets for 2032 in the context of the labour market.Retrieved from ILO Website25BASELINE STUDY5.3.3 ConstructionKEY FINDINGSThe Construction se

164、ctor has a poor CO2 efficiency as well as a high material import dependency,suggesting that there is potential to start using alternative materials in the sector,notably to lower the dependency on non metallic minerals.The CO2 efficiency is also low,suggesting that production methods are not as effi

165、cient as they could be.The sector does not report on waste data,which is also problematic.Accurate monitoring of waste,waste prevention strategies and the proper management of flows for toxic and non-toxic waste should be a priority.DETAILED FINDINGS The labour statistics for the sector indicate a n

166、otable decline in various subsectors between 2019 and 2021,most notably for civil engineering.This suggests a significant downturn in infrastructure development activities.Projected labour growth rates for the sector stand at 8.8%.From the reported primary energy consumption in the sector for the co

167、nstruction of buildings,roads and railways,the principal energy input going into the sector is mainly coal and natural gas.Looking at the raw material use,the sector predominantly relies on the use of non-metallic minerals,such as cement,sand and asphalt(86%of all material use).There is virtually no

168、 use of biomass(around 2%),which points to strong opportunities for developing alternative,local building materials(for example,timber).In the State Statistics Service of Ukraine,no reported data was available for the construction sector.This is very problematic as most waste treatment channels prio

169、r to the war were unestablished,making the current management of construction and demolition waste quite unmanageable.The main trading partners for Ukraine as an importer were Poland,Turkey and China.As an exporter,Ukraines main trading partners were Poland,Spain and Romania in 2022.26CIRCULAR ECONO

170、MY FOR INDUSTRIAL DEVELOPMENT IN UKRAINE5.4 Alignment with other sectoral prioritisationsIt should be noted that the current baseline study has been developed in parallel to other research work on circular economy implementation in Ukraine,namely an Exploratory Foresight exercise conducted by UNIDO

171、as well as the development of a circular economy baseline and roadmap funded by the EU Delegation to Ukraine.The current report follows a different sectoral prioritisation process,focusing on macro-level indicators as detailed in Chapter 5.2,but it is overall aligned with the findings of these organ

172、isations:The Foresight Analysis relied on the EU Circular Economy Action Plan,and focused on the priority Key Product Value Chains(KPVC):Construction,buildings;Food,water,land;Clothing,textiles;Electronics,ICT;Household Appliances;Automotive,batteries;and Plastic,packaging.It also includes three hol

173、istics Key Industrial Factors(KIF):Energy systems,Minerals and metals and Waste management.It considers three horizons:Through structured consultations with a large number and broad spectrum of Ukrainian stakeholders via surveys and expert panels,the foresight analysis considers how each KPCV and KI

174、F will perform against the three chosen Horizons.The EU Delegation report prioritised five key sectors in its baseline report published in 2023:agriculture,waste,mining,construction and energy.Our current study highlights energy and waste not merely as sectors,but as cross-cutting systems with signi

175、ficant potential for improvement and optimisation across various sectors.It also prioritises looking into the agricultural sector to implement circular economy solutions.It should be noted that the mining sector also scores highly in our index,but has not been prioritised as a sector for circular ec

176、onomy development in this report.Although mines are essential to power the green transition,the sector is centred on virgin material extraction,and there are limited opportunities to make these initial extractive practices more circular.We therefore prefer to focus on construction,metals or electron

177、ics,whichalthough they source some virgin materialsoffer more perspectives for circularity in Ukraine.Moreover,the sectors identified in this report are also aligned with key national strategies(National Economic Strategy until 2030,the Ukraine Recovery Plan)and Ukraine-EU integration processing,sup

178、porting Ukraine further in implementing its Association Agreement.The significance of this lies in its facilitation of changes or adaptations to regulations and institutions,as initiatives within these sectors will be prioritised and financially supported by either external or national donors.Transf

179、ormationH3:ten to 15 years H1:one to five years RecoveryH2:five to ten years Transition27BASELINE STUDY5.5 Sectors as part of value chainsThe value chain and sector perspectives are complementary views to study the economy.In its Circular Economy Action Plan(CEAP)(2020),the EU takes a value chain ap

180、proach to develop the circular economy and identifies key product value chains that will be addressed as a matter of priority.Value chains,which cover multiple sectors,look at the interrelationships between them,and provide the opportunity to study the flow of a product or service through multiple s

181、ectors.Interventions at the value chain level are more complex as they require collaboration up and down the chain.Interventions at the sector level can be simpler but can lead to unintended effects in other sectors up and down the value chain.The priority value chains of Food and Textiles,for insta

182、nce,cross through many sectors in the economy,from Extractive industries(Agriculture and Mining)through to Manufacturing and to Wholesale and Retail Trade.A value chain like Construction and Buildings is also dependent on extractive industries,utilities,and goes on to serve all other sectors of the

183、economy in the creation and operation of buildings in which all other activities take place.Table 3 shows the relationship between sectors and the Key Product Value Chains identified in the CEAP.The relationship intends to show,for illustration purposes,the degree to which sectors are integrated ins

184、ide the value chain.For example:The Food value chain has high relation to the Agriculture,forestry and fishing sector and to Food services,and medium relation to Manufacturing,Utilities,Trade and Transportation.The Textiles value chains obtains virgin materials for textiles from a variety of sources

185、,including natural(plant based fibres)and man made(polyester),as well as requiring metals for hardware on clothing(such as zippers,etcetera)Note for all value chains,some similarities are revealed:Every value chain is dependent on extractive industries(Agriculture and Mining)for resources,though to

186、differing degrees.Even Food and Textiles,for instance,depend on Mining for the metals that form part of the machinery and equipment used in the manufacturing,storage and transportation of food and textile intermediates and products.All value chains are dependent on the electricity and water sectors,

187、and the Manufacturing sector is present in every value chain,as the means to produce the actual goods.The exact specifics of dependency would need to be analysed quantitatively in the context of Ukraine.Past the Secondary industriesinto the Services sectorsall value chains have a similar relationshi

188、p to all service sectors.This is because service sectors largely represent office-work,and though they deal with material goods in different waysfor instance studying,selling,financing,teaching,etceterathe material impact is largely similar across all these sectors.28CIRCULAR ECONOMY FOR INDUSTRIAL

189、DEVELOPMENT IN UKRAINETable 3 lists the interrelationship between sectors and the seven key product value chains from the EUs CEAP.SectorSector CodeFood,water,landClothing,TextilesElectronics&ICTHousehold appliancesAutomotive,batteriesPlastics,packagingConstruction and BuildingsAgriculture,forestry

190、and fishingAMining and quarryingBManufacturingCElectricity,gas,steam and air conditioning supplyDWater supply;sewerage;waste management and remediation activitiesEConstructionFWholesale and retail trade;repair of motor vehicles and motorcyclesGTransporting and storageHAccommodation and food service

191、activitiesIInformation and communicationJThus,for each value chain,in each economy,the best intervention points(or subsectors)must be selected to drive change throughout the value chain.The sectors selected as priorities in this analysis were Manufacturing,Agriculture,forestry and fishing,and Constr

192、uction.Within Manufacturing,subsectors were also evaluated in order to select priority products for which circular interventions could be designed.For each of the sectors,and Manufacturing subsectors,carefully selected interventions can spark change across the whole economy,as is further explored in

193、 Chapter six.Ultimately,when formulating circular economy policies,the Ukrainian government should prioritise aligning with the CEAP.To facilitate the current baseline analysis,data collection focused on sectors,chosen for their relative ease of accessibility.This approach ensures that initial effor

194、ts are grounded in a solid understanding of sector-specific dynamics,allowing for targeted interventions and effective policy development aligned with broader circular economy objectives.29BASELINE STUDYOPPORTUNITIES FOR CIRCULAR ECONOMY IMPLEMENTATION IN UKRAINE6Building on the results of the secto

195、ral prioritisation and relying on the Key Elements(KE)Framework,we have categorised the main opportunities for circular economy implementation across different sectors in Ukraine.Its important to recognise that these strategies are not tailored exclusively to Ukraine but rather represent broader ini

196、tiatives developed to serve a wider context.These findings will serve to influence the indicator selection and best practices as well as the project proposals.Annex III shows the different circular strategies according to the KE Framework in further detail.CORE ELEMENTS6.1 Prioritise regenerative re

197、sources6.1.1 Regenerative materials The Construction sector in Ukraine predominantly depends on non-metallic minerals,including concrete,cement,sand,and asphalt,which constitute 86%of all material usage,and much of which is imported.However,abundant local materials like timber,rye and hemp are also

198、available.Additionally,Ukraine possesses vast quantities of reusable concrete panels,steel,and bricks salvaged from damaged buildings and infrastructure.Prioritised circular strategies:Use alternative,bio-based materials and inputs Use materials that are not toxic or hazardous Use materials that can

199、 be easily reused or recycled after use Use materials that are renewable and not defined as critical6.1.2 Regenerative energyUkraines energy composition leans heavily towards fossil fuels.Biomass,despite its substantial potential,remains significantly underutilised.Ukraine has significant potential

200、to expand energy generation from renewable resources,including wind and solar.The International Renewable Energy Agency(IRENA)conducted a survey of Ukraines renewable sector and potential in 2015.Ukraines total wind power potential is between 16 gigawatts and 24 gigawatts,with 16 gigawatts considere

201、d economically feasible.Prior to the war,companies had significant wind capacity additions planned,with 91 turbines added in 2021.31 Furthermore,Ukraines economic activities are characterised by high material and energy consumption.However,there is untapped potential across all sectors to enhance en

202、ergy efficiency,presenting opportunities for sustainable development and resource optimisation.Prioritised circular strategies:Use renewable energy or renewable fuels like biomass,wind and solar Optimise energy use6.2 Preserve and extend whats already been made 6.2.1 Maximise the lifetime of product

203、s in-use and after useStatistics from various sectors,particularly Textiles and Electronics,reveal alarmingly low rates of reuse in Ukraine.For instance,there is an abundance of imported second-hand textiles,with less than 2%currently being recycled or repurposed.32 The handling of waste electrical

204、and electronic equipment(WEEE)is also inadequate,as it is poorly segregated and treated,often mixed with household waste.There is little data on available refurbishment activities for this sector in Ukraine.This highlights the need for improved strategies for the separation,treatment,refurbishment a

205、nd recycling of WEEE to mitigate environmental impacts and promote resource efficiency.31Cahill,B.,&Dawes,A.(2022).Developing renewable energy in Ukraine.Retrieved from:CSIS Website 32 .(2020).2011-2020.Retrieved from:UkrStat Website30CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINEThe repair

206、and installation of machinery equipment,with a declining labour force(-16.69%between 2019 and 2021),should be further supported to implement circular strategies in Ukraine.Prioritised circular strategies:Provide repair services or maintenance services for products or parts Create or enhance marketpl

207、aces or services that enable the second-hand sale of products Enhance activities that restore products back to their original state or working conditions Enhance the extraction and reuse of parts from end-of-life products for use in new products6.2.2 Maximise the lifetime of biological resources Ukr

208、aine is a powerful agricultural country,yet in many parts of the country soils have deteriorated or become acidic,saline,or alkaline as the result of unsustainable agricultural methods,including the overuse of mineral fertilisers and outdated technologies.The situation has further deteriorated with

209、the consequences of the war.Some of these impacts include soil structure deterioration,compaction caused by heavy machinery and tanks,contamination from explosives,chemicals,and heavy metals,disruption of irrigation systems leading to soil erosion,and displacement of farmers resulting in neglect of

210、farmland.Additionally,the use of landmines can render large areas inaccessible for cultivation,further diminishing agricultural productivity and exacerbating food insecurity.Despite Ukraines rich biodiversity and extensive forest reserves,existing practices fail to prioritise soil health or sustaina

211、ble forestry practices.This underscores the importance of implementing strategies that promote soil regeneration and responsible forestry management to safeguard ecological balance and agricultural productivity.Prioritised circular strategies:Manage and enrich biological resources such as soil,land,

212、etcetera Preserve and conserve biological resources such as food,forests,etcetera Repurpose organic waste to produce natural fertiliser or soil amendments6.3 Use waste as a resource6.3.1/6.3.2 Valorise waste streams(open and closed loop)The circular strategy of repurposing organic waste has just bee

213、n described.Efforts to repurpose other waste streams,those generated by the construction and mining industries,for instance,such as mine tailings and construction materials like bricks,asphalt,and steel,remain largely ineffective in Ukraine.Similarly,the country is inundated with second-hand textile

214、s,yet only a small fraction undergoes efficient recycling processes.These challenges highlight the need for improved waste management strategies and enhanced recycling initiatives to maximise resource utilisation and minimise environmental impact in both sectors.This circular strategy highlights the

215、 need for the improved repurposing of materials in both closed(within one same industry)and open(across different industries)loop systems.Prioritised circular strategies:Transform waste products,materials for reuse within the same/within other industries,such as construction and metals Increase the

216、separate collection and sorting of used textiles and WEEE Use mechanical or chemical processes to regenerate textile waste streams into new textile materials,sufficiently preserving the quality of the fibre/material in order for it to be used in high value applications(for textiles:yarns,fabrics,and

217、 garments)6.3.3 Energy recovery from waste33The metal sector demonstrates low CO2 efficiency performance,with inadequate exploration of waste heat and gas recovery techniques.Similarly,the agricultural sector heavily relies on fossil fuels,while biomass utilisation34 remains underexploited.Opportuni

218、ties for repurposing organic waste within the sector are 33Circle Economy follows the cascade principle when looking at energy recovery techniques from waste,which involves prioritising a hierarchy of actions to maxi-mise the value obtained from waste materials while minimising environmental impact.

219、34 Similarly,Circle Economy Foundation follows the cascade principle for biomass use to maximise the efficiency and sustainability of its use.This concretely means favouring biomass for high-value applications that offer the greatest economic and environmental benefits.This typically includes applic

220、ations such as food pro-duction,animal feed,and high-quality materials like wood for construction.31BASELINE STUDYoverlooked,indicating potential for improved resource management and environmental sustainability practices.Prioritised circular strategies:Recover and reuse waste heat,gas,etcetera for

221、energy Generate energy from waste through processes such as anaerobic digestion,gasification,incineration,etcetera.6.4 Enabling elements 6.4.1 Rethink the business modelThe Ukrainian economy is currently concentrated in sectors with low added value.Servitisation models,such as product as a service,r

222、emain underdeveloped in Ukraine.Furthermore,Ukraines economy relies heavily on material inputs and continues to depend on imports for various consumer goods,such as textiles,highlighting the need for strategies to enhance domestic production and value-added services.Prioritised circular strategies:S

223、ell high quality,long-lasting products Provide products through leasing,rental,or pay-per-use models instead of sales6.4.2 Design for the future In Ukraine,the construction sector faces a notable deficiency in adopting circular approaches to building materials.This is evident in the prevalent linear

224、 model of construction,where materials are often used once and then discarded,contributing to resource depletion and waste generation.The implementation of circular practices,such as designing for disassembly,promoting material reuse and recycling,and prioritising renewable and recycled materials,re

225、mains limited.There is a pressing need for the industry to prioritise the adoption of circular approaches to building materials,promoting a more sustainable and resilient construction sector in Ukraine.Prioritised circular strategies:Design products to reduce waste during production and(re)use6.4.3

226、Collaborate to create joint value6.4.3.1 Industry collaboration In Ukraine,there is scarce indication of the inclusion of green and circular criteria within public procurement tenders.Furthermore,collaboration among various industry stakeholders to advocate for circular approaches is lacking,primari

227、ly due to a deficiency in knowledge and expertise.This lack of integration of sustainable practices into procurement processes and the absence of cohesive collaboration hinder the advancement of circular economy initiatives within the countrys industrial landscape.Addressing these challenges require

228、s concerted efforts to enhance awareness,build capacity,and foster partnerships among stakeholders to drive the adoption of sustainable and circular principles in procurement practices and industry operations.Prioritised circular strategies:Put purchasing guidelines in place for procurement departme

229、nts and evaluate suppliers on circular economy principles Work together with industry peers to engage in business activities or exploratory projects that advance the circular economy,such as industrial symbiosis.6.4.3.2 Government collaboration and public policyWhile some progress has been made in i

230、mplementing circular regulations and requirements(see Chapter four),significant gaps persist,and the pace of implementation remains slow.The existing fiscal system in Ukraine largely adheres to linear principles,evidenced by insufficient landfill taxes that fail to incentivise businesses to adopt ci

231、rcular approaches,the absence of established extended producer responsibility(EPR)schemes,and the lack of subsidies for organic or sustainable produce.These deficiencies underscore the need for comprehensive reforms to align fiscal policies with circular economy goals,fostering an environment conduc

232、ive to sustainable practices and resource efficiency.32CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINEPrioritised circular strategies:Government bodies and policymakers to push for regulations that support the circular economy Adopt financial incentives to promote a circular economy6.4.4 Stre

233、ngthen and advance knowledge6.4.4.1 Internal collaborationA notable challenge in advancing circular economy initiatives is the prevailing lack of awareness and understanding among public service entities and within companies.Many individuals and organisations remain unfamiliar with the fundamental p

234、rinciples and benefits of circular economy practices,hindering their adoption and implementation.Without widespread awareness and comprehension,efforts to transition towards a circular economy may encounter resistance or fail to gain traction.Thus,there is a crucial need for targeted education and o

235、utreach programmes to enhance knowledge and promote the integration of circular economy principles into public and private sector operations.6.4.5 Incorporate digital technology6.4.5.1 Employ technologies to gather and analyse data to provide insights on resource useOne pressing issue hindering effi

236、cient resource management is the absence of comprehensive data and adequate monitoring systems to trace resource use across various sectors.This lack of transparency and accountability hampers efforts to optimise resource use,mitigate environmental impacts,and advance towards a more circular economy

237、.Addressing this gap requires investment in improved data collection methods,the establishment of standardised monitoring frameworks,and the integration of innovative technologies to enable real-time tracking and analysis of resource use across sectors.Prioritised circular strategies:Utilise data an

238、d models to identify,enable and/or implement circular strategies(for example,effective resource use&logistics planning,and circular business models&design)6.4.5.2 Employ online platforms to connect and improve information sharing between stakeholdersWaste data and digital platforms for monitoring an

239、d controlling waste are in short supply.Data platforms can facilitate connections between waste management partners and clients to enhance transparency and collaboration in the sector.Various initiatives are underway to bridge these data gaps although none have seen the light as of yet.One attempt w

240、as recently made by the Ministry of Environmental Protection and Natural Resources to implement a waste management information system utilising blockchain technology.This system intended to track the lifecycle of waste,streamline permitting procedures,and provide a centralised platform for enterpris

241、es.35 Nevertheless,at the time of writing of this report,no reported progress has been made on the setup of such a system.Prioritised circular strategies:Develop or utilise online platforms to enable circular economy opportunities through information,product or service offering Develop or utilise on

242、line marketplaces to enable the peer-to-peer exchange of products and service35UNIDO.(2024).Executive summary:Ukraine industrial country diagnosis 2023.Retrieved from:UNIDO Website33BASELINE STUDY34CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINE7.1 Status of indicator monitoring in UkraineA r

243、ecent study36 reveals significant gaps in Ukraines mechanisms for tracking progress in the circular economy compared to the EUs comprehensive Circular Economy Framework.However,most European countries are also slow in adequately monitoring and reporting on circular economy indicators.Key indicators

244、related to green growth,such as the adoption of energy management by SMEs and pollution reduction measures,lack statistical tracking.However,recent regulations focused on waste management offer promising steps towards addressing these gaps and fostering sustainable practices in the country.Despite e

245、fforts to monitor progress towards the Sustainable Development Goals(SDGs)through the Open SDG Platform,Ukraine faces challenges with outdated data,particularly evident in the absence of a legal definition for environmental goods,services,and technologies.Moreover,the implementation of European repo

246、rting standards on environmental goods and services remains unaddressed in the National Programme for the Development of State Statistics,further hindering comprehensive data collection and analysis.National statistics in Ukraine,while broad in scope,often lack completeness and clarity,especially in

247、 crucial areas such as circular economy initiatives,green industrial development,and Sustainable Public Procurement(SPP).Additionally,challenges persist in gathering reliable data on waste generation,particularly within the construction sector,posing significant obstacles to effective policy-making

248、and strategic planning.7.2 Key metrics for circular industrial development in UkraineECONOMY WIDE INDICATORS In this section,we present a table of economy wide indicators showing baseline values for Ukraine,as well as targets.The targets are based on European targets and/or Global quotas(what is con

249、sidered safe environmentally).Several of these are aligned with the EU Delegation Inception report(2023),pointing specifically towards material use and energy efficiency.Priority targets to address are resource efficiency,renewable energy share and carbon efficiency,as the country uses a relatively

250、huge number of fossil fuel based energy and material inputs to produce low value economic outputs.Household consumption is below European and global averages and therefore is not the main impact focus area.DETAILED DESCRIPTION OF ECONOMY-WIDE INDICATORS The previous section provides an overview of t

251、he different economy-wide indicators that should be prioritised for measuring circular economy progress in Ukraine.This section provides a brief justification for the selection of each of these indicators.Although Ukraine performs well in terms of material consumption compared to the global average,

252、the country must align with raw material use to align with EU standards.Material consumption(tonnes per capita)currently stands at a little over 9.9 tonnes per capita in Ukraine.37 Note the average worldwide is 12.45 and the EU average is 15:so Ukraine is performing well in comparison.However,as the

253、 target,we have selected 8,which was the global average in 1980,when Raw Material Use globally was less overall.38 This is akin to how European targets are set,typically referencing a baseline year(1990 or earlier).OPPORTUNITIES FOR CIRCULAR ECONOMY IMPLEMENTATION IN UKRAINE736 UNIDO.(2024).Executiv

254、e summary:Ukraine industrial country diagnosis 2023.Retrieved from:UNIDO Website37 UNEP(2024).SCP-HAT database v3.0.UN Life Cycle Initiative,UN One Planet Network,UN International Resource Panel.Paris.Retrieved from Website 38 Lettenmeier,M.(2018).A sustainable level of material footprint Benchmark

255、for designing one-planet lifestyles.Aalto University.Retrieved from:Aalto University website35BASELINE STUDY Material efficiency(euros per kilogram),measured as the GDP produced in Euros per kilogram material inputs into the economy,was approximately 0.17 in Ukraine in 2018,which is on the low end c

256、ompared to other European countries(Bulgaria,0.15 in 2017,Poland 0.35 in 2017).Although the EU cites the need for a dramatic reduction in material use,it gives no explicit targets for this indicator.Therefore,we have set a target of 3,which is the median euro per kilogram value in Europe.This is an

257、ambitious target which would require Ukraine to dramatically rethink the way its economy generates economic value from every kilogram that is used.39 The Circular Material Use Rate(CMUR)is not currently measured in Ukraine.However,household cycling is estimated at 5%.We recommend to measure this at

258、an economy wide level,and set a target in line with the global target of 17%by 2032,as suggested in the Circularity Gap Report 2021.40 17%is also above the European average of 11.2%41.Renewable energy share:This indicator aims to bring Ukraines currently very low renewable energy share(under 5%42)up

259、 to the 45%EU target.43 Ukraine needs to diversify its energy mix and increase its supply of renewables in order to lower its GHG emissions.Renewables accounted for only 5%of the energy mix in 2018,and for 9%of electricity generation(13.4 kilowatt hours in 2019).GHG emissions per capita are 5.5 kilo

260、grams of CO2 equivalent(CO2e)in Ukraine,lower than the world average of 6 kilograms per capita and the Euro area average of 10 kilograms per capita.Although Ukraine is performing well relative to these benchmarks,its GHG emissions should still be reduced by over 50%to 2.3 kilograms of CO2e per capit

261、a by 2030the quota per person deemed to be safe for the planet according to the UNEP Emissions Gap Report 2021.44 CO2 efficiency,measured in kilograms of CO2e per euro(carbon dioxide equivalent per euro),represents the amount of CO2e emissions produced per unit of economic output(in euros).A lower v

262、alue indicates greater efficiency in terms of emissions relative to economic output.The CO2 efficiency of 2.145 for Ukraine indicates a moderate level of emissions relative to economic output,suggesting that Ukraine could improve its CO2 efficiency by reducing its reliance on fossil fuels and making

263、 industrial processes more efficient.Waste going to landfill,expressed as a percentage,indicates the proportion of waste going to landfill as opposed to being repurposed as a secondary source(either material or energy).Currently,Ukraines landfill rate is over 90%(UkrStat 2020 data),which is far high

264、er than the European average(below 50%in 2020).The EU Landfill directive aims to reduce landfilling to 10%of all waste management processes which is indicated as the target for 2030.Table 4 provides an overview of the economy-wide indicators for measuring circularity in Ukraine.Table 4 lists economy

265、-wide circular economy indicators for Ukraine.#LevelIndicatorUnitBaselineTarget 20301Economy wideMaterial consumptionTonnes/capita11.28(Global)2Economy wideMaterial efficiencyEuros/kg0.263(EU)3Economy wideCircular Material Use Rate%Unknown16%(EU)4Economy wideRenewable energy share%5%45%(EU)5Economy

266、wideGHG/Capita46kg CO2e/capita5.52.5(Global)6Economy wideCO2 efficiencykg CO2e/$2.10.9(Global)7Economy wide%of waste going to landfill%90%10%(EU)39 Europe Environment Agency(EEA).(2019).Resource efficiency.Retrieved from:EEA Website40 Circle Economy.(2021).The circularity gap report 2021.Retrieved f

267、rom:Circle Economy Website41 Eurostat.(2024).Circular Material Use Rate.Retrieved from:Eurostat Website42 International Energy Agency(IEA).(2020).Ukraine Energy Profile(pp.1-43,Rep.).Retrieved form:IEA Website43European Commision.(n.d.).Renewable energy targets.Retrieved from:European Commission Web

268、site44 United Nations Environment Programme(UNEP).(2021).Resource emission gap report 2021(pp.1-79,Rep.).Retrieved from:UNEP Website45 UNEP(2024).SCP-HAT database v3.0.UN Life Cycle Initiative,UN One Planet Network,UN International Resource Panel.Paris.Retrieved from Website 46Per capita GHG emissio

269、ns.36CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINESECTOR SPECIFIC INDICATORS Our sector-specific indicators aim to monitor the circularand more generally,sustainableperformance of the key sectors of Ukraines economy,according to the baseline findings.These cover not only the manufacturing s

270、ector but also the agricultural and construction sectors.DETAILED DESCRIPTION OF SECTOR-SPECIFIC INDICATORS The following Agriculture and Food targets are drawn from the EUs Farm to Fork Strategy,which offers a wide range of indicators related to Agriculture and Food.47 AgricultureGHG emissions:This

271、 sector emitted 21.8 million tonnes of CO2e in 2022.48 To align with the EU target of reducing emissions by 55%by 2030,the target is set at 9.8 million tonnes of CO2e.AgricultureLand under organic farming:Currently,approximately 1%of farmland is certified organic in Ukraine,despite Ukraine being one

272、 of the top importers of organic produce in Europe.49 Increasing the proportion of organically farmed land could offer the dual benefits of improving competitiveness and gaining rank in this export market,as well as reducing environmental impacts in the sector.The target is drawn directly from the E

273、Us Farm to Fork Strategy.AgricultureFertiliser Use:The EU Farm to Fork Strategy suggests a target of 10%reduction in fertiliser use.For Ukraine,this would require a decrease from 78.5 kilograms per hectare of arable land(in 2021)to 62.8 kilograms per hectare.50 The latter is equivalent to fertiliser

274、 usage rates in Ukraine in 2018.Therefore,an even more ambitious target could be investigated.The following indicators for the Manufacturing sector stem from varied sources,from the EUs Farm to Fork Strategy,the EU Strategy for Sustainable and Circular Textiles,European Climate Law and objectives fo

275、r 2030.GHG emissions(indicators#9,#12,#18,#20):This indicator was used for our top sectors,Agriculture,Manufacturing(basic metals)and Construction.The baseline value was taken from UNEP for the year 2022 and the target is aligned with the EU General Target aiming to reduce total emissions by 55%by 2

276、030.51 Manufacturing(Food and beverages)Waste Generation:Ukraine generated 4,159 tonnes of waste in this subsector in 2020.52 In line with EU targets to reduce waste in this subsector by 10%,included in the Farm to Fork Strategy,the target is set to 3,743 tonnes.Manufacturing(Textiles)Circular Mater

277、ial Use Rate:As previously cited,only approximately 2%of all textiles are cycled locally to be used as inputs into clothing products.This is in line with the current textile cycling rate in Europe of 1%.Nevertheless,the average collection rate of textiles in Europe is 22%,and therefore we set the ta

278、rget of the Circular Material Use Rate to this ambitious level,in an effort to stimulate innovation in the textiles value chain to process and handle(all collected)textile waste to be used as an input into manufacturing processes.Reduce plastic packaging waste volumes:The current production levels o

279、f plastic waste are growing exponentially.The new EU-wide packaging targets include a reduction of 5%by 2030 and 15%by 2040,while all packaging is expected to be fully recyclable by decades end.We therefore set a reduction target of-5%by 2030,to be aligned with the EUs Single-Use Plastics Directive.

280、Recycle plastic packaging waste:Figures for the separation and recycling of plastic waste in Ukraine are not easily available and unreliable.The EUs Single-Use Plastics Directive aims to recycle 100%of packaging by 2030 and 100%of plastic by 2035.Given the current low levels of recycling in Ukraine,

281、we set the target to 40%,which is the current EU average for the recycling of plastics according to the European Environmental Agency in 2020.WEEE minimum recovery rate:Similarly to separate collection and recycling rates for plastics,figures for WEEE recycling in Ukraine are currently unreliable.To

282、 align with the EUs Waste electrical and electronic equipment rates and targets,Ukraine should aim for a recovery rate of 75%.53 Nevertheless,this figure should be treated with caution,as recovery rates differ according to the different categories of WEEE.Construction and demolition waste(CDW)recove

283、ry:Construction debris has dramatically 37BASELINE STUDYincreased since the start of the war and there is currently little regulatory or business environment in place to properly recover this waste.We set a target of 70%recovery rate by weight,which was the EUs Waste Framework Directive target for M

284、ember States for 2020.Recovery activities,under this target,comprises the preparation of non-hazardous CDW for re-use,recycling and other material recovery,including backfilling operations.Table 5 provides an overview of the sector-specific indicators for Ukraine.As explained in the section above,ta

285、rgets for 2030 are not set values but estimates to align with EU recommendations.54 This concerns all indicators save for indicator#11.Table 5 lists sector-specific circular economy indicators for Ukraine.#LevelIndicatorUnitBaselineTarget 20309AgricultureGHG emissionsMillion tonnes CO2e21.8-55%(EU)1

286、0AgricultureLand under organic farming%1%25%(EU)11AgricultureArtificial Fertiliser Usekg/hectare of arable land78.5-10%(EU)12Manufacturing(Basic Metals)GHG emissions Million tonnes CO2e0.76-55%(EU)13Manufacturing(Food and Beverages)Waste generationTonnes4159-10%(EU)14Manufacturing(Textiles)Circular

287、Material Use Rate%1.23%22%(EU)15Manufacturing(Plastics)Reduce plastic packaging waste volumes%Unknown-5%(EU)16Manufacturing(Plastics)Recycle plastic packaging waste%Unknown40%(EU)17Manufacturing(Electronics)WEE minimum recovery rate%Unknown75%(EU)18ConstructionGHG emissions Million tonnes CO2e11.3-5

288、5%(EU)19ConstructionConstruction and demolition waste(CDW)recovery%Unknown70%(EU)47 European Commission.(n.d.).Farm to Fork targets-Progress.Retrieved from:European Commission Website48 UNEP(2024).SCP-HAT database v3.0.UN Life Cycle Initiative,UN One Planet Network,UN International Resource Panel.Pa

289、ris.Retrieved from Website 49 World Bank.(2021).Agricultural land(%of land area)-Ukraine.Retrieved from:World Bank Website 50 World Bank.(2021).Fertilizer consumption(kilograms per hectare of arable land)-Ukraine.Retrieved from:World Bank Website51 European Union.(2023).Commission welcomes completio

290、n of key Fit for 55 legislation,putting EU on track to exceed 2030 targets.Retrieved from:European Commission Website52 Derzstat.(2021).Waste generation and management.Retrieved from:Derzstat Website53 European Commission.(n.d.).Summary document of the Waste electrical and electronicequipment rates

291、and targets(pp1-5,Rep.).Retrieved from:European Commission Website54 For example,62.8 is set as a target value for Ukraine for 2030.This builds from the EUs Farm to Fork Strategy which recommends reducing fertiliser use by 10%.We apply this 10%reduction to Ukraines current 78.5 which leads to the 62

292、.8.38CIRCULAR ECONOMY FOR INDUSTRIAL DEVELOPMENT IN UKRAINEThis chapter describes a set of international best practices,selected to inspire Ukrainian stakeholders.These are aligned with several strategies from the Key Elements(KE)Framework detailed in Chapter six for the prioritised manufacturing su

293、bsectors.Each best practice is structured in the same way,with an overview of the best practice,available information regarding its scope as well as an indication of its relevance and replicability potential for Ukraine.Four best practices have been selected overall for each of the prioritised manuf

294、acturing subsectors:Food and beverages:The Smart machines for recyclable waste(SIGUREC)initiative in Romania is designed to improve the collection and recycling of various products,including in the food and drinks subsector.The SIGUREC case study highlights the importance of investing in innovative

295、collection systems and utilising incentives to promote domestic recycling industries.It suggests that Ukraine could benefit from adopting a similar model to enhance waste management standards,foster a recycling sector,and stimulate economic growth.Textiles:The Vive Textile Recycling(VTR)initiative f

296、rom Poland addresses the challenges in the textile recycling subsector,particularly the influx of imported post-consumer textile waste,aligning with circular economy principles.By recycling and reusing textiles,VTR aims to minimise waste,extend product lifecycles,and tackle the issue of inadequate w

297、aste management infrastructure.This example could help to inspire Ukraine to treat its abundance of untreated post consumer textile waste,while also boosting employment.Electrical and machinery:The success of ZIKOM,a distributor of budget-friendly reconditioned computer equipment,in Poland highlight

298、s the potential for Ukraine to adopt a similar initiative,reducing electronic waste and creating economic opportunities through refurbishment efforts.Implementing policies such as subsidies or tax incentives could facilitate the adoption of circular business models,while efforts to ensure the availa

299、bility of requisite skills within the labour market would support this transition and ensure affordable access to IT equipment for citizens.Metals:The establishment of an industrial symbiosis partnership between the steel subsector(ArcelorMittal)and the energy sector(EDP)in Spain shows how waste gas

300、es from steel production can be turned into electricity,suggesting that Ukraine could benefit from industrial symbiosis to reduce environmental impacts,improve energy resilience,and extract value from industrial waste in its metal products subsector.INTERNATIONAL BEST PRACTICES FOR CIRCULAR MANUFACT

301、URING839BASELINE STUDYEach of these best practices are linked with several circular economy strategies from the KE Framework,presented in Table 6:Table 6 lists best practices and alignment with the circular strategies of the KE Framework.Best practiceLink with circular economy strategy groupLink wit

302、h circular strategySIGUREC:Smart machines for recyclable waste(Romania)Reuse,repurpose and recycle waste streams within the same industry Transform waste products,materials for reuse within the same industry Transform waste products into materials and lower value products within the same industry Co

303、llection programmes that process products and parts for reuse or recycling within the same industryVive Textile Recycling(VTR)(Poland)Reuse,repurpose and recycle waste streams within the same industry Transform waste products,materials for reuse within the same industry Transform waste products into

304、 materials and lower value products within the same industry Collection programmes that process products and parts for reuse or recycling within the same industryZIKOM:refurbishing IT equipment(Poland)Deliver products to customers through business models that ensure maximum value Sale of refillable

305、parts Sale of exchangeable parts Reuse,repurpose,and recycle waste streams within the same industryEDP Spain:From steel production waste gases to electricity(Spain)Processing waste into fuelGenerating energy from wasteEngage with industry peers to create joint value and identify synergies Recover wa

306、ste energy or generate fuels and energy from waste streams Working together with industry peers to engage in business activities or exploratory projects that advance the circular economy,such as industrial symbiosis8.1 Food and beveragesSIGUREC:Smart machines for recyclable waste(Romania)55Best prac

307、tice descriptionThe aim of this initiative was to introduce an advanced recycling service in Romania aimed at prolonging the lifespan of products by providing various household waste collection systems throughout the country,ranging from mobile collection units,to outdoor collection stations or indo

308、or collection points in supermarkets.These systems employed smart collection machines and facilitated recycling among consumers through the use of digital technologies.56 The objectives of this initiative were to reduce waste,particularly from electrical and electronic equipment and packaging,and to

309、 bolster the development of a domestic recycling industry.Key accomplishments and solutions offered by this program include the following:From its inception in 2012,the SIGUREC machines facilitated the collection of significant quantities of recyclable materials:39,699 tonnes of plastic/PET,1,164 to

310、nnes of aluminium,14,796 tonnes of glass,1,781 tonnes of paper,and 15,640 tonnes of other materials.Unfortunately,reference or baseline figures for comparison are not available.This service introduced an innovative approach to waste management by merging technology with incentives,thereby fostering

311、consumer engagement in recycling endeavours.55 CE Stakeholder EU.(n.d.).SIGUREC:Smart machines for recyclable waste.Retrieved from:European CE Stakeholder Platform Website56 Green Group.(n.d.).Partner with EBRD case study Green Group.Retrieved from:EBRD Business Website40CIRCULAR ECONOMY FOR INDUSTR

312、IAL DEVELOPMENT IN UKRAINE57 Balkan Green Energy News.(2016).Sigurec the innovative collection infrastructure.Retrieved from:Balkan Green Energy News Website 58 VTR.(n.d.).About the Company.Retrieved from:Vive Textile Recycling Website 59 Vive Profit.(n.d.).Homepage.Retrieved from:Vive Profit Websit

313、e Timeline,budget,and involved actors Initiated by Green Group,a prominent private enterprise,and backed by an investment surpassing 10 million,which includes 4 million in funding from Innovation Norway,a governmental agency of the Government of Norway,SIGUREC has been operational from 2012 to 2020.

314、57 It is currently unclear whether its operations are still ongoing.This endeavour has generated more than 260 employment opportunities,serving as a testament to the efficacy of a fruitful public-private collaboration involving Green Group,the Romanian Ministry of Environment,municipalities,and recy

315、cling entities.Best practice relevance for Ukraine SIGUREC stands as a pivotal case study illuminating the path to nurturing an emerging domestic recycling sector.It not only underscores the significance of industry collaboration but also exemplifies the effectiveness of concerted efforts in enablin

316、g the collection and recycling of diverse consumer products.From plastic packaging in food and beverages to metals from WEEE,SIGUREC demonstrates the breadth of materials that can be effectively recycled through collaborative endeavours.This initiative holds the potential to play a vital role in con

317、fronting the challenges faced by the Ukrainian food and beverage subsector,particularly concerning waste management and resource inefficiency.By drawing upon the lessons learned from SIGUREC,Ukraine can potentially revisit its approach to waste management,paving the way for a more sustainable and re

318、source-efficient future in its food and beverage industry.Lessons learned and possible application for UkraineThe SIGUREC case study underscores the critical significance of investing in and implementing innovative collection systems,while also shedding light on the pivotal role that incentives play

319、 in fostering the growth of a domestic recycling industry.This case serves as a compelling example for Ukraine,showcasing how the adoption of a similar model could not only elevate waste management standards but also bolster the establishment and expansion of a thriving domestic recycling sector.By

320、emulating such a framework,Ukraine could potentially unlock new avenues for sustainable waste management practices and stimulate economic growth.8.2 TextilesVive Textile Recycling(VTR)58 (Poland)Best practice descriptionEstablished 26 years ago,Vive Textile Recycling(VTR)operates within Polands text

321、ile recycling sector and boasts a comprehensive framework for textile recycling characterised by innovative technologies and digitalisation.The company is in the business of textile recycling,retail and wholesale trade of sorted and unsorted clothing imported from Western Europe,as well as processin

322、g used textiles into industrial wipers.Its operations encompass the implementation of sorting and valorisation systems for post-consumer textiles,with the overarching goal of augmenting recycling and reuse rates.Furthermore,VTR strives to bolster the domestic efficiency of textile waste recycling an

323、d profit margins by investing on innovative digital technologies in its textiles processing while also establishing a nation-wide chain of second-hand retail stores.Timeline,budget,and involved actors With over 1,200 employees,VTR operates as the primary entity sorting 500 tonnes of raw material dai

324、ly while upholding the highest quality standards of ISO 9001 and 14001.Products processed under these rigorous standards are distributed to more than 70 countries globally and to 32 VIVE Profit stores across Poland,specialising in unique second-hand clothing,owned by VTR.Currently,it stands as a lea

325、ding entity in Poland for producing alternative fuel from textiles,with Cementownia Osarw S.A.being the primary recipient.Moreover,the company has pioneered the development of an innovative textile composite for industrial applications and manufactures industrial cleaning cloths utilised by various

326、industries.The company achieves its objectives through the establishment of collection systems for post-consumer textiles,investment in advanced sorting technologies for nationwide textile recycling,development of new products derived from recycled textiles,and the establishment of VIVE Profit,a cha

327、in of second-hand stores throughout the country.59 41BASELINE STUDYAdditionally,it actively engages in advocating for relevant regulations within the sector and raising consumer awareness regarding the reuse of second-hand textiles.Furthermore,VTR is expanding its business into transport and logisti

328、cs beyond the realm of textile recycling.Best practice relevance for Ukraine VTR is tackling significant challenges within this subsector,particularly the considerable influx of imported post-consumer textile waste.Indeed,Poland,like Ukraine,is a significant receptor of post-consumer use textiles in

329、 the European market.Its primary focus lies in the recycling and reuse of textiles,a strategy that closely aligns with the principles of the circular economy.By minimising waste and prolonging the lifecycle of textiles,VTR addresses Ukraines issues related to textile waste,inadequate waste managemen

330、t infrastructure,and the absence of a dedicated collection system or suitable treatment methods.Moreover,VTR stands out as a prominent employer within the textile recycling sector,further contributing to the countrys economic landscape.Lessons learned and possible application for UkraineThe VTR case

331、 study underscores the significance of technology investment,advocacy for regulatory reform,and the establishment of a cohesive domestic textile ecosystem,wherein various streams of textilessorted,recycled,and reusedare interconnected.VTR not only confronts the challenges posed by textile waste but

332、also ensures that employment in the subsector is symbiotic with the utilisation of advanced technology.For Ukraine,adopting similar strategies could catalyse the growth of a market for textile sorting,recycling,and reuse,particularly in light of the substantial influx of second-hand imports.Addition

333、ally,it has the potential to reverse the trend of declining labour force participation and knowledge retention observed in this subsector,though the relevance of these strategies may be influenced by the current geopolitical situation.8.3 ElectronicsZIKOM:Refurbishing IT equipment(Poland)60Best practice descriptionZIKOM stands as one of the foremost distributors of professionally reconditioned com