As the global population doubles, living standards rise, and GDP increases fourfold, the extraction and use of natural resources have tripled over the last five decades. This indicates an inefficient and unsustainable use of resources, exacerbating the climate change crisis. According to a 2017 report by the United Nations International Resource Panel, the extraction and processing of raw materials, including biomass, fossil fuels, and minerals, were responsible for over 90% of global biodiversity loss, water stress, and about 50% of global greenhouse gas emissions.
The unsustainable use of resources, characterized by rapid extraction, processing, consumption, and disposal, has led to severe social, economic, and environmental impacts. This has necessitated a shift towards a sustainable circular economy. Reflecting this trend, the German Federal Environmental Agency published a report titled “Developing Economic Policies to Achieve Efficient Resource Use and Sustainability in 2024” to discuss these trends at the German, European, and global levels. The report also focuses on the most relevant global organizations and agreements and offers proposals for successfully implementing the desired sustainability policies.
Diverse Approaches:
The report considers the circular economy as an effective economic system for preserving resources and optimizing their use. This term refers to mechanisms by which products are designed for long-term use, with the ability to be reused or recycled afterward, while minimizing hazardous waste from manufacturing and avoiding carbon emissions. Below are the key German, European, and international approaches in this regard:
German Approach:
For many decades, the goals of the circular economy in Germany were limited to reducing waste from manufacturing processes without addressing material waste reduction or optimal resource use. As a wealthy industrial nation, Germany’s industries faced no significant challenges in meeting their demands, even during local shortages in global markets. However, this changed in 2012 with the launch of the first Resource Efficiency Program (ProgRess).
This program aimed to continue German economic growth while reducing resource use, waste, and environmental pollution. It also sought to enhance the economy’s self-sufficiency with available resources, focusing on essential resources such as industrial metals, construction metals, and bio-based construction materials like wood. This program was remarkably successful in achieving its goals and became the cornerstone of Germany’s sustainability orientation, with its objectives updated every four years to keep pace with current conditions.
The second version of the program (ProgRess II) was launched in 2016, notably incorporating digitization to achieve sustainability goals. The third version (ProgRess III) was launched in 2020, focusing on environmental goals such as climate protection and biodiversity conservation. As the program evolved, the German government provided reports to parliament on the progress of its objectives. Germany has also been influenced by various European Union laws and regulations, the most recent being the EU Ecodesign Directive, which focuses on the durability and reparability of European products.
European Approach:
The concept of efficient resource use emerged in the 1990s within the third environmental program (1982-1986), which advocated cautious use of natural resources without specifying mechanisms to achieve this goal. It is noteworthy that these environmental programs had no significant legal impact until the Maastricht Treaty in 1993. This was followed by the sixth environmental program in 2001, which prioritized resource consumption efficiency and introduced resource usage taxes and the removal of financial support that led to resource exploitation as mechanisms to reduce waste at that time.
In 2005, a strategy for the sustainable use of natural resources was developed, aiming to promote sustainable production and consumption behaviors and prevent the depletion of natural resources. However, this strategy did not lead to significant changes as these goals were not quantified due to insufficient data and indicators.
Late 2023 saw a new political shift with the introduction of the European Green Deal, which aims to ensure sustainable economic growth in the future while also embracing the principle of climate neutrality. The deal targets a 55% reduction in greenhouse gas emissions by 2030 and achieving climate neutrality by 2050. It also aims to plant an additional 3 billion trees across Europe to help address climate issues.
Despite these efforts, Europe’s progress in transitioning to a circular economy remains in its early stages. A particular concern is the low recycling rates for materials, with only 1% of rare metals like lithium, gallium, and neodymium being recycled, while nickel and cobalt used in battery production have recycling rates of 16% and 22%, respectively.
International Approach:
The concept was first introduced at the United Nations Conference on the Human Environment, Stockholm Declaration, in 1972, through principles of protecting the Earth’s natural resources through wise planning and management for the benefit of present and future generations, as well as the use of non-renewable resources in a way that they do not deplete and benefit humanity. However, these principles were not taken seriously by political leaders at the time.
This was followed by several conferences, such as the 1992 United Nations Conference on Environment and Development in Rio de Janeiro, but the topic did not see significant political attention until the 2002 World Summit on Sustainable Development in Johannesburg. This summit marked a critical step toward sustainability, with a decision to develop a 10-year framework of programs for sustainable consumption and production. Consequently, several UN bodies were established, including the International Resource Panel in 2007.
Active Organizations:
The report highlights the increasing number of organizations and initiatives supporting sustainability policies for resource management due to the planet’s significant environmental and climate challenges. Some of the prominent organizations and initiatives include:
- The United Nations International Resource Panel (IRP), which provides a massive scientific database for countries, industrial institutions, and civil societies to help them implement sustainability concepts according to four identified pillars: shaping a sustainable present and future through wise resource management, taking effective actions against climate change, biodiversity loss, and environmental pollution, focusing on human health, well-being, and justice, and using trade, finance, and innovation to enable transitions toward sustainability. Currently, the panel’s key discussion topics include reducing carbon emissions and saving marine life.
- The Group of Seven (G7), which has increasingly focused on implementing the circular economy in recent years. Germany’s presidency of the group in 2015 was a turning point toward sustainability. The group typically issues guidance plans to achieve sustainability goals, the latest being the Berlin Map in May 2022. The members acknowledge that two-thirds of air pollution, half of global greenhouse gas emissions, and 90% of biodiversity loss are due to resource extraction and processing.
As a result, the group is committed over the next three years to reduce these impacts by transitioning to a more resource-efficient and greener economy through integrating economic, environmental, and social policies. This approach ensures that economic growth continues while adopting policies that mitigate climate change without neglecting the social dimension, which emphasizes that the current generation does not infringe upon the rights of future generations to resources and well-being.
Key Proposals:
The report suggests that efficient resource use is not only about ensuring their availability for a longer period or for future generations, but it also extends to protecting the climate, biodiversity, and reducing water poverty worldwide. However, these positive effects achievable through the circular economy require a comprehensive strategy that considers all observed factors to avoid any rebound effect.
For example, the need to preserve biodiversity might lead to replacing biological resources with non-biological ones like metals in the production process, which could ultimately encroach on the future generation’s share of non-biological resources. The report outlines key considerations for developing sustainability policies for resource management, including:
- Considering the potential impacts of implementing sustainability policies in both European and developing countries. It is important that Germany and European countries strive to apply the principles of international cooperation and exchange. For example, Germany could leverage its membership in the Group of Seven (G7) and the Group of Twenty (G20) to reach consensus economic agreements.
- Continuing to study changes in societal consumption patterns to ensure a shift to sustainable consumption systems. The potential negative impacts of these policies on different social groups should also be studied, and efforts should be made to mitigate or avoid them. Moreover, efforts should be made to achieve economic well-being within the concept of sustainability, transcending traditional terms such as GDP growth.
- Ensuring the availability of information and transparency to achieve advancements in sustainability and the circular economy. Scientific advancements are always achieved through cumulative efforts, which can be ensured by providing information and transparency. This will also support efforts to unify the standards and indicators used in emerging international reports, contributing to enhanced international exchange.
- Working to increase community awareness of the importance of transitioning to a sustainable circular economy by launching awareness campaigns and involving the community in implementing this transition.
Source:
Umweltbundesamt, “Ressourceneffizienz und natürliche Ressourcen im internationalen Kontext,” April, 2024.
