Circularity not yet a priority in Dutch housing, energy, or plastic packaging sectors
Are we on track towards a circular economy in 2050, with fully renewable circular energy technology, plastic packaging, and housing? Utrecht University is investigating this together with the Netherlands Environmental Assessment Agency (PBL), TNO, TU Delft, Leiden University, RIVM, and Rijkswaterstaat. Despite the growth in circular businesses and initiatives, Utrecht University research reveals that a circular transition in the Netherlands is being held back by other major societal challenges such as the energy transition, the housing crisis, and geopolitical conflicts related to supply chains.
A series of reports by Utrecht University’s Copernicus Institute of Sustainable Development focused on the transition to circularity in the plastic packaging sector, the housing sector, and various renewable energy technologies, such as wind turbines, solar panels, and car batteries. These reports form part of a wider set of research released this week that will contribute to the PBL Integrated Circular Economy Report (ICER) to be published in 2025, providing businesses and policymakers with tools to accelerate the transition to a circular economy.
Researchers Sanne Bours, Remi Elzinga, Robert Harmsen, and Simona Negro conducted their analyses based on the Mission-oriented Innovation System (MIS) framework focusing on the four circular strategies: narrowing the loop, slowing the loop, closing the loop, and substitution.
Renewable energy technologies
While renewable energy technologies have advanced rapidly, the sector is grappling with issues related to production and waste management. Remi Elzinga, in collaboration with researchers from TU Delft and CML Leiden University, highlights the challenges posed by the "race to build the largest wind turbine." Although larger turbines are more efficient and profitable, the supply chain struggles to keep pace, leading to insufficient or outdated production and installation capacities, and a growing waste problem. "Circularity in terms of resource efficiency and recycling is not the focus of the sector," Elzinga notes.
A similar pattern is observed with solar panels. The rapid growth in installed capacity has led to increased dependence on Chinese suppliers for both panels and raw materials. The European Union is working to reduce this dependency and sees circular strategies—such as extending product lifespans and improving material recycling—as key to achieving this goal. “In the Netherlands, there is a need to foster innovations in recycling technology, circular design, and extended product use to support the transition to a renewable energy sector”.
Plastic packaging
The plastic packaging sector remains heavily reliant on fossil-based materials, and production continues to rise. Research by Sanne Bours, in collaboration with RIVM, Rijkswaterstaat, and TNO, reveals that while the sector's focus is on recycling—driven by Extended Producer Responsibility (EPR) regulations—only a small percentage of recycled material is used in new packaging. Furthermore, incentives for reuse and reduction are lacking. “We call for coherent national and international objectives to accelerate the transition towards circular plastic packaging, along with clear assessment frameworks for applying bio-based plastics and chemical recycling,” says Bours.
The housing sector
The housing sector faces multiple challenges, including a shortage of homes, the heat transition, and the influx of non-sustainable building materials. Research by Sanne Bours and Robert Harmsen shows that circularity in this sector is still relatively new and often takes a back seat to other priorities like the heat transition. Additionally, the higher costs of circular materials create barriers to their adoption. “We must better integrate circularity with other societal goals and public procurement processes to accelerate the transition,” says Harmsen.
Join the discussion
The reports underscore the need for stronger policy efforts to advance the circular economy, especially given expected resource use in the coming years. Therefore, PBL has prepared an overarching report on the similarities and differences between the product group analyses. On September 9th 2024, PBL will host a symposium to discuss these insights and explore next steps for politics, policy, and business. Register for the event here.