Circular business models are paving the way for transition in Vestland

Europe is going circular. So is Vestland. The European Commission adopted the new circular economy action plan (CEAP) in March 2020 as part of the European Green Deal. Within 2035, the EU goal is a 65 percent degree of circularity. City of Bergen is aiming for the same target in 2030.

But to achieve the goals, we all need to change our behaviour. The global circularity rate dropped from 9 to 7 %. The average circularity rate in Europe is 11.6 % - in Norway 2.6 %. The Netherlands has pole position in Europe with a circularity rate of 19.4 %. What can take us from talk to action?

Recycle – share – reuse

In short, the solution is recycle – share – reuse. We need to use resources in a more clever and effective way. But when one company’s waste is another company’s input, we need to build more collaborative value chains, creating circular ecosystems.

Vestland has their masterplan, Vestlandsporteføljen 2.0. Today, the industries in Vestland fylkeskommune contribute significantly to Norwegian export. However, their activity also creates a large chunk of Norwegian emissions. The project Grøn region Vestland has developed a plan for transforming the region – secure future growth but reduce emissions. 19 strategically defined hubs across the region serve as focal points for green transformation, enabling the establishment of new value chains throughout the county each with the potential to generate 17,000 new jobs, boost exports, and reduce emissions.

Bold targets, but to achieve Vestland’s plans, companies and communities need to greener future outlined in the Vestlandsporteføljen 2.0, circular business models play a crucial role in advancing sustainability and driving positive change.

In a few months, BIR who is one of Norway's largest waste disposal companies, starts building a biogas processing plant at Bjørkemoen in Voss municipality. With a capacity of 15 000 tons of waste the potential energy output is 28 GWh. When opening next year, the plan is that this processing facility could be the heart of a full-scale bio park with several circular value chains. Photo: BIR.

A closed-loop system

Where the traditional business models are linear and pay less attention to how the input is sourced, a circular business model focuses on keeping materials in use for as long as possible while minimizing waste. Circularity creates a closed-loop system by following alternative strategies:

• Resource recovery: Companies actively recover and recycle materials from their products. This includes designing products with disassembly and recycling in mind.
• Product life extension: Rather than encouraging frequent replacements, circular businesses extend the lifespan of products. Repair services, refurbishment, and upgrades play a crucial role here.
• Sharing and rental platforms: Collaborative consumption models allow people to share or rent products, reducing overall resource consumption.
• Standardization: Standardized components facilitate repair and reuse, promoting circularity.
• Renewable and reusable inputs: Using renewable energy sources and sustainable materials ensures a positive impact on the environment.

The local football club Brann aims to be a zero-emitter. In everyday operations actions are recycling waste after matches, e-tickets and energy saving lights on the field. Did you know that after an Arsenal match the supports leave an astonishing 12 tons of waste? In a year around 750 000 tons of waste is left at European football stadiums. Photo: Martin Magnussen Vestland Fylkeskommune.

Both economic and environmental benefits

The main focus is often to reduce the environmental footprint: Circular practices contribute to lower greenhouse gas emissions, reduced pollution, and conservation of natural resources.

However, circular business models offer several additional advantages:

By optimizing resource use and minimizing waste, companies can reduce costs associated with raw materials and disposal.

Further, companies that embrace circularity gain a competitive edge by aligning with consumer preferences for sustainability.

As the world faces pressing environmental challenges, circular business models provide a roadmap toward a more sustainable future. By embracing circularity, companies can simultaneously enhance their bottom line and contribute to a healthier planet.

Put into practise in HUBs

The industrial hubs in Vestlandsportefølen, identified as having significant growth potential, emissions reduction opportunities, and job creation, can benefit from circular business models. By adopting circular practices, industries within these hubs can optimize how they exploit their resources and enhance their environmental performance.

Alternative business models can also resource efficiency. Circular business models prioritize resource recovery, product life extension, and sharing platforms. By implementing these strategies, the HUB partners can minimize waste, reduce raw material consumption, and contribute to a more sustainable economy. Businesses that embrace circularity are better positioned for long-term success and resilience.

To fully realize the Vestlandsporteføljen 2.0, collaboration between private and public actors is essential. Circular business models foster this by aligning economic goals with environmental stewardship.

Matching the right people is a way to valuable collabortaion, Invest in Bergen is eager to do our part of the job by attracting foreign companies to settle in our region and contribute to the value creation and ensuring a greener future for the region. Can we help your business into our regionæs value chains?

Contact our advisors!