Circular cities Cities of tomorrow - 3rd edition October 2020 - Enel Group
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Circular cities Cities of tomorrow 3rd edition October 2020
Contents
Foreword / p 4
Introduction to the third edition / p 7
1
. Circular cities: . Realising the circular
2 3. The benefits / p 23 ocus. Best practices from around
F
what is the status? / p 9 transformation / p 15 the world / p 39
3.1 Cities’ circular recovery after
1.1 A holistic approach 2.1 Definition and scope Covid-19 São Paulo
1.2 The circular economy vision of the circular economy - Futur Food Institute Santiago de Chile
2.2 A circular economy strategy - Intesa Sanpaolo
1.3 Governance Bogotá
- Arup
2.3 Where should Montevideo
the control room be? 3.2 Impacts on competitiveness
Boston
2.4 Planning: top-down or bottom-up? 3.3 Environmental impacts
Pittsburgh
2.5 Stakeholder engagement: 3.4 Social impacts
the public-private collaboration
2.6 Metrics and objectives 4. Conclusions / p 36
2.7 The role of innovation
2.8 Awareness and participation
“What is the city but the people?” Shakespeare, Coriolanus, Act III, Scene I
Foreword
00
It is within cities that our civilisation pulsates with life and
evolves. Cities all differ in their architecture, culture and historical Michele Crisostomo
background, but were all created from our ancestors’ impulse to Chairman of the Enel Group
gather and form communities. Be they small provincial villages or
an agglomeration of glistening skyscrapers, they are the human
habitat par excellence and, along with us, they change over time
to protect the communities that inhabit them, to rise again when
struck by catastrophe, to indulge changes in our lifestyle and in
technological evolution.
Confirming the continued relevance of the “city paradigm”,
urbanisation has sharply accelerated in recent years: cities today
are home to over half of the world’s population and generate
more than 80% of global economic output as well as the majority
of pollutant emissions. Inevitably, cities are also where global
trends release built-up tension: from demographic and migratory
issues to the growing demand for energy and the damaging
effects of climate change.
FOREWORD | 5 The Covid-19 emergency has demonstrated the inextricable link In looking to sketch out this new idea of development, there is between cities and the social vitality that shapes and inspires absolutely no way we can exclude sustainability. Only by evolving them. Squares and streets, suddenly voided of their community, sustainably will our cities be able to renew their essential purpose became urban coordinates of archaeological sites before their to develop and protect communities. This is why it is essential time. Being forced to stay at home confined us to a sort of to promote economic competitiveness, social inclusion and resident nomadism in which, to protect the community, we had respect for the environment, considering these objectives not as to negate all its manifestations, as if we were living, within our alternatives or opposites but as synergistic elements, in a vision closest family units (couple, family, etc.), in the middle of the that brings innovation and sustainability together – and which is desert but with no way to move. most effectively expressed in the circular economy. Even in this dramatic situation, cities gave us some indication of Thus, the transition towards more circular models for living how they need to evolve in order for the communities that live in and producing is the best solution to the growing problems in them not only to better prepare to face a health emergency but, the cities of today, and an essential step to avoid even greater more in general, to initiate evolutionary change. economic and social imbalances in those of tomorrow. If a city is destroyed by fire or an earthquake, it will probably We are convinced that in order to meet such a huge challenge, be rebuilt with fire-resistant materials or according to anti- and more than ever to recover from the recent health emergency, seismic criteria. So cities have to emerge from the pandemic we need to engage with all stakeholders: institutions, companies on a different footing. During the emergency, cities became and citizens. We can count on a huge range of available networks, connections, services, assistance, solidarity. Pollution technologies, innovative business models and significant emerged as a risk factor, also from a health perspective. As investment capacity, but none of this will be of any use unless resident nomads, with the invisible enemy on our doorstep, everyone embraces common objectives and fully commits to we became more aware of how important it is to improve the their achievement. quality of our cities – which, once again, returned to being the anthropological and physical context for a new idea of development.
FOREWORD | 6 For Enel, defining a coherent, long-term vision for the city of the future, as a framework for the contribution we can make, is a strategic priority and a constant commitment. To this end, we have worked for years to turn the circular city concept into a reality. To do so, wherever Enel is present, we are in constant dialogue with the ecosystem around us, not just collaborating with the industrial supply chain but opening up to a wider vision that facilitates continuous exchange with institutions, associations, startups, research centres and universities. We are convinced that breaking down cultural and industrial barriers, removing red tape and trying to find, through dialogue, possible synergies between different sectors are key to bringing about an effective model for circular cities and a level of wellbeing that’s genuinely shared and enjoyed by everyone. With everyone’s commitment we can build a better future for our cities as well as a fairer and more resilient society.
Introduction to the third edition already impact cities directly, contributing to the economic,
social and environmental development of various local areas; the
circular approach described in the following pages is capable of
significantly increasing these positive effects.
Having focused the first edition on technologies and the second,
in 2019, on circular business models, in this third edition we want
to explore another key aspect for the transition towards circularity:
When we published the first edition of this position paper, at the the public-private collaboration and its crucial role in implementing
beginning of 2018, the circular city model wasn’t the subject of a circular economy at city level. What can institutions, companies
much debate. In recent years, circular economy as a theme has and citizens do to make the urban context in which they live and
recorded remarkable development, in terms of both definition work more circular? What contribution can each of them make and
and importance, while at the same time its potential has become what benefits can their collaboration bring?
increasingly evident, also for the cities of tomorrow. However, the
journey has still only just begun. Many of the necessary conditions for circularity are now within
reach: in many areas the technologies required to bring this
Our intention was to contribute to the development of this vision transition to fruition are available and competitive, and there
for the future. To do so, we started from the goal of bringing are numerous solid business cases and interested financial
together economic development, environmental sustainability and players. To accelerate the process, a key element is therefore the
social inclusion. To achieve such an objective, it is not sufficient collaboration between institutions, companies and citizens. To
to approach the issue from a purely technological perspective: explore this relationship, in the first part of this document we look
it must be tackled holistically, taking into consideration all the at some of the major enablers that can ensure this collaboration is
sectors and elements that together constitute a city. This also fruitful: governance, strategy and metrics. In the second part, we
means including many aspects that fall outside the specific present and analyse concrete cases from around the world which
activities of a utility company, which however, by its very we believe stand as exemplars of the direction that is to be taken,
nature, utilises a cross-sector approach and collaborates with all to ensure that cities can truly transform.
stakeholders. In this sense, this need for a holistic vision is fully in
line with our mission. Furthermore, many of our business activities
INTRODUCTION TO THE THIRD EDITION | 8 The global Covid-19 health emergency, with its tragic humanitarian impact and its social and economic consequences, exploded while we were drafting this document, and further reinforced questions about the current development model and the need to revisit it. Whilst the challenge involves sustainable development in its widest possible sense, dealing with the economic model is part of the general equation. How the circular economy can be part of the solution, to reduce the risks of an unsustainable development model, and what role it can play in the rebuilding phase are fundamental questions we must pose to conceive the cities of tomorrow. Although it is too early to fully understand the consequences of the current pandemic, these aspects must still unavoidably be taken into consideration. Once again, for this third edition we asked the institutions, organisations and companies who share our commitment to the cities of tomorrow to make a brief contribution related to their areas of expertise. Such contributions do not represent an endorsement, by them, of the entire document, the responsibility for which rests solely with Enel.
1. Circular cities:
what is the status?
1. CIRCULAR CITIES: WHAT IS THE STATUS? | 10
Circular cities: environmental (air, water and soil We are already witnessing numerous
pollution and waste management) and city initiatives from around the world that
what is the status? social (marginalisation, inequalities and are based around the circular economy
disintegration of the social fabric). These concept. Each addresses the matter in a
are interconnected issues that are difficult particular way – based on the priorities,
to tackle with isolated actions: they require context and evaluations made by local
a systemic approach, tying in with the decision-makers on how best to tackle the
vision of city one is looking to achieve. sedimentation of centuries of decisions
1. As highlighted in the second edition, cities and the economic models which have
are currently facing increasingly critical We believe that to do so there are a favoured linear models for the past
challenges and the awareness of these number of important steps that need to be decades.
issues is growing. In this context, the taken in terms of governance, strategy and
circular economy represents the solution lines of action. In Europe, in particular, it is worth
for redesigning the cities of tomorrow. mentioning the importance given by the
Indeed, when faced with these difficult EU’s recent Circular Economy Action Plan2
The extent of the phenomenon is best challenges, cities have a series of to the role of cities and local territories
demonstrated through data: the world’s opportunities and strengths that can in implementing the transition towards a
consumption of raw materials saw a potentially make them key players in the circular economy model. The purpose of
12-fold increase between 1900 and transition towards circularity. Indeed, the circular economy is to reformulate the
2015, and is expected to double again the sense of physical community that economic model, and cities, as the place
by 2050; furthermore, cities consume exists within cities facilitates people’s where the majority of the population lives
approximately two thirds of all energy engagement in political change, compared and where the majority of resources are
and are responsible for a similar share of to the regional or national level: decision-
emissions1. makers are closer to the interested parties
and the impacts choices have are more
The challenges that cities now face directly felt.
are diverse in nature: economic 1
World Economic Forum, Circular Economy in Cities. Evolving the Model for a Sustainable Urban Future, 2018.
(competitiveness and employment), 2
European Commission, Circular Economy Action Plan, 2020.1. CIRCULAR CITIES: WHAT IS THE STATUS? | 11
consumed, have a key role to play. The moving away from a point of view that is
solutions developed within cities have mainly focused on new technologies and
a direct and potentially key bearing on their benefits, to one where technology
utilisation and consumption, as well as on continues to play an important role but nce
t ellige
reuse and value recovery. is integrated into a holistic vision with cial in
economic competitiveness, environmental Artifi
ty
However, cities’ approach to the circular sustainability and social inclusion goals. New onn ectivi
laye ata and c
economy, aimed predominantly at rs Big d
resolving local issues, must be viewed olo gies
1.1 A holistic approach c a l techn
within the much wider context of possible ys i
N ew ph
systemic impacts; cities are an integral When considering their circular
part of their regional and global fabric, transformation, we must see cities ms
y syste
so any improvements at their level have themselves in all their dimensions and Energ
the potential to generate further impacts with respect to the overlap between
Trad ows
rial fl
on a wider scale. More generally, cities traditional and new layers, linked to iti Mate
are where the strong interconnection new technologies, digitalisation and layeonal
rs as
the Internet of Things (IoT). Although, u p are
between people enables continuous Built-
innovation and idea generation: they operationally speaking, we will focus on
e
specific priorities, an overarching vision tr uctur
therefore represent an accelerator in Infras
which new models can be constantly that evaluates the benefits and impacts
tested, combined and improved. that are generated3 is necessary.
The concept of circular city emerged after
(and, in some ways, stemmed from) that
of smart city. While labels are not always
clear enough to make a sharp distinction
between the two, in Enel’s vision the shift
from smart cities to circular cities requires 3
Enel, Circular cities. Cities of tomorrow, second edition, October 2019.1. CIRCULAR CITIES: WHAT IS THE STATUS? | 12
Until a few years ago, The classic representation of the five
R DESIGN
pillars of the circular economy includes: LA
the expression “circular CU
IR SED PRODUCT
economy” was often REA LIF
ustainable inputs
S C INC E
only mentioned in Inputs from renewable sources, reuse,
reference to the waste recycling
TS
PR
PU
OD
sector
IN
UC
BLE
TA
Increased product life
SUSTAINA
SA S
Through modular design, predictive
maintenance, etc.
USE
ERVICE
1.2 The circular economy vision haring
S
SED
Shared use
Until a few years ago, the expression
EA
“circular economy” was often only
CR
mentioned in reference to the waste roduct as a service
P
VA
IN
sector, whilst today it is commonly Providing customers with a service
EN
D G
OF IN
L
understood to mean a substantial rather that a product R
U
LIF HA
E
reappraisal of the economic model in its R E S
E
C
entirety, starting from the initial phases nd of life
E O
VE
(see paragraph 2.1, Definition and scope RY
Recovering value via upcycling, reuse
of the circular economy). and recycling1. CIRCULAR CITIES: WHAT IS THE STATUS? | 13
When scaled up, this
transformation, in addition to
the obvious economic and EMISSIONS
environmental benefits, can also
Renewable
lead to the creation of new jobs
and services ENERGY EXISTING STOCK
MATERIAL
To generate an impact on the final part
of the value chain, it is still necessary WASTE
to start with the earlier phases and
systematically analyse where we
can increase flow circularity. When
scaled up, this transformation, in
addition to the obvious economic and
environmental benefits, can also lead to Recycle
Repair / Sharing
the creation of new jobs in sectors such PaaS Maintain Remanufacture
as manufacturing, reuse, repairs and Regenerate
services – activities which generally call
for close proximity with clients, and can
therefore represent a further opportunity
for development at the local level.
COMPETITIVENESS
ENVIRONMENTAL
IMPACTS
NEW SKILLS/JOBS1. CIRCULAR CITIES: WHAT IS THE STATUS? | 14
1.3 Governance The fact that public-private collaboration Governance, together with
and open (i.e. transparent and
Governance, together with strategy and strategy and lines of action,
participative) governance can enhance
lines of action, is an essential hinge in the effectiveness of economic models is an essential hinge in
implementing a transition towards the emerges recurrently. This is explored in implementing a transition
circular economy. Designing a model further detail in the following section.
that makes it possible to manage
towards the circular economy
and lead this change is crucial, from
strategy definition to implementation.
Indeed, different models generate
different impacts on the decision-
making processes and on actions, and
they influence, to varying degrees, how
decisions are carried out4.
4
K
ate Raworth, Creating City Portraits: A Methodological Guide
from the Thriving Cities Initiative, July 2020.2. Realising the circular
transformation2. REALISING THE CIRCULAR TRANSFORMATION | 16
Realising the circular to progressively break up – in terms of
time and space and through a series of
transformation intermediate steps – a wide and long-
term vision into a sequence of targeted
actions.
2.1 Definition and scope
of the circular economy
2. Many local institutions from across the
world are currently grappling with the The first step is to define what we mean
implementation of measures to bring by “circular economy”. In some cases,
about an effective transition towards a you start with specific areas (often the
circular economy model. The solutions first sector concerned is waste or water),
and approaches adopted can differ to then gradually expand the approach. In
significantly: such differences are due in other cases, you start from a wider, more
part to the specific situations and in part strategic vision.
to different definitions and visions of the
circular economy. Realising a Despite there being a variety of
transformation of this magnitude different paths to take depending on
requires a multitude of conditions, all of the contingent situations, the starting
which need to be analysed in an point must be the definition of a circular
integrated manner since they are economy vision that encompasses
insufficient taken one by one. The the entire urban context: this enables
Paris, a fine example of the circular economy in an urban setting.
challenge is also to combine a new, an effective transformation, towards a
radical vision in the medium term with a situation where the interests of both
series of precise, specific and citizens and stakeholders converge (the
incremental initiatives. To do this, a cities of Amsterdam5 and Paris6 provide 5
To find out more
systematic, shared approach is needed excellent examples of this). 6
To find out more2. REALISING THE CIRCULAR TRANSFORMATION | 17
The circular economy cannot be identified 2.2 A circular economy strategy Defining a clear strategy and objective The circular
with a specific sector or a single phase creates a general framework that supports
Since effective action is not possible economy
of the value chain, because it represents the commitment and collaboration of
an overall vision and is an approach to unless the issue is tackled in a systemic all the parties involved and, as we will represents an
reappraising the entire economic model. and structured way, a circular economy see later, is necessary to ensure all overall vision and
strategy requires an approach that stakeholders are engaged.
includes:
is an approach to
If the objective is indeed transformative,
whichever sector you start from, the An ambitious medium- and long- reappraising the
approach must inevitably encompass the a n overview of the sectors and areas term vision is essential to generate entire economic
that make up the urban context and an
entire value chain: to have an impact on the right level of engagement from model
the issue of waste management and to assessment, as far as is possible, of all interested parties, whilst stable
achieve noteworthy results, you cannot flow levels; leadership is fundamental for the coherent
merely intervene at the final recycling implementation of the strategy.
phase, but must go all the way back to the a n understanding of which sectors are
design and production phases. Similarly, the priority for intervention activities; From this standpoint, Paris and
to reduce the consumption of materials Amsterdam are once again outstanding
and energy from non-renewable sources, t he definition of the objectives to be examples of well-developed plans that
on the one hand it is necessary to target achieved in the medium-long term. incorporate these two requirements.
the resources used, moving from non-
renewable to renewable sources or to
recycled inputs, and on the other hand it
is essential to promote reuse, sharing or
Product-as-a-Service models.
7
Circle Economy, The Role of Municipal Policy in the Circular Economy, 2020.2. REALISING THE CIRCULAR TRANSFORMATION | 18
2.3 Where should
the control room be? Scenarios
As of today, the question regarding where 1 Top management Assigning responsibility to a specific area
(typically the one focused on environmental,
best to locate the management of the
development or finance aspects). A vision
circular economy is still up for debate
Circular which is too sectorial might be considered the
within all sectors: institutional, corporate, Division 1 Division 2 Division #
Economy weakness in this solution
academic, etc.
The crux of the problem is that the circular 2 Top management Assigning responsibility to a specific area
but in collaboration with other areas that are
economy represents a cross-sector
considered pertinenti. Compared to the previous
approach, so assigning responsibility for it
Circular solution, this approach may help to render the
to a specific sector significantly limits its Division 1 Division 2 Division #
Economy circular policies more coherent and effective.
range of operation and, as a consequence,
its effectiveness. There are many different
possible solutions, each with its own 3 Top management
Creating a control room that reports to top
management. This overcomes the cross-sector
strengths and weaknesses.
Circular issue and problems stemming from a lack of
Economy
overarching vision, but introduces a new problem:
Division 1 Division 2 Division # a potential lack of decisiveness within each area
There are many of activity.
different possible
solutions, each with 4 Top management
Hybrid solutions, for example a control room
that reports to senior management but which
its own strengths and Circular also has a light, cross-sector structure that
Economy
weaknesses ensures representation of all the key areas,
Division 1 Division 2 Division # thus facilitating the realisation of the strategies
defined centrally.2. REALISING THE CIRCULAR TRANSFORMATION | 19
2.4 Planning: top-down example, requiring one sector’s waste scaled up through Circular Procurement. Broad participation
or bottom-up? to be used by another sector as material Finally, there are specific intervention
in strategy
input, support for the repairs sector or the models at the local level: linked to the
The circular economy may be conceptually use of renewable sources. identification of lines of action and of the definition
developed according to two different main projects to be implemented in the
guidelines: there are the more systemic Furthermore, other intervention levers area, they can also serve as accelerators
projects which must be developed “top can have both a national and a local by supporting the transition and actions
down” and there are many projects, reach. A typical example is Green implemented by citizens and companies to
relating to more specific solutions, that Public Procurement – and its evolution foster circularity.
can be developed “bottom up”. into Circular Public Procurement –, an
initiative which pushes the supply chain To go back to a broader view and to
For this reason, having broad towards the achievement of circularity implement the vision of circularity on
participation in strategy definition and objectives8 by establishing certain criteria a larger scale, local efforts must be
maintaining engagement also during the for the assignment of public procurement integrated and included in a more general
implementation phase is beneficial, as it contracts. This type of initiative can collaborative framework, taking advantage
increases the potential associated with also have systemic effects: on the one of the collaboration between institutions,
both the above-mentioned lines of action. hand there is an impact on the entire the private sector, universities, research
In addition, there are many levers that chain of sub-contractors, and on the centres and citizens9.
allow entities to intervene in support other hand synergy may be created with
of the transition towards the circular similar proposals being implemented by
economy. companies. These are instruments that
have the potential to become an essential
At national government level, for driving force to promote the transition and
example, one can envisage a regulatory facilitate innovation.
framework that enables or supports the
implementation of innovative solutions Another key lever might be the 8
To find out more
– the so-called future-proof legislation – involvement of startups in identifying 9
Ellen MacArthur Foundation, Cities and Circular Economy for Food, 2019.
and which regulates opportunities; for specific solutions, which can later be Ellen MacArthur Foundation, Cities in the Circular Economy: The Role of Digital Technology, 2017.2. REALISING THE CIRCULAR TRANSFORMATION | 20
2.5 Stakeholder engagement: However, the circular model goes horizontal subsidiarity within the urban
the public-private collaboration way beyond the simple operational context, as well as the foundation for
transparency guaranteed by digital the development of business solutions
Given that the circular economy concept technologies to citizens and companies, designed to improve the quality of life in
itself is linked to the identification of and also tends to help to reshape the the cities of tomorrow.
synergies and closed loops between public-private relationship, taking it
sectors, it is vital to effectively engage all from an initial level of openness to For the public administration it is about
stakeholders. one of collaboration and co-creation superseding an organisational and
that is more mature and informed, management model that is typically
Amongst them, central and local public focused on innovation and sustainability. vertical, opting for an approach that allows
authorities and institutions are particularly Projects centred on electric car sharing for horizontal interaction with various
important, because the concept of circular or consumers choosing energy from parties, public and private, during the
city does not end with the technological renewable sources, for example, do planning and management of state-of-the-
modernisation of infrastructure alone: not stem exclusively from companies’ art services. This greatly accelerates the
it demands a complete redesign of all offerings, but require the existence of evolution of the urban system towards
the phases and activities inherent in the conditions that not only do not prevent distributed governance10, which is more
urbanisation process. The creation of citizens from pursuing a shift towards new effective in terms of facilitating the city’s
digital infrastructure and new technologies models based on reuse and recycling, but, circular development and encouraging
facilitate more transparent and interactive where possible, actively incentivise them contributions from all stakeholders, and
city planning and management to fully embrace this evolution. especially companies.
mechanisms, in which the participation
of citizens plays an increasingly important Based on this rationale, the public-
role, both in the ascending phases private collaboration is no longer one of
(definition of policies and incentive the many enabling factors for a model
mechanisms) and in the descending of more sustainable development and 10
he term “distributed governance” was coined by Stephen
T
phases (expressing consensus on planning more inclusive growth. Instead, it has Goldsmith and Neil Kleiman in A New City O/S: The Power of
or redesigning the city in a circular sense, become an essential cornerstone of Open, Collaborative, And Distributed Governance, Ash Center
Series, Innovative Governance in the 21st Century, Brookings
as well as on its functioning). the circular paradigm, allowing the Institution Press, Washington, 2017.2. REALISING THE CIRCULAR TRANSFORMATION | 21
Because levels of intervention activities 2.6 Metrics and objectives with emissions exists for the issue of
can vary significantly, it is necessary decarbonisation, a single indicator for the
to find solutions that allow for all Metrics are as important as they are circular economy does not exist: in line
stakeholders to be engaged in a coherent complex. Given that goals can be with the definition of circular economy
project whilst simultaneously giving set and improved upon only if they as the decoupling of economic activities
everyone a sufficient amount of freedom. are measurable, metrics cannot be a from the consumption of energy from
secondary aspect but must instead be non-renewable sources, a variety of
The collaboration of different stakeholders an integral part of the strategy. Indicators values must be analysed relating to both
is essential in the pursuit of more must be selected so they are coherent the cycle’s input, design and closure
ambitious objectives; furthermore, and functional to the strategic objectives phases and the mode of use.
given the closeness between policy and must represent their progress, so as
makers, companies and citizens at city to ensure that the achievement of the With respect to including metrics in the
level, it can be another useful factor targets associated to them leads to the overall strategy, there are a number of
in driving the transition. For example, attainment of the objectives themselves. possible approaches that are increasingly
local administrations can encourage structured depending on the level of
circular companies by providing them Many indicators can be associated with ambition and engagement:
with incentives or by removing subsidies different aspects of the circular economy,
that favour the consumption of energy but a one-size-fits-all approach does not o ahead with the first phase without
g
from non-renewable sources, or even exist. What matters is that the totality recourse to a metrics system, waiting
by defining clear roadmaps towards of the monitored values represents a until the following phase before
circularity. In turn, companies can test genuine decoupling of economic activity doing so;
new circular business models and from the consumption of energy from
facilitate skills adjustments. Finally, non-renewable sources: adopting values identify one or at least a few high-level
citizens can also contribute by changing and indicators that are scarcely relevant, indicators, which may be considered
their consumption habits and behaviours11. or even incorrect, can lead to choices that representative in the context;
take you away from the circular economy
rather than towards it. Furthermore, a dopt a structured metrics system since 11
orld Economic Forum, Circular Economy in
W
whilst a final indicator associated the beginning. Cities, op. cit. (see footnote 1, page 10).2. REALISING THE CIRCULAR TRANSFORMATION | 22
Whichever approach is adopted, if a 2.7 The role of innovation 2.8 Awareness and participation
metrics system is identified, it is always
useful to define one or more short- and Innovation is the engine of the circular The critical environmental protection
medium-term objectives, in order to then economy: this transition cannot be issues that have arisen in recent years
monitor their progress and, above all, to achieved simply by optimising the existing are now well known, from the climate
identify any necessary corrections and model, and instead requires careful crisis to pollution to waste disposal.
define the next steps in the strategy. rethinking of its every facet. This includes However, there is often a lack of
the technological, organisational and shared understanding regarding the
Metrics are a central aspect in the business model aspects, in addition to approaches and solutions that need to be
transition towards the circular economy on any specific solutions that call traditional implemented. In this context, the circular
which Enel has placed significant attention consumption attitudes into question. economy risks being perceived as a
right from the outset. Indeed, in 2017 Enel Some of these aspects develop at a concept that is evocative, but vague.
developed and published a theoretical national or international level, whilst
reference model that contributed to others have a more local dimension but For this reason, supporting and facilitating
advancements on the subject on the must still be seen under the light of open wider awareness of the issues relating to
international level and, more recently, has innovation. circularity, in terms of both the problems
defined applicative models that also focus and the potential solutions entailed, is
on the urban context12. Let’s not forget, the leading role played by crucial to build consensus regarding the
companies in circular innovation has also commitment required and to create a
recently been highlighted by the European context in which everyone can actively
Commission in its Circular Economy collaborate and make a contribution.
Action Plan13. Promoting and supporting
innovation, with the goal of identifying
new ideas and solutions to tackle and
solve cities’ problems and challenges, is
one of the key drivers to encourage this
transition. 12
Enel, CirculAbility Model, 2017.
13
See footnote 2, page 10.3. The benefits
3. THE BENEFITS | 24
The benefits a completely different context, as if some
sort of experiment was being conducted
on a global scale (unfortunately, with
tragic events reminding us of how
serious everything really was).
Three issues, in particular, emerged
clearly.
3. 3.1 Cities’ circular recovery after
Covid-19 1. Transition towards a sustainable
economic model
The explosion of the pandemic at the
beginning of 2020 had a significant and The need to transition towards a
immediate impact on city life, and its sustainable development model, one environmental equilibria, from the
consequences will continue to be felt in that is compatible with the planet’s climate emergency to the destruction
the medium and long term. environmental limits, clearly emerged as of ecosystems, contributes to causing
the only possible solution, in the medium these kinds of phenomena. The dramatic
Recent events have helped to term – to prevent, as far as is possible, consequences of a pandemic of this type
consolidate people’s awareness – new major disasters (pandemics, effects increase our awareness of the potential
which was already growing prior to the of global warming, etc.) – as well as in the impacts linked, for example, to the effects
pandemic – of the need to transition short term, to limit the negative impacts of climate change.
towards a sustainable model, but also of cataclysms that are already inevitable14.
introduced new aspects that will have
to be taken into consideration in the As regards the medium term,
future. The early months of the year were without going into detail as to the
C40 Mayors’ Agenda for a Green and Just Recovery, July 2020.
origins of the current pandemic,
14
peculiar because they took us beyond
here is an endless number of scientific studies attesting to this. David Quammen’s
T
there is wide consensus15 on the fact
15
abstract reflection: most of the world’s Spillover: Animal Infections and the Next Human Pandemic (W. W. Norton & Company,
population suddenly faced daily reality in that destabilisation of the planet’s New York 2012) provides an informative, highly readable report on this subject.3. THE BENEFITS | 25
As for the short term, however, the day energy use; and the digital solutions With respect to this last point, it is worth Historically,
extension and fragmentation of logistical available to manage any difficulties – remembering that, historically, cities were
cities were the
chains, together with the systemic including financial ones – arising from the context where human civilisation
insecurity that was generated, have the economic crisis caused by the health developed thanks to the continuous context where
underlined the lack of resilience inherent emergency. exchange of ideas and knowledge, the human civilisation
in the current economic model. A different creation of initiatives and opportunities, developed thanks
model, one that is less dependent on 2. Cities as engines for development and constant innovation. It is important to
imported fossil fuels, goods and products remember that all this was made possible to the continuous
and that is more based around local The lockdown to which the vast majority thanks to the physical proximity between exchange of ideas
supply cycles and chains, renewable of the world was subject gave rise to people, enabling constant dialogue and and knowledge,
sources, the recovery of end-of-life new considerations regarding physical interaction. However, unsustainable
the creation of
asset value and so on, would guarantee interaction thanks to digitalisation, the development models combined with
increased resilience and adaptability. management of living and working spaces, rapid urbanisation have, slowly but surely, initiatives and
and the use of means of transport. created and intensified certain conflicts: opportunities, and
Moreover, from the point of view of a considering the importance of physical constant innovation
utility company looking at consumer These considerations also included, nearness for human interaction, there are
behaviour during the coronavirus more generally, the role of the city and problems related to low quality of life and
pandemic, it is obvious and almost goes its evolution. The possibility to work the impacts of negative environmental,
without saying that consumers spent remotely, together with the desire for economic and social factors.
more time at home, changing their larger green areas and the (already in-
purchasing habits and behaviours in progress) reappraisal of the “megacity” This conflict can also be found in the
response to their new needs. First and concept, have led to discussions on sprawled city model: the need for people
foremost, people became more aware of different solutions: from “sprawling to distance themselves from the city
different aspects: their domestic energy cities,” i.e. cities covering a wide area centre – so as to enjoy larger open areas
consumption; their need to monitor with suburbs made up of single, distinct and live in a more habitable context –
such consumption to limit costs, also by residential dwellings, to the more radical contrasts, from a number of perspectives,
seeking out energy-efficient solutions, idea of completely doing away with with issues relating to a lower quality
flexible and eco-friendly plans for day-to- physical nearness altogether. of life (travelling distances and times)3. THE BENEFITS | 26
and to impacts that are environmental In this context, rethinking mobility and
(increased emissions resulting from extra buildings will be crucial both for cities’
travelling and heating/cooling homes that life and for the environmental impact
are more isolated and larger on average), they will generate on a global scale. This
administrative (management of services is the direction taken by various cities
for a more widely dispersed city and (such as Paris and Amsterdam) that have
related costs) and social (reduction or made circularity the cornerstone of their
absence of the social fabric required for transition. There are many and various In this period, but also in the future, the
human interaction). different possible solutions and policies, modularity and adaptability of private and
but a particularly interesting initiative public buildings will become fundamental,
While obviously not conclusive thus has been conceived and developed in structural features: the evolution of work
far, these considerations highlight the Paris: the so-called Ville du quart d’heure methods will require a careful reappraisal
existence of needs that do not go as (Fifteen-minute City), based on the of how spaces are managed.
far as pushing for the city concept concept of reorganising urban areas to
to be superseded but do require its improve conditions for both people and Moreover, resilience will undoubtedly
reappraisal. The benefits connected the environment16. be one of the most important elements
with the opportunities presented by the to relaunch cities and breathe new life
urban dimension must be balanced with 3. Flexibility and liveability into their economies after the pandemic.
quality of life in terms of work-life balance Change will take shape in different ways,
(digitalisation plays a key role from this Given these emerging considerations, it depending on the specific solutions
standpoint), environmental health and seems plausible that public spaces will implemented to contrast the spread of
the creation of a social fabric. On the one become, by necessity, more versatile and infection: from the types of materials
hand these opposing forces guarantee flexible, but also healthier and greener. used to the design of technologies such 16
eveloped by Carlos Moreno, professor of
D
the city its key role, but on the other It is clear we need compact areas as heating, ventilation and air conditioning architecture at the Sorbonne in Paris, and
embraced by many cities in post-Covid times
they push for a return to a dimension where services are easily accessible, a (HVAC) systems. Circular cities, and even and by C40 (c40.org), the Fifteen-minute City
that is more conducive to liveability in its more flexible use of buildings (to avoid more so circular districts, will be capable initiative proposes a model where people can
satisfy all their daily urban needs, from work
broadest sense. gatherings) and a reduction in daily of greater resilience also in terms of to leisure, within fifteen minutes by bicycle
commutes to work. resources and their use, closing the loop or on foot.3. THE BENEFITS | 27
at the local level and avoiding some of FOCUS dramatic shift in consumer behaviour
the difficulties faced in these months, after a long period in which at least the
during which the lockdown plunged the world’s wealthier regions spent their
procurement systems of entire supply money on convenience, accumulation
chains into deep crisis. and the pleasure of eating, with no
consideration for the unsustainability
The challenges relating to mobility, a key Covid-19: new scenarios of production models. The pandemic
issue for cities in terms of both emissions for some sectors forced the global population back to
and traffic, will not be met simply by Maslow’s hierarchy of needs: food
reducing commuting through digitalisation. as an essential good, with local
A first important step, which is rapidly and nutritious ingredients, became
evolving, is the shift towards adopting the new norm. Kitchens have been
electric means of transport (both private and rediscovered as an important place
public) and the development of the related where families prepare and share
infrastructure, in addition to increasingly meals, revive the human interactions
widespread incentives to micromobility17. During the Covid-19 health emergency, that we had almost forgotten
shortcomings in the food supply due to the frenzy of daily life, and
Public transport in particular, which was system clearly arose in all phases of reconnect with each other through
also heavily impacted by the recent the supply chain. The need to radically food. Especially after the pandemic,
Covid-19 crisis, can rely on many review these systems, using a holistic the kitchen of the future will be The kitchen of the future will
alternative options – from rail transport to and systemic approach, is now increasingly regenerative: it will be a be increasingly regenerative:
electric buses to electric mobility within inescapable. place where ingredients are chosen to it will be a place where
Mobility-as-a-Service or sharing models The impacts of the coronavirus further sustainable food choices and ingredients are chosen to
– and it will play a central role in reducing pandemic on the food supply systems used responsibly to reduce waste. further sustainable food
congestion in city centres. can be grouped into three main areas: With respect to the urban area, choices and used responsibly
domestic, urban and agricultural. redesigning cities’ food systems to reduce waste
Starting with the domestic area, means reshaping habits while still
17
To find out more first and foremost we witnessed a guaranteeing the food purchased3. THE BENEFITS | 28
relationships between farmers and ublic transport, short-term car hire
P
final consumers. A shift that can only and car sharing all saw drops of
occur with the support of a profound 60% to 90%, with a bleak outlook
change in mentality. for the long term if targeted support
Incentives and the so-called “pop-up cycle lanes” (which are temporary is not put in place. However,
routes that serve as “safety lanes”) have emerged as one of the first micromobility sharing, with
emergency measures adopted in various European cities priority road lanes, could provide
a way to meet user demands: for
example, incentives and the so-
The drastic and dramatic change called “pop-up cycle lanes” (which
by citizens and consumers is safe. the value of food and to reconnect currently underway, as a result of are temporary routes that serve
Local food banks, vertical farming and with those who produce, distribute the coronavirus, has triggered many as “safety lanes”) have emerged
closer ties between urban centres and process it, as well as with transformations. as one of the first emergency
and their hinterland are just a few the people they share it with. The measures adopted in various
examples of the solutions being pandemic shone a light on the e have understood that it is
W European cities.
developed. The pandemic also hit dysfunctions in the current food beneficial to change positioning and
canteens and restaurants, while data supply chain (harvesting, transport, business model during this phase. uring this period, working from
D
in the Nielsen report (regarding the distribution and storage): waste and Although this is a period of growth home (remote working) has
2020 Spring Festival in China) point losses increased, putting the security for certain sectors – particularly the quickly become more widespread
to the flexibility and resilience of the and work of farming businesses at food, digital, delivery, health and in companies and public
retail sector. Figures are similar in risk as well as compromising food telecommunications sectors – many administrations, giving rise to a
Italy: local shops and the growing quality. This obvious lack of resilience others are suffering greatly: think number of critical issues: from
collaboration with digital platforms and flexibility in the supply chain of tourism and events, automotive the availability of remote work
provide communities with essential underlines the need for a deep (and therefore fuel production and devices and suitable network
points of reference. analysis of the food sector, calling for distribution), culture and leisure, infrastructure to the repurposing
Finally, regarding agriculture, the a radical shift – away from centralised catering and manufacturing, as well of domestic spaces to enable the
prolonged lockdown provided the systems towards disintermediation, as sectors providing products and coexistence of various work and
world with an opportunity to relearn decentralisation and direct services to companies. study activities within the family3. THE BENEFITS | 29
the opportunity to digitalise their to facilitate the recovery we have UQUIDO offers augmented reality,
relationship with clients, reaching supported a number of startups, Internet of Things and artificial
out to them via e-commerce. which we believe are developing intelligence solutions to improve
solutions that will be important to customer experience in the
To support Italy’s recovery, Intesa meet the challenges we mentioned. retail sector, both in person and
Sanpaolo has prepared a series of We have selected and supported remotely.
concrete measures to accelerate two we consider to be particularly
and facilitate the transition of interesting for the world of work. SISTEM-EVO provides software for
families and companies out of the setting up intelligent chatbots that
emergency phase and into the BEACONFORCE offers a digital can digitally respond to customers.
relaunch and recovery. In addition solution that uses an algorithm to
to extending lines of credit and analyse employees’ motivation and ULISSE has invented a device that
The retail sector – after a sharp drop in in-store providing government-backed engagement on a daily basis. is able, through computer vision, to
sales – has seized the opportunity to digitalise their loans, the Group’s initiatives include track customers’ movements inside
relationship with clients, reaching out to them via providing a total of 50 billion euro of YOBS is a remote recruiting platform a shop and regulate accesses
e-commerce credit for the country and 10 billion based on artificial intelligence, a in order to comply with physical
euro dedicated to the Programma support tool for HR offices to screen distancing protocols.
Sviluppo Filiere (Supply Chain and select applicants and create
context, to managers’ ability to Development Programme). We teams. ZEROGREY/KOOOMO is a digital
supervise and assess their teams’ also continue to support innovative platform that strives to become
work remotely. startups, some of which are During these months we have also a one-stop-shop by enabling
involved in sectors and business worked with six innovative startups in access to a multitude of global
If, on the one hand, local shops’ models that are driving a substantial the retail sector. marketplaces.
revenue has grown much more transformation in response to the
quickly compared to large pandemic. MEDIATE has developed a QBIT is a platform that uses virtual,
supermarkets, on the other hand small, motorised robotic trolley augmented and mixed reality to
the retail sector – after a sharp This crisis represents an opportunity that performs home deliveries transport customers into a 3D
drop in in-store sales – has seized to drive innovation, and in order autonomously. e-shop.3. THE BENEFITS | 30
During this phase, some circular economy. Alameda Arup is supporting StopWaste in occupation, both for existing and new
entrepreneurs need to reposition comprises 14 cities located in the creating a checklist for the evaluation buildings, as a priority. The idea of
The idea of their business, understand how to eastern region of the San Francisco of the potential additional effort the “adaptive reuse” must prevail over
“adaptive reuse” shift towards the sectors that can Bay Area and is one of the few conversion activities may require demolition and new construction in
must prevail over best tackle the crisis and maintain members of the Ellen MacArthur and of the necessary measures to order to satisfy the market’s demand
demolition and a good level of competitiveness, Foundation’s network of circular encourage such activities. In the for different uses. Where possible,
new construction in or transform their activity in an cities that represents small local meantime, the county of Alameda vacant houses should be completely
order to satisfy the innovative way. The pandemic governments. StopWaste focuses has understood that the presence transferred to sites where there is a
market’s demand for emergency must be seen as a on energy, water and all types of of a well-consolidated network of demand for them, and new buildings
different uses transformation spiral that will never waste, including conventional solid in-city areas could provide a suitable should be designed to be flexible and
take us back to what was normal urban waste. response to the need to repurpose adaptable, so that they can be used
previously but will instead give us buildings during periods of crisis. for different purposes in both the
the opportunity to discover new The emergency made it all the more short and the long term.
dimensions for development. evident to the agency that buildings As far back as 2018, StopWaste
need to be able to “adapt” and be identified local administrations as
reused for different purposes. For leaders in the transition towards
example, converting empty parking a circular built environment,
facilities and office spaces (now providing planning, permits, financial
vacant as a result of remote working) incentives and training for owners
The current Covid-19 pandemic has to residential use can help to alleviate and developers. This led to the
forced all sectors, including the the critical need for new housing development, jointly with Arup, of
urban construction sector, to in the San Francisco area. These a primer for local administrations:
reassess their situation. In this resources are often located in urban Circular Economy in the Built
context, Arup opened a centres close to communication Environment: Opportunities for Local
conversation, among others, with routes and other services, thus Governments 18. Focusing on a very
StopWaste, a public agency that is reducing the demand for additional localised scale (single buildings), the
supporting Alameda county, in infrastructure to reach less built-up document by StopWaste and Arup
California, in its transition towards a areas that are further away. presents the increase in use and 18
To find out more3. THE BENEFITS | 31
3.2 Impacts on competitiveness focuses on maximising their potential, Focusing on maintaining the value of materials
and the adoption of new business models
and resources, improving the use of renewable
Creating new job opportunities, like sharing and Product-as-a-Service (see
supporting the development of new paragraph 1.2, The circular economy vision) sources and fostering strong interest for
companies and attracting larger to offer citizens solutions that are both more innovation, the circular economy could generate
investments are the challenges that competitive from an economic standpoint economic opportunities
cities are currently facing and that will and environmentally sustainable.
be crucial for their development in the Essentially, circular economy solutions
coming years. The overall economic should base their competitiveness on the
transition is hitting many companies following key drivers.
also within the urban fabric. A complete
assessment of the economic potential
of the circular economy is yet to be
carried out, but the general underlying ransition to more competitive
T est use of goods: many
B
principle is well understood and shared: sources for energy and goods and products in cities are
by focusing on maintaining the value of materials, for example by underexploited, from business
materials and resources, improving the supporting the adoption of buildings (offices and spaces used
use of renewable sources and fostering renewable energy sources. for work purposes or financial
strong interest for innovation, the circular transactions) to vehicles to
economy could generate economic roducts designed to extend
P infrastructure. Although there are
opportunities for large corporations, their useful life and easily sporadic actions already in place, a
small companies and individual recover their end-of-life value. systematic evaluation of the overall
entrepreneurs alike. untapped potential would lead to
euse of materials and
R further savings.
Economic opportunities derive, in products that are otherwise
particular, from the use of new renewable wasted.
and electrical technologies, a new
approach to designing assets thatYou can also read
