Policy case

Reduced use of virgin materials and/or an increase of the use of secondary and bio-based materials

Reduce Material Consumption (SDG12)

Visions and Ambitions

Reduced use of fossil fuel energy sources and/or increased use of renewable energy

Reduce Energy Consumption

Impact on increased knowledge and understanding as a result of the case study

Increase Awareness

The organics opportunity space refers to biological systems, organic products and materials, and the processes that relate to conserving and circulating organic materials at all stages of the value chain. Organics form part of the biocycle (as opposed to the technical cycle which includes metals and other non biodegradable materials) and requires different solutions to preserve nutrients at their highest value for re-entry back into the system. 


ORGANICS

Producing transporation equipment and providing services for thetransportation of goods and people

Transportation and Logistics

Engaging in discussions with government bodies and policymakers to push for regulations that support the circular economy

Advocacy for circular economy policy

Producing and providing business and consumer goods and services

Goods and Services

Participating in government programmes that support and advance the circular economy

Government programmes

Cycle strategies aim to cycle and reuse materials at their highest value: they maximise the volume of secondary materials re-entering the economy, ultimately minimising the need for virgin material inputs and therefore also narrowing flows. Of course, virgin materials will always be needed to a degree: all materials degrade and can’t be cycled infinitely, use energy, and require blending with virgin materials to maintain strength and functionality.

Cycle

'Mobilise' sets the direction of and builds momentum towards long-term change, while also determining how this direction is determined and governed.

Mobilise

Impact on the availability of resources as well as their effect on living organisms, ecosystems, and components of the environment.

Ecological Impact

Roadmaps and strategies and targets

Extracting resources and processing them to produce materials for use bysociety

Materials and Fuels

Reduced green house gas emissions released into the biosphere

Reduce Emissions (SDG13)

Societal Services

Utilise waste streams as a source of secondary resources and recover waste for reuse and recycling

Use waste as a resource

Impacts on the social fabric of the community and well-being of the individuals and families.

Social Impact

Producing agricultural products and processing them into food and beverageproducts for consumption

Agri/Food

Minimise waste through diversion: Instead of sending waste to landfill, it is redirected into other industrial processes for handling, treatment, recycling, recovery, or reuse in various forms. 

Minimise waste through design: At the outset of a process of project, plan and design such that there is zero waste or minimal waste during production, use, and at end of life. 

Minimise Waste (SDG12)

Providing goods on the Internet, through mail order, or television, or providing goods in stores, including apparel, electronics, furniture, food and drug, etc.

Retail

A circular water economy reduces water consumption, reuses and recycles water and wastewater, and recovers materials, including heat and minerals, from water and wastewater to not only mitigate greenhouse gas emissions but also enhance resilience to climate change. A circular water economy preserves the health of water ecosystems using context specific approaches. 



WATER

Work together throughout the supply chain, internally within organisations and with the public sector and communities to increase transparency and create joint value

Team up to create joint value

Scalability

Impact on the ease of innovation, and facilitating uptake of innovations

Innovation

The Value Chain opportunity space covers the activities of businesses across the whole value chain in the creation of a circular city that aids circular consumption. Municipalities create enabling conditions for businesses to offer circular products and services, and can become familiar with the range of solutions available to businesses that will encourage circular consumption and production in their locale. 

VALUE CHAINS

Impacts on the financial condition of a company, as well as the the economicconditions of its stakeholders and on economic systems at local, national, andglobal levels.

Economic Impact

Waste is often the entry point for discussing a circular economy. However, in a fully circular economy, waste does not exist as it has  been designed out of the system from the outset, either through avoidance (reduction of materials) or because outputs are such that they can be re-used as inputs into other production and consumption processes. Studying existing waste streams allows us to trace the problem back to its source and design an appropriate intervention. 

WASTE

Reduced use and withdrawal of water and rate of recycling and reuse of water

Save Water (SDG6)

Contributing to the improvement of biodiversity including species diversity, total number of protected species, and ecosystem health

Biodiversity

Impact on the quantity or quality of jobs, and shifts in the labour market

Jobs

Extracting and gathering wood through forestry and producing wood and paper products

Wood and Paper

Impacts

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Industries

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A framework of policy instruments that enabled and encourage the transition to the circular economy

Policy Instruments

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A framework of policy instruments that enable and stimulate the transition to the circular economy

The principles of a circular economy concern designing out waste, regenerating ecosystems and keeping items in use. Decoupling the economy from material flows—improving the rate of resource productivity faster than the economic growth rate—is also a consistent guide. By evolving with the growing number of applications of circular economy principles, and consolidating these strategies across thematic areas, Circle Economy’s Key Elements Framework (KE) renders the elements of the circular economy salient and serves as a basis to derive contextual strategies and interventions. 


The Framework consists of:
- Core Elements: Activities directly handling product or material flows; and uniquely,
- Enabling Elements: those that remove obstacles for core actors.


Key elements of the circular economy

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Circle Economy's framework of strategies and activities that define the circular economy

Urban Opportunities

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Based on the work of [Bocken et al. (2016)](https://www.researchgate.net/publication/309699661_Product_design_and_business_model_strategies_for_a_circular_economy), the Four Flows Framework serves as a simple framework for managing resource flows in a circular economy by using less (Narrow), using for longer (Slow), using again (Cycle), and using clean, regenerative materials and energy (Regenerate).

These different principles of circular economy can be applied to our socioeconomic metabolism: we can design stocks like buildings, infrastructure, machinery, and vehicles to be rich resource mines for the future, and design manufactured goods and consumables to be cycled and made regenerative. Furthermore, the focus must also centre on getting more value out of fewer materials. Achieving the aims of a circular economy—minimising material use, regenerating the Earth, and preventing material losses—can be done through these four key strategies mentioned above.

Source: Circle Economy. (2023). *[The circularity gap report 2023](https://www.circularity-gap.world/2023)* (p.22). Amsterdam: Circle Economy. 

Four Flows Framework

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The Finnish Roadmap to achieve a Circular Economy goal is to create a shared mindset in Finnish society to promote the circular economy and determine the most effective means to do it. 
The Roadmap focuses on 5 focus areas, topics that will initially be used in advancing the circular economy in Finland. Based on Finland’s traditional strengths, these topics include a sustainable food system, forest-based loops, technical loops, transport and logistics, and joint actions.


The world’s first road map to a circular economy has been published. “Leading the cycle – Finnish road map to a circular economy 2016-2025” outlines the steps to sustainable success.
Finland has a real opportunity to create sustainable well-being and a successful carbon-neutral circular economy over the next 5 to 10 years. The world needs pioneering solutions to ensure that economic growth and increased well-being are no longer based on the wasteful use of natural resources. A circular economy maximises the use of materials and retains their value in the loop for as long as possible: rather than offering products, the foundation for earnings will be services and intelligence-based digital solutions.
The road map provides Finland with new ways to increase the creation of added value.
What new solutions will Finland offer a world challenged by climate change, dwindling natural resources and urbanisation? Read a news item about publication of the road map here. Download the full report here.
Do you need a summary of the road map? Have a look at the road map flyer and infographic. 

Finland

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Government of Finland

Sitra

The&nbsp;Finnish Roadmap to achieve a Circular Economy&nbsp;goal is to create a shared mindset in Finnish society to promote the circular economy and determine the most effective means to do it. The Roadmap focuses on 5 focus areas, topics that will initially be used in advancing the circular economy in Finland.

Finnish road map to a circular economy 2016-2025

Business case

 Develop research, structure knowledge, encourage innovation networks and disseminate findings with integrity


Strengthen and advance knowledge

Engage with the government on circular policies and programmes

Government collaboration

Circular Economy in school programmes

Integrate principles of circularity into primary, secondary and tertiary curriculum and conduct workplace trainings

 Education and Curriculum

Extra-curricular education

'Inform' increases the overall levels of awareness and builds the necessary skills and knowledge around the circular economy to foster long-term change.

Inform

We want to challenge the entire educational sector to consider what type of world we want to create. An effort must be made to ensure that every sector has experts in the circular economy. We need professionals who are educated in lifecycle thinking and extensive co-operation and who understand that economic growth in a circular economy is not dependent on the consumption of natural resources.
The circular economy makes it easier to observe our constantly changing world comprehensively and offers a good foundation for lifelong learning and the education of new professionals.
We want future experts to be able to combine circular economy expertise with their own competence. We believe that when today’s school pupils are ready to enter employment, the debate about the circular economy will no one longer exist; the circular economy will be the only way of operating.
What was achieved?
We co-operate with all levels of education to ensure that circular economy thinking reaches as many Finns as possible. Together, we will provide future experts with the tools they can use to build a sustainable future and new business.
We developed and tested the learning materials and courses together with all educational levels. Over 70 000 children and young all around Finland studied the circular economy in 2018-2019.
Who participated?
Sitra funded the projects, and the project managers on Sitra’s side were Nani Pajunen and Riitta Silvennoinen. We co-operate with over 50 schools, universities, educational organisations and companies.
Colleges and vocational colleges: Espoon seudun koulutuskuntayhtymä Omnia, Etelä-Kymenlaakson ammattiopisto, Länsi-Uudenmaan koulutuskuntayhtymä Luksia, Lounais-Suomen koulutuskuntayhtymä Novida, Saimaan ammattiopisto Sampo, Savon ammattiopisto Sakky, Stadin ammattiopisto, Suomen ympäristöopisto SYKLI, Vantaan ammattiopisto Varia
Universities of applied sciences: Centria-ammattikorkeakoulu, Haaga-Helia, Hämeen ammattikorkeakoulu, Kaakkois-Suomen ammattikorkeakoulu, Karelia-ammattikorkeakoulu, Lahden ammattikorkeakoulu, Lapin ammattikorkeakoulu, Laurea, Metropolia, Oulun ammattikorkeakoulu, Savonia-ammattikorkeakoulu, Seinäjoen ammattikorkeakoulu, Tampereen ammattikorkeakoulu, Turun ammattikorkeakoulu, Vaasan ammattikorkeakoulu, Yrkeshögskolan Novia
Universities: Aalto University, the University of Helsinki, the University of Eastern Finland, the University of Jyväskylä, Kokkola University Consortium Chydenius, LUT University, the University of Oulu, TTY University, the University of Tampere, the University of Turku, the University of Vaasa, Yale University.
Other educational organisations: Helsinki Think Company, Heureka, Edupoli, Kouvolan Aikuiskoulutussäätiö, the Finnish Nature League, Nuori Yrittäjyys ry, Finnish National Agency for Education, Economy and youth TAT.
In addition many companies and cities participated in the projects.


Sitra, a Finnish innovation fund, recognises the importance of education in creating a new circular economy society. They highlight the necessity for creating a ‘new kind of expertise’ and facilitating collaboration between silos, with the aim of changing attitudes and methods of operation. To that end, Sitra has developed and provided a number of resources to educate circular economy experts. These resources include circular economy teaching materials for primary school, upper secondary school and vocational school, which aim to challenge the educational sector to consider the world we want to develop and the means of getting there: the circular economy. Due to Sitra’s initiative, which partners with over 50 schools, universities, educational organisations and companies, over 70,000 children around Finland studied the circular economy in 2018–2019.

Sitra's educational curriculum for the circular economy

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Circle Economy and ICLEI have partnered up to initiate the go to knowledge hub of case studies about the circular economy in cities. The Cities Collection is a repository of case studies that demonstrate the role of cities in the circular transition, and includes policies, business cases and research articles. Cases in the Collection flow into an ecosystem of digital products which support users in transitioning cities to circularity, for example [Ganbatte](https://ganbatte.world/cities/) and <a href="https://circulars.iclei.org/" target="_blank">ICLEI Circulars</a>, both part of the <a href="https://circulars.iclei.org/circle-lab-for-cities/" target = _blank">Circle Lab for Cities Programme.</a>

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Circular Cities

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Producing and gathering crop and animal products from land and water through farming, hunting, and fishing

Agriculture

Conduct research

Processing and producing food and beverages for consumption

Food and Beverage

Providing air, water, rail, and land transportation and related services for the distribution of goods, such as air freight, air courier and logistics services, maritime freight, marine courier and logistics services, rail freight, rail courier and logistics services, land freight, land courier and logistics services, including package and mail delivery and customs agents, as well as storage and warehouse facilities

Logistics Services

Businesses

Regenerate strategies phase out hazardous or toxic materials and processes and substitute them with regenerative biomass resources. A circular economy aims to mimic natural cycles—by shifting to more regenerative farming practices, for example—while also maximising the share of circular biomass that enters the economy. Regeneration can happen both at the systems level (by designing regenerative processes) as well as at the product level (by switching synthetic to organic fertilisers, for example).

Regenerate

**Harmonize with nature** by promoting infrastructure, production systems and sourcing that allows natural ecosystems to thrive




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The food system nourishes populations and employs 50% of the global workforce, but:
- it currently drives a quarter of the overshoot on the climate change planetary boundary due to its greenhouse gas (GHG) production, 
- animal farming alone uses over one-quarter of all land, equivalent to the size of the Americas,
- nearly a quarter of freshwater resources are lost due to rampant food waste, and
- it is the single largest driver of biodiversity loss.

A circular food system must address the whole value chain, from production to consumption to waste management. The four key solutions for the food system are:
- Put healthier, satiating foods first: Prioritise satiating and healthy foods with a lower environmental impact—ideally shifting calories from meat, fish, and dairy towards cereals, fruits, vegetables, and nuts.
- Go local, seasonal, and organic: Prioritise the production and consumption of local, seasonal, and organic produce (sometimes in combination with GMO to reduce pests and disease loss on crops), which can lead to a significantly reduced need for chemical inputs, fuels, and processing services that contribute to environmental impacts.
- Mainstream regenerative agriculture: Scale up agricultural practices that regenerate ecosystems, recirculate nutrients and sequester carbon by design. 
- End avoidable food waste: Minimise food loss and valorise waste following the food waste hierarchy along the supply chain and at the consumer level through better management of transport and storage, more refrigeration and smart planning, and technology at the consumer and food service levels.



🍏 Food Systems

Ensure renewable, reusable, non-toxic resources are utilised as materials and energy in an efficient way

Prioritise regenerative resources

Governments

The Circular City Actions Framework provides urban changemakers with five complementary strategies they can use to start working towards a more circular system. 

The framework is action-based to provide users with concrete strategic directions and showcase the desired outcomes of each strategy. 
The framework consists of five complementary **strategies**, under which **sub-strategies** provide further detail. Finally, each sub-strategy consists of a diversity of tangible **solutions** which are framed in relation to key thematic areas. 

Note: solutions are currently focused on:
- 🍏 **Food systems**
- 🏢  **Built environment**
- 👕📱  **Consumer goods**
- ⚡ **Energy Systems**
- 🚌 **Mobility Systems**
- 💧 **Water Systems**

More thematic areas are coming soon...

'Click through each of the five strategy cards below to explore the framework and circular economy case studies in more depth!'



This framework was developed in collaboration with ICLEI, Metabolic and Ellen MacArthur Foundation with support from the MAVA Foundation. Read more about it [here]( https://circulars.iclei.org/action-framework/). 



Circular City Actions Framework

An action-based framework for local governments working towards circular cities

Thematic Areas

City Stakeholders

          The aim of the project is to maximise the value of cyprinids by following the principles of circular economy   Cyprinids such as roach and bream are relatively underutilized fish, despite many ecological and economic benefits involved in catching them. By fishing cyprinids, it is possible to remove nutrients from water, reduce eutrophication and manage fish stocks. In accordance, domestic cyprinids are one of the most sustainable sources of animal proteins.
What is it about?
The South-Eastern Finland University of Applied Sciences and the Finnish Innovation Fund Sitra have together taken on a challenge to increase the value of cyprinids by following the principles of circular economy. In this regard, it is necessary to find solutions to the central issues of using cyprinids in industrial food production: availability, logistics and handling process. Related actions include improving the availability of fish mass for producers and using fish fractions, including fins as feed or value-added products. The project is part of a national road map pilot scheme published by Sitra: Domestic fish and the fish industry as the backbone for a competitive circular economy.
What are we doing?
The project will focus on improving the efficiency of logistics by identifying solutions that enable profitable transportation and collection of small and large catches of fish. In order to make the process effective, a digital system will be developed for sharing catch information between fishermen, government and transportation companies. The project also examines how cyprinids, in particular roach and bream, can be gutted automatically. This will improve the profitability and lower the price of the end product. Moreover, business models will be examined for enhancing the profitability throughout the value chain.
Who are involved?
The South-Eastern Finland University of Applied Sciences is responsible for the implementation of the project. The East Finland FLAG actively guides the activities of the project and distributes information about it to other groups of fisheries. The Finnish Innovation Fund Sitra is the primary funder of the project.    Eetu Karhunen
South-Eastern Finland University of Applied Sciences
RDI Advisor           The new Fisheries Act came into effect in 2016. According to it, it is mandatory for the commercial fishermen to report the catch data from inland waters to the authorities. South-Eastern Finland University of Applied Sciences Xamk has developed a mobile application for this purpose. With the app it is easy to notify authorities immediately...    
   

Kouvola

South-Eastern Finland University of Applied Sciences

The South-Eastern Finland University of Applied Sciences and the Finnish Innovation Fund Sitra have embarked on a project to maximize the value of cyprids by streamlining logistics processes. Cyprids are an underutilized but highly sustainable fish species.

Cyprids for sustainability in Southeast Finland

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This collection comes from the <a href="https://www.circle-economy.com/circular-jobs-initiative/" target="_blank">Circular Jobs Initiative</a>, an initiative of Circle Economy.

The workforce is an essential lever for transforming our economy from linear to circular. The Circular Jobs Initiative aims to maximise the employment opportunities offered by the circular economy. It provides practical support and insights to businesses and governments that want to adopt circular strategies that have a positive social impact.The Circular Jobs Initiative works through three focus areas: 

- Upskilling the workforce

- Quality of work

- Inclusive job opportunities 

CJI has defined circular jobs as any occupation that directly involves or indirectly supports one of the strategies of the circular economy. It distinguishes between three types of circular jobs: core, enabling and indirectly circular jobs.

**Core circular jobs** are all jobs that ensure the closure of raw material cycles, including jobs in repair, renewable energy, waste and resource management. 

**‍Enabling circular jobs** are jobs that remove barriers for and enable the acceleration and upscaling of core circular activities, including jobs that arise in leasing, education, design and digital technology. 

**Indirectly circular jobs** are jobs that occur in other sectors that do not play a direct role in furthering the transition to the circular economy but can still adopt circular strategies. They include jobs that provide services to core circular strategies, including jobs in information services, logistics and the public sector.

The Knowledge Hub Collection includes examples of circular jobs, publications, reports, case studies and policies different organisations, governments and businesses are already using to advocate for a person-centred circular economy. 

Visit the <a href="https://www.circle-economy.com/circular-jobs-initiative/" target="_blank">Circular Jobs Initiative</a>

Visit the <a href="http://jobsmonitor.circle-economy.com/" target="_blank">Circular Jobs Monitor</a>

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Circular Jobs Initiative

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Article / Report

Solidify definitions and create frameworks to support the understanding of the circular economy across contexts and maintain cohesive systems of data sharing, processing and storing.


 Knowledge Management

   © Annamarie Rizzello   Ghent aims at realizing more green areas in response to climate change and actively seeks citizen involvement to achieve this. This is in line with the city being very social and creative with many citizens actively developing bottom-up initiatives. Many of these small scale projects however have difficulty developing into a successful project through the available financing mechanisms. Therefore, Ghent has developed a crowdfunding platform that allows citizens to propose and finance their ideas for the city.
Today, two projects addressing climate adaptation have been successfully realized with support of the crowdfunding.gent platform; one project encouraging urban farming and the other realising edible streets. The projects might seem small when it comes to addressing climate change challenges. However, the crowdfunding platform is found to be an excellent instrument to realise small ‘drops’ of climate adaptation measures that have the opportunity to generate larger ripple effects.   Ghent, like many cities in North West Europe, is faced with the impacts of climate change. The city is experiencing negative effects due to excessive rainfall and rising temperatures. The average temperature in Belgium has increased with 2.2 °C since the pre-industrial period (source: city of Ghent website). The average number of heatwaves in Belgium has increased from once every 3 years to once a year. The city of Ghent itself is experiencing problems with heat-stress. A study on the urban heat-island effects in Ghent has demonstrated that additional green areas can help in addressing these effects (source: Maiheu et al., 2013). The city is therefore actively developing policies to enhance its number of green areas. Examples of measures that are especially encouraged are green roofs and urban trees.
To realise these measures Ghent is looking for opportunities to actively involve its citizens. Ghent is a very social and creative city where citizens are actively involved in developing bottom-up initiatives. However, many of these projects have difficulty developing into a successful project due to a lack in financial means and know-how. While both the city and society have funds available, the challenge is to make these funds accessible for small scale projects. Mainstream funding mechanisms, such as subsidies or tax incentives, is less suitable for these types of projects due to the required knowledge and conditions involved. At the same time the city wants to stimulate co-creation partnerships rather than fully funding the initiatives. In addition, the city wants to ensure that the initiatives that do receive funding are supported by the community. The challenge for the City of Ghent lies therefore in developing an instrument through which small scale initiatives can be financed, while keeping it accessible and offering the opportunity to involve multiple stakeholders. The city of Ghent has set out to develop a policy instrument to support the facilitation of co-creation, including its application for climate change adaptation. The instrument should be able to generate wider (financial) impact compared to subsidies or tax-incentives. Co-creation entails the involvement of multiple stakeholders. These stakeholders should have the opportunity to either contribute financially, through volunteer time or advertising the project. All these elements are crucial to a project’s success. The objective for the city of Ghent is therefore to develop an instrument that allows for the identification of ideas from the community as well as contributing to their realisation.  Adaptation Options Implemented In This Case  The city of Ghent developed a crowdfunding platform that allows citizens to share their ideas and raise the necessary funds to realize them. Ideas can vary and include the increase of the city’s adaptation capacity. The person submitting an idea becomes a ‘project initiator’. This person needs to provide a short description and a funding goal for the project. People who provide financial backing to a project are known as ‘supporters’. Their minimum donation is €5. The donated amount per idea is viewed as an indicator of community support; only the projects with sufficient community support will become financially viable. The focus of crowdfunding.gent is on projects with a societal benefit, which sets the platform apart from other crowdfunding platforms. The platform was launched on March 16th in 2015.
Projects can be published on the platform through a straightforward process. Each citizen of Gent or person with an idea located in Ghent can submit a project by completing the crowdfunding.gent application form. The project becomes visible on the platform once it is approved by the platform manager, who is appointed by the city. He checks whether the project proposal meets a set of pre-defined requirements. Examples are “The project makes a positive contribution to the city or one of its neighbourhoods” and “The project must transcend individual interests”. The platform manager can provide feedback to applicants on how to enhance their project’s chance of success. The project is published once the applicant has made the necessary modifications. From this moment supporters can donate to the projects during a pre-defined period of time. Projects receive their collected donations within one month after the funding deadline as long as the amount is higher than €20. It is not a requirement to meet the pre-funding goal as past experience has demonstrated these projects can still be successfully implemented with a few amendments. In case of any modifications, the applicant is required to communicate to the supporters how their money will be spent.
Crowdfunding.gent additionally offers initiators the opportunity to apply for a municipal subsidy of the project. The city has provided a fund of €55.000 per year specifically assigned to the crowdfunding platform. The request for municipal funding needs to be indicated in the original application form. Initiators can choose to apply for 25, 50 or 75% of municipal funding. To be eligible for funding, the pre-defined amount of co-funding needs to be raised. For example, a project that has applied for 50% of municipal funding with a funding goal of €1000 needs to raise at least €500 in donations by supporters. This condition is a means for the city to ensure that the project has sufficient community support. Whether or not a request is honoured is decided by an independent jury consisting of local experts. Per project the maximum amount of municipal subsidy that can be obtained is €5.000. The amount of municipal funding is at all times based on the pre-defined funding goal.
So far two initiatives that have been submitted through the crowdfunding platform can be considered contributions to the city’s climate adaptation goals. These projects focus on sustainable food production and enhancing green areas. The first project “Lekker dichtbij!” establishes mini-gardens on balconies of social housing. Through urban farming more green areas are created contributing to mitigate extreme temperatures in urban areas. In addition, local food production reduces the need for long-distance transportation and therefore prevents an exhaust of carbon dioxide emissions. Urban farming also often requires less intensive agriculture as the farming is carried out on a smaller scale. In addition, Lekker dichtbij! enhanced social integration by stimulating cooperation between the residents from various cultural backgrounds. The project was successful in raising the pre-defined funding goal.
Another project, “the Edible Street”, set-out to transform the traditional stone facades into vertical gardens to create additional green areas while stimulating local food production. Similar to the “Lekker dichtbij!” project, it contributes to the enhancement of green areas and the reduction of carbon dioxide emissions. Although this project was not successful in raising the complete pre-defined funding goal, it was successfully implemented by scaling down the project. Instead of placing 100 planters in 5 streets, 88 planters were placed in 3 streets.
The small scale of the crowdfunding projects evidently only has limited impact in the context of addressing climate change adaptation. Indeed, these types of projects can mainly be seen as successes for the city’s ambition to realise more co-creation with citizens. Certainly, the crowdfunding platform seems an excellent way to realise small ‘drops’ in the context of climate adaptation that can generate larger ripple effects. Relevance  Case mainly developed and implemented because of other policy objectives, but with significant consideration of CCA aspects  Additional Details  Crowdfunding.gent was developed by the City of Ghent with the support of an existing crowdfunding platform developer. No other stakeholders were involved in the development phase of the process. The citizens of Ghent and private investors are considered end-users of the platform. They can participate as either initiator of a project or end-user. The City of Ghent has appointed one policy officer to manage the platform. The city’s platform manager functions as the person to connect to the end-users. He reviews the project applications, takes care of communication with the citizens and manages the contact with the platform developer. His activities do not include financial transactions or platform maintenance activities. Maintenance activities are carried out by the platform developer. With regard to the municipal subsidies, the city has appointed a jury of local experts. The final decision on the composition of this jury is taken by the City Council.
The platform mainly targets an online audience due to its set-up. However, ‘offline’ citizens do have the opportunity to reach the platform manager by phone or mail. He is available to fill-out the application form with them in person. A variety of communication channels have been utilized by City of Ghent to inform the citizens about the platform. These include flyers, the city’s official social media accounts and an article in the city magazine.   The crowdfunding platform has been successful in identifying ideas that are less suitable to be financed by subsidies. Reasons for this ineligibility can be the small amount of requested budget or a mismatch with the requirements or objective of existing subsidies. To ensure the maximum output, the city of Ghent did not define specific criteria that the projects need to meet. They rather focused on defining the types of projects they would not support. These definitions were then translated to a set of minimum conditions that the projects need to meet to be included on the platform. For example projects with a commercial aim or with an explicit religious, philosophical or political nature are not eligible for funding. Each application is manually reviewed by a policy officer to ensure the projects meet these requirements prior to publication.
The fact that the crowdfunded projects have the potential to create larger ripple effect is demonstrated by ‘the Edible Street’ project. The implementation of this project was quickly followed by a similar project in Kortrijk; Groene Straat (Green Street). This initiative finances the realisation of planters and other forms of ‘vertical green’ by offering bulk purchasing. The initiator based the project on a quick assessment of the core elements of the Ghent project that would allow a scaling-up of the project to a city level. The Groene Straat website describes 22 projects where additional (edible) green has been realised. Another project that followed the Ghent example is ‘Groenselare’ in the city of Roeselare, which started providing information to citizens on ways to create green facades after the city was named the most ‘grey’ cities of Flanders in 2014.
A limiting factor of this type of instrument is financial resources needed to build and maintain the platform. In addition sufficient man hours need to be made available for a city staff member to manage the content of the platform. Currently the City of Ghent has assigned one part-time platform manager. The platform is considered successful if 1 out of 3 projects reach their pre-defined funding goal. A 100% success rate would not be realistic as several success factors are beyond control of the city. For example, the project initiator is not necessarily an experienced project manager. In addition, it is difficult for the city to control the policy topics that the project proposals on the crowdfunding platform address. For example, more cultural than environmental projects were proposed in the first year of crowdfunding.gent. The use of crowdfunding as a policy instrument implies acceptance of the fact that the exact outcome cannot be controlled. On the other hand it offers a great opportunity to enhance innovation, cooperation and solidarity in a city.   The first year (2015) of the crowdfunding.gent platform has been successful in generating total revenue of €70.000. Of the total number of projects, 80% raised enough funding for implementation. So far 2 projects received an additional municipal subsidy. This subsidy amounted to a total of €1.480. The development of the platform involved both fixed and regular costs. Both costs have been covered by the city of Ghent. The costs were lower than the first year revenue collected by the crowdfunding projects. The specific IT-know-how necessary for the development and maintenance of a crowdfunding platform required the involvement of an external party. Next to the fixed costs, the city needs an internal project manager who can act as the central contact point on behalf of the city. This policy officer needs to be continuously involved in the project on at least a part-time basis in order for the project to run smoothly.
Private investors can become eligible to fiscal benefits when supporting a project of their choice. Organisations, such as companies, foundations, associations, are able to make a direct deposit onto the account of the project. This allows them to bring the expenses in as their tax deduction in a similar fashion as non-crowdfunding donations. A "regular" donation to a crowdfunding campaign is run through a platform account and therefore is not eligible for tax deductions.
The city of Ghent provides €55.000/year in funds to co-finance non-profit projects that achieve their funding goal through the crowdfunding platform. A jury of local experts takes the final decision on whether a project receives funding. The maximum amount of funding that can be assigned per project is €5.000. Projects that have successfully raised their pre-defined funding goal are still eligible for additional funding. An example is the project ‘Lekker dichtbij!’ This project ran for several weeks; it submitted its application in the spring of 2015, reached its funding deadline on June 14, 2015 and was implemented on June 19th, 2015. The project set €735 as its funding goal, but during the funding period it exceeded this amount by raising €822. The city of Ghent then co-financed the project for an additional €480. Even though the opportunity of additional public funding is offered, it does not seem to be an important motivator for project initiators to submit an application. In the first year of the crowdfunding platform only 2 projects applied for and received additional funding. Other benefits, such as publicity through the publication of the project on the platform, seem to be a more decisive factor in the consideration whether or not to submit an application.  Legal Aspects The system of the crowdfunding platform is set-up in a way that it runs financially independent from the city. The city of Ghent has hired an external contractor to develop and maintain the platform. All transactions concerning the donations are handled by this external developer. The municipal fund of €55.000 (per year) is handled by the external contractor to ensure that it runs smoothly. The decision on whether to assign additional funding is taken by an independent jury of local experts. Project initiators who have been granted additional funding need to meet a set of requirements with regard to justification of the money spent. Within 2 months and 1 year of the end of a project, the responsible for the project needs to submit 3 types of documents. These include invoices of relevant items, a report that demonstrates the funding was used for the agreed purpose and an overview of revenues and expenses of the project. In addition, the city has the right to check at the project implementation site whether the funding is spent appropriately. In case the funding is found to be misused, the city can place sanctions on the project responsible. These sanctions include a recovery of the assigned amount of funding or even to exempt the beneficiary of the funding from receiving any funding in the future. The detailed conditions are laid down in the ‘Subsidiereglement voor het cofinancieren van non-profit crowdfundingprojecten “Wijs van Gent”’ (or: Subsidy scheme for funding non-profit crowdfunding projects "Crazy about Ghent"), which is publicly accessible on the crowdfunding.gent website.  Implementation Time The necessary regulation to realise crowdfunding.gent was implemented on April 1st, 2015. It is evaluated every 2 years. The project “Lekker Dichtbij” submitted its application to the crowdfunding.gent platform in the spring of 2015. The funding deadline was reached at June 14, 2015. The project was implemented on June 19th, 2015. The project ‘The edible street’” reached its funding deadline around the same time. The first “planter-placement-day” was already held in May 2015, before the end of the funding deadline. The money that was raised through the platform was later used to reimburse the participants.  Life Time Crowdfunding.gent was launched in 2015 and will run at least till 2019. Reference Information Jelle MonstreyProject officer crowdfunding GentPolicy Participation officeCity of GhentStadhuis, Botermarkt 1, 9000 Gent (for correspondence only)Tel.: +32 (0)9 266 84 34E-mail: Jelle.Monstrey@stad.gent
Generic e-mail: info@crowdfunding.gent  Ghent crowdfunding platform  Please contact us for any other enquiry on this Case Study or to share a new Case Study (email climate.adapt@eea.europa.eu) 

International Institute for Sustainable Development (IISD)

In a just transition towards a circular economy means shifting towards an economy that is environmentally and socially sustainable. Research shows that a shift towards a circular economy creates great opportunities, yet it will require the creation of national roadmaps that comprehensively link system-led change visions with practical actions. In particular, the shift will need to consider a socially inclusive model. A recent study by Circle Economy (2020) further defines the circular economy according to a DISRUPT framework. According to this framework, circular jobs with increased material efficiency are designed for the future: they incorporate digital technology to optimise and track resource use, rethink business models, use waste as a resource, and enable teams to create joint value through collaborations with the public sector and new forms of circular procurement. The report looks at the labour market in terms of job impact and growth.