Policy case

Producing building materials and providing services to create residential and non-residential infrastructure and real estate


Construction and Infrastructure

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

Biodiversity

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

Save Water (SDG6)

Producing basic and specialty chemicals, inks, agricultural chemical such as fertilisers and pesticides, plastics including packaging, and rubber

Chemical and Plastic

Participating in government programmes that support and advance the circular economy

Government programmes

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

Societal Services

Grant funding

Measures to drain accumulating rainwater from rooftops, roads or other public surfaces and channel it into containers for multipurpose use. These include watering plants and crops, as an input into manufacturing processes, the establishment of public water features, or the introduction back into plumbing systems, Uses may include the application of filtration and treatment systems when needed. 

Manage rainwater

In the context of cities, regenerating ecosystems refers to the active protection of native habitats or the conservation and restoration of natural habitat analogues. Examples: reforestation and afforestation in urban contexts, protection of birds and local wildlife, management of green spaces, and removal of waste and plastic (or other anti pollution measures).

Regenerate ecosystems

Efficiency and effectiveness of water supply services must be secured by minimising the leaks, through a combination of leak detection techniques, pipes maintenance and reparation and water audits. Leak minimisation can be enhanced through the use of sensor technologies.

Minimise leaks

Other

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

Advocacy for circular economy policy

Wastewater (blackwater and water from industrial processes) can be treated and reclaimed for agricultural and industrial purposes. Moreover, depending on economic factors, wastewater treatments can be adopted for supplying domestic freshwater. 

Use wastewater

Derive chemicals and fuels from organic waste matter, for example, wasted fats, grease and oils can be used for biodiesel production. Food waste such as corn starch and sugar cane can be used for PLA (Polylactic Acid) to replace plastic packaging, liquid fats and solid meat products can be used as raw materials in the rendering industry (animal food, cosmetics, soap, etc.).


Derive fuel and materials

Locally produced food has to travel shorter, which means less fuel is consumed and less greenhouse gases are generated. Moreover, buying locally produced food helps local farmers and markets and creates more jobs in the local businesses. 


Produce locally

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)

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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Municipality of Budapest

The Budapest General Assembly created the Environmental Fund of the Municipality of Budapest with a decree in 1996. Its purpose is to help effectively the Municipality of Budapest performing environmental tasks as defined by law, specially to improve the environmental status of the capital. Within this, a high priority is to accomplish targets and action plans of the Environmental Fund by NGOs, condominiums, institutions, and also by citizens, which are approved by Budapest General Assembly. It is possible to win non- refundable aid from the Environmental Fund by competition. The aid is pre- funded and its intensity is max of 75%. The focus areas are reducing solid waste and improving air quality, the reduction of waste and, in particular, the massive use of plastic products for festive and promotional events (balloon, lampwork); increasing the efficiency and effectiveness of selective waste collection, adequate awareness of the harmful effects of residential waste incineration; strengthening the conscious and adequate water management approach; maintaining rainwater: self-contained rainwater retention and utilization inside the property; the creation, renewal, proper care of the green spaces in Budapest, the increase of biological activity, especially in areas badly equipped with green areas, creating a new green facade and green roof;proper composting of avar and garden green waste; garden-friendly garden, bird-friendly garden, insect facility; organizing and conducting programs for increasing civil and voluntary activity in the local protected natural areas of Budapest, creating and maintaining educational paths. A total of 61 979 thousand forints are available for the topics of the application.

Call for Proposals: Environmental Protection Fund 2018

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

Mobilise

Raise awareness and run information campaigns about  strategies for and impacts of the circular economy in different contexts.

Communication and awareness

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

Increase Awareness

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

Social Impact

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

Inform

Increase efficiency and promote local economic growth by shortening supply chains and connecting local producers to consumers.


Support local low-impact circular economies

Providing public and private education and support services at any level or for any profession, and governmental and public administration services, including judicial, regulatory, and legislative activities, taxation, defence, public order and safety, immigration services, foreign affairs and the administration of government programmes

Education and Government Services

Govern the Transition

Circular solutions do not occur by themselves, they require innovative businesses, multi-stakeholder collaboration and an enabling regulatory environment.

Circular and resource-efficient ecosystems are networks of local entrepreneurs and initiatives that innovate circular products and services. Such innovations can support the development of new and circular energy systems. The benefit of these ecosystems is that they encourage close collaboration of multiple businesses so that they can mutually benefit from each other. Another advantage is the potential to gain increased exposure to both investors and consumers through being part of a larger system.

Local governments can support the creation of such ecosystems by, for example, providing rent-free access to the facilities and locations for entrepreneurs and initiatives that are developing circular innovations. Cities can increase their influence even further by establishing their own incubator or accelerator programs in which they support a cohort of businesses with promising innovative business models. Simultaneously they can stimulate these, and other, businesses by incorporating their goods and services in their public procurement strategy. Furthermore, they can help the businesses gain exposure by showcasing them at city-level events both domestically and abroad.

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⚡ Circular and resource-efficient business innovations

Do better with less by using and supporting infrastructure, processes and products that are designed to minimize material, water and energy use and waste generation from production to end of use


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Reduce

Includes a variety of actions (e.g. campaigns, information sharing, public events) that encourage city residents and visitors to build sustainable practices into their daily lives

Enable sustainable lifestyles

Data, knowledge & information sharing

Providing specialist services to support consumers, businesses, andgovernments

Professional Services

Biogas produced by the anaerobic digestion of organic solid waste can be used as an energy source for cooking, lighting and generate electricity, replacing thus other fuels. Moreover, the treatment of organic waste alleviates the solid waste crisis in urban and peri-urban area if the developing world.


Use biogas

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


Strengthen and advance knowledge

Communities

Businesses

Put enablers in place that allow circular businessesto grow, thrive and innovate (e.g. incubators, start-up funding, partnerships, innovation deals, business capacity building and testing groundsfor new business models).


Support circular and resource-efficient business innovations

Redesign systems to lay the foundation for circular activities and enable the transition to a circular economy 

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Rethink

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

City Stakeholders

Smart City Budapest (SCB) Initiative collects mostly grassroots projects and organisations from Budapest which are connected to the smart city concept. SCB Initiative aims to introduce best practices from businesses, institutions, non-profit organisations and the people of Budapest. With knowledge transfer our goal is to encourage citizens to take actions for a better city. A city is smart when investments in capital and communication infrastructure fuel sustainable economic growth and a high quality of life, in combination with an efficient use of natural resources. But a smart city doesn't exist without smart citizens.
Main milestones of the initiative
2014 | Website + Mind the Game conference
2015 | 2nd Mind the Game conference | website of the conference
2016-2019 | Shared cities: Creative momentum 
Shared Cities: Creative Momentum is a European cultural platform addressing the urban challenges of contemporary European cities. In an international cooperation of 11 partners from six different countries numerous events, programmes and researches will be implemented between 2016 and 2019. The project is co-funded by the Creative Europe Programme of the European Union, the Hungarian partners are Contemporary Architecture Centre and Mindspace.
The SCCM project gives opportunity to get boost Smart City Budapest initiative and to become Budapest a better city. More details about SCCM >>
What is Smart City?
Smart cities can be identified (and ranked) along six main axes or dimensions. These axes are: a smart economy; smart mobility; a smart environment; smart people; smart living; and, finally, smart governance. These six axes connect with traditional regional and neoclassical theories of urban growth and development. In particular, the axes are based - respectively - on theories of regional competitiveness, transport and ICT economics, natural resources, human and social capital, quality of life, and participation of citizens in the governance of cities.

More details about smart city concept: The 3 Generations Of Smart Cities by Boyd Cohen
What is Smart Economy?
A Smart Economy combines the successful elements of the enterprise economy and the innovation or ‘ideas’ economy while promoting a high-quality environment, improving energy security and promoting social cohesion. The most successful economies of the future will be those that can achieve this combination of attributes. Economy no longer revolves around simply making and moving things. Instead, it depends on generating and transporting ideas. The places that thrive today are those with the highest velocity of ideas, the highest density of talented and creative people, the highest rate of metabolism...The economy is driven by key urban areas." /Richard Florida/
What is Smart Environment?
Urbanization leads to a growing demand for sustainable solutions, stable energy, fresh and potable water, efficient transportation, and resource management. Cities contribute to climate change and are in turn affected by its consequences. To solve these challenges, they need to become more energy-efficient, consumer-focused and technology-driven, they need to become Smart Cities. "Growth is inevitable and desirable, but destruction of community character is not. The question is not whether your part of the world is going to change. The question is how." /Edward T. McMahon/
What is Smart People?
The differentiating element between a digital city and a Smart City is Smart People. People are smart in terms of their skill and educational levels, as well as the quality of social interaction in terms of integration and public life and their ability to open to the "outside" world. "I believe our only hope for the future is to adopt a new conception of human ecology, one in which we start to reconstitute our concept of the richness in human capacity." /Sir Ken Robinson/
What is Smart Governance?
A Smart City requires coordinating initiatives across all departments via a central platform, to enable effective data sharing and joint decision-making. Technology is a key enabler when aligned with a strategic vision for citizens and the right governance systems. By leveraging technology, city leaders can begin to manage disparate city services through smart unified control systems. Smart City toreconcile individual and collective needs, in other words to channel individual aspirations towards the creation of value for society at large through the attainment of economic, social and environmental objectives. “Citizens must be considered as an active part of the community not only as consumers of services, but also as contributors of information, ideas, solutions and innovation. This will be the future: the city as a community,” /Pekka Sauri/
What is Smart Mobility?
Smart Mobility integrates transportation and land use modeling, engineering, and planning. As cities grow and expand, so will urban transportation systems and cities are where traffic flows – cars, buses, subways and trams epitomize city life. Cities need to make mobility smarter: more efficient, reliable and green. In this context the main axes of intervention at urban level should not involve only ICT infrastructures and services but also other initiatives depending on the city objectives and specific requirements such as green measures, qualification, extension and differentiation of PT services, urban logistics services, integration of different modalities and services interoperability. "Once more, this paradigm also makes clear that buying technology does not automatically solve problems." /Giorgio Ambrosino/
What is Smart Living?
Smart Cities provide people with a way of life that is more convenient , more comfortable, healthier and safer, while still being conscious of the environment. Here we consider peoples lifestyles in terms of the different activities they engage in during their daily lives: living, work, study, and travel. Smart stands for sustainable, meaningful, artful, responsible and thankful. “I’m neither an optimist nor a pessimist. I am a dyed-in-the-wool possibilist! By this, I mean with an eco-mind, we see that everything’s connected and change is the only constant.” / Frances Moore Lappé/ Managing organisation and contact

Mindspace Nonprofit Ltd. - Budapest, Hungary
Address: Margit krt. 44. Budapest H-1027
Contact person: Adam Kobrizsa, Szilvia Zsargo
Email: kobrizsa.adam[at]mindspace.hu, zsargo.szilvia[at]mindspace.hu
Data protection
Mindspace Nonprofit Kft. (Hereinafter:organization) shall, by publishing this Data Protection  Notice, comply with the obligation to provide prior information required for the treatment of personal data by the parties concerned under Regulation (EU) 2016/679 of the EUROPEAN PARLIAMENT AND OF THE COUNCIL , in a concise, transparent, comprehensible and easily accessible form, shall be made available in a clear and unambiguous manner to those concerned by data handling.
Data controller
Company name: Mindspace Nonprofit Kft.
Headquarters: 9026 Győr, Hédervári u. 49th
Company registration number: 0809022907
Tax number: 23750483-2-08
Name of Representative: Ádám Kobrizsa
E-Mail: info@mindspace.hu
Website: http://mindspace.hu/en
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Budapest

Smart City Budapest (SCB) Initiative collects grassroots projects connected to the smart city concept. SCB Initiative aims to introduce best practices from businesses, institutions, non-profit organisations and the people of Budapest wit the aim to encourage citizens to take actions for a better city. One of the city's aims is to increase the number of companies dealing with research, development and innovation in Budapest by ensuring the necessary conditions for development and by creating an inspirational atmosphere. It is important to support innovative start-ups in defining demands and testing products as well as embracing incubation programmes for efficient operation. The implementation of such developments in a campus-like areas helps boost knowledge economy and creative industries. By organizing international conferences, workshops, creative ideas may be imported to Budapest, at the same time local start-ups may enter foreign markets. For achieving goals set out in Hungary’s Digital Start-up Strategy cooperation with the government is essential.&nbsp;

Smart City Budapest

Reduced green house gas emissions released into the biosphere

Reduce Emissions (SDG13)

Information campaigns

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

Account for the systems perspective during the design process, to use the right materials, to design for appropriate lifetime and to design for extended future use

Design for the future

Develop infrastructure to support sustainable lifestyles

Debt financing

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

Transportation and Logistics

Extracting resources and processing them to produce materials for use bysociety

Materials and Fuels

Roadmaps and strategies and targets

The goal of Budapest Environmental Programme (2017-2021) is to protect, to improve the environmental state of Budapest, and to help in making well- founded city developments by: (1) describing the connection to national political strategies; (2) summarizing city strategies, programmes and development concepts; (3) including a state evaluation based on the 2015 environmental state evaluation document; (4) defining the overall and thematic goals of environmental protection; (5) introducing the tools of regulation, monitoring and execution methodology of the city environmental programme; (6) estimating funds needed to accomplish planned initiatives and (7) calculating the cost of regulation and monitoring. In order to meet the targets, set in BEP three horizontal and five thematic objectives are defined: each thematic objective is followed by measures, detailed tasks, financial needs and schedules. Horizontal objectives include: (1) strengthening environmental awareness; (2) applying eco-friendly design and planning methods and (3) decreasing local GHG emission, implementing better adaptation measures and improving climate-consciousness. Thematic objectives include: (1) conserving nature and landscape heritage (values), green infrastructure regeneration and development; (2) rehabilitating under-utilised areas; (3) having efficient waste management – in line with waste management principles, improved public space cleaning services; and (4) ensuring flood protection, modern rainwater and waste water treatment, protection of our drinking water base and water saving.

Budapest Environmental Program 2017-21

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

Engage with the government on circular policies and programmes

Government collaboration

Hungary

While Budapest does not have a specific circular economy strategy, measures related to circularity areembedded in both the city’s Sustainable Energy and Climate Action Plan (SECAP) and the Mid-term UrbanDevelopment Strategy, ensuring an integrated approach to circular economy governance. Those measures include recycling and reuse drop-off points, turning bio-waste into energy, rainwater retention incentives, and community composting.

Budapest: Towards an integrated approach to circular economy governance

Budapest's selective waste collection system aims to introduce home-based
selective waste collection throughout the city. There are currently more than
900 collecting islands in Budapest for selective disposal of waste, while
home-based collections work within four districts within sample projects. The
currently operating collecting system achieves 65-70% of the population of the
capital, collecting 18,000 tons annually.



Selective Waste Collection System

In August 2017 Budapest launched a green infrastructure development concept.
The strategy stands on 3 legs: (1) protection of green infrastructure; (2)
development of green infrastructure and (3) green area management. Its goal is
to conserve and protect actual green areas, especially public parks and to
provide necessary ventilation conditions. Its purpose is to prepare for the
challenges of climate change and to decrease the effect of the urban heat
islands. With the strategy Budapest would like to accomplish the followings:
(1) support building of parking garages to reduce the amount of parking places
on streets; (2) support building of green-roofs and -walls; (3) review of
unnecessary covered areas; (4) involve citizens into decision making and (5)
encourage people to establish innovative green areas.



Green infrastructure development concept

The Urban Development Concept consists of three main parts. Firstly, it
summarises the results of comprehensive reviews and studies made in recent
years and that are categorised according to particular fields, which provide
the framework for the Concept. Secondly, it defines the general principles
which must be enforced in all ensuing plans and decisions. The three
principles of the approach are liveability, sustainability and equal
opportunities. Thirdly, it outlines the main directions of the period until
2030 through 17 goals linked to particular fields, which include complex tasks
and means affecting several areas. A sustainable city enables the rational use
of available resources through a compact and mixed-use urban structure that
gives priority to public transport, walking and cycling.

