Report Background

The European Green Deal is not only a new growth strategy in response to the threat of climate change and environmental degradation but also a deep transformation program. It can be evaluated the studies carried out before the Green Deal as narrow-scoped efforts that do not focus on the integrity of the issues and sometimes weak in terms of goals and practices.

The European Green Deal is just the starting point of a long journey. The ambitious goals set out in the European Commission's Statement will be pursued step by step through a series of legislative acts.[1] The time plan and road map included in the appendix shows that the process that started in 2019 will continue to be concentrated. In this process, we will witness that many draft legal arrangements on the agenda will be withdrawn and revised with the Green Deal perspective. On the other hand, the EU industrial strategy is changing and moving toward a sustainable economy. Also, the circular economy exists at the heart of this EU transformation program. 

The Circular Economy Action Plan concerns all sectors, including its sub-sectors, and addresses many interrelated measures. A strong, consistent and harmonious policy framework is established for sustainable, waste-free products, services, and business models. In this context, studies will be carried out at all levels that can be summarized as legal regulations, standardization, investment, innovation, national reforms, dialogue with social partners, and international cooperation. In addition, key product value chains will be addressed first and reviewed. The transformation of the sectors together with the value chains is a process that takes 25 years. [2] Therefore, to reach the 2050 targets, the next five years will be a peak period in which decisions and legal regulations are made and turn into actions for the EU.

This transformation program of the EU, our largest trade partner, defined over the circular economy, will undoubtedly affect our country's business world and industry.

The aim of this project:

Within the framework of the European Green Consensus and the Circular Economy Action Plan, the aim of this project is;

• to identify regulations developed or planned to be developed for sustainable products, services, and business models,
• to determine its interaction with the sectors,
• to analyze the status quo by determining the equivalents of these regulations in national legislation by examining the EU documents and regulations.

The project does not aim to identify the differences between the present EU regulations and Turkish legislation and make a gap analysis at this stage, as studies on the relevant acquits continue within the EU. This report discusses how the EU will act with its circular economy approach and how its transformation plans will create changes in which sectors. In addition, by examining the relevant regulations in the existing Turkish legislation, it is tried to determine which revision studies are needed.

In the report, it was especially emphasized that our national legislation is far from EU regulations and that this distance will increase even more with the "EU Circular Economy Action Plan". This situation will adversely affect our sectors that have trade relations with the EU. While the individual efforts of companies that take measures to adapt will increase their costs, all the consequences of a general lack of legislation will be experienced.

Executive Summary

The Circular Economy Action Plan decision, adopted by the European Parliament on February 10, 2021, is one of the most critical blocks that constitute the European Green Deal. The Circular Economy Action Plan addresses the product throughout its life cycle.  

On the other hand, it targets;

• to design products, 
• to support circular economy processes, 
• to strengthen sustainable consumption,
• to keep the resources used within the EU economy for the longest possible period.

The circular economy model emerges as an alternative to the linear economy model based on the take-make-consume-throw model. For the EU, it is an economic model that has the power to steer policies such as competition and development beyond ensuring that resources remain in the cycle as much as possible, minimizing waste and effective resource management.

The 2020 Circular Action Plan puts together issues such as population growth, urbanization, the observation of the effects of climate change, especially health, the need for renewable energy, and the interrelationships of these issues in an integrated manner. EU regulations, strategy documents, and reports are considered while preparing the Circular Economy Action Plan to reflect this integrated approach. Chemistry, plastic-packaging, biodiversity, industry-automotive, agriculture-food, bioeconomy, climate, resource efficiency, eco-design, energy, water, environment, waste, batteries, electrical and electronic goods are covered in this framework. In addition, a close relationship has been established with the United Nations (UN) Sustainable Development Goals and several EU regulations. The reason for the establishment of this relationship is that in some cases, the Circular Economy Action Plan creates a facilitating effect in reaching various goals. In other cases, the shortcomings of the issues identified in practice are eliminated with the circularity approach. 

Objectives of the EU Circular Economy Action Plan 

• Creating a sustainable product form in the EU
• Consumer and public buyer empowerment
• Focusing on sectors with more significant circularity potential and resource-intensive use (electronics, informatics, batteries-vehicles, packaging, plastics, textiles, construction-buildings, food, water, and nutrients)
• Waste reduction
• Circularity as a functioning system for people, cities, and regions
• Leading global efforts on circular economy. 

Quick Reference List Table of Circular Economy Action Plan Applications;

• Sustainable product policy framework
• Value chain of key products
• Less waste, more value
• Creating a circular economy model for regions, cities, and people
• Cross-cutting actions
• Global pioneering efforts
• It summarizes the practices that have been and will be carried out between 2020-2022 under the titles of monitoring the progress.

Within the scope of the Circular Economy Action Plan, the value chains of some critical products have been focused on. Batteries, accumulators, packaging and plastics, electrical and electronic goods, textiles, construction and buildings, food, water, and nutrients are critical product value chains with a focus. In order to reach sustainable products, urgent, comprehensive and coordinated actions are needed in these value chains.

Batteries and accumulators

For the sustainable and competitive battery industry, materials used for industrial, automotive, electric vehicles and portable batteries (mobile phones, luggable computers, wireless power tools, toys, home tool batteries) should be sourced from responsible manufacturing sources, not contain harmful content; thus they should also contain a minimum of recycled material. Other requirements in the Circular Economy Action Plan are specified as carbon footprint, performance, durability, and compliance with labeling rules, waste collection, and recycling targets. When the relevant legislation was examined, it was determined that the necessary changes should be made in the Control of Waste Batteries and Accumulators Regulation in terms of carbon footprint, recycled content, labeling, QR code, battery passport, electronic exchange system, battery management and performance and durability criteria.

Packaging and plastic

By 2030, the EU aims to make all packaging reusable, economically efficient, and recyclable in the packaging industry. The ultimate goal is to implement the waste hierarchy and contribute to decarbonisation. In this context, the Packaging and Packaging Waste Directive numbered 94/62 / EEC will be amended in 2021.

The use of single-use plastics with sustainable alternatives will be banned as of July 3, 2021. Products included in the ban's scope are cotton sticks, knives, forks, spoons, plates, straws, stirrers, and balloon plastic handles. This prohibition also covers food and beverage containers made of expanded polystyrene and all products made of oxo-degradable plastic. The road map to be followed in plastics is detailed with the EU Plastics Strategy.

During the examination of our legislation, it was determined that the draft regulation amending the Control of Packaging Wastes Regulation was prepared in a narrower scope than the current regulation. When evaluated both from this perspective and with the circularity approach, it was seen that many regulations and sub-regulations, the details of which are in the relevant section of the report, need to be made.

Electrical and electronic equipment

The "Circular Electronic Initiative" will be presented by the European Commission in 2021. In line with the new sustainable product policy, the Circular Electronics Initiative will primarily support long-lasting products. Other features to be sought for electronic products and information products (mobile phones, tablets, and laptops) subject to ecodesign regulation in the context of circular economy are energy efficiency and durability. In addition, features are sought to be repairable, upgradeable, reusable, and recyclable. The "Ecodesign Working Plan" will be completed in 2021 and will organize all these issues in more detail.

While our legislation is not currently in harmony with the EU legislation, the difference between our EU and national legislation will not only increase with the new regulations to be introduced by the Circular Economy Action Plan, more importantly; a great divergence will be observed in the policy and strategy of approaching the issue. In addition, the collection, recycling, and recovery targets determined by the Control of Waste Electrical and Electronic Equipment Regulation have not been updated by the regulation since 2018. The Ministry of Environment and Urbanization has decided these targets by notifying the companies. Long studies have been carried out on the common methodology required for calculating the weight of electrical and electronic devices in the EU and the subject has been shared with the application statement.[3] In this framework, an exercise to be made for our country will be an essential step in compliance with circular economy principles. Another issue that needs to be considered in e-waste is data protection, which is detailed in the report.

Textile

The EU has identified a set of measures for the textile and apparel industry to be sustainable, circular, traceable, and transparent and has proposed a schedule for implementing these measures. As a matter of fact, the "EU Textile Strategy" "New Product Policy Framework in Textiles" will be developed in 2021 in line with the "EU Human Rights and Environmental Inspection Regulation."

In our country, the "Declaration on Integrated Pollution Prevention and Control in the Textile Sector" does not have provisions that will enable the transition to a circular economy. On the other hand, the environmental label is one of the applications that support the transition to a circular economy because sustainable supply, eco design, responsible consumption, prolonging life, and recycling, which are the five basic elements of the environmental label application, also constitute the five important elements of the circular economy. In this context, the Environmental Label Regulation and especially the "Criteria for Granting Environmental Labels to the Textile Sector" are an essential guide in the transition to the circular economy in textiles. However, the fact that the said regulation is not internationally recognized constitutes the biggest obstacle.

Construction and buildings

Level (s), the voluntary reporting framework for European sustainable buildings, foresees specific carbon and material footprint reduction targets for buildings and constructions. In addition, it is planned to determine the target of material recovery, reuse and recyclability for the sector. The European Commission is requested to revise the Construction Products Regulation, and the strategy for Sustainable Environmental Construction is expected to be announced in 2021. In this context, the regulations that need to be reviewed in our country's legislation are included in the relevant section of the report in detail.

Food, water and nutrients

When the issue of reducing food waste under the heading of food, water and nutrients, which is handled within the framework of the EU Circular Economy Action Plan, is examined in terms of our country's legislation, it has been determined that the issue concerns seven different policy areas. In this context, regulations, and incentives regarding food donation, food loss, and waste management have been reviewed in seven policy areas: environment, treasury-finance, business world, energy, agriculture-food, trade, and tourism. 

It has been determined that within the scope of the EU Circular Economy Action Plan, the (EU) 2020/741 regulation on the reuse of water, which will come into force as of June 2023, is closely related to the Urban Wastewater Treatment Regulation published in the Official Gazette dated January 8, 2006, and numbered 26047. [4] With the regulation as mentioned above, the Metropolitan Municipality Law No.5216, dated July 10, 2004, draws attention to the legislative arrangements where the minimum conditions for the reuse of wastewater can be evaluated and the issue can be addressed with a circular economy perspective.

Compost fertilizer is an issue discussed under the heading of food, water, and nutrients. The goal of using more recycled animal manure and more organic nutrients and compost fertilizers instead of chemical fertilizers for the protection and health of the environment and ecosystem is in line with the realities and needs of Turkey. For this reason, it will be beneficial to encourage municipalities and compost facilities, develop logistical solutions for the transportation of waste, and raise awareness with extensive campaigns for separate collection of organic wastes.

For less waste and more value, the "Waste Framework Directive and Landfill Directive" will be reviewed in detail until 2024. It is expected that the environment and human health will be better protected and practices will be harmonized with the commissioning of the Electronic System for Recording the Transportation of Waste in the EU. Moreover, the Commission is expected to develop a legal regulation by 2022, which sets quantitative targets for recycling petroleum waste, as defined in its directive 2008/98 / EC.

When evaluated from the point of view of our country, supporting industrial symbiosis applications for less waste and more value is determined by tariffs in accordance with the Regulation on Procedures and Principles for Determining the Tariffs of Waste Water Infrastructure and Domestic Solid Waste Disposal Facilities. To send regular storage or incineration is not an easily chosen option in the disposal of wastes and/or especially to prevent biodegradable wastes; more appropriate tariffs are recommended to institutions and organizations that donate and certify this situation. Especially for those who have increased the amount of waste buried in the land by introducing a quota application on landfills, implementing a gradual tariff increase is considered a meaningful option. In addition to producing high-quality recycled raw materials to create secondary markets, there is a need for legal arrangements to make it possible to sell electrical and electronic devices with light damage.

Considering digitalization in the circular economy, it is predicted that the transition to the circular economy will gain a tremendous speed when digitalization is achieved in various parts of the circular economy such as design, production, consumption, reproduction, total waste management and recycling, in other words, when circularity and digitalization agendas become a common agenda. The ultimate goal should not be digitalization. Digitalization should be targeted, aligned with sustainable development goals. While the information sector itself takes the necessary steps to become a greener sector, all-digital solutions such as blockchain, artificial intelligence and 3D printers should be used to provide the required conditions for the transition to a circular economy.

The European Green Deal Investment Plan will provide a framework to encourage public and private investments necessary to transition to a climate-free, green, competitive and inclusive economy. In the next ten years, at least one trillion Euros of financing will be provided to support sustainable investments.

There is no explicit calculation yet on how much of the financing will be allocated for the circular economy.

General Evaluation

The EU Green Deal envisages a transition to a "carbon-neutral economy" model in sectors from industry to agriculture, from transport to energy, and this deal reshapes trade. The fact that the implementation of "carbon border tax – carbon border adjustment - CBA" within the framework of the agreement was on the agenda caused significant repercussions in our country. The Green Deal presents a new opportunity for sustainable development as well as a risk for Turkey.

Despite the lively discussion and evaluation of the issue of carbon border adjustment, the EU Circular Economy Action Plan has not been addressed to the same extent yet. In this sense, addressing the issues of how the EU will act with the circular economy approach, in which sectors the transformation it plans to make will create differently and how these changes will be, is an important step to determine which studies are needed by examining the relevant regulations in the current Turkish legislation. Behind the EU's circularization effort, there is a policy of reducing foreign dependency, especially in critical raw materials. Therefore, the recycled content measure, which will be sought mainly in batteries, is an important indicator of this policy in order to reduce foreign dependency on cobalt, lead, lithium, and nickel, which are defined as critical raw materials. The EU wants to achieve self-sufficiency in critical raw materials through resource efficiency, recycling, and recovery. Another example of a policy of reducing foreign dependency is Europe's efforts to end its dependence on vegetable protein (soy) imports for animal feed. For cyclical plant production, it is necessary to ensure that all by-products originating from food production, processing periods, and consumption are returned to the food system by reuse or recycling.

The Green Deal has the potential to reshape trade not only through decarbonisation but also by creating a circular sustainable product form within the framework of the Circular Economy Action Plan.

The circular sustainable product is more durable, repairable, and its version can be upgraded. It also means a product with recycled content, whose inputs are sustainably sourced and raw materials from secondary markets. Producing a product according to this definition appears as a process that requires a change in the legal framework and severe structural changes.

The actions included in the EU Circular Action Plan and the schedule to be followed show that intensive legislative work and long consultation processes are carried out for the circularity that will make a great change in the production and consumption model of the EU. In addition, scientific studies are supported for data-based policy applications. Most importantly, it attracts attention with its feature of being a public guide in this transformation process.

The purpose is not to expect the parties to comply with these regulations by making the legislative arrangements and to impose sanctions on those who cannot comply. The long consultation process and information on legislative arrangements are accessible for everyone in the digital environment. In particular, the "have your say" application is a vital instrument that makes the process transparent. Citizens and the business world can convey their opinions on EU policies and legal regulations through this application.

When the situation for our country is evaluated, it is necessary to review many legislations included in our report for the transition to a circular economy and make the required changes. Significantly, the introduction of a circular perspective into the legislation related to products with critical value chains is a process that involves the cooperation of many public institutions and organizations. Failure to address the issue altogether, the disconnection between the regulations to be made, and the risk of causing contradictions may also come with it. In this sense, it would be appropriate to carry out the activities carried out under the coordination of the Ministry of Trade with a comprehensive approach in the details of the legislation. The coordination between public institutions and organizations will play an essential role in the success of the transition to the circular economy.

Placing a circularity perspective in our legislation will not only bring about a change in practice. Like the EU, it will trigger the transformation in production and consumption and initiate a different economic model. For this reason, in order to develop data-based decision processes, it will become more important than in the past to collect, evaluate and access all relevant data, especially the waste inventory. In the legislative process, transparency, ease of access to the appropriate documents, sufficient time for the active participation of the business world, sectorial organizations, and non-governmental organizations in the consultation processes are preliminary for the new system's success to be built.

 

For the Turkish version of the report.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[1] EU Communication, "A new Circular Economy Action Plan for a cleaner and more competitive Europe" COM/2020/98 final, 11 March 2020

[2] Communication From The Commission The European Green Deal Brussels, 11 December 2019 COM (2019) 640 final

[3] Commission Implementing Regulation (EU 2017/6992020)

[4] REGULATION (EU) 2020/741 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 25 May 2020 on minimum requirements for water reuse