Adaptation of circular economy principles to waste management in Ukraine

Abstract

Доведено, що неефективне управління відходами в Україні, що є, зокрема, наслідком існуючої лінійної моделі економіки, створює значні ризики для навколишнього середовища і населення. Це актуалізує імплементацію моделі циркулярної економіки, яка передбачає енергозбереження, регенеративне екологічно чисте споживання і виробництво, за прикладом ЄС, що є глобальним лідером із її впровадження. Україні в умовах євроінтеграції запропоновано скористатись вже напрацьованою в ЄС методикою, чітким алгоритмом імплементації циркулярної економіки, а також успішними прикладами міжнародних компаній. При цьому критичними визнано роль держави, чітку стратегію впровадження циркулярних принципів (в Україні вже втілюються окремі законодавчі ініціативи) та кардинальну зміну суспільних цінностей.

In the field of waste management, Ukraine is far behind the EU countries, which is, in particular, a consequence of the existing linear model of the economy, and creates significant risks for the environment and the population. The need to search for new sources of sustainable development in the context of qualitative and quantitative constraints on natural resources and environmental problems actualizes the implementation of the circular economy model, which envisages energy conservation, regenerative green consumption and production for sustainable development, following the example of the EU, which is a global leader in its implementation. The EU Directive 2008/98/EC on waste (2008) enshrined in legislation 5 steps for waste management: from the most desirable (waste prevention, preparing for reuse) through the recycling and recovery to the least desirable – waste disposal. Instead, in Ukraine waste disposal is the most popular waste management measure, – over 7% of the country's territory is landfilled, and only 3% of all waste is recycled. At present, Ukraine is ranked 9th in the world by the amount of waste (3.5 billion tons annually). Unfortunately, only 8.6% of the world economy is circular and worldwide resource utilization is accelerating. The process of circular economy implementation in a company is complex and, on the recommendation of BCG, should include: 1. Involvement of external stakeholders; 2. Consistent and strong support of senior management; 3. Explaining the concept and discussing the vision; 4. Developing a business model; 5. Employee training; 6. Involvement and empowerment of company departments; 7. Innovation in processes, products or business models; 8. Cooperation with external partners; 9. Identification of key performance indicators; 10. Forming and communicating social benefits. In the context of European integration, Ukraine is recommended to use the already developed by the EU methodology, a clear algorithm for implementation of the circular economy, as well as successful examples of international companies (in particular, Gerrard Street, Thread, Enerkem, Ranault, Nespresso, Carlsberg, KMC, Ecolan). At the same time, the role of the state, a clear strategy for the implementation of circular principles (some legislative initiatives are already being implemented in Ukraine) and a radical change in public values are recognized as critical.