Circular economy

Circular economy 12/22/2020 1

PART I: GENERAL INFORMATION 12/22/2020 2

Key points and main messages The key to solving the climate and biodiversity crises is to abandon the old, unsustainable take-make-waste linear economy. The alternative is circular: an economic system which continually reuses resources and where consumption is based on services. Finland excels at international thought leadership when it comes to circularity. In 2016 it was the first country in the world to have a roadmap to circularity. Many practical circular economy solutions have also been developed in Finland, making the country a global forerunner in circularity. Within two years Finland had more circular economy courses in higher education than anywhere in the world. Over 70,000 Finns studied the circular economy in 2019. Finland possesses circular strengths in materials, such as using waste streams from the forest industry or creating an ecosystem to recycle batteries. Finland has technical know-how in circular solutions and is one of the world leaders in being awarded relevant patents. Finland actively seeks international partners to co-create circular solutions. How to portray Finland? Position Finland as an international forerunner in the circular economy.. HighlightFinland s technical know-how in circular solutions. ProfileFinland s companies, researchers and decision makers as the perfect partners to develop circular solutions. 12/22/2020 3

Elevator pitch: circular economy Circular economy is much more than just recycling. It includes new business models, such as furniture as a service, and new products, like bioplastic. It involves new ways to consider an item s life cycle, like building a product that is long-lasting and repairable. Finland has a history of developing circular solutions, even before the phrase circular economy was common. On the consumer side, a deposit scheme helped push the recycling of beverage containers to near 100%. On the industrial side, companies strove to increase efficiency to succeed in global competition. The lack of fossil fuel deposits in Finland has also pushed society towards circular solutions, including developing renewable energy production and utilizing waste streams as sources of energy. Both public and private venture capitalists fund good ideas, and foreign investors also look to Finland for inspiring circular startups. Finland s practical solutions are rapidly expanding. The circular economy is expected to add about 3 billion euros to Finland s national economy in added value potential by 2030, according to The Finnish Innovation Fund Sitra. Within two years Finland had more circular economy courses in higher education than anywhere in the world. Over 70,000 Finns studied the circular economy in 2019. Finland has technical know-how in circular solutions and is one of the world leaders in being awarded relevant patents. All levels of Finnish society, from startups to government ministries, are working with international partners to test, develop and deploy circular solutions. We invite everyone to join us to develop solutions that lead to a more sustainable future. 12/22/2020 4

Background 1/2 Our pre-industrial society was mostly circular. Goods and materials were used for a long time and at the end of their useful life were repurposed into new items. The Industrial Revolution changed this and introduced a linear economic model: take something from nature, use it and throw it away. Now planned obsolescence is an accepted business strategy. The climate and biodiversity crisis has made it clear that the old linear model is destroying our planet. The alternative is to evolve to an economic model built on optimizing the system as a whole and tackling the root cause of biodiversity loss, climate change and the overconsumption of natural resources. Instead of producing more and more goods, in a circular economy we receive more value from what we have, and we keep that value in the economy as long as possible through smarter design, digital solutions and a shift from owning products to using services. Finland has a history of developing circular solutions, even before the phrase circular economy was common. On the consumer side, a deposit scheme helped push the recycling of beverage containers to near 100%. On the industrial side, companies strove to increase efficiency to succeed in global competition. The lack of fossil fuel deposits in Finland has also pushed society towards circular solutions, including developing renewable energy production and utilizing waste streams as sources of energy. The big forestry companies have become so efficient using waste as a source of energy they actually produce more power than they consume. They have also found novel ways to create biofuels and biomaterials out of wood. 12/22/2020 5

Background 2/2 In the 21st Century Finland seized the global momentum for sustainable solutions by championing the circular economy on the world stage. This includes creating the World Circular Economy Forum and promoting the circular economy in the EU. When the COVID-19 crisis hit, Finland helped push circularity into the European Green Deal plan. The Finnish Ministry of the Environment aims to help transform the Finnish economy into one based upon circular economic principles by 2035. 12/22/2020 6

Facts and stats The circular economy is expected to add about 3 billion euros to Finland s national economy in added value potential by 2030, according to Sitra. The main improvements are in machinery and equipment, forestry, food waste reduction, alternative real estate uses, nutrient recycling, private consumption and second hand trade. Finland is ranked 14th in the world for the number of patents issued related to recycling and secondary raw materials, one of the key circular economy indicators tracked by the EU. Finland has more patents than countries such as Sweden, Australia and Denmark, according to Eurostat, and was just barely eclipsed by the United Kingdom. The Finnish people are conscientious about minimizing waste. Eurostat says Finns waste 7.4% of their domestic material consumption, excluding major mineral waste. The EU average is 12.8%. Finland recycles 49.2% of its electronic waste, compared to an EU average of 34.8%, according to Eurostat. Private investments, jobs and gross value added related to the circular economy in Finland totaled almost 2 billion euros, according to Eurostat. Thanks in part to a deposit system, Finland recycles 95% of cans, 90% of plastic beverage bottles and 87% of glass bottles, according to industry group Palpa. These are some of the best rates in the world. For example, the Aluminum Association says the worldwide recycling rate for cans is only 49.8%. 83% of Finns believe that Finland should take action to promote the circular economy, even if other countries are not doing so, according to a survey commissioned by Sitra. Circular economy education has been embedded in all areas of society. In 2019 70,000 Finns studied the circular economy at all levels of education. 12/22/2020 7

Some Finnish companies in the field Bamomas optimizes industrial batteries to extend lifetime Betolar turns industrial waste streams into low carbon construction materials Bionova developed a tool to calculate the environmental impact of buildings Calefa reuses industrial waste heat in factories or district heating Combi Works provides factory as a service, the leasing of production equipment Convion distributed fuel cell systems for combined heat and power Ekorent shared electric vehicles for companies and housing communities eRENT runs an equipment sharing platform for businesses Lindstr m offers uniforms as a service Neste creates renewable fuels from waste, like residue oils from restaurants Pure Waste upcycles textile waste into new garments Stora Enso uses circular concepts in operations and in product development 3stepIT refurbishes and finds new uses for office IT equipment UPM Raflatac develops circular labels and adhesives Valtavalo provides light as a service instead of selling light fixtures Zen Robotics creates robots which sort construction waste for recycling. 12/22/2020 8

Programs and main markets The Finnish Innovation Fund Sitra A circular economy Finland s public fund Sitra is a think and do tank which has championed the transition to a circular economy. The World Circular Economy Forum Initiated by Sitra, the WCEF is the landmark global event for experts in the circular economy. In 2021 the Netherlands will host a preliminary event before the WCEF opens in Canada. Ministry of the Environment Circular Economy The Finnish Ministry has ambitious plans to help the Finnish economy go circular by 2035. Business Finland Bio and Circular Economy Business Finland offers support and funding to businesses. Business Finland Sustainable Manufacturing in Finland The program focuses on renewing business models and increasing productivity, while actively seeking solutions to the challenges of climate change. It is aimed at machine tool industries, electronics and photonics, and companies in industrial digital transformation. The target countries are Germany, France, Poland and Japan. Call for applications for grants A program from the Ministry of Economic Affairs and Employment to fund circular economy cooperation between the public and private sectors. 12/22/2020 9

Sites to visit in Finland Sitra The Finnish Innovation Fund Sitra is one of the premier global experts on circular solutions. Textile refinement plant in Paimio Opening in 2021, this plant will process 12,000 tonnes of textiles and be the largest such plant in the Nordic region. Helsinki Metropolitan Area Reuse Centre A social enterprise aimed at finding new life for old items. mm ssuo landfill The HSY landfill in Espoo uses landfill gas to create energy. Yandex datacentre in M nts l This major datacentre captures heat from servers and uses it to heat homes in the city using a solution developed by a local energy company Nivos Energia in close collaboration with Yandex. Experts who can give good lectures on the topic Please let VIE-50 know if you have suggestions of good speakers. We will update this material. 12/22/2020 10

For social media @SitraFund @BusinessFinland @VTTFinland #teamfinland #circulareconomy #sustainability #wcef #circinnovation #Finland is working to build a more resilient, more fair and more sustainable society through the #circulareconomy. Companies and organisations in #Finland want international partners to build innovative #circularsolutions. Abolish waste! #Finland believes we can turn waste into a valuable resource powering our economy. #circulareconomy #greengrowth is possible by building a sustainable #circulareconomy. Companies in #Finland are ready to join international partnerships. Going around in circles is no longer a bad thing. Team up with #Finland companies and their #circularsolutions to fight climate change and promote #green and #sustainable growth. For further information Tuula Sj stedt, Lead, Communications and Public Affairs, Sitra, tuula.sjostedt@sitra.fi, +358 294 618 429 Marika Ollaranta, Head of Program, Bio and circular Finland, Business Finland, marika.ollaranta@businessfinland.fi , +358 50 480 4611 12/22/2020 11

Tools and materials Sitra a circular economy The Finnish Innovation Fund Sitra has an enormous amount of materials related to the circular economy. One highlight for other countries might be How to create a national circular economy road map?. Business Finland Bio and circular Finland Business Finland is particularly interested in supporting the plastic and packaging industries develop circular solutions, but will assist any idea they deem valuable. VTT Circular economy VTT helps industrial partners to develop technologies, processes and business models to transition from a linear economy to a circular one. Finland leading the way to sustainable circular economy A short publication from Business Finland and several ministries which concisely explains the importance of the circular economy and Finland s relevant strengths. 12/22/2020 12

PART II: COUNTRY SPECIFIC INFORMATION 12/22/2020 13

Key points and main messages What are the most important things to emphasize in this specific country? What is Finland s special knowhow that makes us stand out especially in this country? Why should someone from this country want to cooperate, invest or buy? 12/22/2020 14

Elevator pitch Write a clear, brief message/commercial about the sector and Finland's knowhow. Position Finland: who are we and why people should trust us in this country State the problem that needs to be solved in this country and globally Present our solution and results with focus on the needs of this country: explain what we do, how we do it and what makes us unique. Eliminate jargon but wrap everything into a good story Finish with a call to action: what do we want to happen next, where do we want to go? 12/22/2020 15

Background, facts and stats This is the part where you add facts to support and explain your elevator pitch. Short history and development of the sector in your country. List all essential facts and numbers that a person needs to understand the size and significance of the sector in your country. Why and how did this become a key sector for Finland? What is the broader role of Finland in this sector, what is our position in comparison to other countries? 12/22/2020 16

Finnish companies in the area Please list Finnish companies operating in this sector in your country. Write shortly (1-2 sentences) what they have to offer. Team Finland Name of persons in charge of this sector in your country: name, title, organization, email, phone number. 12/22/2020 17

PART III: INSTRUCTIONS AND BACKGROUND FOR THIS INTERNAL MATERIAL PACKAGE 12/22/2020 18

Material package: instructions This is an internal working paper to support all Team Finland actors globally in promoting Finland and its strengths. The Unit for Public Diplomacy of the Ministry for Foreign Affairs coordinates the production of sectoral working papers in close cooperation with Business Finland and other core actors. The sectoral working papers can be found in the internal Team Finland section of the Finland Toolbox. Parts I-II Part I of consists of general information that can be used globally when preparing for meetings, visits, events, campaigns, etc. Part II is left blank. All Team Finland teams around the world are encouraged to fill in country specific information and use it actively! Hyperlinks When you read the content in normal view, the hyperlinks are not clickable. You can either open the hyperlinks by right-clicking on them and selecting Open Hyperlink or by switching to slide show view and clicking on them . Questions and comments If you have questions or suggestions concerning the format or content, please contact The Unit for Public Diplomacy at vie-50@formin.fi. 12/22/2020 19

Country branding and Team Finland work: why do we need common messages? Country branding is advocacy, communications and marketing that aims to influence target groups knowledge, opinions and eventually decisions through owned and earned media, events and meetings, among other means. Country branding is carried out by everybody who speaks about, writes about or documents Finland. Country image work is part of the normal work of our all Finnish actors abroad when they have meetings, are present in the media, give speeches, etc. It is not just about individual functions or events. It is extremely important that all relevant actors prioritize themes together and deliver the same main messages highlighting Finland's strengths. Sufficient cultural sensitivity is needed, always adapt Finland s strengths to each cultural area and current discussion. Finland s country image work is led by the Finland Promotion Board (FPB). In 2019 2023, the member organizations are: Ministry for Foreign Affairs, Ministry of Economic Affairs and Employment, Ministry of Education and Culture, Finnish National Agency for Education, Business Finland, Visit Finland, City of Helsinki, House of Lapland, Finnish Cultural and Academic Institutes, the Finnish Innovation Fund Sitra, Music Finland, W rtsil , Finnair and Iceye. 12/22/2020 20