Alpha Bank: Where is the circular economy in Greece – What are its applications
The circular economy and its applications in various sectors of the Greek economy, is the subject of the new study of the Sectors in focus series of the Financial Studies Division of Alpha Bank.
The study gives the definitions of the circular economy, presents its various aspects, contrasts it with the model of the purely linear economy. It focuses on the reasons why the productive composition of the two models is judged in the near future in a way that is sustainable for the environment, human health and the economy. Various examples of different disciplines are also given -or products of the economy in which the principles of the circular economy are applied and the Greek and Greek institutional framework that supports the transition from one model to another is extensively analyzed.
The Mediterranean and Greece are internationally recognized as “hot spot” areas, ie areas more vulnerable to climate change. In the Mediterranean region, limited rainfall and prolonged drought, combined with land use changes, have caused an increase in the frequency, severity and extent of forest fires. In the summer of 2021, the warmest of the last 30 years in Greece, the number of forest fires increased by 43% compared to the average for the period 2008-2020, while soil drought played an important role in their destructive extent.
Among other things, the widespread use of renewable energy sources and the phasing out of fossil fuels in electricity generation is fundamental to ensuring the effective implementation of the cyclical economic model. In terms of plastic use, in recent years more than 8 tons of plastic per year end up as waste in the marine environment, a key number to double by 2030 and quadruple by 2050. In a cyclical economy, the optimization of π, the their reuse, increased recycling, but also ecological design are a reduction in consumption not only of plastic strategies, but also a number of effective other products that have important raw materials and materials potentially hazardous to the environment and human health.
As it is pointed out, the small percentages of recycling and waste recovery in Greece indicate the limited use of the principles of the circular economy in waste treatment. Indicative of the crisis situation is that in Greece, waste disposal represents 85% of their total management and recovery, part of which is recycling, backfilling and energy recovery, only 15%. Recycling, although increased after 2016, accounts for only 11% of waste treatment, well behind the EU-27 average (38%). There are also more than 50 illegal landfills operating in the country, which are fined by the EU. produced by mines and quarries (56%), manufacturing (12%) and households (10%). Waste production to increase in Greece by 2030 in various sectors. In addition, Greece has the highest rate of food waste (142 kg / inhabitant) among 21 European countries, with food waste being associated with 5.3% of greenhouse gas emissions.
The practices of the circular economy applied by the state, businesses at the same time and the adverse constraints of environmental change, reinforcing the identity of corporate responsibility and the ESG criteria (environment, society and corporate governance). On the product side, ESG environmental criteria align with different cyclical objectives, while companies incorporating them into their financial strategy often prove to be more attractive. for investors, with better financial performance.
In terms of regulatory authorities, the EU is guiding the transition to a circular economy from the New Circular Economy Action Plan and other arrangements, such as those on waste management. Greece recently introduced the New Action Plan for the Circular Economy 2021-2025, adopting other relevant regulations, such as the Life – Circular Economy Program, but also policies to reduce waste from the National Waste Management Plan. According to the Action Plan for the Circular Economy, The financing of the transition to the circular economy in Greece will come from co-financed European programs such as the NSRF 2021-2027 and the National Recovery Plan Greece 2.0, through the axis for the act of transition and the implementation of climate goals.
The circular economy is linked to a variety of environmental, economic and social issues resulting from its wider application, such as increased production and employment, new businesses that enhance competition and innovation, significant material and resource savings, improved land productivity and the long-term resilience of the economy. The circular economy also played an important role in the economic recovery following the COVID-19 pandemic, which highlighted the risks associated with the linear economy, such as dependence on enlarged international countries, rather than local supply chains, and the strong link between the production and extraction of natural resources.
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