Sustainability and Circular Economy
The circular economy is a strategic concept that arises from a set of measures to incentivize the change in economic paradigm – from a linear system of production and consumption, based on the erosion of natural capital, to a restorative and regenerative system, seeking to preserve the utility and value of resources (materials, energy) for as long as possible, safeguarding ecosystems and the financial capital of companies and civil society.
The transition to a circular economy is based on the incentive and development of business models, collaborative strategies, products, and services focused on the efficient use of resources and new dynamics of innovation. The benefits that can be achieved are manifold, ranging from the potential reduction of the country’s dependence on imports of raw materials to the direct contribution to international environmental goals (e.g., UN SDGs). But above all, it is about improving the competitiveness of the Portuguese economy, generating initiatives with strong export potential and local impact.
The European Commission’s Action Plan for the Circular Economy (Circular Economy Package), approved in December 2015, includes about 50 proposals or intentions for legislative measures, distributed across five main areas of action: production, consumption, waste management, secondary raw materials market, and innovation and investment. It also includes five priority sectors for intervention: plastics, food waste, critical raw materials, construction and demolition, biomass, bio-based materials, and designated horizontal measures in domains such as innovation and investment, aiming to stimulate the transition to a circular economy.
In this context, the Portuguese authorities have taken on the political objective of achieving carbon neutrality by 2050, confirming Portugal’s position among those leading the fight against climate change. The Carbon Neutrality Roadmap 2050 (RNC2050) has been developed, indicating the path that the Portuguese economy will have to follow to achieve this goal. The circular economy is present throughout the RNC2050, in connection with the Circular Economy Action Plan (CEAP), which was developed for the period 2020-2030, and will have new interactions according to the evolution already observed in this domain, such as in the case of single-use plastics or product eco-design. This model depends on the development of strategies – technological, product, service, use or consumption – that induce the continuous reuse of materials and resources to their maximum productive potential (maximum financial value and utility, for the longest possible time), in cycles duly energized by renewable sources.
Accelerating this transition in Europe by 2030 will have a positive impact of €1.8 trillion, from 1 to 3 million jobs, and a reduction of 2 to 4% in total annual greenhouse gas emissions. In Portugal, implementing this type of measures can lead to a reduction of about 30% in raw material needs, generating a positive impact on the estimated GDP of €3.3 billion.
The textile sector presents itself as one of the most polluting, accounting for about 10% of global greenhouse gas emissions. The production of clothing and other textile materials requires large amounts of water, energy, and natural resources, and generates a large amount of waste. About 30% of total textile production is still wasted, mainly due to defective production.
In this scenario, with the combination of sustainable approaches and innovative raw materials, Information and Communication Technologies (ICT) present great potential for developing solutions aimed at improving energy efficiency, reducing waste, and promoting sustainability in the textile sector.
The textile sector is thus one of the most innovative sectors of the Portuguese economy. Innovation awards have been granted at Techtextil, one of the largest global events in the textile industry, held annually in Germany.
FUN FACT: Did you know that the most decorated swimmer ever in the Olympic Games – Michael Phelps – used a swimsuit made and patented by a Portuguese company?
The Venture Builder has identified non-repayable Opportunities for Sustainability and Circular Economy projects. Don’t miss this great opportunity to validate your market with Portuguese Companies in the Textile Value Chain, one of the most innovative sectors of the Portuguese Industry on DATE, May 9, 2024, at 3:00 PM Portugal time. Limited spots available!
Text by Carlos Cortes – The Venture Builder CEO