Industry and policy applications
The value of SEM methods and knowledge for industry and policy applications
Monitoring material stocks and flows, projecting their future development, and linking them to social outcomes and environmental impacts contribute to the knowledge base for decision-making and monitoring of policy targets on resource efficiency, recycling, circular economy, supply chain management, and transformation of the built environment.
MFA of industrial networks, for example, are used to map key materials such as food or metals and identify business opportunities for increasing recycling and closing resource loops. Because many industries depend on scarce resources for their raw materials, minimizing resource consumption and recovering and reusing by-products throughout their supply chains should be a top priority. The industry can use SEM tools such as material flow analysis (MFA) or material flow cost accounting (MFCA) to aid in this strategic decision-making and realize sustainability and circular economy goals.
Climate change mitigation and resource savings policies increasingly use quantitative targets, such as minimum levels of recycled content or recycling rates. Material flow analysis helps systematically monitor material and waste flows through the economy, and scenarios based on dynamic MFA help formulate ambitious but feasible policy targets for sustainable material cycles and the circular economy.
Below, we feature several policy and industry applications of SEM research that members of our section have contributed to. Thanks to our section members, Fanran Meng, Willi Haas, Xin Tong, Gang Liu, and Ichiro Daigo, for supplying this material!
Fundamental Plan for Establishing a Sound Material-Cycle Society, Japan
This plan is Japan's national policy to promote a circular economy. It is reviewed every five years. The plan includes numerical targets related to annual material flow, as shown in the figure below. The selected salient material flow indicators are monitored with economy-wide material flow analysis by combining several annual Japanese statistics. In 2024, the fifth plan was formulated, in which “input ratio of renewable resources,” “greenhouse gas emissions from sectors involved in the circular economy transition,” and “ecological footprint other than carbon footprint” were newly added as criteria for evaluating the transition to a circular economy. Numerous MFA and LCA experts have been involved in government consultation to help design supporting policy measures and R&D programs for the Sound Material-Cycle Society in Japan.
For more info, check out https://www.env.go.jp/content/900535436.pdf.
Chinese Circular Economy Promotion Law adopts the principle of Extended Producer Responsibility (EPR)
In China, EPR is seen as a crucial policy tool to promote the transition towards a circular economy by internalizing environmental costs throughout the product's life cycle. A national key research and development project led by Peking University with the participation of related industry associations and leading recycling enterprises in China utilizes the industrial ecology research tools to support this national policy design and implementation. The aim is to achieve downstream recycling goals and effectively drive eco-design in upstream supply chains.
Three key elements are addressed in this research: involving key stakeholders in setting recycling targets, stimulating eco-design and new business models, and increasing transparency in waste flows.
This research proposes an evaluation framework based on self-disclosure of corporate information to promote communication among stakeholders. This framework covers individual and collective responsibilities, focusing on product life cycle management and recycling systems' social and environmental benefits. The framework has been implemented for electronics producers in China, resulting in improved information disclosure and proactive environmental commitments.
For more info, check out the following publications and websites:
- Tong, X., et al., Extended producer responsibility to reconstruct the circular value chain. Circular Economy, 2024. 3(1): p. 100076.
- Tong Xin, Wang Tao, Chen Yanguang, Wang Yutao; Towards an inclusive circular economy: Quantifying the spatial flows of e-waste through the informal sector in China; Resources, Conservation and Recycling; 2018,135: 163-171.
- Extended Producer Responsibility Technology and Innovation Alliance’s Producer performance evaluation database: http://www.weee-epr.com/User/Login
- New Energy Vehicle Traction Battery Life-cycle Tracing System: https://www.evtbts.org/#/login?redirect=%2Fdashboard
MFA in the global aluminium industry
Through the use of MFA models, the experts of the International Aluminium Institute (IAI), the global aluminium industry's association, are able to understand better the flows of aluminium in commerce (e.g., recycled production, fabrication, and old scrap) and the ways these flows interact. The latest IAI Material Flow Model update highlights increased production rates, recyclability, and usage of scrap sources over the past 70 years (1950-2021). It shows a particularly sharp rise in all areas globally over the past 20 years and even more so in Asia. In 2021, Asia (excluding China and Japan) had a per capita consumption of aluminium in final products of 6kg, compared to China (19kg), Japan (22kg), and globally (11kg). This indicates a huge potential for future growth for the region.
For more info, check out https://international-aluminium.org/work-areas/material-flow-analysis/
C-THRU: extensive and transparent account of greenhouse gas (GHG) emissions across the global petrochemical sector
The C-THRU project uses advanced modeling tools and comprehensive data to project demand, usage, and waste generation patterns for petrochemical products, analyzing future impacts of potential shifts in production, efficiency, and decarbonization technologies. This foresight helps to pinpoint which petrochemical products and value chains could be reconfigured to align with climate goals.
C-THRU’s data-driven approach to petrochemical products' life cycle supports policy consulting and industry transformation. For instance, its modeling can simulate scenarios where petrochemicals sourced from oil and gas are reallocated from fuel to chemical applications, evaluating the climate compatibility of such shifts. In addition, C-THRU assesses potential GHG reductions from innovations like process efficiencies, alternative routes, and new recycling methods.
For more info, check out https://www.c-thru.org/
Monitoring economy-wide Material Flow Accounts by EUROSTAT
Since the early 2000s, industrial ecologists have supported the European Statistical Office EUROSTAT in introducing economy-wide material flow accounts into European statistics. Industrial ecology methods are used to monitor resource use and resource efficiency across all European member states. Building on the economy-wide MFA framework, the first global and EU-wide assessment of the state of the circular economy was published in the Journal of Industrial Ecology in 2015.
The publication in the Journal of Industrial Ecology triggered a phone call from a representative of the European Commission to one of the authors. This conversation led to a small expert contract to collaborate on developing the European Circular economy monitoring framework. This European framework required operationalizing the economy-wide MFA method to measure progress towards a circular economy solely based on the EUROSTAT material flow accounts and official waste reporting and recycling data. Since 2020, Eurostat has used this method to compile an annual material flow Sankey diagram, from which the European circular economy policy headline indicator ‘circular material use rate’ is derived.
Decision Support and Measurement Technology for Circular Economy Evaluation in China
A team led by Tsinghua University has undertaken two key research projects supported by the National Science and Technology Plans, "Research and Demonstration of Key Technologies for Decision Support and System Construction in Circular Economy" and "Research and Application Demonstration of Measurement Technology for Circular Economy Evaluation and Assessment Indicators", which have yielded significant outcomes and policy applications in the field of Circular Economy.
This research focused on developing decision-support tools and systems to facilitate implementing and managing circular economy practices. The aim is to address challenges such as resource allocation, waste management, and industrial symbiosis in fast industrialization in China. Key outcomes included the development of advanced analytical models and algorithms for assessing circular economy scenarios, as well as the establishment of demonstration sites showcasing successful circular economy implementations. Based on the research, the team developed methods for evaluating the performance of circular economy initiatives. This involved formulating comprehensive assessment indicators covering various aspects of the circular economy, such as resource efficiency, waste reduction, and economic benefits. The projects also developed advanced data collection and analysis tools to support measuring and monitoring these indicators. The outcomes of this project have enabled more precise and data-driven decision-making in circular economy policy formulation and implementation.
Policy applications of these research projects have been widespread. The insights and tools developed have been integrated into national and local circular economy policies, guiding the transformation of industries towards more sustainable and circular practices. Additionally, the demonstration sites established have served as models for other regions and industries to follow, accelerating the diffusion of circular economy solutions across China.
For more info, check out the following publications and websites:
- Jiang, M., Behrens, P., Yang, Y., Tang, Z., Chen, D., Yu, Y., Liu, L., Gong, P., Zhu, S., Zhou, W.*, Zhu, B.*, Tukker, A. (2022). Different material footprint trends between China and the world in 2007-2012 explained by construction- and manufacturing-associated investment. One Earth, 5(1), 109-118. doi.org/10.1016/j.oneear.2021.12.011
- Jiang, M., Behrens, P., Wang, T., Tang, Z., Yu, Y., Chen, D., Liu, L., Ren, Z., Zhou, W., Zhu, S., He, C., Tukker, A.*, & Zhu, B.* (2019). Provincial and sector-level material footprints in China. Proceedings of the National Academy of Sciences, 116(52), 26484–26490. doi: 10.1073/pnas.1903028116
- The Development and Reform Commission. The Circular Economy Development Evaluation Index System (2017 edition) https://www.gov.cn/xinwen/2017-01/12/content_5159234.htm
