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[Proceeding] Systemic Design and Policy Making: the case of Retraceproject

Original Citation:Barbero, Silvia; Pallaro, Agnese (2016). Systemic Design and Policy Making: the case of Retraceproject. In: Relating Systems Thinking and Design (RSD5) 2016 Symposium, Toronto, October13-15, 2016. pp. 1-12

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ProceedingsofRSD5Symposium,Toronto,2016

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Systemic Design and Policy Making: the case of Retrace project S. Barbero,Assistantprofessor,PolitecnicodiTorino,DepartmentofArchitectureandDesign,[email protected]. Pallaro,PhDcandidate,PolitecnicodiTorino,DepartmentofArchitectureandDesign,[email protected]

Abstract

The change of paradigm from linear to circular economic model is increasingly advocated. ThebenefitsresultingfromaCircularEconomy(CE)areparticularlyappealingforEurope,consideringtheissuesitiscurrentlyfacing.EventhoughEUpromotesactivitiestosupportthetransitiontoCE,several economic, social and regulatory barriers hamper it. The full potential brought by CE canonlybeimplementedoncethesebarriershavebeenovercome.GiventhecurrentframeworkoftheEuropeancontext, thepaperexaminesthecasestudyofRetraceInterregEuropeproject toarguethatthemethodologyfollowedbytheSystemicDesignapproachcansupportthetransitiontowardsCircular Economy, overcoming existing barriers. The focus of the discussion will be furthernarrowedonPiedmontRegion(Italy)inordertobettersupporttheargument.


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Introduction As the limits of the traditional linear economicmodel become clearer, the path towardsCircularEconomy(CE)isincreasinglyidentifiedasthewaytoensureasustainabledevelopment.TheopportunityofferedbyCEisparticularlyappealingforEuropewhichisaffectedbythescarcityof rawmaterials thatmake it resource-dependent andwhose economy is still influenced by theeffects of the economic crisis,with relevant consequences at the social level. Besides the doubtsarisingabouttheeconomicfeasibilityofthetransitiontoaCE,adetailedreportbyEllenMacArthurFoundation et al. (2015) examines the outcomes of the application of a CEmodel in comparisonwith the current one, highlighting the benefits that can result from this change. A developmentbasedonCEappearsparticularlyappropriateforEuropebecauseitwouldanswertothedifferentchallengesEUisfacingatthemoment,makinguseofaresource,waste,thatabounds.EUeconomyiswasteful:in2012,60%ofthewastematerialsproducedbyanaverageEuropeanwaslandfilled;thepercentagesofrecyclingremains loweven forpaper,steelandPETthat lose30-75%of theirmaterialvalue;obsolescenceofgoodsisstillhighandmanufacturedproductslastonaverageonly9years (Ellen MacArthur Foundation et al., 2015). The transition towards a CE would increaseEurope’sresourceproductivityby3%annually,generatinganannualbenefitaround€1.8 trillionby 2030 and several impacts on employment and welfare (Ellen MacArthur Foundation et al.,2015).InordertoboosttheestablishmentofaCE,Europehaspromotedanactionplan(EuropeanCommission,20151) containing severaldirectivesaiming toencourage the transitionatall levels,fromproductdesigntolastlongerandberecyclabletoregulatoryframeworktoenablethechange.Thecoreofthedocumentisconstitutedbythedirectivesconcerningwastemanagementtoreducethepercentageofwasteendingupinlandfills.Inordertoachievethisgoal,EUfocusesonactionstopromotetheuseofsecondaryrawmaterial,currentlyhamperedbytheuncertaintyonitsquality,the legislation on harmful chemicals, and the limits imposed to the cross-border circulation ofsecondaryrawwasteinEurope.Thesedirectiveshavebeentranslatedinchallengingtargetstobemetby2030:torecycle65%ofmunicipalwaste;torecycle75%ofpackagingwaste;andtoreducetheamountoflandfilledwastetoamaximumof10%(EuropeanCommission,20152).ThepotentialitiesofferedbythetransitiontoaCEmodelareincreasinglyrecognized;howevertheimplementation of this potential is hindered by different barriers at the economic level (marketfailures,unaccountedexternalities), social level (lackofexperience to identifyopportunities)andregulatorylevel(regulationsthathinderexchangeofwaste)(EllenMacArthurFoundation,2015).TheEuropeanCommissionitselfhasidentifiedseveralpoliciesactingatEUlevelthatmayhamperthe development of Circular Economy and has stressed the wide margin for improvementconcerningpoliciesinsupportofCE(EuropeanCommission,20141).The successof the implementationof aCE at theEU level lays inEurope’s capacity to overcomethesebarriers.GiventhecurrentframeworkoftheEuropeancontext,thepaperexaminesthecasestudy of Retrace Interreg Europe project to argue that themethodology of Systemic Design cansupport the transition towards Circular Economy, overcoming existing barriers. The focus of thediscussion will be further narrowed on Piedmont Region (Italy) in order to better support theargument.


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Systemic Design for Circular Economy

Retrace project involves five regions of EU countries -Piedmont Region (Italy), Bizkaia (Spain),Nouvelle-Aquitaine(France),thewholecountryofSloveniaandNorth-EastRegion(Romania)-andoriginated from the recognition that CE, despite being a priority in all regions, is improperlyaddressed in some of the policy instruments (all related to European Regional DevelopmentFunds/ERDF Operational Programmes) addressed by the project. The aim of Retrace is thus topromote the transition to a CE where it is not explicitly mentioned (Italian and Spanish policyinstruments)ortocreatebettertoolstosupportthechangewhereit isalreadyforeseen(French,SlovenianandRomanianpolicyinstruments).Inordertoachievethisgoal,RetraceappliesthemethodologyofSystemicDesign(SD)developedby the Department of Architecture and Design at Politecnico di Torino. Systemic Design ismentioned in several contextswithdifferentmeanings; in this casewe refer to themethodologydefinedbyprofessorLuigiBistagnino,builtaroundthekeyprinciplethatthematerialandenergyoutput (waste) of a system can become input (resources) for another one, imitating Nature(Bistagnino, 2011). These kinds of relationships generate a system of interconnected processeswhere waste is reduced and that tends to produce zero emissions. The system thus created isstrictly connected to the local territory inwhich the process operates and it is built around theneedsofthepeoplerelatedtoit.AsaresultoftheimplementationofaSystemicDesignapproach,anew production model is created generating benefits for the society and the environment(Bistagnino,2011).ThemethodologyofSystemicDesignconsistsoffivemainsteps.

1. Quantityandqualityanalysis(HolisticDiagnosis).

In thisphase,deskand fieldresearchcombinetogether to investigate thecurrentsituationofthecontext inwhich theprojectwillbecreated. It is themost importantphase toensure thesolidity and effectiveness of the project that can only originate froma careful analysis of thebackdrop. The majority of the effort is concentrated in this step to gather all the necessaryinformation concerning the economic, social and environmental dimensions of the context inordertoobtainathoroughframework.Oncethedatahavebeencollected,theconnectionsandinfluences between them are analyzed to properly assess the issues to be tackled. (Barbero,2016)2. Benchmark

ParalleltothedefinitionoftheHolisticDiagnosis,aresearchonthebestpracticesthataddressthe same issues as the one of the project is performed. This activity aims to identify goodpracticesfromwhichitispossibletolearnandtransferrelevantelements.3. Identificationofproblems

From the framework outlined in the Holistic Diagnosis it is possible to identify the majorproblems to be addressed and the connections between them. Problems are regarded asleveragesforthechangefromwhichthedefinitionoftheprojectcanstart.4. Creationofasolution

Thisstepreferstotherealdesignphase,whenasolutiontotheidentifiedproblemisprovided.The solution originates from the knowledge acquired through theHolistic Diagnosis and the


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problemshighlightedinstep3.Thesuggestedsolutionundergoesaprocessofverificationandvalidationbeforebeingimplemented,toforeseethepossibleoutcomesofitsimplementation.5. Implementation

Afterthesolutionhasbeenvalidatedthroughpreliminarystudiesandsimulations,theprojectcanbe implemented.Acontinuouscycleof feedbacks fromstep5tostep1enables tomodifytheprojectaccordingtochangesoccurringintheframework.Themethodologyindeedfollowsan iterativepath,whereany furtherstep ischeckedandreviewedaccording to the feedbacksreceived.

Systemic Design principles are close to the ones of Circular Economy, but further expand theconceptsofreuse,recycleandrecoverproperofCEnotonlywithinasingleproductionsectorbutmainlybetweendifferentsectorsinordertoestablishsynergiesamongthem,keepingthefocusonthe localdimensionof theactionandontheneedsof thepeoplerelatedto it.Thisovercomingofbordersbetweensectorsmustbesupportedbyananaloguechangeinpolicyinstrumentsthatarecurrentlymainlycreatedadhocforeachsector,leavingnarrowmarginforinteractionamongthem.ThetwoapproachesofSDandCEarecomplementaryandfunctionalfortheaimsofRetraceproject,tosupportthetransitionofregionsandregionalpoliciestowardsCircularEconomy.

SDmethodology and in particular the first step, Holistic Diagnosis, truly enables to identify theunexpressedpotentialitiesofaterritorylookingatitfromadifferentperspectivethatdoesnotonlyconsidertheeconomicaspectofprofitability,but takesalso intoaccountthematerialculture, thelocalhistory,thetraditionalknow-how,thelocalresourcesandthefeaturesoftheenvironmenttounderstandwhat connectionscanbecreatedbetweenprocesses inorder toensurea sustainabledevelopmentinthelong-term.Theestablishmentoftheserelationsisthecoreoftheapproach:theconnections generate new possibilities (for example: enhancement of outputs, savings on wastemanagement, creationofnewproducts fromwaste) for theactors involved, creatingvalueat thelocallevel.InthecaseofRetrace,theapplicationofSDmethodologyisnotaimedatcreatingaconcreteprojectbutratheratdefiningnewpolicies,RegionalActionPlans(RAP),thatsupportthebirthofprojectspromotingthetransitiontoCE.Currently, the first two steps of the methodology, Holistic Diagnosis and Benchmark, are beingcarriedoninparallel.Inthefollowingchapterthepreliminaryresultsoftheproject,whichisinthefirsthalfofthesecondsemester,willbediscussed.ThefocuswillbeonPiedmontRegion(Italy)asanexampletoexplaintheactivitiesRetracepromotesinthefivepartnercountries.


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Retrace Outl ine of the project Retrace–SystemicApproachforREgionsTRAnsitioningtowardsaCircularEconomy-isaprojectfinancedbytheInterregEuropeprogrammeinthefirstcallof2016andaddressestheissueofthetransition to CE following the priorities set by the “Flagship Initiative for a Resource-efficientEurope” (European Commission, 2011) for a resource-efficient, low carbon economy to achievesustainablegrowthasenshrinedinEurope2020strategyandintheECCommunication“Towardsacirculareconomy:AzerowasteprogrammeforEurope”(EuropeanCommission,20142).Theprojectinvolveseightprivateandpublicpartners:

- 2highereducationcenters;PolitecnicodiTorino(LeadPartner)(Italy)andHigherSchoolofAdvancedIndustrialTechnology–ESTIA(France)

- 3managingauthorities;PiedmontRegion-Directorate forregionalsystemcompetitiveness(Italy), GovernmentOfficeforDevelopmentandEuropeanCohesionPolicy(Slovenia)andNorth-EastRegionalDevelopmentAgency(Romania)

- 1foundationforthelocaleconomicdevelopment;AzaroFoundation(Spain)- 1 public company of the Provincial Council of Bizkaia which aims to support local

enterprisesinnewproject,innovationandinternationalization;BEAZS.A.U.(Spain)- 1 technological centre; Association for Environment and Safety in Aquitaine-APESA

(France).

Inadditionto thepartners involved,aStakeholderGrouphasbeencreated ineachcountry.Eventhough they are not partners of the project, the role of stakeholders is crucial for the properassessment of the local context and the definition of the Regional Action Plans, by whichstakeholders are oneof themostly influenced recipients, in order to ensure that thesemeasuresreachtheirrealobjective.Retraceofficiallystartedon1April,2016andwilllastuntil31March,2020;theactivitiesplannedin the project are divided in two main phases lasting two years each(www.interregeurope.eu/retrace). Themajority of thework is concentrated in phase 1with thetwo parallel activities of Holistic Diagnosis and Benchmark that in the project takes the form ofexchangeofGoodPractices(GPs)onCircularEconomythrough7FieldVisits(oneineachpartnercountry, one inTheNetherlands and one in Scotland, considered to be twoparticularly virtuouscountriesonthetopicofCE).WhilefieldvisitswillenablethesharingofGPs,HolisticDiagnosiswillidentifypolicygapsandbarriersat theregional level.Thecomparisonof thesetwoelementswilllead to the definition of Regional Action Plans, containing measures to promote the creation ofpolicies in support of CE. Phase 2 will be dedicated to the implementation of RAPs and to themonitoringoftheresults.Theexpectedresultsoftheprojectare:

- developmentof5regional(nationalinthecaseofSlovenia)HolisticDiagnosis- identificationandexchangeof30GoodPracticesin5targetpolicyareas- holdingof7fieldvisits- definitionandagreementsof5ActionPlans(onepercountry)- holdingof10RegionalDisseminationEvents(onepercountry)- holdingof2InterregionalDisseminationEvents- 3publicationscollectingdifferentresultsoftheproject.

So far, 5 Regional Dissemination Events were organized, 3 field visits have been held and eachcountryhascompletedthefirsttwostepsoftheHolisticDiagnosis(therearethreestepsintotal).Theseactivitiesprovidedpreliminaryresultsthatenabletogetafirstglimpseofthelocalcontextof


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each of the five partner countries. For the sake of the paper, the analysis of the preliminaryoutcomesrelatedtoPiedmontRegionwillbediscussedmoreindetail. Piedmont Region (Italy) TheHolisticDiagnosis isdivided into threesteps: step1 relates to theassessmentof thecurrentsituation of regions at thewidest possible level; step 2 relates to a deeper analysis of the policyinstruments addressedby theproject; step3 relates to the identificationof themainproductionsectorsofaregion,highlightingspecificcriticalitiesconcerningtheinputusedandoutputproducedandlookingforpossibleinterconnectionsbetweenthem.Step1requiredathoroughcollectionofdataconcerningfivedimensionsofthelocalterritories:

- Geography; this section analyzes mainly the composition of the use of the soil,distinguishingbetweenagriculturalandartificialareas

- Demography; this section collects information on the dynamics of the population such asgrowthtrends,economicandreligioussituation,rateofimmigration,etc.

- Culture; this section gathers data concerning several aspects of a people’s culture, fromhistorytoarts,food,habits,languagesetc.

- Urbancenters; this sectionanalysesmore indetail themainurbancentersofa region, tounderstandwhataretheirpeculiarfeatures

- Economicsectors;thissectionshowsinformationrelatedtothemaineconomicsectorsofaregionandtotheircharacteristics,suchasthestructureofthecompanies.

All thesedatawerecollectedfromreliableregionalornationaldatabasesandgatheredinseveralexcelfiles.Thisformathelpedtostoreinformationinanorganizedway;howeveritdidnotenablethe information to becomemeaningful for the reader. In order to increase the usability of thesedata, a long process of visualization was put in place. As a result, different giga-maps for eachsectionoftheHolisticDiagnosiswerecreated.TheroleofgigamappinginSystemsOrientedDesignhasbeenalreadyestablished(Sevaldson,2015).

Step1ofHolisticDiagnosisinPiedmontRegion:Geography.


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Step1ofHolisticDiagnosisinPiedmontRegion:Demography.

Step1ofHolisticDiagnosisinPiedmontRegion:Economy.


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Fromthisfirststepofanalysis,differentpeculiarfeaturesofPiedmontRegionemerged.Theregionalterritoryismainlycoveredbymountains(43.3%)whereashillsandflatareasoccupyrespectively 30.3% and 26,4% of the land (Sistema Piemonte). Agriculture and the industriesrelated to it fulfill a fundamental role in the history and economy of the region: the agriculturalarea, including both breeding and agriculture, accounts for 78% of the Total Agricultural Area(SistemaPiemonte),andagricultureisoneofthemaineconomicsectorsoftheregion.Thefoodandbeveragesubsectorofmanufacturingisoneofthemostrelevantones,intermsofnumberofplants.Moreover,thesocalled“madeinPiedmont”sectorisdominatedbythreemultinationalcompaniesrelated to food and beverage (Lavazza, Martini and Ferrero) (CUBE Piemonte). Lastly, thegastronomicexcellencesthataboundinPiedmontarefamousallovertheworld.Otherrelevanteconomicsectorsarerelatedto-inorderofrelevance-services,manufacturingandbuilding industries (Spolti et al., 2013).Other important areas of innovation involve the fields ofmechatronics, green chemistry, automotive (mostly thanks to the activitiesof FIAT), life sciencesandaerospace(RegionePiemonte,2016).Despite the existence in the territory of largemultinational companies, the production sector isdominatedbymicro industriesmadeof1-15employees:morethan34.000companiesemployingabout114.900people;almostthesamenumbersachievedbythe156largecompaniesthatemployaround105.660people(CensimentoIndustriaServizi).The population, equally divided betweenmen andwomen, is aging and it is concentrated in themain urban centers of Torino and Novara (ISTAT, 2011). The analysis of the working situationhighlightsthepermanenceofthenegativeeffectsoftheeconomiccrisisontheRegion:indeed,therateofunemploymentincreasedfrom5,3%in2004to10,2%in2015(ISTAT).From the cultural point of view, Piedmont Region reflects in the languages, traditions, religions,culturesandarttheinfluencesofthepeoplethatcrossedit. Arelevantheritageofthepastistheexistence of different craft districts related to the processing of metals and electric materials,textiles, house wares, gold, taps and drinks (Osservatorio Nazionale Distretti Italiani). For whatconcernsurbancenters,themajorityoftheeconomicandsocialactivitiesareconcentratedaroundTurin,whichisthemaincityofthearea.TheframeworkoutlinedsofarshowsPiedmontRegionasanarearich inculturalandproductiveresources, whose production scenario is related mainly to a few key sectors and dominated bymicroindustries.The second step of the Holistic Diagnosis was dedicated to a deeper analysis of the PolicyInstrument addressed by Retrace in order to investigate if it considers the topic of CircularEconomy in themeasures it foresees and if it ispossible to identify relationsbetween it and thefindingsemergedfromstep1.Thethreemainpriorityaxesofthepolicyinstrumentanalyzedconsiderdifferentaspectsrelatedtoenvironmental sustainability and resource efficiency without, however, explicitly mentioningCircularEconomy.Despitethis,thecurrentsituationoftheregionoffersgoodassets-suchassolideconomic sectorswith leading enterprises and the capacities related to research, innovation andtechnological development- that can be considered as basis for the development of circulareconomy.Somekeyelements toworkon inorder toensure thedevelopmentofCE in theregionare:knowledgetransferrelatedtotheopportunitiesofferedbyCE;increaseofawarenessthroughthe engagement of key stakeholders (such as innovations clusters and research centers); andredesignofpolicyactionstosupportthetransitiontoCE.The Holistic Diagnosis will be completed only after the fulfillment of the third step that, byidentifying the main economic/industrial sectors of the region and analyzing the policiesconcerningthemandtheirrelationtoCE,willenabletobuildthelinkbetweenthefirsttwostepsofHD.


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Parallel to the definition of Holistic Diagnosis, 15 Good Practices on Circular Economy wereidentified in Piedmont Region. They relate to several different sectors: plastics, special waste,energy,watermanagement,agrifood,sustainablemobility,fuelproduction,knowledgetransferandreuse/recycle of everyday objects (a video explain the best 8: https://goo.gl/yJUuXv). Theidentificationof theGPshasbeenperformed inclosecooperationwithRetracestakeholders thatsuggested,describedandevaluatedthem.Twomain findingsresulted fromthisactivityand fromthe discussions with stakeholders. The first element is the remark that, even though CE is notexplicitlymentionedinthepolicyinstrumentaddressedbyRetrace,therearemanydifferentcasestudiesofactivities inPiedmontRegionthatapplytheprinciplesofCircularEconomyindifferentsectors. The second consideration is the recognition of the difficulty encountered by moreinnovative projects on CE in the implementation phase. This is mainly due to the gap existingbetweentherulesimposedbytheregulationonwasteandthetechnologicalinnovationsrelatedtowastetreatmentandtothedifficultyintransferringtothemarketthelatestinnovationsdevelopedinthisfield.Thisisparticularlyrelevantforbrandnewinnovationsproposedbystart-upsthatneedhighinvestmentsinthetestphase,whicharehardtoobtain.Thepreliminaryresultsachievedso farcanbeproperly interpretedonlyonceall theactivitiesoftheanalysisphasewillbecompleted(step3ofHDandholdingofallthe7FieldVisits).Theprocessof interpretation will actively involve local partners and stakeholders, considered particularlycrucialinthisphaseoftheproject,todefineRegionalActionPlans.Future developments ThefurtherstepsofRetraceprojectwillbe:

- Fulfillmentofstep3ofHolisticDiagnosisineachpartnerregion- Holdingofallthe7FieldVisitswiththeexchangeoftheremaining32GPs(inadditionto

the18alreadyexchanged)andtheidentificationofthebest30GPstobecollectedinapublication

- IdentificationofPolicyGapsineachpartnerregion- CreationofamatrixtomatchPolicyGapsandGoodPracticesinordertofindsuggestions

forthesolutiontotheidentifiedproblems- Elaborationof5RegionalActionPlans,oneineachpartnerregion- Implementationoftheprojectandmonitoring.

Paralleltothesecoreactivities,5Regionaland2InterregionalDisseminationEventswillbeheldtosharewithkeystakeholders(suchaspolicymakers)andthewiderpublictheresultsoftheproject.

InthecaseofPiedmontRegion,Retracewillproducetwodifferenttypesofimpactsintheshortandlong time: a lighter impact on policy instrument in the short term is expected as the measuresforeseen by it have already been defined and concern the timeframe of 2016-2020, so that astructural change is not feasible; however, Retracewill have a stronger impact on the followingprogrammingperiodthatcanbenefitfromtheoutputsandresultsobtainedbytheproject.Forthecurrent timeframe, Retrace is expected to support the improvement of the Regional OperationalProgramme through different actions: the promotion of calls oriented to support CE; theintroductionofnewevaluationcriteriatoencouragetheimplementationofresourceefficiencyandCEconcepts;andtheimprovementofthedialoguebetweenlocalactorstoincreasetheawarenessandcommitmentofkeyregionalstakeholders.


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Conclusions Circular Economy is a topical subject in the discussion concerning sustainable development. Thechange from a linear to a circular economic model offers opportunities that are particularlyappealing for Europe, considering the internal issues it is currently facing. However, severaleconomic, socialandregulatorybarriershamper this transition.Thenecessity toovercome thesebarriershasbeendiscussedinthepaperandthecasestudyofRetraceInterregEuropeprojectwasintroduced todemonstrate thebenefits that the applicationof SystemicDesignmethodology canprovide in supporting the advocated transition. In particular, it enables an expansion of theconcepts of reuse, recycle and recover proper of Circular Economy to different economic andproduction sectors in order to establish synergies between them to support the sustainabledevelopment in the long term.Furthermore, SystemicDesignpushesover the conceptof circulartowardsanetworkinwhichthecross-sectorialflowsofmaterialsandenergycanreallyimitatetheNature.Thedirectivesonwastemanagementhavebeenmentionedassomeof themostrelevantregulatory barriers; even though Retrace does not directly address this directive, it aims tostimulate a further review of regulation on waste management to increasingly promote theirproperenhancement.


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