The message was clear at this year’s LOOP Forum discussion, ‘Nordic, Danish and EU Perspectives on Resource Security’ featuring EU Commissioner Jessika Roswall, CEO of Nordic Innovation Sindre Bornstein, CEO of Danish Industry Lars Sandahl and VP of Vattenfall Helle Herk.
The discussion also emphasized that, while the EU should take the lead on regulation, the Nordics have the potential to deliver as a test arena for circular solutions within Europe.
Read more about the discussion here
Need for scalability framework across Europe
Resource security is a key concern for Nordic and European companies. Recycling is a necessity, and businesses already offer many of the solutions. But fragmented European frameworks hinder the scaling and further development of the circular solutions that are essential for securing critical resources.
Lars Sandahl, CEO of Danish Industry said:
“Companies see circular economy as an opportunity, because we can’t take for granted that we will have the same resources tomorrow as we do today. There is a huge push from industry. The problem is that we have 27 different systems for circularity across Europe. Companies are designing products to be reused, but getting the waste across borders is very complicated. And that makes it difficult to scale solutions on a larger level.”
“We need to be able to scale, and we need to work together on this in Europe,” Sandahl concluded.
Jessika Roswall acknowledged the industry’s frustrations and stated that regulatory alignment is a priority for the European Commission:
“I share the same frustrations. And it is not only 27 frameworks. In some member states we also have regional frameworks. So, there are a lot of rules in Europe. We don’t really have a single market in the EU. And I think it is about time to get that now. What I hear is that it takes a lot of time to ship waste across member states. Waste shipment is something that we will also look more into.”
Helle Herk, Vice President at the Swedish power producer Vattenfall, explained how crucial the development of a market for secondary critical raw materials is for Vattenfall’s resource inflow:
“Resource inflow is a key security issue for us. The recovery market for critical raw materials does not really exist today. That is a challenge for us. We are so dependent on the acceleration of the secondary critical raw materials market. And the demand for these materials will only increase in the future.”
She also emphasized the need for aligned frameworks:
“Businesses need clarity to invest. We are ready to support the development of a secondary raw materials market. But we need the right frameworks to scaleup.”
Collaboration is key
Sindre Bornstein, CEO of Nordic Innovation, pointed to the importance of increased collaboration across borders and value chains as key to strengthening circularity in critical resources:
“Valuable materials can be found in most of the products we use daily. At the same time, Europe remains highly dependent on imported critical raw materials. This makes us vulnerable. The Nordic and European response to vulnerability must be more collaboration.”
Bornstein also gave an example of how collaboration across borders and value chains is already taking place in the Nordics:
“A recently published analysis shows that new cross-border collaborations are emerging in the Nordics around industrial solutions, rare earth elements, batteries and more. It also shows that these Nordic supply chains are increasingly linked to the rest of Europe.”
“This is exactly what we need. Stronger and deeper Nordic and European value chains that enhance resilience and competitiveness,” he said.
Jessika Roswall called on Sindre Bornstein and the Nordics to step up as a strong market within circularity:
“We need to show that Europe wants to take the lead. I want to be in the lead on regulation. That I can promise. And then I hope the Nordics will deliver as a strong market within the EU’s single market.”
Bornstein recognized the Nordics potential as a circular frontrunner in Europe:
“The Nordics can be a playground for testing of new solutions. In the Nordics we also have an edge when it comes to working across borders. I think we need to use that as a competitive advantage.”
Strategic approach to resources
Another key point highlighted in the discussion was the need for a strategic approach to resources in Europe, with counties working together to complement each other’s strengths. Lars Sandahl called on the EU Commissioner to help strengthen this approach:
“Can you help us become more strategic in how we use our resources in Europe? We cannot all excel in the same areas. We should divide the responsibilities among countries. Some can focus on batteries, others on plastics. This is necessary if we want to scale.”
The European Commission will do what they can to deliver, but more actors need to be involved. Jessika Roswall said:
“We need to do this together. I hope this crisis will help bring others on board. I will work to create more incentives. But I believe the member states also need to step in.”
Lack of financing
Another key point highlighted in the discussion was the need for financing and investment as enablers for circular scaling. Sindre Bornstein said:
“Circular solutions are often capital-intensive, while the benefits tend to be long-term and distributed across value chains. This makes them difficult to finance. Making circular business cases attractive from an investment perspective is essential if we are to move from pilot projects to real industrial scale.”
Background
The discussion was organized in a collaboration between Nordic Innovation and LOOP Forum. Nordic Innovation supported LOOP Forum as Core Partner under the Innovation Solutions for 2030 program.
Read more about Innovative Solutions for 2030
LOOP Forum is a cross-sector event shining spotlight on circular solutions for a green transition. Nordic Innovation also organized the side session 'Financing circular value chains for critical materials - from belief to bankability'.
