Potentials and Prerequisites on the Way to a Circular Economy: A Value Chain Perspective on Batteries and Buildings

Abstract

It is becoming increasingly clear that linear modes of production and consumption are unsustainable. A circular economy would help to minimize both environmental and social problems. As a result, the concept is gaining momentum in the political discourse. However, current policies do not seem sufficient to transform linear value chains to circular ones. This paper compares the potentials of and prerequisites for a circular economy along two important value chains. As a best practice example, the legal framework along the battery value chain is analyzed. This analysis is used to derive recommendations for how to improve the legal framework along the building value chain. We find that the battery value chain is already addressed by targeted instruments and the instruments addressing the building value chain have to be aligned and their credibility improved through mandatory requirements. A value chain-specific approach to develop the legal framework is promising for key sectors, while both general frameworks and value chain-specific instruments are required to fully exploit the CE for every product.