Circular economy is the critical juncture where competition policy and sustainability converge. How can we then resolve the perceived tensions between the two and enable the circular economy? This was the topic of last week’s Swiss Association for Compliance and Competition Law (ACCL) Conference – Excellence in Compliance: Competition Law and the Circular Economy which for the very first time took place in Brussels and Euclid Law had the privilege of co-sponsoring.
We had three panels, expertly moderated by Oliver Bretz, Joachim Quoden and Karl Falkenberg which offered us thought-provoking reflections from the perspective of industry, policymaking, private practice and consulting. We also had the honour of having Belgian Secretary of State Alexia Bertrand as a keynote speaker.
The first panel discussed some of the most pressing questions on the interaction between sustainability, competition law and regulation. The move from a linear to a circular economy comes with a cost increase that has a social, political and economic dimension we need to be aware of at all times. When there is clear evidence of market failure, panellists suggested, it is legitimate to ask whether the most effective response would not be through regulation. An important question raised was how we as a society can collectively move to a place where consumers choose less.
The second panel focused on Extended Producer Responsibility (EPR). EPR engages all stakeholders across the value chain – it is fundamental to facilitating a circular economy and in the centre of that “circle” are producer responsibility organisations (PROs). The speakers reflected on what is the most suitable EPR model to address the challenge of low recycling rates – a multiple- or single-service PRO system. The characteristics of EPR systems make it difficult to reconcile neo-classical market theory principles with the implementation of EPR obligations, one panellist suggested. A perfect competition model entails profit-seeking players and a high degree of consumer choice, but it is not a model that would bring about the most efficient outcomes in the EPR market. More does not always mean better.
In the third panel, leading experts provided valuable contributions on how best to marry the ambition of a circular economy for all with the need to utilise the Single Market to its fullest. Regulators and industry must work together and not apart in order to achieve Europe’s legislative, economic and environmental goals, not least in circularity and competitiveness. The issue of how to address the growing energy needs of Europe’s industrial future lies at the heart of these discussions.
We are grateful to our partners for making this event possible – Shearwater Global, EXPRA – Extended Producer Responsibility Alliance, AGON PARTNERS