The Circular Economy in Umeå, Sweden by OECD

Author:OECD
Language: eng
Format: epub
Tags: environment/regions
Publisher: OECD Publishing
Published: 2020-03-30T00:00:00+00:00

Governance challenges to design and implement the circular transition

Mostly, the challenges cities and regions are facing in building circular economies are not of a technical but an economic and governance nature. Technical solutions exist and are well known. However, to implement them, information and financial resources are needed, as well as an updated legal framework. Often, a holistic vision is still missing because of siloed policies. Cultural barriers are still a very important obstacle (OECD, forthcoming[13]). Key governance challenges to design and implement the circular transition in Umeå, Sweden, are presented below.

While the Strategic Plan 2016-28 states that Umeå will be a leader in a circular economy (Municipality of Umeå, 2016[9]), further clarity would be needed in terms of: how to make the most of the synergies across existing policies (e.g. green, smart, and sustainable ones), available funds and which mechanisms to put in place for the city to achieve this goal.

Clarifying the role of the municipality in designing and implementing a circular economy strategy can build leadership and trust. The mandate in terms of who is responsible for the design and implementation of a circular economy strategy amongst the city administration is still to be defined. While stakeholders appreciate that the municipality is taking the initiative of enhancing the circular economy culture, there is little understanding of the role of the municipality itself. A lack of leadership could lead to fragmented initiatives on the circular economy and weak accountability. Therefore, clarifying who will do what would serve as a reference for various stakeholders in identifying the focal point (office/departments) to go to for projects and investments.

Several departments are likely to get involved in circular economy-related activities, therefore co-ordination should be strengthened. As a holistic concept, the circular economy implies that municipal departments will have to co-ordinate to avoid duplications and grey areas. Given the culture of horizontality characterising day-to-day activities within the municipality, there are currently no designated co-ordination mechanisms for the circular economy amongst departments in Umeå. However, three Committees of the City Council Executive Board in particular can play a role in the implementation of a circular economy strategy: the Business Development and Executive Committee, the Planning Committee and the Sustainability Committee. In addition, there are several independent political committees, notably the Technical Board, the Building Board and the Environment Board that will have responsibilities in relation to specific circular economy activities.

There is no dedicated budget for the circular economy. However, several funding sources can be considered for circular economy projects, even though circularity is not one of their specifications. Dedicated funds are promoting the green transition: from the national funding schemes for cities, such as the Climate Leap (Klimatklivet) and Urban Environment Deals (Stadsmiljöavtalet) to “environmental boosts”, micro-funds for associations working on the green transition. The allocation of funds may face difficulty in relation to the fuzziness of the concept of the circular economy. Most policies refer to “resource efficiency” as an objective, but not to the “circular economy”.

Co-ordination with national and regional government would be needed to align goals and actions.

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