Circular economy seeks to minimize waste and make the most of resources by keeping products and materials in use for as long as possible. Michaela Stachova, director of the Business Leaders Forum, had summarized a few key differences and similarities in Czech and British approaches to the circular economy prior to the Circular Economy Forum event organised by the British Chamber of Commerce Czech Republic in October 2024. We are now sharing main points of her overview as part of our series of articles on Circularity (BLF about Circularity – 3rd episode).
Michaela provided an overview on this topic at the event and moderated a panel debate with speakers: Natalia Anferova, Climate Change and Sustainability Services, EY, Michal Vaňáček, Head of Communication & Campaigns, Tesco Stores ČR, Martin Veselý, Public Affairs & Circularity, Mattoni 1873, and Ivona Vyhnálková, Head of Sales and Customer Engagement, Lindström.
Policy framework and legislation
Czech republic:
- The Czech approach is heavily influenced by the EU’s Circular Economy Action Plan. The country focuses on waste management, recycling, and reducing landfilling. It has a strong commitment to reducing waste through measures like the “Waste Act,” (zákon o odpadech) which promotes extended producer responsibility (EPR).
- Importance have efforts such as of the National Circular Economy Strategy (Národní strategie oběhového hospodářství) that lays out plans to reduce raw material consumption by 50% by 2040.
- Among other acts and laws which cover the topic of circular economy, are for example the Packaging Act, which is known espacially because of the Deposit System for PET Bottles and Cans which was very recently approved by the Governement and we will of course talk about it
Great Britain:
- Post-Brexit, the UK has adopted a slightly different approach but continues to align with much of the EU’s CE goals. The UK emphasizes resource efficiency and the Circular Economy Package (e.g., EPR and plastic packaging tax).
- Among important initiatives are strategies such as for example the 25-Year Environment Plan and the Environment Act 2021, which aim to promote recycling, innovation, and product longevity.
Comparison:
- Both countries emphasize waste reduction and recycling, but while the UK pushes for innovation in product design and resource efficiency, has more complex approach, the Czech Republic has a more regulatory, waste-management-centered approach.
- Brexit has created some divergence in the specifics of legislation, with the UK having more freedom to tailor its policies independently from the EU.
INNOVATION
Czech Republic:
- The industrial sector (e.g., heavy industries like steel and cement) is a major focus. Efforts are being made to innovate within the country’s manufacturing industries, promoting more sustainable practices like the use of recycled materials.
- To be highlighted are sectors like automotive (e.g., Škoda Auto’s commitment to circularity) and textiles (where companies like Lindström implement CE models).
- Czech companies are catching up but are still in the early phases of adopting circular economy models.
Great Britain:
- The UK is a global leader in CE innovation, with industries like fashion (e.g., clothing rental and resale businesses) and food production adopting CE principles. Notable examples include Tesco’s food waste reduction initiatives and fashion brand Burberry, which has committed to reducing textile waste.
- The UK also promotes initiatives like WRAP (Waste and Resources Action Programme), which fosters collaboration between government, business, and citizens on CE-related projects.
Comparison:
- The UK shows stronger leadership in innovation-driven CE solutions, while the Czech Republic is more industry-specific and focuses on compliance and sustainability improvements in traditional sectors.
public awareness and engagement
Czech Republic:
- Public engagement around the circular economy is growing but remains less robust compared to Western Europe. Awareness campaigns are typically government-led, focusing on recycling and waste reduction.
- Citizens are increasingly aware of CE concepts, though participation in initiatives like product reuse or repair is limited.
Great Britain:
- Public engagement is much higher in the UK, with multiple citizen-led initiatives. Consumers are increasingly conscious of sustainability issues, driving companies to offer more sustainable choices.
- The rise of zero-waste movements and refill shops is more widespread in the UK compared to the Czech Republic.
Comparison:
- The UK public is more engaged in sustainable consumption and lifestyle choices, while the Czech public tends to focus on recycling and waste management.
- Both countries could benefit from improving public education on circularity beyond waste.
Financial Support and Investments
Czech Republic: Financial support for the circular economy in the Czech Republic is partially funded through European funds and national programs. It focuses on innovations in construction, industry, and waste management.
Great Britain: In England, the circular economy enjoys strong financial backing, especially in the areas of technological innovation and enhancing recycling capacities. The year 2024 saw record funding for circular startups, including investments in companies like Verkor and Picnic.
Key Challenges and Opportunities
Czech Republic:
- Major challenges include outdated infrastructure and a lack of funding for innovative projects, particularly for SMEs.
- Opportunities lie in aligning with the EU’s ambitious climate targets, which could drive innovation and funding.
Great Britain:
- Post-Brexit policy uncertainty is a challenge, as are gaps in funding for small businesses looking to transition to CE models.
- However, the UK is a leader in eco-innovation, and there’s strong market demand for circular solutions, particularly in consumer goods.
summary
- Both countries are committed to the circular economy but approach it from different angles: the Czech Republic with a more regulatory, compliance-driven focus, and Great Britain with a focus on innovation and public engagement.
- There are clear opportunities for both countries to learn from one another – for the UK, an opportunity could lie in adopting more regulatory frameworks, and for the Czech Republic, there is an opportunity to increase efforts in public awareness and innovation.
- It is important to encourage businesses and policymakers to foster cross-border collaborations and share best practices to accelerate the transition to a circular economy.
Michaela finished her overview with data from our Czech surveys in collaboration with IPSOS on ‚Successful leader and ESG – what employees want from their leaders‘, which for the Czech Republic show for example that employees are among all ESG company activities most proud of waste sorting and recycling. She said: „This is the bad public engagement. We can not recycle our way out of this.“ Showcasing that more public engagenment and awareness is needed in regards to these critical issues.
O Business Leaders Foru
Business Leaders Forum (BLF) je nejstarší česká platforma odpovědného podnikání a udržitelného rozvoje. BLF podporuje firmy na jejich cestě k udržitelnosti od roku 1992, kdy byla založena mezinárodní organizací The Prince of Wales International Business Leaders Forum. Je také součástí mezinárodní organizace CSR Europe. Sleduje globální ESG trendy a inspiruje firmy na českém trhu.