The biggest obstacles to Europe’s transition to a more sustainable, circular economy are not a lack of ambition, but a critical shortage of financial incentives and technical expertise.
The latest report,
“Identification of technical and non-technical barriers related to the implementation of Industrial Symbiosis,” released by the LIAISE COST Action project, identifies the key barriers preventing industries from adopting industrial symbiosis, a practice where one company’s waste becomes a valuable resource for another. Findings based on a survey of 53 experts and stakeholders from 28 countries provide a critical snapshot of the challenges that must be overcome to make the circular economy a widespread reality across Europe.
Despite industrial symbiosis’s potential for significant environmental and economic benefits, this adoption is lagging.
“Our research pinpoints the exact hurdles that are slowing down progress. While the will to create a circular economy exists, companies are facing a critical gap in both the funding and the specialised knowledge needed to turn theory into practice,” underlines Professor Aleksandar Erceg, who is leading the LIAISE industrial symbiosis technical synergies project group.
Moreover, Professor Hasan Volkan Oral, the leader of the industrial symbiosis business model group, reminds:
“These aren’t just isolated problems – they are interconnected challenges that require a coordinated European approach to overcome.”
The most significant barriers to implementing industrial symbiosis that are still in place are: (i) a lack of financial motivation, incentives, and funding opportunities; (ii) investment barriers related to high initial costs and risks; and (iii) a lack of technical expertise and knowledge within the company. The report emphasizes that these barriers are deeply interrelated. E.g., a lack of clear government regulations on what qualifies as a “recycled product” leads to inconsistent quality in recycled materials.
This, in turn, makes companies technically hesitant to use them, creating a cycle of inaction. Similarly, the high upfront cost of building the necessary infrastructure, like pipelines for heat or material exchange, is a major financial barrier that directly halts technical implementation.
To dismantle these barriers, the LIAISE report offers a series of strategic recommendations for policymakers, industry leaders, and researchers. Governments and industry bodies should invest in industry-specific training programs and create open-access digital platforms with AI-powered matchmaking tools to help companies identify symbiotic partners and viable waste-to-resource exchanges.
Policymakers must provide direct financial incentives, such as grants and tax credits, for companies participating in industrial symbiosis. Encouraging public-private partnerships is also crucial to fund the large-scale infrastructure needed for resource exchange.
A critical step is to simplify and harmonize regulations across the European Union related to waste classification and reuse. Creating clear, flexible guidelines will provide the legal certainty industries need to invest in industrial symbiosis with confidence.
The LIAISE report calls for institutionalizing the role of
“industrial symbiosis facilitators” within industrial parks and local authorities. These dedicated professionals can build trust, identify synergies, and coordinate the complex financial and regulatory aspects of symbiotic projects.
By addressing these challenges head-on, Europe can accelerate its progress towards a truly circular economy, fostering sustainable industrial practices that benefit both the economy and the environment.
Additional Information
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View the network website:
www.liaise-action.eu
Circular economy solutions to address major environmental challenges
Link to full report:
https://www.liaise-action.eu/publication/d1-4-identification-of-technical-and-non-technical-barriers-related-to-the-implementation-of-is/