Andreea Nicolae, PIVOT-C: Circularity is a business case, even if it seems pricey or risky at first

In this first installment of Business Review’s #CIRCULARIO exclusive interview series, we sat down with Andreea Nicolae, Co-Founder & Managing Partner at PIVOT-C, to find out more about Romania’s transition from a linear to a circular economy. As a prominent figure in the sustainability landscape, Andreea provides insights into the urgency of embracing circularity, Romania’s progress and challenges, and the profound impact on local communities and job creation. Join us as we explore the transformative power of the circular economy and its potential to redefine Romania’s economic landscape and societal well-being.

What is actually the urgency in implementing a circular economy? Who sets this urgency?

The urgency derives from the critical environmental situation we face. We have enjoyed decades of development with the traditional linear economy model – take, make, dispose, but this has led to significant problems. Globally, we have to deal with resource depletion, widespread pollution, worsening climate change and unpredictable supply chains.

The circular economy model stands out as a model of consistency, a way of focusing on local resources, recycling, and reuse. This is a model of both preserving the environment and of economic growth, creating jobs and ensuring equitable access to resources. It stands out through the balance it brings at least on three levels of critical focus these decades: environment, society and growth.

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How is Romania addressing the shift from a linear to a circular economy and what lessons have been learned along the way?

Romania does not stand out with its performance concerning secondary utilisation of materials. EU and official reports basically say we are lagging behind. Back in 2015, we reused about 1.5% of our materials, but by 2019, it dropped to 1.3%. When one compares it to the EU average of 12.8%, one realises that there’s a lot of work to do on the topic. Take another example: in 2020, we managed to generate €0.33 for every kilogram of material we used – that is an indicator looking at resource productivity. But the average in the EU was €2.09 – and that is what gives us a big gap.

We have also been acknowledged with progress in 2023, when we managed to recycle 13% of our household trash, which is a step up from 11% in 2019. So, there is a growing commitment to sustainable practices.

The big takeaway from all this? We need to start seeing our weaknesses as opportunities and chances to do better. Going circular, reusing and recycling isn’t just good for the planet; it’s good for economic growth and it is good for people, for communities, too.

To really make a change, we have got to fix some systemic issues. The first and foremost challenge is that of the mindset, followed closely by our capacity to cooperate and co-create at a cross-sectorial, cross-industry level. We need businesses that are convinced that circularity is a business case, even if it seems pricey or risky at first. With these achieved, actions will take shape în performant processes and centres to sort, collect and recycle waste, în consistent financing and capital for circular projects, in capacities to implement public-private partnership (PPP) projects.

How is the circular economy benefiting local communities and contributing to job creation and economic growth in Romania?

Jobs and the circular economy: this is like opening a door to a whole new world of opportunities. It’s not just about giving products and resources a second or a third life; it’s about rethinking how we make and use things. This shift is creating jobs in all sorts of areas, it opens a plethora of new job opportunities, each playing a vital role in strengthening the economy and enhancing community well-being. The best way to exemplify this is to imagine a future Romania, transformed by the principles of the circular economy. In the upcoming recycling centres, we’ll find people engaged in specialised recycling roles, handling everything – from electronics to textiles, reclaiming valuable materials and giving them new life.

Let’s go even further than this: renewable energy has also seen a surge in job creation. Solar panel installers and wind turbine technicians are becoming common sights, the supply chain and logistics sector has been revolutionised too, to ensure that products are made and transported in the most resource-efficient way possible, reducing waste and carbon footprint. Implicitly, we have environmental consultants that have become key players in helping businesses adapt to this new, green economy, ensuring compliance with environmental regulations and helping them to become more eco-friendly. The examples can go on, down to every level – education system, R&D, politics.

The transformation is profound. Circularity is here to introduce not only new jobs but to change the paradigm, to give any job a new meaning.

Are local examples enough to illustrate that the circular economy is becoming functional in Romania?

As I mentioned , the transition to a functional circular economy requires a collective effort and a systemic approach. It is not enough to have a few small-scale projects here and there. They need to be interconnected to reveal their full potential.

Current initiatives, which are often limited in scale, need a major boost from policymakers, investors and teamwork across different sectors. We are actually building an entire ecosystem, not just focusing on waste management. By weaving together these individual threads, we will be able to see the full picture of our collective effort, achieve significant environmental gains and drive sustainable economic growth.

Can you share some insights into the importance of public awareness and education in driving the circular economy agenda in Romania?

If we want to see a predominant circular economy in Romania that certainly requires public awareness and education. The means to achieve this is not just through policies, but also through active campaigns targeting active participants.

All efforts must concentrate on both educating the public about the benefits of a circular economy and on incentivizing businesses to adopt circular practices. This is the exact tipping point we need in order to spark the demand for products and services that are truly sustainable, circular.

Simple actions like reducing waste and recycling, when embraced by everyone, can make a big difference. It’s that kind of approach that has a double effect: it creates a supportive environment for circular policies and it also empowers citizens to make informed choices. It’s the only doable way to drive us through understanding and engaging in circularity.

Is the Circular Economy the Only Option?

No, circularity isn’t the only route to green and profitable practices. Techniques like regenerative agriculture can revive our soil and be more budget-friendly over time. Switching to renewables like solar or wind energy can cut down on bills and protecting our natural habitats and wildlife conserves the resources we all rely on. Inventing new, smart technologies could lead to economic gains and open up new markets. The paradox is that, eventually, these lead us back to circularity.

Do you think our approach to the circular economy will change in the coming years?

I trust recycling and reusing will become our second nature and we will integrate them into our everyday routines. I can also see the inceptions of a common ground and a partnership between government entities and the business world. Both sectors need to have strategies that are harmonised with the principles of the circular economy. And this has to be done while we are educating the wider community on its critical value. It is an initiative that demands a collective strategy, engages both industry leaders and individuals with the final aim of driving a unified progression towards sustainability.