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5 P WORKSHOPS: exploring potential for local economy, markets and enterprises

Recruiting to local enterprises

“Shopping”

Economic progress has been uneven to say the least. People and the environment are still experiencing stresses even in countries with higher living standards. Could re-focussing the local economy be part of the answer? A regenerative local economy includes all citizens, recirculates money to ensure thriving local businesses and it works to ensure a sustainable use of resources.

But there is a lot to learn. You could organise presentations and lectures from experts. Another way to explore the potential of revitalizing the local economy is to simply simulate the experience to see how far a group of people can come. Read More…

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New guides to the circular economy available

Understanding the circular economy needs you to have a grounding in physics, biology, economics supply chain and several other disciplines.

To help you apply circular economy thinking in your work we have developed a series of guides, presentations, videos and workshops that gives you the essentials without having to study these disciplines.

For example:

A GUIDE TO THE ESSENTIALS OF THE CIRCULAR ECONOMY

First presented at the Caux Foundation conference on Trust and Integrity in the Global Economy (TIGE), a 40-minute overview of the absolute essentials explains:

  • Two main cycles – and the absolutely essential crossover points that should always be monitored.
  • Three  elements of the circular economy, their cycles, their essential differences and why understanding them will help you grasp circularity.
  • Four spheres, their interaction points essential to pinpoint in all supply chain and economic activity.

Read more here.

 

 

We are not running out of energy; capitalism is.

Stephen Hinton 2016, photo Maj-Lis Koivisto

Most of the energy used in the world economy comes from non-renewable sources. Analysts fear that the expanding extraction of energy will not keep up with the expanding economy and …well… the the economy will deflate like a balloon and everyone will be worse off. Worst for the poor who have very little already. Or they fear that the climate will collapse because we are pouring too much carbon dioxide into it just to stay alive. Either way, the economy is so dependent on energy, they say, that we will go into a period of recessions and undermine peace is many ways. Not strictly true in my opinion  that there is too little energy: there is enough energy to keep everyone fed and housed within planetary boundaries. It’s just that there is not enough to keep capitalism going. And it is the failings of capitalism that we need to address if we are to make this peace project real, not energy supplies. Read More…

OPINION: Accounting needs to adapt to the circular economy

Photo: Maj-Lis Koivisto

We often hear about how hard it is to change the course of large ships, and as an analogy our current economic system seems to be hard to turn away from its course of counter-sustainability. However, large tankers DO make it into port. I would like to offer the idea that our economy can change course too. As with large ships, we need to understand and master the controls. Very few talk about accounting and sustainability. That is a shame, as several built-in features (and some easy to build in) could offer a way to turn the economy around. It’s not rocket science and it would be a big leap forward!
Read More…

Citizen Science being tried in Swedish Municipality

As part of the EU project Ground Truth, to set up citizen observatories, the municipality where the eco-village I am engaged in is the site for  a campaign to explore how citizen involvement can improve understanding and decision making around the water cycle.

Citizen science is on the increase. Using their own observations and mobile devices, citizens can provide a new data stream of local information about their environment, complementing existing systems and data sources.

 Ground Truth 2.0 is a 3-year EC funded project that is setting up and validating six citizen observatories in real conditions, in four European and two African demonstration cases. The project is demonstrating that such observatories are technologically feasible, can be implemented sustainably and that they have many societal and economic benefits. The ultimate objective is the global market uptake of the concept and the enabling technologies.

READ MORE

Ground truth

The Swedish Municipal Water Blitz

Planetary health: the new science

Read the latest from The Lancet Planetary Health journal:
Planetary Health: a new discipline

A beneficial climate change hypothesis

Reblogged from Dr Curry’s Climate etc. Excellent analysis of climate change and our own change from hunter gathering to agriculture.

Climate Etc.

by Rud Istvan

A novel hypothesis on the role of CO2 in the technological transition from hunter/gatherers to sedentary agriculture.

View original post 2,020 more words

Coming soon! Training in using the Commons Finance Canvas

Click on the image for registration page

The Commons finance Canvas is a tool to help intentional communities like eco-villages or CSA food projects to plan their finances. The canvas helps groups produce a prospectus and business plan. This free online training is coming soon so do sign up if you’d like to know the moment it is released!

Putting sustainability into financial reporting

We can envisage a balance sheet from which it is possible to glean the current state of the firm’s investment in circularity. A worked example is given below. Note that by  circular infrastructure we mean infrastructure that:

  • runs (or can run) on renewable energy
  • uses recycled materials and recycles materials
THE TRANSITIONAL COMPANY
PERIOD ENDED 31/12/2016
CURRENT ASSETS CURRENT LIABILITIES
Cash 200 000 € Accounts payable 0 €
Accounts receivable 0 € Accrued Expenses 0 €
Inventory 0 € Taxes owed 0 €
TOTAL CURRENT ASSETS 200 000 € Long term debt 0 €
TOTAL CURRENT ASSETS 0 €
PROPERTY AND EQUIPMENT
*Circular Infrastructure 100 000 € LONG TERM DEBT
*Non-circular Infrastructure 50 000 € *Loans for Circular investment 100 000 €
Less depreciation -4 000 € *Loans for other infrastructure investment 30 000 €
NET FIXED ASSETS 146 000 € Other loans
TOTAL LIABILITIES 130 000 €
OTHER ASSETS STOCKHOLDERS EQUITY
Licence 0 € Paid in Capital 0 €
Goodwill 0 € Retained Earnings 0 €
TOTAL OTHER ASSETS 0 € TOTAL NET WORTH 0 €
TOTAL ASSETS 346 000 € TOTAL LIABILITIES AND NET WORTH
*Percentage circular infrastructure value 67% *Percentage investment loans for circular infrastructure 77%

As the example above shows, the infrastructure is 67% circular. In terms of loans the 77% invested in circularity gives a degree of transparency for investors. For example, if investors think that regulations will become stricter in future, then the investment is sound.

Extended Profit and Loss Statement

An extended profit and loss statement can also be created as shown below.

From this you can derive measures like % of sales of circular products, cost of circular technology, circular vs non-circular expenses and trends over time. This again creates transparency for the capability of the firm to operate in an environmental way.

INCOME STATEMENT
PERIOD ENDED 31/12/2016
CURRENT
OPERATING INCOME
*Circular product sales 50 000 €
*Non-circular sales 100 000 €
Net sales 150 000 €
*Renewable energy 2 000 €
*Non-renewable energy 2 000 €
*Non-circular materials purchase 2 500 €
*Circular materials purchase 2 500 €
Other costs of good sold 100 €
GROSS INCOME 140 900 €
OPERATING EXPENSES
*Renewable energy 2 000 €
*Non-renewable energy 4 000 €
*Non-circular materials purchase 3 000 €
*Circular materials purchase 10 000 €
*Repairs and maintenance on linear infrastructure 20 000 €
*Repairs and maintenance on circular infrastructure 30 000 €
*Costs for waste elimination, non-recycled 2 000 €
Other expenses
TOTAL OPERATING EXPENSES 71 000 €
Other income 0 €
Other expenses 0 €
NET INCOME BEFORE TAXES 69 900 €
TAXES 25 000 €
NET INCOME 44 900 €
Circular products 50/150    75%

Renewable energy 2/6        50%

Circular materials 10/13     77%

Circularity lost to waste    15%

Circular infrastructure

costs 30/50                           60%