There are companies in Cesis county that work according to the principles of circular economy and can serve as an example of the wider development of circular economy both at the regional and national level. This is one of the most important conclusions in the analysis of resources and waste flow of Cesis region within the LIFE IP project “From waste to resources”.
Characteristics of Cesis region
Cesis county is 2,668 km2 in size, has 2 towns, 21 parishes and has a population of 44,834 (01.01.2023), of which 39% live in the towns of Cesis and Ligatne. The main resource of Cesis county is landscape and natural values that are characteristic in Vidzeme – 70% of the Gauja National Park territory is in Cesis county. Therefore, the planned development in the county plays an important role in maintaining the values of the National Park. In Cesis county, 5,137 companies were registered in 2022, of which 1,613 companies with turnover. Apart from the state and municipal sectors, the most employed people in 2022 were in agriculture, retail, transport (the largest employer – CATA Corp.), the construction sector, woodworking and carpentry products, furniture and wood items, and the health sector. The largest number of companies with turnover in Cesis region were in agriculture, construction, retail, as well as forestry and logging.
Since one of the main resources of the circular economy is the person engaged in the economy, factors that attract existing and potentially new residents to the county were also analysed.
Areas of business analysed
For the analysis of the flow of resources and waste within Cesis region in the context of circular economy (hereinafter analysis), 41 companies from 13 different sectors – agriculture, aquaculture, forestry, construction, woodworking, various types of production, retail trade, hospitality and tourism, catering, water supply and sewerage, case repair, health and education were selected. Companies in these areas have been selected for analysis because they are important in terms of the number of companies in the county, as a priority in the implementation of the LIFE project “Waste to Resources”, they have the largest amount of waste produced in the county or they have been selected for the diversity of selected areas. In the interviews with 51 representatives of the selected companies, the development trends in the sector, examples of the circular economy, obstacles and possible solutions were discussed. Particular attention was paid to the sectoral resource flows.
The highest turnover was in beer production industry, logging, retail, and transportation. The total profit of the companies was higher than the budget revenue of the municipality of Cesis.
The most circular – woodworking and agricultural enterprises
The most complete resource-use options for companies to work practically without waste are in the field of woodworking and organic farming. This is due to the fact that the main resource is natural and environmentally friendly – if it is not accompanied by man-made and environmentally harmful substances. As mentioned by Gunta Apsite, chairman of the board of the woodworking company “Apsites AG”, even the ash from wood waste burned in the furnace for heating is used as a valuable resource for sprinkling pedestrian paths in winter against slipping. In turn, garden furniture manufacturers, specialists of “EKJU” Ltd. mentioned that Scandinavian customers encourage to think about the sustainability of each part of the product, even labels. The principle of zero-waste operation is also more financially beneficial for the company itself. The company together with other entrepreneurs can find the use for previously unused by-product and residues thus supplementing product ranges and reducing waste quantities.
Circularity is dictated by economic considerations in construction sector
At times, economic outlook of companies on resources that could be reused is more progressive than currently required by laws that are gradually being adapted to better circulation of resources. Representatives of construction companies informed that they are already partially reusing the resources. Companies are waiting for the development of industry regulations for the use of secondary raw materials such as crushed concrete in places suitable for construction processes. Artis Jurcins, the chairman of the board of directors of ”Tolmets Vidzeme” Ltd. told, that there has to be tripartite cooperation in the circular economy and they are - customer, building authority and builder. There are construction companies, such as “Wolf Systems” Ltd., which has been practicing a zero-waste philosophy for years not only because of the company's ethical position, but also because such economic action is more financially beneficial.
There is still a wide range of opportunities for circularity in agriculture
The recent changes in the laws and regulations in Latvian agricultural direct payment policy have worsened the conditions for a more circular economy in agriculture. As a result of these regulations, it is financially less favourable to engage in organic farming than to apply industrial farming methods. In Cesis county as a result of this and other reasons organically managed areas have decreased by 10% since 2020. Positive examples of the circular economy are cooperation between entrepreneurs in the use of agricultural machinery, multi-sectoral management for more efficient use of human and technical resources, a network of direct customers for the realization of products, the use of cooperatives, as well as educational seminars. In terms of resources, the most promising issue to be addressed in the agricultural sector and in aquaculture is transforming of biodegradable material into high-value compost. Thus, it is possible to get weed seed free material for reducing peat use. The use of manure could be extended if it were to ensure guaranteed quality and make it more user-friendly. Looking at the broader context, the low quality of rural roads and the rare network of comprehensive schools are an obstacle to young families to live and work in the countryside. As a result, the main resource – people or labour and innovation accessibility are at risk.
Unsustainable trends in forestry
The forestry in Latvia is dominated by clear-cut forestry, which is more advantageous for efficient use of powerful logging machinery and simpler organisation of work. The number of harvesting machines, the acquisition of which is not restricted, also puts pressure on the forest as a renewable resource. The potential downtime of high-capacity machinery includes pressure from the industry lobby to develop stands more rapidly; and the wasteful use of high-capacity machinery, which can lead to some operators going bankrupt (at considerable cost) as a result of competition from logging companies. The data on the area harvested in the Cesis Region show that the current trends are not sustainable in the long term. In spruce stands of private forests, 45% more was clear-cut in 2021 and 2022 than would be the case under long-term sustainable management. In Cesis, 70-year-old pine stands represent only 5% of all pine stands, while 60- and 50-year-old stands represent only 1% of all pine stands. This means that in 30 years' time only half of the current volume will be available for harvesting, and in 40-50 years' time ten times fewer pine stands than today. The circular economy should consider all the potential added values of forests - mushrooms, berries, tourism, recreational and scenic resources, habitat for plants and animals, and the various services regulating forest ecosystems, including local and global climate regulation. In the context of the circular economy, therefore, forestry without clearcutting is more valuable than clear-cutting.
Industrial processes affect the tourism and hospitality sector
Mining and logging processes are degrading the rural landscape, raising questions about the long-term impact of these and other industrial processes on the rural landscape, which could be crucial for the future development of the tourism and hospitality sector. This sector is mentioned as one of the key sectors in the planning documents of Cesis municipality.
Packaging is the biggest problem for circularity in retail sector
Shops generate 12% of the waste produced in Cesis county. Moreover, the packaging of goods influences the amount of municipal waste generated by the end user, mainly households. The main issue to be addressed in the context of the circular economy is the quantity and recyclability of packaging material, both for products supplied in shops and for products packaged on site. A good practice in many shops in Cesis County is the availability of cardboard boxes of various sizes, and sometimes other materials for reuse at the exit and checkouts for customers to take away their purchases. It has been observed that the boxes do not collapse and that this resource gets a shorter or longer further use.
Catering as one of the most challenging sectors
In the field of catering, which as a niche also occupies its place in the operation of food supermarkets, the largest waste issue is disposable and heat-resistant containers, as well as product and food packaging and its circulation, in which customers can complete both cold and hot ready meals and semi-finished products for takeaway.In the context of the circular economy, the storage characteristics of different foods, as well as the shelf life, which is generally much shorter for ready meals than for raw materials, have an impact not only on the requirements for new packaging, but also on the amount of food waste.
There are also opportunities for the medical sector to implement circular economy principles
The interviews with representatives of the medical sector indicated that the most promising issue to address in terms of resources and waste streams is the choice between disposable or reusable instruments and aids, weighing the cost of waste management against the cost of maintenance and/or sterilisation in each case. This is a matter of research and strategy.
Education sector - one of the most important waste generators in the county
In the education sector, which is also a significant waste producer, the circular economy and sustainable development are not only about what is taught in the classroom, but also about the maintenance and management of the school building itself, in line with the philosophy of sustainability. This also includes all economic issues, from heating and energy efficiency of the building to the environmental impact of the lunch offer. In schools, the lack of textbooks poses a challenge, leading to more paper, both reading material and worksheets being copied, while the installation of drinking water taps in the corridor, outside the toilets, would serve to make more efficient use of the water resource.
Consumer attitude towards repair needs to be changed
Craftsmen and craftswomen play an important role in making things last longer, but repairing things by hand is not as profitable as the industrial production. Consumer attitude towards the price of repair services needs to be integrated into an understanding of the importance of repair in the viability of the circular economy. Craftspeople do not always have the skills, willingness, and capacity to operate as businessmen. The current tax policies and business reporting requirements imposed by the state are complex and resource intensive, which is another reason to stop legal mending. As repairing things and promoting a circular economy is in line with the specific nature of social entrepreneurship as defined by the legislation, it offers constructive opportunities to support repair workshops and the craftspeople.
Overall, the most promising resources for better recycling in the municipality are products from construction and building demolition, biodegradable material as a source of quality compost, and the creativity of local entrepreneurs to find solutions and uses for a wide range of resources previously considered as waste.
More information on the results of the analysis of resources and waste streams in Cesis can be found here.
Kristīne Āboliņa, Expert on Circular Economy and Sustainable Waste Management in Cesis County, LIFE project " Waste to Resources".
