Concept
The need to approach climate action, resource efficiency, and circularity performance as integrated, economy-wide, cross-cutting issues is gaining attention in the policy world, stimulating the development of new industrial policies worldwide, including the USA’s Inflation Reduction Act and China’s 14th five-year plan. In the EU, the Green Deal Industrial Plan along with the Net-Zero Industry Act, the Critical Raw Materials Act, and a reform of the electricity market design, set the regulatory framework for industrial competitiveness and innovation as well as the attractiveness of the EU as an investment location for the net-zero industry. These initiatives are aimed not only to respond to the geopolitical environment following the war in Ukraine and the need to secure access to raw materials, but also to reinforce the new Circular Economy Action Plan (CEAP), which explicitly promotes crosscutting actions that build synergies between Circular Economy and climate change mitigation and adaptation at global, regional, and national level. Despite these policy advancements in Europe and other major economies, however, there remains a wide progress gap at the global level between ambitious emissions savings and high circularity performance due to the limited scientific and technical capacity available to underpin feasible, robust, and effective policies in both domains.
The TRANSIENCE project will create an open, integrated, modular framework to simulate pathways toward achieving the transition of European industries to climate neutrality while fully integrating material efficiency and circular economy measures in energy and climate models. To do this, it will bring together the consortium’s high-level expertise behind, and backbones of, well-established models in actively informing climate, energy, and industrial policies in Europe, addressing concerns related to broader sustainability, including environmental synergies or trade-offs, changes in industrial output, employment, competitiveness, global sourcing, trade, and other macroeconomic indicators. The end product, the Model for European Industry Circularity and Climate Change mitigation (MIC3), will allow to establish the required capacities and provide useful insights for industrial circularity performance and decarbonisation. MIC3, the ‘satellite’ modules comprising it and the scenario exercises stemming from it will be entirely co-developed and validated with relevant stakeholders from industry, policy, and civil society, as well as used to inform assessments and transition strategies, at EU and country level, at global level, and within 4 heterogeneous regional industry clusters in Europe, to ensure their usability and exploitation in real-world use cases.