ERA backs ‘circular economy’ move

News Story
- 28 May 2020 ( #976 ) - Brussels, Belgium
1 min read
ERA hopes the EU will recognise rental business models
ERA hopes the EU will recognise rental business models
European equipment renters are backing the European Commission's new Circular Economy Action Plan which is expected to promote the 'circular economy' as part of the green recovery from the COVID-19 pandemic.

The Equipment Rental Association (ERA) says it hopes the EU will recognise "the full potential of the sharing and rental business models to deliver this transition to a circular economy".

Rental allows for less waste through shared usage of assets, extending the lifetime of equipment and putting emphasis on proper recycling, according to the association.

"Rental is (also) a great way to minimise the carbon footprint of construction equipment and bring us closer to meeting the Paris climate goals," says ERA secretary general Michel Petitjean. "By sharing equipment and optimising its use, the rental industry lowers the construction sector's overall climate impact. Renting helps reduce CO2 emissions by around 30%, sometimes even up to 50%, depending on how the equipment is used, by optimising equipment adequacy, transportation, utilisation rate and maintenance, as a recent major study shows."

ERA is calling on decision makers to recognise and encourage practices that minimise the climate impact of construction equipment, particularly in view of the upcoming 'Renovation Wave', which will incorporate circularity principles, as well as in the context of public procurement.
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