EMBEDDING THE CIRCULAR ECONOMY IN GLOBAL VALUE CHAINS: STRATEGIES AND FRAMEWORKS FOR A JUST AND EFFECTIVE TRANSITION

The circular economy transition along global value chains provides levers that can curb raw material use, preserve biodiversity, and reduce
pollution, including the emission of greenhouse gases (GHGs). While the transition to circularity is building momentum, several systemic barriers continue to exist. This policy brief presents eight proposals which facilitate the transition to circular value chains in G20 countries and the Global South. In detail, we recommend: (1) advancing the circular design of products, (2) making international trade and investment policies supportive of circular value chains, (3) enhancing funding for circular economy investments and establishing dedicated financing mechanisms for that purpose, (4) developing environmental, social and governance (ESG) and circularity metrics which drive investment decisions towards sustainability, (5) facilitating a localised transition by harnessing regional resources to shorten value chains (6) ensuring that the transition process is just and inclusive for the Global South by supporting reverse logistics and globally applied extended producer responsibility (EPR) standards, (7) using the public awareness momentum created by the plastics crisis to draw attention to the circular economy imperative, and (8) creating a platform for sharing of best practices in circular policy design, implementation and monitoring.