The circular economy in developing countries

7 February 2018. Brussels. Infopoint Lunchtime conference. The circular economy is a high priority of the EU. It is now also gaining traction with the international development community, and there is growing optimism about the potential of the circular economy as a new model for sustainable growth in developing countries.

Presentations:

• Astrid Schomaker, Director, DG ENV.F - Global Sustainable Development
• Felix Preston, Senior Research Fellow and Deputy Research Director, Energy, Environment and Resources, Chatham House

If you would like to watch the video of the conference, please click on this link.

Summary
CHATHAM HOUSE BRIEFING

A Wider Circle? The Circular Economy in Developing Countries

Briefing December 2017 Energy, Environment and Resources Department, 24 pages

• There is growing optimism about the potential of the ‘circular economy’ (CE) as a new model for sustainable growth in developing countries. A CE is one in which products are recycled, repaired or reused rather than thrown away, and in which waste from one process becomes an input into other processes. In recent months there has been CE-related activity in countries as diverse as Laos, Rwanda and Colombia.
• A CE strategy could help lower-income countries ‘leapfrog’ to a more sustainable development pathway that avoids locking in resource-intensive practices and infrastructure. But a stronger evidence base is needed to show how the agenda can deliver opportunities for industrialization, as well as addressing environmental insecurity.
• Lower-income countries are in many ways more ‘circular’ than their developed-economy counterparts – the question is how to turn this into a development opportunity. Much economic activity in lower-income countries revolves around sorting and reusing waste. However, higher-value, employment-generating opportunities for reuse and remanufacturing are yet to be captured.
• The existence of circular activities in developing countries provides excellent political ‘entry points’, which could enable governments, the private sector, civil society and other actors to promote innovative economic models. The CE could provide a powerful narrative, helping to build momentum around a set of ideas that can be applied in and tailored to multiple sectors or cities.
• There is a window of opportunity in which to align the efforts of development organizations and partner countries. Donors are exploring how the agenda should be aligned with the Sustainable Development Goals (SDGs) and the Paris Climate Agreement. Wider international cooperation on the CE could involve trade partnerships, regional hubs or pilot zones.