What are effective circular economy policies for governments?

2 Fiscal instruments

Another way that governments can influence circular economy is through fiscal instruments, such as taxes, subsidies, fees, and charges. These tools can help internalize the environmental and social costs of linear production and consumption, and encourage more efficient and circular use of resources. For instance, governments can impose taxes on landfilling and incineration, or provide subsidies for renewable energy and green innovation. They can also use fees and charges to reflect the true value of natural resources and services, such as water, land, and carbon.

3 Information and education

A third policy area that governments can leverage to advance circular economy is information and education. By providing reliable and transparent information on the environmental and social impacts of products and services, governments can help consumers and businesses make more informed and responsible choices. For example, governments can introduce labeling schemes, certification systems, or disclosure requirements that indicate the circularity of products and services. They can also support education and awareness campaigns that raise public understanding and acceptance of circular economy concepts and practices.

4 Collaboration and innovation

A fourth policy dimension that governments can utilize to facilitate circular economy is collaboration and innovation. By fostering multi-stakeholder partnerships and networks, governments can enable knowledge sharing, capacity building, and problem solving among different actors in the circular economy system, such as producers, consumers, NGOs, researchers, and local communities. For example, governments can create platforms, forums, or hubs that connect and support circular economy initiatives and projects. They can also invest in research and development, and provide funding and technical assistance for circular economy innovation.