The Law and the Circular Economy

At first glance, I was pleasantly surprised to see the American Bar Association publish an article on the circular economy and had high hopes for an engaging perspective on how the law and resource management may intersect. Although it did not meet my expectations, there are several countries that have passed circular economy regulations, and here is a brief summary of a few.

• Ireland - Circular Economy and Miscellaneous Provisions Act 2022: It is a reasonable piece of regulation, and the interpretation of the circular economy captures the essence of resource management well. However, the regulation is also a vehicle to amend other Acts, such as the Waste Management Act of 1996 and the Litter Pollution Act of 1997, by ramping up the use of CCTV, which appears 51 times throughout the Circular Economy and Miscellaneous Provisions Act of 2022.

• Vietnam - Approving the Scheme for Circular Economy Development in Vietnam, 2022: Technically, this document is not a regulation; perhaps, more of a guidance for local governments and policymakers to position Vietnam as part of the emerging circular economy. It lacks a significant amount of detail and clarity and promotes Vietnam's economic development but not resource management. It could certainly be quite confusing for those unfamiliar with the circular economy.
• South Korea - Framework Act on Resources Circulation, 2016: Article 1 starts off with a sound approach, "The purpose of this Act is to prescribe basic matters necessary for preserving the environment and creating a sustainable resource-circulating society by reducing the generation of wastes to the maximum extent possible through the efficient use of resources and by decreasing the consumption of natural resources and energy through promoting circular utilization and appropriate treatment of wastes generated." Here again, it is difficult to ascertain just how South Korea will achieve their circular ambitions.
• Germany - Act to Promote Circular Economy and Safeguard the Environmentally - Compatible Management of Waste, 2012: This Act reads more like a waste management document than resource management.
• Mexico - Circular Economy Law of Mexico City, 2023: Mexico have taken a novel approach by introducing three sections: (1) Circularity Assessment: The circularity assessment is a voluntary procedure to ensure compliance with circularity criteria for products and services produced, developed, distributed, or marketed for Mexico City. (2) Circularity Label: It allows for visible differentiation of products, services, or activities that meet circularity criteria, making it evident to society in general and potential consumers. (3) Mexico City Circular Economy Program: The Circular Economy Program (PEC) is a strategic planning instrument that integrates, coordinates and promotes public policies, programs, projects, and activities aligned with the principles and design approaches of the law, aiming to transition toward a circular economy.

There are several countries I have omitted, the most glaring omissions are from the EU and China's Circular Economy Promotion Law, 2008. The EU has recognised the legal complexity the circular economy presents and is choosing to issue several directives, such as the Right-to-Repair Directive and the Eco-design Directive, in order to tackle resource management.

The one common failure all these laws present is a lack of an agreed definition. Two legal researchers identified five limitations to current circular economy laws: (1) unclear boundaries and scale, (2) oversimplification of goals, (3) side-lining of justice dimensions, (4) reinforcement of the status quo, and (5) unintended consequences.

We cannot continue to applaud countries that suggest circular economy regulations are progress. And that is exactly what we are doing. The inability of circular economy professionals to come together to align around a common definition persists. Without this alignment, we cannot advocate or lobby for cohesive laws that provide legal certainty to companies and consumers across the globe. The EU is betting on trade as one way to persuade exporting countries to adopt resource management and resource efficiency as being central to their future. At just under 10% of the world's population, the EU is making a risky bet. One day, I'll start saying something new.

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Ms Adrienna Zsakay is the Founder and CEO of Circular Economy Asia Inc ,?and this article represents her opinions on the circular economy. Circular Economy Pick of the Week is brought to you by Circular World? Media - a brand owned by Circular Economy Asia Inc.

References

'Adoption of a Circular Economy in the United States ' by Jennifer Gentile, published by The American Bar Association, 08 February 2024.

'The New Circular Economy Law for Mexico City ' by Alfonso Caso, published by Mexico Business News, 20 June 2023

'Limitations of the Circular Economy Concept in Law and Policy ' by Katrien Steenmans and Feja Lesniewska, published by Frontiers in Sustainability, 06 April 2023.