What is circular economy and why does it matter?

CONCLUSION:

Many countries and territories are already adopting circular economy approaches to shift development and growth to cleaner, greener, and more regenerative ones.

Kosovo

Kosovo is supporting innovative solutions for start-ups and SMEs, including the development of a mobile app for identifying environmental pollution and misconduct in urban areas.

Ghana

Ghana is working to improve urban waste management by supporting entrepreneurs who are building houses made of recycled plastic waste.

Jordan

By transitioning to a circular economy, countries like Jordan are creating opportunities for women, allowing them to find employment, learn new skills, open their own businesses, and take leadership positions in their community.

The Philippines

The Philippines has enacted a bill that requires large manufacturers to limit the use of plastic packaging and pay for the cost of managing plastic waste.

Mexico

An increasing number of countries, such as Mexico, are working to better connect circular economy solutions with their climate action plans. Mexico is developing and implementing training programs for subnational authorities to identify circular economy actions that will contribute towards the roadmap for implementing the country’s updated NDC.

Vanuatu

The island nation of Vanuatu is more circular than any other country whose circularity has been estimated. In 2021, its domestic consumption was estimated to be 59 percent circular. Ranking behind it were the Netherlands with 24.5 percent and Austria with 9.7 percent. Meanwhile, global circularity has dropped from 8.6 percent in 2020 to 7.2 percent in 2023.

Indigenous peoples

For a truly circular economy, we, as a collective, need to not only look ahead to new innovative approaches or technologies but also look back to see what has already worked and continues to work.

Indigenous peoples have been implementing circular solutions as a way of life for thousands of years– whether it is through agricultural practices that ensure natural systems are regenerated or building housing and structures using regenerative materials such as bamboo or adobe bricks.

These experiences and practices offer a lot of wisdom and guidance on how to create a truly circular world. In following principles set by these practices, we can better foster local economies centered around holistic approaches and in the process nurture resilience, reciprocity, and respect between people and the planet.

UNDP support

Whether focusing on climate change, sustainable energy, food and agriculture, or chemicals and waste management, UNDP is working with countries to scale and accelerate transformative change by integrating circular and green economy approaches. For example, under UNDP’s Climate Promise, The Gambia, Lao PDR, South Sudan, Uganda, and Vanuatu conducted detailed circular economy assessments as part of their NDC revision process to identify and prioritize circular economy interventions for enhancing their climate ambition.

We’re also supporting a wide range of actions including national, urban, and sectoral planning and budgeting, and by convening and engaging key stakeholders and partners at global, regional, and national levels to help build capacities and raise awareness of circular economy and other important nexuses.

Transition

Despite the urgent need to shift to a circular economy, material extraction is rising every year, with circularity declining–from 9.1 percent in 2018 to 7.2 percent in 2023. This means that we are using more virgin materials and becoming more wasteful.

To start closing the loop, UNDP believes that countries should leverage their national climate pledges―their NDCs―to include circular economy measures. As of May 2023, only 27 percent of NDCs include circular economy, so there is ample room for action.

On this journey, it will be key for governments to engage a broad range of stakeholders across different value chains and at all stages, ensuring that all voices are heard in the process, particularly the most marginalized and vulnerable. This way, we can ensure that the best solutions are prioritized in the NDC, are inclusive of all those affected, and have local ownership to be effectively implemented on the ground.

With the next round of NDC revisions required in 2025, now is the time to define circular economy measures to include in NDCs, helping to accelerate the transition to a more circular and regenerative world. UNDP News

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SDGs, Targets, and Indicators

1. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.2: Promote inclusive and sustainable industrialization and foster innovation
   • Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita

2. SDG 11: Sustainable Cities and Communities

   • Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management
   • Indicator 11.6.1: Proportion of urban solid waste regularly collected and with adequate final discharge out of total urban solid waste generated, by cities

3. SDG 5: Gender Equality

   • Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life
   • Indicator 5.5.1: Proportion of seats held by women in national parliaments and local governments

4. SDG 12: Responsible Consumption and Production

   • Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water, and soil in order to minimize their adverse impacts on human health and the environment
   • Indicator 12.4.1: Number of parties to international multilateral environmental agreements on hazardous waste, and other chemicals that meet their commitments and obligations in transmitting information as required by each relevant agreement

5. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning
   • Indicator 13.2.1: Number of countries that have communicated the strengthening of institutional, systemic, and individual capacity-building to implement adaptation, mitigation, and technology transfer, and development actions

Explanation:

1. SDG 9: Industry, Innovation, and Infrastructure is addressed in the article through examples like Kosovo’s support for innovative solutions for start-ups and SMEs and Ghana’s efforts to improve urban waste management by supporting entrepreneurs who build houses made of recycled plastic waste. The specific target under this SDG is Target 9.2: Promote inclusive and sustainable industrialization and foster innovation. The indicator that can be used to measure progress towards this target is Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita.

2. SDG 11: Sustainable Cities and Communities is connected to the issues highlighted in the article through examples like the Philippines enacting a bill to limit the use of plastic packaging and pay for the cost of managing plastic waste. The specific target under this SDG is Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management. The indicator that can be used to measure progress towards this target is Indicator 11.6.1: Proportion of urban solid waste regularly collected and with adequate final discharge out of total urban solid waste generated, by cities.

3. SDG 5: Gender Equality is indirectly connected to the issues discussed in the article through the example of Jordan creating opportunities for women through the transition to a circular economy. The specific target under this SDG is Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life. The indicator that can be used to measure progress towards this target is Indicator 5.5.1: Proportion of seats held by women in national parliaments and local governments.

4. SDG 12: Responsible Consumption and Production is addressed in the article through examples like the Philippines enacting a bill to limit the use of plastic packaging and pay for the cost of managing plastic waste. The specific target under this SDG is Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water, and soil in order to minimize their adverse impacts on human health and the environment. The indicator that can be used to measure progress towards this target is Indicator 12.4.1: Number of parties to international multilateral environmental agreements on hazardous waste, and other chemicals that meet their commitments and obligations in transmitting information as required by each relevant agreement.

5. SDG 13: Climate Action is connected to the issues highlighted in the article through examples like Mexico working to better connect circular economy solutions with their climate action plans. The specific target under this SDG is Target 13.2: Integrate climate change measures into national policies, strategies, and planning. The indicator that can be used to measure progress towards this target is Indicator 13.2.1: Number of countries that have communicated the strengthening of institutional, systemic, and individual capacity-building to implement adaptation, mitigation, and technology transfer, and development actions.

Table: SDGs, Targets, and Indicators