Circular economy transition: opportunities and challenges

ESCWA started this session with an introductory presentation that provided a definition of circular economy, and presented its role in achieving Sustainable Development Goals, especially in the Arab region. The presentation also included successful examples from the region on the transition from a linear to a circular economy. Key challenges and main factors facilitating this transition were also shared, in addition to defining regional priorities at the level of policies and institutions, capacity building, regional coordination and cooperation, partnerships between the public sector, the private sector, non-governmental organizations and civil society, and at the level of the United Nations system and international organizations.

Additionally, and in this context, the United Nations Environment Program reminded the participants of the important role of circular economy in achieving sustainable consumption and production. The United Nations Environment Assembly resolution adopted on March 2, 2022, No. 5/11 on Enhancing circular economy as a contribution to achieving sustainable consumption and production was also shared. This resolution can be viewed here.

During this session, national efforts, and best practices at the technical, institutional, financial and regulatory levels to move towards a circular economy were shared by Bahrain, Egypt, Morocco, Saudi Arabia and Sudan.

Discussions resulted in several recommendations to achieve the transition to a circular economy, including the need to support governance and enhance coordination between policies across sectors, and to develop and enforce appropriate laws that support circular economy. Such laws can aim at reducing waste at the source, valorizing, and classifying it, and reducing electronic waste. Discussions also covered the need for financial mobilization, investing in social responsibility, raising societal awareness of circular economy benefits at the environmental and economic levels, adopting extended product responsibility, and encouraging private sector investment. The need to integrate the term "circular economy" in national and regional strategies was noted.

The need to develop the technical capabilities of workers in the field of waste treatment was also highlighted, which will contribute to the creation of new job opportunities and encourage entrepreneurship in this sector.

Regarding the agricultural sector in particular, recommendations included the need to define an institutional framework for using and recycling resources, to encourage the recycling of agricultural waste to produce fertilizers and alternative energy.

During this session regional and international organizations discussed needed legislative, technical, and institutional frameworks to achieve the transition from a linear to a circular economy. Among the recommendations that were covered to accelerate this transition are the need for legislations that consider circular economy principles in production and manufacturing processes, and the need to raise consumer’s awareness on the economic and environmental benefits of the transition and to change consumption pattern.

Discussions also covered the need to encourage Arab producers to enter the markets, the need to monitor markets, and to create partnerships with global supply chains, and to align circular economy standards in Arab countries with the global markets.

Mobilizing needed funds to achieve the transition to circular economy was also highlighted, and the need to link it to climate change mitigation and adaptation strategies. Examples of applicable measures in this context were provided such as regenerative agriculture, sustainable urban planning, nature-based solutions, and water recycling among other examples. Discussions also noted the window for innovation offered by circular economy, and the importance of enhancing private sector involvement by de-risking private investments though tax reduction, providing financial support and grants, and securing opportunities for exportation.

The discussions addressed the need for an official adoption of the circular economy concept and for conducting a baseline study with clear targets and indicators to measure the progress in this field. In this context, countries can rely on already established regional action plans such as the one developed through the SwitchMed program with defined indicators to help them shifting towards more sustainable patterns of production.

During this session, young entrepreneurs shared key enabling factors that helped them establish their projects in the field of circular economy, and the most important challenges they faced during this process. Berytech shared the main areas of support provided to startups through capacity development, technical and financial support, networking, facilitating market access, and advocating for green innovations. Berytech also shared what makes circular economy a profitable, successful, and supportive model for innovation in the Arab region.

Among the challenges highlighted by young entrepreneurs in this session is the lack of funding needed for ensuring project’s continuity and sustainability after initiation, and the difficulty in obtaining licenses and registering their start-up companies, in addition to the challenges facing women working in the waste treatment sector, for example. Discussions resulted in several recommendations to support entrepreneurship in the circular economy field. They included creating an enabling environment by updating laws and strategies at the national and regional levels to encourage young entrepreneurs and raise the awareness of the employees of the public sector to provide them with the necessary support. Discussions also referred to the necessity of providing financial support (loans) to ensure the sustainability and scale-up of entrepreneurs' businesses, and create a regional platform for sharing new projects, and experiences and for creating opportunities for expansion.