HarnessingTradefortheCircularEconomyCIRCULARECONOMYTRANSITIONPAPERSERIESCircularSTEPStakeholderEngagementPlatform2CircularSTEPAcceleratingtheTransitiontowardsaCircularEconomyintheUNECERegion:HarnessingTradefortheCircularEconomy2Copyright©2023UnitedNations.Allrightsreservedworldwide.Thefindings,interpretations,andconclusionsexpressedhereinarethoseoftheauthor(s)anddonotnecessarilyreflecttheviewsoftheUnitedNationsoritsofficialsormemberStates.ThedesignationsemployedandthepresentationofthematerialinthisinthispolicypaperoftheUnitedNationsEconomicCommissionforEurope(UNECE)donotimplytheexpres-sionofanyopinionwhatsoeverconcerningthelegalstatusofanycountry,territory,cityorarea,orofitsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.Thispaperisintendedforlearningpurposes.TheinclusionofcompanynamesandexamplesdoesnotconstituteanendorsementbyUNECE.Referencetonamesoffirmsandcommercialproductsandprocesses,whetherthesehavebeenpatented,ornot,doesnotimplytheirendorsementbyUNECEandanyfailuretomentionaparticularfirm,commercialproductorprocessisnotasignofdisapproval.3CircularSTEPAcceleratingtheTransitiontowardsaCircularEconomyintheUNECERegion:HarnessingTradefortheCircularEconomy3ContentsPreface7Acknowledgements8Chapter1THELINEARANDTHECIRCULARECONOMICMODELS9Chapter2TRADEANDTHECIRCULARECONOMY:AREVIEW17Supplychainsascatalystsforthecirculareconomy17Theinterfacebetweentradeandthecirculareconomy20Chapter3SCALINGUPTHECIRCULARECONOMY:TRADE-RELATEDPOLICYINTERACTIONSANDSPECIFICSECTORS25Policyinteractions25Tradeandinvestmentandfinancing25Tradeandinnovation26Tradeanddigitalisation27Tradeandprocurement29Specificsectors30Tradeinservices30Tradeinagriculturalproducts31Tradeintextiles32Tradeincriticalminerals34Chapter4REGULATORYFRAMEWORKSFORTRADEANDTHECIRCULARECONOMY36Multilaterallevel36WorldTradeOrganization36Internationalstandards39Regionallevel41Nationallevel43Chapter5TRADEANDTHECIRCULARECONOMYINTRANSITIONECONOMIES45Availabledata46Policies52Challengesandopportunities54566061Chapter6CONCLUSIONSANDRECOMMENDATIONSAnnex1BibliographyGetintouch664CircularSTEPAcceleratingtheTransitiontowardsaCircularEconomyintheUNECERegion:HarnessingTradefortheCircularEconomy4FiguresFigure1Tradeandenvironment-relatedmeasuresnotifiedtotheWTO(2009–2017)20Figure2Numberofnewinterventionsonmetalwaste&scrap23Figure3Ecologicalfootprintandbiologicalcapacitypercapita,region,past10years47Figure4Ecologicaldeficitorsurplus,bycountry,total47Figure5Ecologicalfootprintpercapitabycategory48Figure6Exportsbycountryandmaterialgroup,201949Figure7Importsbycountryandmaterialgroup,201950Figure8MappingofNationalCircularEconomyPoliciesworldwide,202251Figure9Relevanceofkeycirculareconomytopics(survey)52Figure10Environment-relatedmeasuresnotifiedtotheWTO53FigureA1Comparingcircularbusinessmodelsandthelinearvaluechain605CircularSTEPAcceleratingtheTransitiontowardsaCircularEconomyintheUNECERegion:HarnessingTradefortheCircularEconomy5Tables18Table1Makinginternationaltracecircular:possibletrendsandkeyquestionsBoxesBox1Fivebusinessmodelsofthecirculareconomytoshapematerialloops11Box2Examplesofcirculareconomyapproachesinbusiness13Box3Circulareconomyandclimatechangeobjectives15Box4Regulatinginternationaltradeinhazardouswaste23Box5UNECEAgriculturalQualityStandards32Box6UNECE’sworkonsupplychainsofcriticalminerals35Box7TheTradeandEnvironmentalSust...