Context
With over 680 million consumers, the Association of Southeast Asian Nations (ASEAN) is one of the fastest growing economies in the world. This means increased demand for already scarce resources. Per capita consumption is expected to grow by around two per cent annually and double by 2060 compared to 2017.
With new approaches to promote circular economy, it is possible to reduce the traditional extraction of raw materials and still meet the increasing demand. Despite the interest in circular economy in the region, trade in recycled raw materials is declining. The regulatory framework for the circular economy is not sufficiently developed either in ASEAN bodies or in the member states.
Objective
Public and private sector leaders in the ASEAN region have established trade-related aspects for circular economy.
Approach
The project advises official ASEAN bodies on developing trade-relevant aspects for a circular economy. At the same time, it encourages the ASEAN member states to expand circular economy in a standardised way and involve companies.
The project pursues a three-tier approach:
- ASEAN committees develop proposals on trade-relevant aspects of a circular economy in a regional exchange, which are incorporated into the ASEAN Trade in Goods Agreement (ATIGA).
- Relevant authorities of the ASEAN member states develop national guidelines on trade-related aspects for a circular economy based on regional frameworks. The measures close the implementation gap between regional initiatives and national reforms.
- National and regional circular economy initiatives take into account the needs of the private sector, especially women-led businesses.