How the Circular Economy Is Gaining Momentum in Developing Countries
How the Circular Economy Is Gaining Momentum in Developing Countries
68%
Increase in circular economy investments in India since 2018
€100B+
Annual circular economy market in EU countries
40%
Higher recycling rates in developing nations vs 2010 levels
Key Drivers in Developing Countries:
- Resource Scarcity: Limited access to virgin materials forces innovation in reuse
- Informal Sector: Existing kabadiwala networks provide ready-made collection systems
- Government Policies: Bans on single-use plastics and e-waste regulations
- Economic Benefits: Circular models create 5-10x more jobs than linear economy
- Technology Leapfrogging: Mobile platforms connecting waste generators to processors
European Union
Circular Economy Action Plan includes:
- Strict Extended Producer Responsibility (EPR)
- 55% municipal waste recycling target by 2025
- Digital Product Passports initiative
Current circularity rate: 11.7%
United States
State-led initiatives focus on:
- Advanced recycling technologies
- Corporate sustainability commitments
- Construction waste diversion programs
Current circularity rate: 8.6%
India
National Resource Efficiency Policy emphasizes:
- Plastic waste management rules
- Vehicle scrappage policy
- Startup India funding for circular businesses
Current circularity rate: 6.3% (but growing 2x faster than EU/US)
Click on points to see circular economy highlights
Success Stories:
India's EPR Framework
Mandated producers to collect back 30% of plastic waste by 2023, increasing to 70% by 2025
EU Battery Regulation
Requires all EV batteries to contain 12% recycled cobalt by 2030
African Plastic Pact
8 countries committed to 100% reusable/recyclable packaging by 2030
Future Outlook:
- Developing nations projected to achieve 15-20% circularity by 2035
- Digital platforms bridging formal/informal waste sectors
- South-South collaboration increasing (e.g., India-Africa waste tech transfers)
- Circular economy becoming key to climate change mitigation strategies