Trade implications of upstream circular economy policies

Shunta Yamaguchi

No 2024/01, OECD Trade and Environment Working Papers from OECD Publishing

Abstract: Circular economy policies can aim to ensure that products placed on the market are environmentally sustainable throughout their lifecycle. These upstream circular economy policies can include initiatives to phase out hazardous substances, and enhance product durability, repairability, reusability, and recyclability. Policy instruments used to this end include Extended Producer Responsibility (EPR) schemes, eco-labelling and information schemes, product-related standards, eco-design requirements, green public procurement, and fiscal policies. While these upstream circular economy policies are increasingly considered in policymaking, their linkages with international trade have received less attention, especially in contrast to downstream aspects such as trade in waste and scrap. These policies can have potential implications for trade, including creating synergies between trade and circular economy objectives (e.g. making traded products more recyclable), as well as unintended consequences (e.g. through regulatory fragmentation). This report aims to fill this knowledge gap by exploring the trade implications of upstream circular economy policies.

Keywords: Circular economy; Durability; Eco-labelling; Environment policy; Extended producer responsibility; Green public procurement; Hazardous content; Material content; Product lifespan; Product-based standards; Recyclability; Recycled content; Repairability; Resource efficiency; Reusability; Trade and environment; trade policy; Trade-related environmental measures (search for similar items in EconPapers)
JEL-codes: F13 F18 F64 Q56 (search for similar items in EconPapers)
Date: 2024-10-22
New Economics Papers: this item is included in nep-env and nep-int
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