Global environmental issues, policy responses, and their linkages with trade
It found that measures to facilitate the circular economy transition have numerous linkages to international trade and to trade policy. Measures that direct changes in production processes include EPR schemes, standards for recyclability and reparability of products, and standards for recycled content. Without international harmonisation, these measures can act as powerful barriers to market access since they can require different product designs for each market. For instance, as pointed out in the OECD’s Policy Guidance on Resource Efficiency, since EPR policies impose requirements on products, they necessarily have implications for related product and secondary markets (OECD, 2016[60]). They can affect competition and trade, either intentionally or unintentionally, simply as a result of the higher administrative and transport costs faced by importers. Between these two JWPTE studies, the policy context was marked by a succession of multilateral initiative concerning resource efficiency and the circular economy transition, driven by greater awareness and understanding of the unsustainable trajectory of growth in material use (Figure 10). The OECD Environmental Outlook to 2050 projects unprecedented growth in demand for resources, due to the rapid industrialisation of emerging economies, continued high levels of material consumption in developed countries and the expansion of global trade (OECD, 2012[24]). The Outlook expects world population to rise from about 7 billion to over 9 billion in 2050, with average per capita income roughly tripling. This would substantially increase demand for natural resources, especially if global
production and consumption patterns converge with those of OECD countries. There is a growing realisation that the sustainable management of finite resources and the impact of their use are by nature not only local or national issues. Though it is mostly considered at the domestic level, the growing use of resources has a strong international trade dimension because no country is self-sufficient in every raw material and resource. Trade is also increasingly involved in the re-use or disposal of end-use products. Trade in primary and secondary materials is particularly important for global supply chains, and trade and specialisation patterns drive material flows and influence the decoupling of materials use and economic growth. Recent developments have moved trade firmly to the centre of the circular economy policy challenge: import restrictions on certain waste and scrap, notably plastics, imposed by some countries (notably China) from 2018 have transformed trade patterns for “end-of-life” products. In addition, in June 2019, the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal was amended to increase controls for transboundary movements of certain plastic waste, including non-hazardous recyclable scrap. The OECD publication Improving Markets for Recycled Plastics: Trends, Prospects and Policy Responses (OECD, 2018[61]) discusses the reasons behind low recycling rates of plastics and policy approaches to improve them, including measures to create a separate market for recycled plastics where its price is decoupled from virgin plastics, and ways to increase the quantity
Figure 10. Resource efficiency and the circular economy: international initiatives 2008 2013
2016 2013
l OECD Council Recommendation on Resource Productivity
l Resource efficiency and the transition to a circular economy
(OECD, 2008[44]) l Signature by G8 environment ministers of the Kobe 3R Action
Plan, agreeing to prioritise implementation of 3Rs2 policy to improve resource productivity.
feature prominently on the agenda of the annual Meeting of OECD Environment Ministers. l At the request of the G7, the OECD develops its Policy
Guidance on Resource Efficiency (OECD, 2016[30]).
2015 2013
2017 2013
l Creation of the G7 Alliance on Resource Efficiency and the
l Notable appearance of resource efficiency on the G20 agenda
subsequent adoption of the Toyam. l Inclusion of specific goals related to resource efficiency in
the 2030 Agenda for Sustainable Development which also represented a major landmark.
44 . OECD WORK ON TRADE AND THE ENVIRONMENT: A RETROSPECTIVE, 2008-2020
in 2017, particularly given the presence in that forum of countries with large resource endowments.
