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Policy

Keep it in use: Retain resource value and unlock economic opportunities

Every year, our global economy consumes around 100 billion tonnes of resources — three quarters of which it cannot replenish. This reliance on a constant flow of virgin raw materials leaves our economies increasingly exposed to price shocks, supply disruptions, and the universal inefficiencies of resource waste. By 2060, current trends indicate a 150% rise in global extraction, a corresponding decline in economic resilience, and a compounded triple planetary crisis: climate change, pollution, and biodiversity loss.

One direct way to relieve this pressure is to keep materials circulating at their highest value, whether as whole products, parts designed for reusereuseThe repeated use of a product or component for its intended purpose without significant modification. or repairrepairOperation by which a faulty or broken product or component is returned back to a usable state to fulfil its intended use., or resources that can be safely reintroduced into production or nature.

Part of a policy series on accelerating the circular economycircular economyA systems solution framework that tackles global challenges like climate change, biodiversity loss, waste, and pollution. It is based on three principles, driven by design: eliminate waste and pollution, circulate products and materials (at their highest value), and regenerate nature. transition, this brief sets out a targeted approach to keeping materials in use. A focused mix of policies can promote design, business models, and incentives that favour reuse, repair and remanufacturing alongside regenerative practices such as cascading, compostingcompostingMicrobial breakdown of organic matter in the presence of oxygen., and returning nutrients to soil.

Read the policy briefExternal link

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Coloured circles on core grey background

Three policies to retain resource value

Three policy instruments stand out as particularly transformative. When used together, they form a strategic package that creates supply and demand signals, ensuring valuable resources are recovered and reintegrated into the economy:

  1. Waste regulations and resource classifications — define when a material is a resource, a by-product, or waste, enabling it to re-enter production and ensuring value is retained safely and legally.

  2. Extended Producer Responsibility (EPR) schemes — require producers to fund and support circular outcomes beyond the point of sale, creating direct incentives for better design and recovery.

  3. Secondary materials market support — establish standards, pricing signals, and procurement mechanisms that make recovered materials competitive and investable.

Adapting the policies for a circular economy around the world

These instruments establish clear legal baselines, incentivise material loops, and secure demand for secondary materials. When implemented together, they can deliver measurable economic, social, and environmental gains, including cost savings, job creation, and reduced pressure on ecosystems. 

Case studies from Brazil, Canada, China, Germany, Ireland, and the Republic of Korea show how very different policy environments can enable circular approaches — provided the right policies are adapted to local conditions and supported through inclusive governance, robust enforcement, and sustained investment.

The brief makes six globally relevant, locally adaptable policy recommendations:

Recommendation 1

Provide clear waste definitions, hierarchy, and data systems

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Recommendation 1

Create legal clarity around products, by-products, and waste. Mandate reporting, build oversight capacity, and enable safe circulation before disposal.

Recommendation 2

Harmonise standards and align across jurisdictions

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Recommendation 2

Ensure policy consistency across ministries and local governments. Align national frameworks with international standards to enable cross-border flows.

Recommendation 3

Adopt adaptive, progressive policy frameworks

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Recommendation 3

Set ambitious reuse and recycling targets. Allow flexibility by sector, and review instruments regularly to reflect market and technology changes.

Recommendation 4

Integrate policies into coherent, reinforcing packages

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Recommendation 4

Coordinate resource classifications, EPR, and market support with design, fiscal, and investment tools to unlock system-wide impact.

Recommendation 5

Build enforcement capacity and institutional capability

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Recommendation 5

Invest in training, tools, and compliance systems. Strengthen coordination across national and local levels, and track progress through digital monitoring.

Recommendation 6

Embed inclusion and just transition in all policies

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Recommendation 6

Engage SMMEs, informal workers, and civil society. Support access, affordability, and equity through targeted infrastructure, finance, and legal recognition.

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Keep it in use: Retain resource value and unlock economic opportunities

Government policymakers can play a decisive role in addressing these challenges by developing policy mixes that accelerate the circular economy transition, delivering not only economic gains but also environmental and social benefits. Read the full brief to learn about three instruments that stand out as particularly transformative for keeping materials and resources at their highest value in the economy.

Download the full brief

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