Article / Report

Impact on the quantity or quality of jobs, and shifts in the labour market

Jobs

Impact on the health and happiness of human populations

Well-being

Direct and indirect effects that increase revenues or the potential for new revenues, for example from new products, customer segments, partnerships or business models

Revenue Potential

Reduced green house gas emissions released into the biosphere

Reduce Emissions (SDG13)

Reduced use of virgin materials and/or an increase of the use of secondary and bio-based materials

Reduce Material Consumption (SDG12)

Minimise waste through diversion: Instead of sending waste to landfill, it is redirected into other industrial processes for handling, treatment, recycling, recovery, or reuse in various forms. 

Minimise waste through design: At the outset of a process of project, plan and design such that there is zero waste or minimal waste during production, use, and at end of life. 

Minimise Waste (SDG12)

Providing public and private education and support services at any level or for any profession, and governmental and public administration services, including judicial, regulatory, and legislative activities, taxation, defence, public order and safety, immigration services, foreign affairs and the administration of government programmes

Education and Government Services

Collecting waste from households and businesses by means of refuse bins, wheeled bins, containers, etc., and providing treatment, incineration, materials recovery and reclamation, and disposal of hazardous and non-hazardous waste

Waste Management

Providing commercial and consumer financial services, such as lending, credit, financing, banking, asset management, financial exchanges, ratings services, money services, insurance and pension services, etc.

Financial Services

Producing and providing services that utilise the creative talent of individuals to generate intellectual property, including movies and television shows, music, live performances, advertising, marketing or public relations services, newspapers, magazines and books, and commercial printing services

Creative Services

Producing electronics products for businesses and consumers, including cellular phones, personal computers, printers, servers, electronic computer components and peripherals, TVs, audio equipment, as well as household appliances, such as refrigerators, washing machines, etc.

Electronics and Appliances

Providing recreational and cultural services, including hotels, resorts, casinos, sport and fitness centers, stadiums, golf courses and amusement parks, restaurants, bars, pubs, fast-food or take-out facilities, as well as libraries and museums

Hospitality and Tourism

Providing air, water, rail, and land transportation for passengers, such as airlines, airports, ferries, cruise-ships, tour boat operators, marine ports, railways, train stations, tour bus operators, vehicle rental, and taxi companies, travel agencies and related services

Passenger Transport Services

Producing transportation equipment for the movement of goods and people by air, rail, sea, and land, including airplanes, spacecraft and military equipment, ships, boats, rail locomotives and rolling stock, motor vehicles, trailers and semi-trailers, and related equipment, as well as repair services for such equipment

Transportation Equipment

Producing building materials and finished and semi-finished building products for construction

Construction Materials and Products

Extracting resources and minerals from the earth, such as coal, oil, gas, iron, bauxite, sand, clay, etc.

Mining

Producing basic and specialty chemicals, inks, agricultural chemical such as fertilisers and pesticides, plastics including packaging, and rubber

Chemical and Plastic

Refining and processing ores and producing ferrous and non-ferrous metal and glass products, including packaging

Metal and Glass

Extracting and gathering wood through forestry and producing wood and paper products

Wood and Paper

Producing and gathering crop and animal products from land and water through farming, hunting, and fishing

Agriculture

Processing and producing food and beverages for consumption

Food and Beverage

Using bio-based materials such as bioplastics, mushroom-based materials, etc.

Alternative bio-based materials and inputs

Using renewable energy like solar, wind, etc. or renewable fuels like biomass, etc.

Renewable energy, fuels

Activities to clean, decorate, and restore products back to working condition for original or new purposes

Refurbishment, remanufacturing, renovation

Using waste materials that have been processed and recycled to produce new products within other industries

Using open loop recycled materials

Providing services through a subscription plan with regular payment schemes

Subscription-based services

Providing services where customers are charged only when they use it

Payment per use

Putting in place purchasing guidelines for procurement departments and evaluating suppliers on circular economy principles

Circular procurement

Engaging in discussions with government bodies and policymakers to push for regulations that support the circular economy

Advocacy for circular economy policy

Participating in government programmes that support and advance the circular economy

Government programmes

Provide guidance or professional training to educate employees to use circular economy principles

Training on the circular economy

Utilising data and models to to identify, enable and/or implement circular strategies (eg. effective resource use & logistics planning, circular business models & design)

Data analytics, modelling

Circular Economy in school programmes

Data, knowledge & information sharing

Implement innovation programmes

Develop regenerative infrastructure

Roadmaps and strategies and targets

Metrics and indicators to measure progress

Institutional design to enable circularity

Participatory governance mechanisms

Cross-departmental collaboration and engagement

Advocate for circular change

Environmental assessment & permits

Bans

Review and update regulation

Charges and tariffs

Tax breaks

Subsidies

Develop circular criteria for public procurement of assets

Awareness raising events

Extended Producer Responsibility

Labelling

Information campaigns

**Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all**

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Progress towards achieving SDG8 has been challenging and the world is far from reaching most of the targets. The lingering effects of COVID-19, cost-of-living crises, trade tensions, uncertain monetary policy paths, rising debts in developing countries, and the war in Ukraine can each significantly set back global economic growth. Combined, these crises are placing the global economy under a serious threat. Global real GDP per capita is forecast to slow down in 2023, putting at risk not just employment and income but also advances inequitable pay for women and decent work for young people. 

With governments today seeking effective ways to lead their nations out of these related crises whilst also taking into account these planetary boundaries, green economy (in its various forms) has been proposed as a means for catalysing renewed national policy development and international cooperation and support for sustainable development. The concept has received significant international attention over the past few years as a tool to address the 2008 financial crisis as well as one of two themes for the 2012 UN Conference on Sustainable Development (Rio+20). This has resulted in a rapidly expanding literature including new publications on green economy from a variety of influential international organisations, national governments, think tanks, experts, non-government organisations and others.

In parallel, tourism is one of the world's fastest-growing industries and an important source of foreign exchange and employment, while being closely linked to the social, economic, and environmental well-being of many countries, especially developing countries. Maritime or ocean-related tourism, as well as coastal tourism, are for example vital sectors of the economy in small island developing States (SIDS) and coastal least developed countries (LDCs). 
The World Tourism Organization defines sustainable tourism as “tourism that takes full account of its current and future economic, social and environmental impacts, addressing the needs of visitors, the industry, the environment and host communities".

Finally, this goal entails decent work, employment creation, social protection, rights at work and social dialogue to be represented as part of integral elements of the new 2030 Agenda for Sustainable Development. Furthermore, crucial aspects of decent work are broadly rooted in the targets of many of the other 16 goals.

Achieving SDG8 will require a wholesale reform of our morally bankrupt financial system in order to tackle rising debts, economic uncertainties, and trade tensions, while promoting equitable pay and decent work for young people.

Sources: [https://sdgs.un.org/goals/goal8](https://sdgs.un.org/goals/goal8)
[https://sdgs.un.org/topics/green-economy](https://sdgs.un.org/topics/green-economy)
[https://sdgs.un.org/topics/sustainable-tourism](https://sdgs.un.org/topics/sustainable-tourism)
[https://sdgs.un.org/topics/employment-decent-work-all-and-social-protection](https://sdgs.un.org/topics/employment-decent-work-all-and-social-protection)

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8. Decent work and economic growth

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

**Make cities and human settlements inclusive, safe, resilient and sustainable**

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The pandemic has caused major shifts in migration patterns, including huge movements of people in and out of urban areas. Furthermore, climate change and conflicts tend to have disproportionate impacts on cities. These factors mean that the world is far from achieving the goal of sustainable cities.  
In many developing countries, slum populations have been growing, putting at risk the target of adequate housing for all by 2030. Since 2015, the number of countries with national disaster risk reduction strategies has more than doubled. 

Cities are hubs for ideas, commerce, culture, science, productivity, and social, human and economic development. Urban planning, transport systems, water, sanitation, waste management, disaster risk reduction, access to information, education and capacity-building are all relevant issues to sustainable urban development.

This target entails multiple essential concepts such as disaster risk reduction (DRR) and sustainable transport.

To achieve SDG 11, efforts must focus on strengthening capacities for planning for urban development, improving access to public transportation, and enhancing waste management. 

Sources: [https://sdgs.un.org/goals/goal11](https://sdgs.un.org/goals/goal11)
[https://sdgs.un.org/topics/sustainable-cities-and-human-settlements](https://sdgs.un.org/topics/sustainable-cities-and-human-settlements)


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11. Sustainable cities and communities

Make cities and human settlements inclusive, safe, resilient and sustainable

**Take urgent action to combat climate change and its impacts**

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The science is clear: our climate is heating rapidly. The average global temperatures have increased by 1.2 degrees Celsius since 1880, particularly in the late 20th century. The concentration of atmospheric CO2, the GHG that contributes more than 2/3 to global warming, is at its highest level ever. The Intergovernmental Panel on Climate Change (IPCC) steadily points out that human activities have warmed the atmosphere, ocean and land, producing widespread and rapid changes in the atmosphere, ocean, cryosphere and biosphere. 

Without transformative action starting now and within this decade to reduce greenhouse gas emissions deeply and rapidly in all sectors, the 1.5°C target will be at risk and with it the lives of more than 3 billion people. 
According to IPCC, warming beyond 1.5 degrees could have irreversible and irreparable consequences. However, effective and equitable adaptation and mitigation actions can significantly reduce vulnerability and contribute to climate resilience. To limit global warming to well below 2, preferably 1.5 degrees Celsius, compared to pre-industrial levels, countries came together to hold themselves accountable under the Paris Agreement. 

Failure to act leads to intensifying heat waves, droughts, flooding, wildfires, sea-level rise, and famines. Emissions should already be decreasing now and will need to be cut almost by half by 2030 - a mere seven years from now. 


To combat climate change and its impacts by 2030, urgent and transformative action is needed to meet the commitments under the Paris Agreement across mitigation and adaptation efforts.

Sources: [https://sdgs.un.org/goals/goal13](https://sdgs.un.org/goals/goal13)
[https://sdgs.un.org/topics/climate-action-synergies](https://sdgs.un.org/topics/climate-action-synergies)

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13. Climate action

Take urgent action to combat climate change and its impacts

Impacts

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Industries

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A framework of policy instruments that enabled and encourage the transition to the circular economy

Policy Instruments

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A framework of policy instruments that enable and stimulate the transition to the circular economy

The principles of a circular economy concern designing out waste, regenerating ecosystems and keeping items in use. Decoupling the economy from material flows—improving the rate of resource productivity faster than the economic growth rate—is also a consistent guide. By evolving with the growing number of applications of circular economy principles, and consolidating these strategies across thematic areas, Circle Economy’s Key Elements Framework (KE) renders the elements of the circular economy salient and serves as a basis to derive contextual strategies and interventions. 


The Framework consists of:
- Core Elements: Activities directly handling product or material flows; and uniquely,
- Enabling Elements: those that remove obstacles for core actors.


Key elements of the circular economy

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Circle Economy's framework of strategies and activities that define the circular economy

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**These 17 Goals recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.**

The SDGs build on decades of work by countries and the UN, and especially on the Millennium Declaration adopted in September 2000 at UN Headquarters in New York which let to the elaboration of eight Millennium Development Goals (MDGs) to reduce extreme poverty by 2015.

In 2015, the Paris Agreement was signed. A major blueprint came out of this: The Sustainable Development Goals: 17 overarching goals—and 169 targets—that governments are aiming to meet by 2030. Significant progress has been made in terms of poverty, health and inequality, but there's still a way to go. This is where the circular economy comes in: by circulating resources multiple times, the circular economy tackles issues of scarcity and allows all to access what they need—without overburdening the earth. If it's implemented in a holistic way—affording attention to social considerations and the fair distribution of resources— it also offers a pathway for achieving the SDGs; and the link between the two is ever-growing. To read more about the link between the SDGs and the circular economy, click [here](https://www.circle-economy.com/blogs/how-the-circular-economy-can-help-us-reach-the-sustainable-development-goals).

It is the Division for Sustainable Development Goals (DSDG) in the United Nations Department of Economic and Social Affairs (UNDESA) which provides substantive support and capacity-building for the SDGs and their related thematic issues. TheDSDG plays a key role in the evaluation of UN systemwide implementation of the 2030 Agenda and in advocacy and outreach activities relating to the SDGs. In order to make the 2030 Agenda a reality, broad ownership of the SDGs must translate into a strong commitment by all stakeholders to implement the global goals. DSDG aims to help facilitate this engagement.
Alongside this, the annual High-level Political Forum on Sustainable Development serves as the central UN platform for the follow-up and review of the SDGs.
In addition, the UN Secretary-General presents an annual SDG Progress report, which is developed in cooperation with the UN System, and based on the global indicator framework and data produced by national statistical systems and information collected at the regional level.

To read more information: [https://sdgs.un.org/goals](https://sdgs.un.org/goals)

Sustainable Development Goals (SDGs)

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Based on the work of [Bocken et al. (2016)](https://www.researchgate.net/publication/309699661_Product_design_and_business_model_strategies_for_a_circular_economy), the Four Flows Framework serves as a simple framework for managing resource flows in a circular economy by using less (Narrow), using for longer (Slow), using again (Cycle), and using clean, regenerative materials and energy (Regenerate).

These different principles of circular economy can be applied to our socioeconomic metabolism: we can design stocks like buildings, infrastructure, machinery, and vehicles to be rich resource mines for the future, and design manufactured goods and consumables to be cycled and made regenerative. Furthermore, the focus must also centre on getting more value out of fewer materials. Achieving the aims of a circular economy—minimising material use, regenerating the Earth, and preventing material losses—can be done through these four key strategies mentioned above.

Source: Circle Economy. (2023). *[The circularity gap report 2023](https://www.circularity-gap.world/2023)* (p.22). Amsterdam: Circle Economy. 

Four Flows Framework

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 A metabolic analysis and broad stakeholder engagement process brought 17 interventions to the surface. Together, they can turn Lao PDR into a net carbon sink by 2040. 82% of the circular GHG mitigation and sequestration potential has a payback below 2.5 years. 
Download the report (English)


Download the report (Lao)
 Lao PDR has a unique opportunity to take a leading role on circular economy and low carbon development in Southeast Asia. The country has an abundance of resources. Its fertile soils support large forestry and agricultural systems, while deposits of gold, copper, zinc, lead, tin, iron, aluminium, potash, limestone, gypsum and coal lie beneath them. Located at the crossroads of three major Asian economies – China, Vietnam and Thailand – the country is surrounded by large and demanding markets. It serves them primarily through the extraction and export of raw materials such as metal ores, wood and electricity from hydropower.
Specifically that position and the trade relations which Lao PDR maintains, allows it to lead the pack in the transition to a circular economy. By exporting green products and reducing the import of carbon-intensive products, Lao PDR can encourage its regional trade partners to jointly embark on the transition to green future.
Lao PDR’s most recent Paris pledge or Nationally Determine Contribution (NDC) aims to reach net carbon neutrality by 2050. This project examined how supplementing the NDC with 17 circular economy greenhouse gas (GHG) mitigation and sequestration interventions can contribute to achieving or, even, raising that ambition. It also presents the business cases supporting these interventions for the private sector in Lao PDR.
Net carbon neutral by 2040 within reach
Lao PDR can become net carbon neutral by 2040 by adopting a circular economy approach. With the measures proposed in the NDC, it can reduce its GHG footprint from 106 to 58 million tCO2e/year in 2040. The circular GHG mitigation interventions can reduce it further to net zero.
Most of the circular mitigation and sequestration potential that is commercially viable lies in wood-based construction; improving livestock efficiency; prioritizing active, shared, public and electric transport; reducing food losses; industrial symbiosis and remanufacturing. By adopting circular economy strategies, Lao PDR would also reduce the import of carbon-intensive products. This creates additional GHG emission reductions with Lao’s foreign trade partners of approximately 2.2 million tCO2e/year.

Estimated GHG mitigation potential in the updated NDC and in the circular economy mitigation opportunities
 These interventions can reduce solid waste disposal by 86 percent and reduce an additional 2.6 million tonnes of food waste and losses. The gross domestic product (GDP) from the circular economy in Lao PDR could reach $16 billion by 2050, while the number of jobs in the circular economy could reach 1.6 million by 2050. The Lao PDR workforce totalled 3.9 million in 2020, of which around 16 percent in circular jobs.
89% of the mitigation potential has a positive NPV
According to business case estimates, the circular economy is a viable business opportunity for Lao PDR. Eighty-nine percent of the circular GHG mitigation and sequestration potential has a positive net present value and 85 percent provides a payback in less than six years. When introducing a carbon price of $25 per tonne, 98 percent of the circular mitigation and sequestration potential has a positive return, or negative marginal abatement costs. Without a carbon price, that percentage is 89 percent.
Marginal abatement cost curve with the economic and climate impact of 11 circular economy GHG mitigation interventions in Lao PDR

Circular GHG mitigation requires a $4.1 billion investment
The transition to a circular, net zero carbon economy requires an investment of $4.1 billion in the period 2022-2036. That is in addition to the $4.7 billion which is required between 2020 and 2030 to implement the NDC. In comparison, Boten-Vientiane railroad, which is schedule for commissioning in December 2021, required an investment of $5.95 billion. To realize investments in a low-carbon and circular future, regulatory and institutional barriers must be overcome for circular ventures so that they have access to investment capital, for example.
The metabolic analysis explained
Lao PDR is one of the first countries to adopt a metabolic approach to identify commercially viable opportunities to combine climate action with improving resource efficiency. In the metabolic analysis 332 materials flows were analysed. The extraction of materials and their disposal has an impact on the quality of natural assets and their ability to serve current and future generations alike. The metabolic approach shifts the focus from environmental issues and short-term priorities to the performance of the overall system and its ability to provide societal needs like housing, nutrition and mobility in a low-carbon and resource-efficient manner.

Breakdown of territorial GHG emissions from Lao PDR and emissions embedded in imported and exported goods and materials

The result is 17 interventions. Eleven core interventions intervene directly in the material flows of food value chains, the construction sector and industry. Six additional interventions can be considered as ‘enabling’ as they support the transition to a circular economy in Lao PDR by targeting public services and policies, commercial services, and financial services. Most of the circular mitigation and sequestration potential lies in wood-based construction, improving livestock efficiency, prioritizing active, shared, public and electric transport and reducing food losses.
More information is available in a blog post from UNDP, on the Community of Practice, and the Lao news agency.
Project partners
The project was led by Shifting Paradigms from The Netherlands in collaboration with Earth Systems (Lao PDR), Rebel Group (the Netherlands), DFDL (Lao PDR) and Circle Economy (the Netherlands). The project was commissioned by UNDP and realised thanks to the generous support of the European Union, the governments of Germany and Spain under the UNDP NDC support programme.
About UNDP
UNDP’s work on climate change spans more than 140 countries and US$3.7 billion in investments in climate change adaptation and mitigation measures since 2008. With the goal to foster ambitious progress towards resilient, zero-carbon development, UNDP has also supported implementation of the Paris Agreement on Climate Change by working with countries to achieve their climate commitments or Nationally Determined Contributions (NDCs).
The UNDP NDC Support Programme
The NDC Support Programme provides technical support for countries to pursue a ‘whole-of-society’, integrated approach that strengthens national systems, facilitates climate action and increases access to finance for transformative sustainable development. The programme helps countries address these financial barriers by deploying a structured approach for scaling up sectoral investments and putting in place a transparent, enabling investment environment. Beyond direct country support, UNDP facilitates exchanges and learning opportunities on nationally determined contribution implementation at the global and regional level by capitalizing on our close collaboration with the UNFCCC and other strategic partners.
The Programme, which works in contribution to the NDC Partnership, is generously supported by the German Federal Minister for the Environment, Nature Conservation, and Nuclear Safety (BMU), the German Federal Ministry of Economic Cooperation and Development (BMZ), the European Union and the Government of Spain.
 

Laos

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OUR MISSION IS TO ACCELERATE THE PRACTICAL AND SCALABLE IMPLEMENTATION OF THE CIRCULAR ECONOMY

At Circle Economy, we believe in a visionary future for our planet — one in which we do not have to compromise in order to achieve economic, social, and environmental prosperity. As an impact organisation, we connect and empower a global community to create the conditions for systemic transformation. With nature as our mentor, we work alongside businesses, cities and governments to identify opportunities to make the transition to the circular economy, and provide a powerful combination of practical and scalable solutions to turn these opportunities into reality.
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Our mission is to empower a global community of businesses, cities and governments to accelerate the transition to the circular economy through practical and scalable insights and solutions that address humanity’s greatest challenges.

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Circle Economy

Understanding the circular economy opportunities in a jurisdiction or company, requires merging a top-town system’s approach with bottom-up anecdotal evidence. Shifting Paradigms relies on a metabolic analysis to map out the systems flows, conversions and stocks of materials and energy. Rather than looking at the individual elements of a linear “take-make-waste” supply chain and aiming for incremental improvements, we focus on the systemic opportunities which can drive change.

The systems’ analysis is combined with information on the socio-economic, cultural and spatial context, with anecdotal evidence on existing circular economy initiatives and with regional development ambitions. By preference, Shifting Paradigms collaborates with in-country experts, supporting them with trainings on the circular economy, systems' analysis data collection and visualisation, circular design, business models, finance and policy.

Shifting Paradigms

Earth Systems is a multidisciplinary environmental and social consulting firm, which develops and implements innovative and effective environment, water and sustainability solutions throughout the world. Established in 1993, we have successfully completed over 500 major projects in Australia, Asia, Africa, South America, North America and the Pacific.

Earth Systems provides high quality services and solutions in the areas of environmental and social impact assessment, water management and treatment, ecology, energy efficiency, carbon accounting, community consultation and development.

Our research and development capabilities help to ensure that we are leaders in finding new and more sustainable solutions to complex environmental problems.

Earth Systems

Rebels work on the issues that affect all our futures, from sustainability, transportation and urban development to healthcare and the social sector. We make an impact, not only as consultants but also as investors. After all, anyone who believes in their own advice should be prepared to invest in it. We are committed to bringing change, initiating and realizing our own projects.

Rebel Group

By moving towards a circular economy, Lao PDR is pursuing both the objective of reducing global greenhouse gas (GHG) emissions, while securing the growth that will which allow the country to build up its material ‘stock’ of produced goods to meet societal needs, such as shelter, nutrition, mobility, healthcare and education.This report supports the next update of Lao PDR’s Nationally Determined Contribution by deploying circular economy interventions. An NDC lists the country’s voluntary GHG mitigation commitments under the Paris Agreement up to 2030.To identify circular GHG mitigation opportunities, Lao PDR commissioned a metabolic analysis to map out the system of 332 material flows and their interaction with the natural environment. The metabolic analysis and broad stakeholder engagement process brought 17 circular GHG mitigation opportunities to the surface. Together, they can turn Lao PDR into a net carbon sink by 2040.The 17 circular GHG mitigation and sequestration opportunities can also deliver substantial environmental and socio-economic co-benefits. 82% of the circular GHG mitigation and sequestration potential has a payback period below 2.5 years. The interventions can reduce solid waste disposal by 86 percent and reduce an additional 2.6 million tonnes of food waste and losses. The gross domestic product (GDP) from the circular economy in Lao PDR could reach $16 billion by 2050, while the number of jobs in the circular economy could reach 1.6 million by 2050. In 2020, the Lao PDR workforce totalled 3.9 million, of which around 16 percent in circular jobs.