Governments need to take the lead, say experts
The circular economy (CE) is the future of the world and must be driven by aggressive policies from governments, especially within the Asean community, which needs to take further steps to integrate it into the entire economic system, experts say.
“The government is key to collecting efforts from all stakeholders, including companies, local administrations and even communities, to shape it into a cohesive economic system,” said Dr Hong Quan Nguyen, director of the Institute for Circular Economy Development at Vietnam National University.
People often associate the circular economy with waste management or recycling; however, it encompasses much more. It can be applied to business models, ultimately contributing to socio-economic development, Dr Nguyen said at the Asean Circular Economy Forum (ACEF) 2024 in Bangkok on Wednesday.
The concept is bold and new, involving the entire value chain of products, including the sourcing of raw materials, the manufacturing process and customer contributions.
Each step requires different stakeholders and business models to implement, Dr Nguyen said.
Since 2021, Asean has agreed to develop a framework for the circular economy within the Asean Economic Community, providing a structured pathway in pursuit of sustainable economic development objectives.
The plan sets out an ambitious long-term vision for the circular economy, building on the strengths of existing Asean initiatives, and identifies priority focus areas for action, as well as enablers to accelerate the realisation of the goal.
“The circular economy and sustainability require long-term investments from governments, including financial and technological support to foster growth. Importantly, it also requires human awareness and understanding to drive action,” said Dr Nguyen.
“It can be said that we are just at the beginning, but we could move faster with financial investments and technological support from solid government policies.”
Dr Nguyen expressed his appreciation for Thailand’s efforts to achieve the circular economy, noting the concept has been applied successfully across many sectors, such as the refining, food and agriculture, and tourism industries.
Thailand has also adopted policies focused on a green economy and plastic waste reduction, resulting in several outstanding case studies.
However, he said there is still significant potential for growth, with many companies capable of bridging the gap to create a comprehensive circular economy.
The Asean Circular Economy Forum (ACEF) 2024 is jointly organised by the Asean Center for Sustainable Development Studies and Dialogue, C asean, the Asean Circular Economy Stakeholder Platform, the Ministry of Foreign Affairs of Denmark, the Embassy of Finland in Bangkok, Deutsche Gesellschaft für Internationale Zusammenarbeit, and the Hanns Seidel Foundation.
In light of concerns about the environment and sustainability, as well as recognition of the economic opportunities, the European Union (EU) and the Asean private sector increasingly embrace the circular economy. They recognise its potential to drive sustainable business practices, reduce environmental impact, and foster innovation, observers say.
The private sector’s adoption of circular economy principles is partly driven by a growing awareness of environmental challenges and the need for a more sustainable approach to business, as well as by government policies.