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The change towards circularity has to come not only from society. Political authorities have a huge role in this too.



In a world, where the linear economy is thriving, circular businesses are having a hard time being competitive members of the overall market. Here, political authorities can make a change for the better. They have to be catalysts for good decisions. 

In order to make good decisions for a circular economy to prosper we need the establishment of well-informed economic incentives that aid in influencing long-lasting changes in a variety of sectors. To achieve that, we propose a few suggestions:

1. Marketable permit systems should be established.

Marketable permit systems, or trading systems, are regulatory tools that are deliberately designed to lower compliance costs, ease administrative burdens, and incentivize innovation more so than traditional regulation.

2. Environmental taxes should be applied and endorsed.

Applying environmental taxes on certain items that pose problematic to ensuring a pathway for sustainability influences the behavior of individuals, firms, and governments to find other options more compatible with environmental models. 

3. Subsidies should be applied.

Rather than alter behavior by punishment techniques, the subsidies option within the incentives framework promotes sustainable pathways for pursuing wanted ends by underlining possible options that fit the sustainable mold.

4. The idea of internal climate exchange should be endorsed.

The idea presents, that if an occupation within the company purchases the non-circular product, they should also pay the difference to match the cost of the circular products. The extra money paid goes to an internal investment fund that can be used for other circular investments within the company.


Download a full PDF of circulents action plan.

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