Policy Recommendations

A-10: Designing the Transition to a Circular Economy in South Asia

South Asia must urgently shift from a linear to a circular economic model to achieve sustainable growth, resource efficiency, and regional competitiveness. The following actions can accelerate this transition:

  1. Establish a “Circular Economy Incentive Fund” across South Asia to provide grants, subsidies, and tax breaks for industries adopting recycling, reuse, and waste reduction practices.
  2. Integrate circular economy concepts into national education curricula and Technical and Vocational Education and Training (TVET) programmes to build a skilled green workforce.
  3. Fund research and innovation on circular technologies, materials recovery, and waste-to-resource models through Public-Private Partnerships and regional research networks.
  4. Promote Green Public Procurement (GPP) policies in government institutions to increase demand for sustainable, locally produced goods.
  5. Develop digital platforms to enable product reuse, sharing, repair, and traceability across supply chains starting with pilot programmes in packaging and textile sectors.
  6. Build multi-stakeholder platforms that bring together governments, businesses, academia, and communities to co-design national and regional circular economy strategies.
  7. Offer fiscal incentives for electric vehicles (EVs) and eco-design practices to promote low-carbon and resource-efficient mobility.
  8. Encourage regional cooperation among South Asian Association for Regional Cooperation (SAARC) members to harmonise circular economy policies and certification standards.
  9. Strengthen partnerships with international organisations such as the United Nations Environment Programme (UNEP), United Nations Development Programme (UNDP), and World Wide Fund for Nature (WWF) to access finance, knowledge, and best practices.
  10. Introduce data-driven monitoring frameworks and circularity indices to assess progress and guide evidence-based policymaking.
  11. Support startups and micro-enterprises with seed funding and incubation programmes to develop circular business models in sectors like plastics, textiles, and agriculture.
  12. Advance community engagement to promote responsible consumption and behavioral change through awareness campaigns and local circular hubs.
  13. Link national policies and regional frameworks to eliminate regulatory overlaps and create consistent incentives for sustainable production and consumption.
  14. Promote corporate circularity commitments, encouraging major producers to adopt recyclable design, take-back schemes, and supply chain transparency.