POLICE project shares key findings on policy instruments and incentives for the circular economy
The importance of the circular economy is growing due to unresolved global challenges, such as climate change and resource scarcity. As defined and shown in the report by the POLICE project, the circular economy is an economic system that creates value by catching and reusing the limited raw material and energy resources by slowing, narrowing and closing their loops. The circular economy is expected to provide significant benefits in terms of improved resource efficiency, reduced extraction, reduced processing, and the disposal of scarce natural resources. Additionally, the circular economy also relates to the new types of business opportunities for existing and new stakeholders. Despite these potential benefits, the process of transition towards a circular economy has been quite slow.
The knowledge of policy instruments and incentives are available is essential to overcome the barriers of the circular economy. Additionally, the knowledge on how to implement such policy instruments and incentives that boost the circular economy is needed. Therefore, it is important to survey what kind of incentives aiming to support circular economy already exist and analyse their positive and negative influences on promoting the circular economy. This will result in as a significant source of information for policymakers, to better understand the impacts of various types of incentives. At the same time, the results of the analysis would generate valuable input for the formulation of a new kind of advanced incentives. The POLICE report looks into the reasons why the implementation of the circular economy principles is hindered.
A new multi-disciplinary and comprehensive approach to the implementation of the circular economy
The aim of the POLICE project supported by EIT RawMaterials and led by VTT was to identify and describe different types of incentives to promote and boost the implementation of the circular economy concept, considering relevant policy instruments and incentives and their mixes. Another key objective of the project was to compare positive versus negative policy instruments and incentives. Furthermore, the third target of the project was to evaluate and analyse the effectiveness of incentives based on the information on circular economy barriers and drivers.
The report presents the key findings of the POLICE project. The report is structured as follows:
- Chapter 1 provides the introduction to the topic by defining the key terms and describing the motivation behind the work.
- Chapter 2 presents the objectives of the study.
- Chapter 3 introduces materials and methods.
- Chapter 4 forms the core of the work, i.e., covers the results.
- Chapter 5 is devoted to discussion and conclusions of the work.