Circular economy market
This is how we implement the Circular Economy Programme
The estimated value of the global market supporting the circular economy is hundreds of billions of euros. The circular economy and technological advances offer opportunities for Europe to improve resource productivity by up to three per cent a year and increase GDP by about 0.5 per cent by 2030.
In Finland, the growing circular economy market will build new and ecologically sustainable economic growth in the long term. The circular economy market can be promoted with a suitable combination of policy instruments such as product eco-design legislation, economic incentives, and cooperation between the authorities in circular economy projects. The circular economy market will grow faster once people discover the services and find them appealing.
What we do and where we are now:
1. We are active in developing legislation and product policy instruments that support the circular economy in the EU.
- The proposals of the EU’s circular economy action plan published in March 2022 will enhance the sustainability of product policy and reduce the amount of waste and make it easier for consumers to act sustainably. The focus is on key sectors in terms of sustainability, such as electronics, batteries and vehicles, packaging, plastics, textiles, construction and buildings, and food, water and nutrients. Information on circular economy measures in the EU is also available on the website of the Ministry of the Environment Promoting a circular economy in the EU (in Finnish). Responsible organisations: Ministry of Economic Affairs and Employment, Ministry of Justice and Ministry of the Environment.
2. We will develop cooperation between the authorities in circular economy projects.
- In autumn 2021 the Pirkanmaa Centre for Economic Development, Transport and the Environment organised a series of workshops for developing cooperation in circular economy projects between the authorities. Recommendations for developing cooperation between authorities in circular economy projects were published were published in February 2022. The recommendations focus on promoting networking, facilitating experimentation, better access to and sharing of information, and allocating more resources for foresight work and risk management. Responsible organisations: Ministry of the Environment and Pirkanmaa Centre for Economic Development, Transport and the Environment.
- There have also been discussions with representatives of the Centres for Economic Development, Transport and the Environment on the structures, operating models, expertise and support that are needed to promote a circular economy. Responsible organisation: Ministry of the Environment.
3. We will promote a stronger market for recycled materials.
- We explored the challenges in repairing different kinds of goods, ways to promote repairs and the environmental, employment and economic impacts of repairs, and drew up recommendations for policy instruments to promote the access to and attractiveness of repair services.
- We will promote emission reductions in waste incineration and increasing material recycling as part of the Circular Economy Green Deal. Responsible organisation: Ministry of the Environment.
- We set up a working group on developing new products out of recovered materials (in Finnish), which completed its work at the end of 2023. The group monitored decision-making on a case-by-case basis and developed practices and legislation for determining when material classified as waste is no longer waste. The daft government proposal for amending the Waste Act will be circulated for comments in autumn 2024. Responsible organisation: Ministry of the Environment.
- The process to end the classification of mechanically recovered plastic as waste proceeds. The legislative drafting process can be followed at the Ministry of the Environment’s project website (in Finnish). The classification of crushed concrete as waste ended in autumn 2022 by Government Decree 466/2022. Responsible organisation: Ministry of the Environment.
- We have explored the opportunities related to the obligations to use recovered materials or to voluntary guidance for increasing the demand for recovered materials in new material and product groups especially with respect to plastics but also nutrients, concrete and textiles. Responsible organisation: Ministry of the Environment.
- We have promoted the utilisation of models adopted for the circular economy in the mining and extraction industry. There was a coordination group for this work in 2022–2023. Responsible organisations: Ministry of Economic Affairs and Employment and Lapland Centre for Economic Development, Transport and the Environment.
4. We will help citizens find circular economy services and improve their appeal.
- We will promote the incorporation of a circular economy into consumer goods and services trade in cooperation with the Finnish Commerce Federation. In the Circular Economy in Consumer Trade project a playbook and policy recommendations are drawn up to promote a circular economy in the trade sector. Responsible organisations: Ministry of the Environment and Ministry of Economic Affairs and Employment.
- We have promoted the wider introduction of repair services in cooperation with the Centre for Consumer Society Research of the University of Helsinki and Turku University of Applied Sciences. Responsible organisation: Ministry of the Environment.
- Together with the Intelligent Transportation Society of Finland and cooperation partners, we drew up a manual for municipalities and cities to promote electric vehicles for shared use. Responsible organisation: Ministry of the Environment.