20 July 2021

European Commission publishes guide for public authorities on “Incentives to boost the circular economy”

ICLEI Europe has contributed to a new report, published by the European Commission, identifying which incentives public authorities have at their disposal to boost the circular economy. The report aims to inform and provide guidance to Member States, and regional and local authorities about potential incentives they can implement to stimulate the transition to a circular economy.

The report follows an analysis by an Expert Group on Circular Economy Financing, set up by the European Commission – Philipp Tepper, Senior Coordinator, Sustainable Finance, Smart Cities and Business at ICLEI Europe is a member of the Expert Group.

The group's analysis concludes that linear regulations, markets, investment tools and practices hinder the transition towards a circular economy. According to the Expert Group, well-structured incentives at all policy levels can help to correct these linear distortions, and furthermore can “improve the business environment and enable circular value chains and business models to become increasingly competitive in the market place and, in turn, attract the interest of investors and financiers.”

For each incentive the report identifies, it also provides:

  • a description of the incentive and an analysis of the way it encourages circular economy,
  • an identification of successful experiences in the EU and/or of relevant studies,
  • an analysis of key factors of success and barriers/conditions to succeed, and
  • an appreciation of the expected effects.

In addition, the report includes a transversal analysis that guides authorities in their priority setting amongst the incentives proposed.

The full report can be accessed here.