Circular economy policies can aim to ensure that products placed on the market are environmentally sustainable throughout their lifecycle. These upstream circular economy policies can include initiatives to phase out hazardous substances, and enhance product durability, repairability, reusability, and recyclability. Policy instruments used to this end include Extended Producer Responsibility (EPR) schemes, eco-labelling and information schemes, product-related standards, eco-design requirements, green public procurement, and fiscal policies. While these upstream circular economy policies are increasingly considered in policymaking, their linkages with international trade have received less attention, especially in contrast to downstream aspects such as trade in waste and scrap. These policies can have potential implications for trade, including creating synergies between trade and circular economy objectives (e.g. making traded products more recyclable), as well as unintended consequences (e.g. through regulatory fragmentation). This report aims to fill this knowledge gap by exploring the trade implications of upstream circular economy policies.
