THEMATIC REPORT JAN: CIRCULAR ECONOMY IN NEPAL

The rapid increase in global population and subsequent rise in middle-class consumers has created an unprecedented demand for the extraction of natural resources to meet the rising demands of the population.   Finite natural resources have been suffering as a result of unrestrained mass production and hyper-consumerism, and given the present trends, the pressure on resources will only become worse in the future. The problem with the linear economy is that it has two negative effects on the environment: first, during production, when resources are depleted and carbon emissions are produced, and second, when products reach their "end of life," when the trash is produced. Waste management has been a global challenge and it is nothing new to Kathmandu, where litter has become part of our living environment. Particularly in the last decade, the concept of circular economy is gaining much attention. However, in the context of Nepal, the circular economy is still in an embryonic stage and is yet to gain traction. The circular economy, in its present form, exists simply conceptually and the discussion is limited to a few blogs and youtube videos.  Since the circular economy is now being considered as a solution to problems like climate change and carbon emissions resulting from hyper-consumerism, a wider discussion is required immediately among prominent stakeholders, particularly municipalities, and business sectors as this model of economy seeks collaboration and partnership.

A circular economy is based on the principle of designing out waste and pollution, keeping products and materials in use, and regenerating nature. This concept offers an entirely different perspective on the issue of waste and resource management considering the whole lifecycle of products and services. It includes implementing options such as reuse and repair of products before they come to the end of their useful life and recovering resources from the products once they become waste. It is not only about avoiding pollution caused by waste, but also about utilizing business opportunities that the sector offers. Innovative business models and product, as well as system designs, are key to the transition towards a circular economy. However, the transition will not be possible without matching infrastructure and policies in place. This calls for a cooperation between all the stakeholders along the product lifecycle including producers, retail businesses, and the waste management sector. Circular economy is often equated to waste management which is a narrow understanding of a much broader concept. Circular economy operates within three basic principles: a) design out waste and pollution b) keep products and material in use and c) regenerate the natural system.

To sum up, it promotes less production of waste in the whole production system. It promotes minimization of waste production rather than waste management.