COP28 Side EventEnhancing circular actions through Circular Economy and Resource Efficiency
Principles (CEREP) and Global Circularity Protocol (GCP)
Summary of Discussions
Key Takeaways

Adopted and endorsed through 2023 G7 process under the Japanese Presidency, CEREP aims topromote circular business thereby enhancing global circularity with six core principles. Publicprivate partnership is a key to the successful implementation of CEREP, ensuring sound policies tosupport the business sector to this end. One of the principles include a corporate-wide disclosureof circularity information and monitoring circularity with relevant indicators at value chain levels,
which has a clear linkage with GCP.
Companies are integrating circularity to their corporate management system including vision,
strategy, and existing businesses while also identifying risks and opportunities and seizing
opportunities for new circular businesses.
However, diversity of rules and regulations on waste management, resource recovery/recycling
among countries and absence of a set of common standards, assessment methodologies,
indicators and definitions are recognized as roadblocks to enhancing global circularity businesses.
There is a strong need for creation of a standardized/harmonized framework and policy coherence
for companies to operate in/across multiple countries, ensuring flow of secondary materials andthereby enhancing global circularity.
Proposed and endorsed in June 2022 at Stockholm+50, GCP is an initiative led by WBCSD andUNEP One Planet Network to develop a standard corporate performance accountability systemfor circularity and a set of policy recommendations to help scale circular solutions. The protocol
provides companies with tools to visualize circularity performance at corporate level and enhancetransparency across value chains. This allows companies to attract capital through disclosure of
circularity information. Through providing a set of “common language” (harmonized definitions,indicators, methodologies…etc.), the GCP also aims to create a level playing field and spurinnovation. For instance, Circular Transition Indicator (CTI) visualizes innovation potential acrossvalue chains and can trigger new circular businesses.
Indicators may be developed through a private sector initiative while they need to beincorporated into policies by the governments. This calls for public-private partnership.
Governments also need to enhance their actions to harmonization of standards and regulations.
Function economy requires international collaboration to ensure access to the resources that
underpin the productivity and sustainability of our different economic ecosystems.
A circular economy or closed loop does not mean “a closed economy.” “An open and circulareconomy” is what we should pursue to truly promote a circular economy globally.
A collaborative approach is even more essential in a circular economy where resources travel at
different stages of their life cycle. We must thus take a systemic approach to international andlocal resource collaboration. Having a common language through protocols such as GCP is one of
the elements needed to enable this collaboration.
A circular economy requires ensuring coherence among 1) different policy areas (e.g.
environmental, energy, agricultural policies), 2) countries through such scheme as G7 and G20,
particularly focusing on the circularity gaps, and 3) stakeholders by securing accessibility torelevant information. Public-private multi-stakeholder collaboration will thus be at the core ofbringing coherence to these efforts and the GCP can be one of the tools to facilitate it.
There is a clear complementarity between CEREP that promote the circular business transition
and GCP that provides a corporate accountability tool. Strengthening collaborations for promoting
these principles will contribute enhancing circular businesses and advancing circularity globally.