Closing the Circular Economy Loophole
Authors:   , Thapa Kaustubh 
Published: June 2023

The circular economy has gained recognition as a transition model in the European Union (EU) and worldwide, with the implementation of policies like the Circular Economy Action Plans. The main goal is to reduce waste and maintain its value by "closing the loop." However, this focus is primarily limited to the EU and national levels, as Europe exports a significant amount of waste to non-EU countries, particularly in the Global South. This practice has been linked to social and ecological injustices, as these countries often lack proper waste management facilities. The irresponsible waste trade contributes to increasing global inequalities and contradicts the ambitions and actions of the circular economy. This thesis aims to address this gap by exploring the sustainability and circularity implications of Europe's waste export practices.

The research adopts a transdisciplinary approach, integrating scientific and societal knowledge to understand the environmental governance aspects of waste shipments. It investigates the consequences of Europe's current practice of shipping waste to countries with inadequate waste management infrastructure. The thesis utilises mixed-method research, including policy analysis, empirical evidence, multidisciplinary academic knowledge, and perspectives from practitioners. Three in-depth case studies are conducted, focusing on rubber tyre waste, second-hand electric and electronic items, and plastic waste in the EU, Netherlands, China, Nigeria, and Vietnam.

While recycling and reusing are considered circular and sustainable options, the contextual analysis of exported waste streams reveals that without accountability and ethical consideration, they cause social and ecological harm. The existing circular economy discourse fails to consider the entire value chain of waste and discards, both within and outside of one country. European waste management responsibility is unjustly shifted to places with insufficient capacity, affecting the poor and marginalised populations and the environment.

The thesis argues that the current circular economy discourse and practices in Europe lack attention to ethics, justice, and equity. The unaccountable waste shipments are seen as a form of neo-colonial exploitation by some scholars and experts. Based on the research findings, the thesis proposes a fair and ethical symbiotic relationship in the waste value chain, replacing the existing exploitative one. The research process is designed to create a fair waste shipment framework that guides policy and practices for a just transition to a circular economy. Within this framework, a policy intervention called ultimate producer responsibility (UPR) is co-created to ensure transparency, accountability, and circularity in the waste value chain. This intervention holds the original producers responsible for their waste globally, rather than limiting their responsibility to national jurisdiction.

The research highlights the interconnectedness of European and global circularity and sustainability. The current practice of exporting waste without considering justice and equity undermines the sustainability and circularity of the European circular economy and creates socioecological harm elsewhere. Existing circular economy and waste policies should explicitly address the international dimensions of waste cycles and discards. To achieve a circular transition, the entire global waste value chain must be taken into account, ensuring fairness, equity, and justice. The study recommends European policies and practices that promote mutual well-being that is equitable, just and sustainable for a circular economy transition. These policies and practices are crucial for promoting European and global circularity, sustainability, equity, and justice.