DENR and UNDP highlight the potential of the circular economy to accelerate climate goals | Press releases | Asia

Environmental experts and policymakers are promoting the acceleration of circular economy principles to buy time to implement more concrete measures to reduce greenhouse gases.

In a forum hosted by the Philippine government and the United Nations Development Program (UNDP) during the 2023 UN Climate Change Conference, better known as COP28, panelists highlighted the transformative potential of the circular economy in achieving climate goals and its central role in addressing the triple planetary crisis of climate change, biodiversity loss and pollution.

Undersecretary Analiza Rebuelta-Teh of the Department of Environment and Natural Resources (DENR) and Undersecretary Maria Luwalhati Dorotan-Tiuseco of the Department of Finance (DOF), Government of the Philippines; Ms. Aurelie Godefroy, Deputy Head of Department INTPA-F2 – Environment, Sustainable Natural Resources of the European Union; Mr. Martijn Lopes Cardozo, CEO of Circle Economy Foundation; and Mr. Pradeep Kurukulasuriya, UNDP Executive Coordinator and Director of Environmental Finance, met at the Philippine Pavilion of COP28 for this important dialogue moderated by Ms. Alana Craigen, UNDP Climate Policy Coordinator.

As a country highly vulnerable to climate risks, the Philippines has made significant progress in transitioning to a circular economy. In her message, DENR Secretary Antonia Yulo Loyzaga welcomed the landmark Extended Producer Responsibility (EPR) law passed in 2022, which addresses waste reduction, recovery, recycling, product design and the full responsibility of manufacturers throughout the life cycle of their products. “The old paradigm of irresponsible production and consumption no longer has a place in this new vision that we are making a reality,” said Minister Loyzaga.

DOF Undersecretary Tiuseco highlighted the existing incentive mechanisms that facilitate the implementation of the EPR Law and circular economy and green economy initiatives, as well as the legislation being advanced, including the imposition of an excise tax on single-use plastics. DOF also led the development of the Sustainable Finance Roadmap, which provides the appropriate framework and policy signals to support the Philippines' transition to a low-carbon and climate-resilient economy.

Meanwhile, DENR Undersecretary Teh, in collaboration with the Department of Labor and Employment, emphasized the integration of the informal sector into the circular economy value chain and the implementation of the Philippine Green Jobs Act. This supports retraining and provides social safety nets for those affected to ensure an inclusive and just transition.

Ms. Aurelie Godefroy from the European Union recognized that the circular economy is key to combating climate change. As the European Union has placed the circular economy at the top of its agenda, a whole-of-government approach linked to political and social interventions is needed to enable the circular economy and win stakeholder support. For his part, Mr. Cardozo highlighted the potential of a circular economy to reduce 40 percent of global greenhouse gas emissions.

Mr. Kurukulasuriya acknowledged the leadership of countries like the Philippines in institutionalizing circularity and emphasized the need for more decisive and faster solutions. He called for strategic partnerships and actions to move from rhetoric to concrete steps, while reaffirming UNDP's support to achieve ambitious goals together.

Recently, the Philippine government and the European Union signed a €60 million financing agreement to support this goal through the Green Economy Program in the Philippines. Led by DENR, the program aims to support the country's transition to a green economy, including circular economy practices, waste reduction, plastic mitigation, energy efficiency and the use of renewable energy to mitigate climate change.

The program is implemented in collaboration with UNDP, GIZ, Expertise France and the International Finance Corporation and focuses on national policy and dialogue, strengthening local governments, engaging the private sector and facilitating learning exchanges with EU member states.