Toward a Low-Carbon Circular Economy: The emerging role of trade

The authors contend that circular economy solutions are indispensable for decarbonization, as resource extraction and processing account for half of global greenhouse gas emissions. They highlight the growth of the USD 315 billion global waste trade and the energy efficiency of secondary materials, which can require up to 90% less energy than primary resources. The paper advocates for government incentives to value waste, the adoption of product longevity strategies to reduce carbon footprints—particularly in electronics—and the use of bilateral and regional free trade agreements to establish standards for circular products. The authors call for the WTO to create climate-friendly rules to eliminate tariffs and non-tariff barriers that currently restrain the trade of circular goods and services.

• Circular economy actions are essential for meeting Paris Agreement goals because the extraction and processing of resource materials, including agriculture and fossil fuels, are responsible for 50% of global greenhouse gas emissions.
• The use of secondary raw materials is significantly more energy-efficient than primary resources, with recycling potentially reducing energy demand by as much as 90% depending on the material.
• The global trade in waste generates USD 315 billion annually, with 550 tons of materials such as plastics, metals, and electronics traded each year. Trade in metal waste and scrap specifically grew from USD 22 billion in 2002 to USD 82 billion in 2017.
• Extending the lifespan of electronics can significantly reduce emissions; for example, 85% to 95% of a smartphone's carbon footprint during its first two years is attributed to the mining of its internal metals.
• Current international trade frameworks are insufficient for the circular economy, characterized by weak enforcement of the Basel Convention and a 7% annual increase in export restrictions on raw materials according to the OECD.
• Bilateral and regional free trade agreements, such as the Canada–EU Comprehensive Economic and Trade Agreement and the Comprehensive and Progressive Agreement for Transpacific Partnership, are viewed as the most effective vehicles for advancing circular economy provisions.

APA

Moss, K., Pantsar, M., & Vaughan, S. (2021). Toward a Low-Carbon Circular Economy: The emerging role of trade. International Institute for Sustainable Development. https://www.iisd.org/articles/low-carbon-circular-economy-emerging-role-trade

Chicago

Moss, Kevin, Mari Pantsar, and Scott Vaughan. Toward a Low-Carbon Circular Economy: The emerging role of trade. International Institute for Sustainable Development, 2021. https://www.iisd.org/articles/low-carbon-circular-economy-emerging-role-trade.

Wikipedia

{{cite report |last1=Moss |first1=Kevin |last2=Pantsar |first2=Mari |last3=Vaughan |first3=Scott |title=Toward a Low-Carbon Circular Economy: The emerging role of trade |publisher=International Institute for Sustainable Development |date=24 November 2021 |url=https://www.iisd.org/articles/low-carbon-circular-economy-emerging-role-trade |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{moss2021toward, author = {Moss, Kevin and Pantsar, Mari and Vaughan, Scott}, title = {{Toward a Low-Carbon Circular Economy: The emerging role of trade}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = nov, url = {https://www.iisd.org/articles/low-carbon-circular-economy-emerging-role-trade}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }