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

This research paper explores the intersection of trade policy and the transition to a low-carbon circular economy, arguing that circular solutions are indispensable for achieving global decarbonization goals. The authors advocate for government incentives to prioritize secondary materials over primary resources, the scaling of business models focused on product longevity and reuse, and the use of bilateral and regional trade agreements to eliminate barriers to 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.
• Transitioning from primary to secondary materials significantly reduces energy consumption and carbon footprints, with recycling requiring up to 90% less energy than primary resource processing. While trade in metal waste and scrap grew from USD 22 billion in 2002 to USD 82 billion in 2017, overall demand for raw materials is still expected to double by 2060, driven largely by developing countries.
• Extending the lifespan of consumer electronics can substantially lower emissions; for instance, 85% to 95% of a smartphone's carbon footprint during its first two years stems from the mining of its internal metals. Current efforts to extend the average smartphone lifetime beyond 29 months include a July 2021 US White House Executive Order and European Parliament initiatives to standardize charging plugs.
• Current international trade frameworks are insufficient for a circular economy, characterized by weak enforcement of the Basel Convention and a 7% annual increase in export restrictions on raw materials. The authors suggest that bilateral and regional free trade agreements, such as the Canada–EU Comprehensive Economic and Trade Agreement, are currently the most effective tools for advancing circularity.

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} }