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City governments and their role in enabling a circular economy transition: An overview of urban policy levers

Updated on 14.11.2023

Building on ‘Delivering the circular economy: A toolkit for policymakers’ and focusing specifically on the city level, this project identifies 10 policy levers as key to urban circular economy transitions.

Author: Ellen MacArthur Foundation
Year of publication: 2019

More information

City governments have a key role to play in building thriving, liveable, resilient cities that are regenerative by design. This is due to their proximity to the everyday concerns and needs of urban citizens and businesses, and the policy levers they have at their disposal. City governments see, experience and often manage the negative consequences of the current take-make-waste linear economy, be it through the public funds spent on solid waste management, the costs incurred from structural waste such as the cost of underutilised buildings, economic costs due to congestion, or health costs due to air and noise pollution.


The challenges of a take-make-waste linear economy concentrate in cities, but cities are also centres for change. Cities can catalyse wider system transformation. In recent years, city governments have become bolder in leading such change.


City governments can engage, incentivise, manage and set a regulatory framework to set the enabling conditions for cities fit for the 21st century to emerge. They can set a direction of travel. By embedding circular economy principles into urban policy levers, cities can bring about changes to the use and management of materials in cities. Urban priorities around access to housing, mobility and economic development can also be met in a way that supports prosperity, jobs, health and communities. Changes to material choices, uses and management can also open up local production opportunities.

Relevance for Circular Systemic Solutions

More than 100 examples provided in the report, from over 70 cities, can offer insights and best practices for the development and setting of enabling conditions to implement a Circular Systemic Solution.

Sectors

built environment, CEAP2 key product value chain

e.g. electrical engineering, furniture and interior, textile and fashion

Territories involved

large 500 000-200 000, medium 200 000-50 000, and small cities 50 000-5 000