The role of municipal policy in the circular economy, investment, jobs and social capital in circular cities
Updated on 26.06.2023
This report explores the connection between municipalities pursuing circular economy (CE) policy and investments in circular business that create jobs. To maximise the benefits for society of CE, municipalities can employ a series of regulatory, economic and soft instruments. Municipal circular policies, especially strategy, targets, loans and subsidies, are conducive to generating employment.
Relevance for Circular Systemic Solutions
Policy instruments are tools that can be used by government to influence behaviour of businesses and people. Tools like regulatory, economic and soft instruments can facilitate stakeholder collaboration in the field, overcome financial barriers when businesses serve an immature market or settle in a city and can facilitate ongoing circular activities. These tools can be used at a local and regional level to support implementation of a Circular Systemic Solution (CSS). The report shows how different cities such as Amsterdam, Paris and Birmingham have used these tools to take measures and create circular jobs. For example, the municipality in Paris sets the ambition to run building sites that produce no waste from operations, but also need 100 percent recycled paper from public purchasing. Also, the department of Heritage and Architecture wants to develop a warehouse, which produces building materials from secondary sources into their operations. Cities and regions can use similar and other types of instruments to influence investment decisions of CE firms in a positive way which in turn will create local jobs and support the transition to a CE, including the implementation of local CSS.
e.g. chemicals, cosmetics, bio-based industries
e.g. electrical engineering, furniture and interior, textile and fashion
e.g. B2B services
e.g. healthcare
large 500 000-200 000, medium 200 000-50 000, and small cities 50 000-5 000
large metropolitan area >1.5 million, metropolitan area 1.5 million-500 000