Circular Economy and Global Governance

• Author: James Pennington
• Position: Lead, Circular Economy and China Partnerships World Economic Forum
• Pages: 31-31

SEPTEMBER/OCTOBER 2021 | 31

Reprinted by permission from The Environmental Forum®, September/October 2021.

Copyright © 2021, Environmental Law Institute®, Washington, D.C. www.eli.org.

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SI DE BAR

Circular Economy and Global Governance

ONLY 20 percent of global

electronic waste is recycled.

At the same time, the In-

ternational Energy Agency predicts

that to get to net-zero greenhouse

gas emissions by 2050 we’ll need six

times more mineral inputs by 2040

than we use today. One of the big-

gest stocks of these resources is in

our old electronics. Current prac-

tices often mean these minerals are

going to waste.

To effectively meet this demand

for minerals, we need to put in place

a system that can take back used

equipment for repair and recycling.

Doing so will require running re-

verse supply chains at scale.

For success at closing the loop

here, we need to bear in mind three

things. First, the reverse supply chain

system must be responsible — not

putting people or the planet at risk,

and absolutely no dumping on devel-

oping countries. Second, it must be

economically viable — so prohibitive

costs don’t slow adoption. Third, it

needs to be a global enterprise —

recovering many metals is a capital-

intensive, specialized business with

few facilities around the world.

The Basel Convention has been

vital in stopping egregious e-waste

dumping and providing much-

needed international governance

principles. However, reverse supply



research we have found that reverse

logistics for used electronic products

are between 31-190 percent more

costly than outbound logistics for

new products.

Over the last year the World

Economic Forum worked with the

World Business Council for Sustain-

able Development to bring together

other global organizations and the

biggest players in the electronics

industry in a Circular Electronics

Partnership. In this effort, we in-

terviewed many companies trying

to build a reverse supply chain to

help create a roadmap for the next

decade.

The insights revealed key areas

where intervention is needed. To

start, at a political level, govern-

ments must broaden their conversa-

tions and invite new voices. Discus-

sion should expand from waste man-

agement to explore the economy-

wide transformations possible with

the circular economy. Ministries of

trade, economy, and environment

need to be at the table. The conver-

sations also must include a full range

of external stakeholders.

Efforts should also be made to

connect convention conversations

with broader discussion around

the circular economy at the World

Trade Organization. As the role of

critical materials in decarbonization

becomes more apparent, it is time

to bring in the climate convention

and the Paris Agreement. These

broader dialogues could happen in

capitals or other forums if not on



The prior informed consent pro-

cedure is an important process in

the convention. But the system is



legitimate shipments of waste for

recycling. Given existing protocols,

the process can run into the tens

of thousands of dollars, with delays

spanning into months or years.





Currently, the PIC procedure re-

quires transit countries to consent

to e-waste shipments. Many don’t,

however, as they have very little

stake in the process. Transit coun-

tries could, instead, have the ability

to opt-in to block shipments. If a

country does not block a shipment

-

sidered that the country has given

its tacit consent.



follow a path of least resistance,

-

ties in developed countries should

be encouraged. Green corridors

could channel equipment from pre-

approved collectors or processors

-

ery facilities in developed countries

under a trusted trader system.

As the Basel Convention goes

into its 15th Convention of the Par-

ties this year, it is a perfect moment



and also reimagine its position as

the natural forum for global gover-

nance of the circular economy. With

overall material demand predicted

to double by 2050, governments

need a space to be able to come

together and put in place the archi-

tecture that will help us reach our

collective goals.

“To eectively meet this demand for

minerals, we need to put in place

a system that can take back used

equipment for repair or recycling.

Doing so will require running

reverse supply chains at scale”

James Pennington

Lead, Circular Economy and

China Partnerships

World Economic Forum