COP29 Outcomes: A Step Forward and the Remaining Challenges on Climate Action

By: Victor Omefe

Prof Anthony Nyong, Director for Climate Change and Green Growth (middle), African Development Bank (center), and Members of the MDBs Working Group displaying their first joint report on the Circular Economy.

Source: European Investment Bank

Introduction

The global community is facing an alarming depletion of resources, driven not by natural scarcity but by continued dependence on the traditional linear economy. This “take, make, dispose” approach has caused relentless exhaustion of resources and environmental degradation, pushing us to a critical juncture where such practices are no longer sustainable. With growing pressures from climate change, pollution, and resource scarcity, there is an urgent need for a fundamental shift in how we consume and manage our resources.

Conference of the Parties (COP), an annual international climate summit that began in 1995 in Berlin, serves as a global platform for tackling pressing environmental challenges and driving climate action. Over the years, COP has evolved to include discussions on broader sustainability issues, reflecting the correlation between climate action and sustainable development. In this context, the principles of the circular economy offer a viable solution by ensuring that products and materials are kept in use for as long as possible, closing the loop on waste and creating sustainable, regenerative systems that protect both our resources and the environment.

Circular economy is an economic framework for production and consumption design to keep existing materials and products valuable for as long as possible through techniques such as sharing, leasing, reusing, repairing, refurbishing and recycling. In this way, the life cycle of products is extended.

Circular economy finally received its long-awaited recognition at the 28th Conference of Parties (COP28) held in Dubai. A circular economy taskforce was launched by the League of Arab States, emphasizing the urgent need for resource efficiency and the transformative potential of regional collaboration in driving the transition. This recognition of circular approaches marks a crucial step toward addressing the deeply rooted issues of resource overuse and waste inherent in the traditional linear economy.

Diao-Gueye, who in 2022 helped establish the International Chamber of Commerce (ICC) Circular Economy Working Group to unite businesses and enhance ambition around circular economy principles, expressed optimism that COP29 would spotlight the global necessity of transitioning to sustainable lifestyles through circular approaches. Reflecting on past negotiations, she remarked, “Often, governments emphasize the circular economy in their opening statements, but as the talks progress, it somehow falls off the table.” Her words highlight the pressing need for sustained focus and action to ensure the circular economy remains a priority in global discussions.

COP29 and Circular Economy: Key Highlights

COP29 in Baku set the stage for a groundbreaking shift in the global transition to circular economies with the launch of the RESCUE Initiative (Regional Initiative on Resource Efficiency, Sustainability, and Circular Economy). Organized by the COP29 Presidency and the Economic Cooperation Organization (ECO), the Ministerial Meeting on Circular Economy brought together high-level representatives from Türkiye, Iran, Pakistan, and other ECO member states, including Azerbaijan and Central Asian nations. This initiative established a collaborative platform for advancing a just transition toward resource efficiency, circularity, and regenerative economic practices. With plans for short- and medium-term activities, the RESCUE Initiative is poised to serve as a model for other regions, inspiring frameworks such as ECOWAS to adopt similar approaches.

The urgency of integrating circularity into national and global climate strategies resonated throughout the discussions. UNEP’s Inger Andersen highlighted that resource extraction contributes up to 60% of greenhouse gas emissions, with unsustainable practices driving crises in biodiversity, pollution, and waste. She advocated for circular economy principles to address these challenges, emphasizing the need to redesign systems for reuse, recycling, and sustainable production, particularly in sectors like renewable energy and plastics. Andersen also reiterated the potential of circular approaches to enhance resilience, reduce macroeconomic vulnerabilities, and promote equitable resource sharing. With initiatives like RESCUE and upcoming global negotiations on plastic pollution in Busan, COP29 underscored a unified vision: circularity as a linchpin for achieving climate goals and creating a sustainable, inclusive future.

At COP29, Nigeria reaffirmed its commitment to sustainability by showcasing its progress in adopting circular economy principles across key sectors. During a session titled “Empowering Interregional Partnerships for Circular Economy Transition,” Nigeria’s Minister of Environment, Mallam Balarabe Abbas Lawal, represented by Dr. Innocent Barikor, Director General of the National Environmental Standards and Regulations Enforcement Agency (NESREA), highlighted the nation’s strides in integrating recycled materials into construction, optimizing industrial processes with repurposed by-products, and implementing waste-to-energy solutions. These initiatives have reduced carbon emissions, enhanced resource efficiency, and positioned Nigeria as a regional leader in sustainable practices. Central to this progress is the Extended Producer Responsibility (EPR) program, which promotes lifecycle management of products, driving innovation, creating jobs, and fostering sustainable economic growth.

The International Labour Organization (ILO) at COP29 stressed the importance of inclusive circular economy models. Panelists highlighted the need for transitioning from the take-make-waste model to systems that reduce waste while addressing social equity. Nigeria’s active role in such dialogues, as well as its partnerships with organizations like the African Circular Economy Alliance (ACEA) and the Global Plastic Action Partnership (GPAP), underscores its dedication to fostering a just and climate-resilient future, balancing industrial growth with environmental and social sustainability.

Building on the momentum of COP29 discussions, Multilateral Development Banks (MDBs) presented their first joint report, “The Circular Economy in Motion,” which highlights 20 case studies from diverse sectors such as waste management, construction, plastics, textiles, and more. This report not only emphasizes the MDBs’ global efforts in advancing circular economy practices through advisory services, financial backing, and investments but also offers six critical insights. These include the expanding reach of circular economy investments, the necessity for a robust regulatory framework, the growing role of the private sector, urban innovation as a hub for circular practices, the need for enhanced financial support for circular businesses, and the focus on inclusivity, especially for vulnerable groups. Together, these findings demonstrate the MDBs’ commitment to driving the transition to a circular economy worldwide.

The Netherlands, through its Ministry of Infrastructure and Water Management hosted a side event “We Must Talk About Resources — Circular Economy Strategies to Mitigate Climate Change” at COP29. Key discussions focused on the integration of circularity into Nationally Determined Contributions (NDCs), with Marcos Neto from UNDP emphasizing how circularity can restore natural systems, reduce material use, and create new economic opportunities. While circular strategies are often overlooked in climate policies, Afke van Rijn from the Netherlands pointed out their critical importance in reducing emissions and achieving climate and biodiversity goals. A significant outcome of the event was the introduction of the UNDP Circular Economy Toolbox, a practical tool designed to help countries incorporate circular economy principles into their climate strategies. Global examples, including Ecuador’s focus on low-emission building materials and Vietnam’s circular approaches in agriculture, provided concrete insights into how these strategies can be applied. The event also highlighted the challenges of unlocking private finance for circular economy projects, addressing the cost disparities between virgin and recycled materials, and the need for collaboration across sectors. Lisa da Silva from IFC shared strategies for attracting private investment, advocating for performance-based incentives and mandating recycled content use. Patrick Büker from GIZ concluded by emphasizing the need for a unified approach among policymakers, financiers, and the private sector to scale circular economy initiatives and accelerate the transition to a sustainable future.

The Ministry of the Environment hosted a compelling panel discussion at COP29 titled “Forming Global Standards through Circular Economy and Resource Principles (CEREP) and Good Clinical Practices (GCP),” aimed at promoting global strategies for resource efficiency and sustainability. This session brought together experts from Japan and beyond, with Panasonic playing a key role in the dialogue. Through its participation, the company underscored its commitment to advancing circular economy principles and contributed valuable perspectives on the development of standardized practices.”

Building on a legacy of balancing resource efficiency with customer value, Panasonic has consistently demonstrated its commitment to sustainable innovation. In November 2023, the company introduced the Circular Economy Group Policy, a strategic framework that links resource efficiency to decarbonization and reduced material consumption. Panasonic’s initiatives include designing repair-friendly products, standardizing modules, and integrating recycled materials to minimize the need for virgin resources. The company has also reimagined business models, introducing IoT-driven maintenance solutions and subscription-based services to promote long-term product use. Furthermore, Panasonic has leveraged its expertise in recycling plant operations to enhance methods for reusing parts and materials, creating a closed-loop system that aligns with global CE standards. These actions, driven by the vision of delivering “a better life” and “a sustainable global environment,” exemplify how private-sector innovation can lead the charge toward a more circular and sustainable future.

Remark on COP29

COP29 in Baku has laid a significant foundation for advancing circular economy strategies globally. The discussions, initiatives, and partnerships forged throughout the conference underscored the urgent need for resource efficiency, sustainable production, and effective waste management as critical components in the fight against climate change. Key initiatives such as the RESCUE Initiative and the launch of the UNDP Circular Economy Toolbox highlighted the potential of circularity to reduce emissions, restore ecosystems, and foster new economic opportunities. Furthermore, countries like Nigeria showcased their progress, demonstrating how circular economy principles can drive both environmental sustainability and economic growth. The Ministerial Meeting on Circular Economy, which brought together representatives from diverse regions, emphasized the necessity of sustained international collaboration to scale circular solutions, ensuring that the transition to a circular economy is inclusive, just, and impactful for all nations.

Looking Ahead: COP30 and Beyond

As the dust settles from COP29 and attention shifts to COP30 in Belém, Brazil, the momentum generated must be harnessed to accelerate the implementation of circular economy strategies globally. Building on the groundwork laid in Baku, COP30 will offer an opportunity to strengthen commitments, refine policies, and explore innovative solutions for scaling circular economy practices in critical sectors. Notably, Brazil and the UK announced that their forthcoming NDCs would reflect much higher levels of ambition.

Recommendations

1. Integrate circular economy principles into national climate strategies and Nationally Determined Contributions (NDCs) to make them a core part of climate discussions and decision-making processes.
2. Improve the mobilization of private finance by reducing cost barriers for recycled materials and implementing targeted financial incentives and regulations.
3. Align economic incentives with circular economy objectives to promote sustainable practices across industries and regions.
4. Promote more partnerships among policymakers, financial institutions, and private sector stakeholders to drive and scale cross-sector circular economy initiatives.
5. Implement education and capacity-building programs to equip stakeholders with the knowledge and tools needed for adopting circular economy strategies.
6. Establish transparent monitoring and reporting systems to measure progress on circular economy commitments and evaluate their impact on climate goals.