About this toolbox
This “Building Circularity into Nationally Determined Contributions (NDCs) - A Practical Toolbox” aims to support countries both in the global north and global south to identify, prioritize, implement and track circular economy interventions for increased ambition and implementation of their NDCs.
The toolbox aims to provide policymakers with a methodology, resources, and tools to help:
- Assess and identify GHG emissions hotspots from material use to prioritize sectors and/or sub-sectors in the NDC for circular economy interventions for increased climate ambition;
- Assess and select circular economy interventions in prioritized sectors/sub-sectors for the NDC;
- Identify policy instruments and indicators for the implementation of selected circular economy interventions in the NDC; and
- Track and report progress in the national Biennial Transparency Report (BTR) under the Paris Agreement.
The toolbox is organized in four stages to leverage a country’s policy cycle. Each stage includes a set of steps and key questions to consider as well as tools and case studies. An overview of the stages and steps is below.
Who should use the toolbox? The toolbox is designed for policymakers working on national climate policy who are familiar with the NDC process but require guidance to identify and embed circular economy interventions, and associated co-benefits, into the NDC. It is also for policymakers working on sustainable consumption and production and circular economy . Given the cross-cutting nature of the climate and circular economy agendas, the toolbox is useful for line ministries involved in the NDC process, such as ministries of industry, agriculture, planning, energy, tourism and gender, among others.
The user guide for this toolbox can be found here. It will be intermittently updated with new tools, resources, and case studies as they become available and should be considered as a starting point for further research and collaboration on integrating circular economy into NDCs. It does not aim to provide tools for all aspects of transitioning to a circular economy, given the large scope that this entails.
Current NDCs are putting the world on a 2.1-2.9°C trajectory by the end of the century. Demand for materials is driving energy use, GHG emissions and waste production worldwide. While materials are required for societal needs, the amount of virgin materials extracted each year is rising, increasing GHG emissions, waste, and pollution through all stages of the life cycle.
Circular economy approaches can expand the scope and coverage of GHGs and sub-sectors in NDCs raising the ambition. Circular economy requires assessing emissions from the full life cycle of materials from extraction to disposal to develop solutions to minimize resources, materials, energy, input use, and waste across the value chain thus reducing GHG emissions while maximizing new market and job creation opportunities. Integrating the restore and regenerate dimensions into circularity also reduces pressure on ecosystems that are key to building resilience against the impacts of climate change.
As of 2023, only 27 percent of NDCs explicitly mention circular economy as part of their mitigation measures. Of these 27 percent, references tend to be focused on waste management, while there are clear benefits from integrating circular economy interventions in other areas of the NDC such as agriculture, industry, and transport. Furthermore, references to circular economy in NDCs are often broad frameworks or principles without specific interventions or policy instruments to specify how they will be implemented, measured, or reported. There is therefore ample opportunity to address these gaps.
Circular economy is also a potential engine for economic growth, green job creation, innovation, and value-addition. However, for a just and equitable transition, policies need to ensure an inclusive upskilling of the national workforce including informal workers, while maintaining and creating dignified and green jobs and livelihoods.
Key terms
Four stage overview of the toolbox
Resource library
- All
- Stage 1
- Stage 2
- Stage 3
- Stage 4
Stage 1
ICAT stakeholder participation methodology
The ICAT stakeholder participation methodology is a tool for countries to enhance stakeholder participation in the design, implementation, and assessment of proposed interventions through greater transparency, trust and ambition.
Stage 1
Climate watch explorer
The climate watch NDC explorer enables a keyword search for circular economy references in other countries’ NDCs. Whilst actions might not be specified as “circular economy”, a search for the overall circular economy concept or related terms can help identify frequently referenced sectors and provide examples of appropriate measures.
Stage 1
NDC registry
The NDC registry maintained by UNFCCC secretariat shows the latest official NDCs as well as previous versions communicated by countries. You can review your country’s current NDC in relation to the prioritized sectors/sub-sectors to identify areas relevant to circular economy interventions where additional sectors or sub-sectors, GHGs, and/or emissions reduction efforts can be included.
Stage 1
Social life cycle assessment
The social life cycle assessment is a methodology that can be used to identify and analyse the social impacts (positive or negative) on stakeholders of products and services across their life cycle and related value chain. Information on types of stakeholders is available in step 1.3.
Stage 1* Stage 2* Stage 4
Life Cycle Inventory Database
To refine the greatest potential impact in terms of material use and embodied GHG emissions and further prioritise sectors/sub-sectors, additional life cycle assessment information for key materials used in high-GHG emissions contributing sectors can be useful. This can be supported through a Life cycle analysis (LCA) inventory database.
Stage 1
SCP-HAT Modules 1 and 2
Using the Sustainable Consumption and Production Hotspot Analysis Tool (SCP-HAT), countries can identify GHG emissions hotspots in relation to material use. The SCP-HAT provides data from international databases on a country’s environmental and socio-economic performance. It offers evidence of hotspots (‘Hotspot Identification’ module) to prioritize action.
Stage 2
Toolkit for value chain analysis and market development integrating climate resilience and gender responsiveness
The value chain analysis and market development integrating climate resilience and gender responsiveness toolkit aims to help countries in selecting and analysing value chains for opportunities to improve climate change resilience and reduce gender inequalities, particularly in the agricultural value chain.
Stage 2
Value chain approach (including stakeholder consultations and desktop research)
The value chain approach outlines the methodology of analysing drivers, pressures and impacts in order to prioritize action across value chains.
Stage 2
UNEP Circularity Platform
The UNEP circularity platform provides resources on building circularity for different stakeholder groups and for specific sectors.
Stage 2
Knowledge hub by Circle Economy
The knowledge hub by Circle Economy is a database of case studies, categorised in a detailed typology of 7 main and 80 subtypes, on circular economy.
Stage 2
Ellen MacArthur Foundation case studies
Ellen MacArthur Foundation case studies and success stories from governments, cities and businesses.
Stage 2
Product Lifetime Extension Hub
Product lifetime extension hub includes cases and tools for product lifetime extension and building engagement within and across different sectors.
Stage 2
Circular Economy Earth
Circular economy earth includes information on circular economy related policies worldwide.
Stage 2
NDC Partnership Knowledge Portal
NDC Partnership knowledge portal provides guidance on good practices.
Stage 2
Climate watch NDC explorer
The climate watch NDC explorer enables an understanding of what has worked well in other countries’ NDCs in a similar context.
Stage 2
IPCC GHG inventory guidelines and software
IPCC guidelines for national GHG inventories are used to prepare national GHG emissions and sinks. Emission factors can be used to estimate the GHG reduction potential of a circular economy intervention.
Stage 2* Stage 4
Clean Development Mechanism (CDM) methodologies
CDM methodologies provide procedures to calculate GHG emissions reductions from activities that can be identified as circular economy interventions – a complementary tool to prioritise interventions based on potential impacts.
Stage 2* Stage 4
GHG protocol and policy action standard
The GHG protocol policy and action standard provides an approach to estimate the GHG impacts of policies and actions. It assists with baseline, ex-ante and ex-post assessment, a monitoring and uncertainty assessment and for verification/reporting impacts.
Stage 2* Stage 4
ICAT policy assessment guides
The ICAT policy assessment guides’ chapters 3 and 4 inform how to assess GHG emission impacts on policy areas (renewable energy, buildings efficiency, transport, agriculture and forestry) as well as transformational change potential. It also provides guidance on impacts of actions at sub-national level and by non-state actors.
Stage 2* Stage 3
Circular indicators for governments
The circular indicators for governments provides a starting point to develop indicators for tracking circularity and examples of what other countries have done.
Stage 2* Stage 4
SDG climate action nexus (SCAN) tool
The SCAN tool provides a high-level analysis of potential positive or negative impacts, synergies and trade-offs of climate action on the SDGs, which can support the selection of interventions. It includes a method to analyze climate actions and linkages by sector or category, as well as mitigation or adaptation approaches.
Stage 2* Stage 4
Green jobs assessment model
The green jobs assessment model is designed to analyse and design policies that maximize job creation and minimize and protect job losses. It enables the quantification for how climate related policies affect job creation, including for women and young people.
Stage 2* Stage 4
Circular economy jobs tool
The circular economy jobs tool provides data and evidence in relation to the employment potential of the circular economy. It enables policymakers to align their efforts with the skill needs of different regions, industries and sectors and obtain a baseline for defining sectors for scenario modelling.
Stage 2
How to create a national circular economy roadmap
Through this tool, Sitra, the Finnish Innovation Fund provides information on the different phases of developing a roadmap and shares specific examples of how it was done in Finland. The steps can also be useful for strengthening insitutional arrangements and coorindation for implementation.
Stage 2
GHG abatement cost model (GACMO)
The GHG abatement cost model (GACMO) provides guidance to calculate and track the GHG reduction and economic effects of approximately 100 climate mitigation actions organised by the 24 types of mitigation actions that have been used in the CDM.
Stage 2
Low emissions analysis platform (LEAP)
Low emissions analysis platform (LEAP) is a tool for climate change mitigation assessment, including emissions projection in NDCs. It is a scenario-based modelling tool to track energy consumption, production, and resource extraction in all sectors of an economy.
Stage 3
Product lifetime extension
Short product lifetimes contribute to increased GHG emissions for many products while adding pressure on natural resources and pollution impacts. Product lifetime extension (PLE) means postponing or reversing product obsolescence through interventions.
Stage 3
Deposit-return schemes
Deposit-return schemes incentivize re-use of packaging material and/or products by combining a tax or deposit when purchasing a product with a refund or subsidy when the product is collected and/or recycled.
Stage 3
Circular infrastructure and spatial planning
For circular economy interventions to be implemented, it is necessary to invest in infrastructure for collecting and sorting of products, components, materials, fibres and in such a way that they can be safely re-used. This may require new kinds of waste recovery, reuse and recycling facilities.
Stage 3
Consumer information tools
Consumer information tools increase the understanding of the role of consumption in generating GHG emissions. They can guide consumers in sustainable choices for goods and services (products), including their use and end of life phases.
Stage 3
Bans and restrictions
Bans and restrictions can directly prohibit the production, import or export, distribution, sale or use of one or more products or product components. They can cover any part of a product’s life cycle from production through to use, or target one specific behaviour, such as the sale of the product.
Stage 3
Circular procurement
Circular procurement can yield a wider uptake of circularity and be impactful if implemented in coherence with other policies such as traceability (across the life cycle) and eco-design standards.
Stage 3
Sustainable lifestyles
Lifestyle changes could help the planet reduce GHG emissions by 40-70 percent by 2050. The right policies, infrastructure and technology can enable these changes, especially if implemented in high-impact sectors.
Stage 3
Circular tourism
The tourism value chain offers numerous opportunities for implementing circular economy interventions in relation to the materials utilized to deliver tourism services.
Stage 3
Carbon taxes
Carbon taxes are taxes levied on the GHG emissions required to produce goods and services and can help drive a twin agenda to improve circularity and reduce GHG emissions. Other options can include taxes on virgin materials, recycled content mandates, and removal of virgin material subsidies.
Stage 3
Ex-ante societal cost benefit analysis (SCBA)
For an assessment of how to maximize the objective of the circular economy intervention and reap the most co-benefits, both economic and societal costs need to be assessed.
Stage 3
Investment and financial flows (I&FF) assessments
Governments require funding to not only implement circular economy interventions but to also generate the conditions to unlock private funding. There are a number of assessments that can be carried out to help assess the finance gaps and needs of the circular economy interventions and plans.
Stage 3
Investment and financial flows (I&FF) methodology
Governments require funding to not only implement circular economy interventions but to also generate the conditions to unlock private funding. There are a number of assessments that can be carried out to help assess the finance gaps and needs of the circular economy interventions and plans.
Stage 3
Climate finance explorer
Direct funding can be considered as a key source of financing, particularly in low- or middle-income countries, which also plays an important role to leverage private finance. Countries can tap into public sector finance from international financing institutions (IFIs). There are options to explore on the climate finance explorer.
Stage 3
National voluntary carbon footprint guidelines
Governments have established voluntary carbon footprint programmes which quantify and recognise voluntary efforts from public and private sectors to reduce GHG emissions. These carbon footprint initiatives provide online emissions calculators, together with a system of public recognition by means of approval awards for actors that report, reduce or ideally make their operations carbon-neutral.
Stage 3
Sustainable public procurement guidelines
The Sustainable Public Procurement (SPP) Guidelines can help SPP policy makers, experts and consultants design SPP policies and implement them. The guidelines use an adaptable approach, referred to as the ‘SPP Approach’, refined on the basis of the experiences and feedback received from countries using this methodology.
Stage 3
Ellen MacArthur Foundation universal policy goals
The Universal Policy Goals from the Ellen MacArthur Foundation can support national governments, cities and businesses in defining and implementing strategies and policies to shift to a circular economy.
Stage 3
NDC implementation guide refers to development of plans and finance strategies
The NDC Implementation Guide can help countries in developing implementation strategies. This includes: aligning climate and development objectives, though integrated implementation of the NDCs and SDGs; preparing for NDC implementation; developing a finance strategy, monitoring and reporting NDC progress and achievement; and revising strategies and preparing for subsequent NDCs.
Stage 3
GGGI guidance for Small Island Developing States (SIDS)
The NDC Implementation Roadmap Development: Guidelines for Small Island Developing States can help any country implementing their NDC, with a focus on small island developing states (SIDS). The guideline provides steps that countries can undertake to create an overall NDC implementation plan, or roadmap, for one or more sectors.
Stage 4
IPCC GHG inventory guidelines and software
IPCC GHG inventory methodologies described in the guidelines, supported by the software, Emissions Factor Database and life cycle assessment databases such as GLAD, can help estimate the impact of circular economy interventions on greenhouse gas emissions and removals.
Stage 4
Reference manual for the ETF under the Paris Agreement
Reference manual for the ETF is a tool for clarifying the requirements for the review and reporting of information in the BTRs. It also serves as a checklist for applying the accounting guidance and ensuring consistency between NDCs and BTRs, taking into account principles of transparency, accuracy, consistency, completeness and comparability.
Stage 4
UNDP transparency helpdesk
The UNDP transparency helpdesk aims to provide comprehensive capacity building support on climate data and transparency to francophone and lusophone countries and respond to countries’ requests for support on MRV systems.
Stage 4
Technical resources for implementing the MRV arrangements
Technical handbook for implementing the MRV arrangements under the Convention and the ETF under the Paris Agreement aim to improve awareness and understanding of the ETF and its modalities, procedures and guidelines for national experts and practitioners from developing country Parties.
Stage 4
UNFCCC MRV/transparency helpdesk
The UNFCCC MRV/transparency helpdesk provides technical resources (such as library resources, discussion forum, webinars, expert database) for implementing MRV arrangements under the Convention and the ETF under the Paris Agreement.
Stage 4
UNEP climate transparency platform
The UNEP climate transparency platform covers aspects relating to the ETF and continued reporting under the UNFCCC. You will find information on the agencies and initiatives providing transparency support and offer technical assistance, capacity building, and financial support to countries that are seeking to implement the ETF.
Stage 4
Enhancing NDCs for food systems: Recommendations for policymakers
Enhancing NDCs for Food Systems – recommendations for decision makers provides guidance and recommendations for policymakers to increase ambition in NDCs using the climate change mitigation and adaptation potential of a transition to sustainable food systems.
Stage 4
PACE Circular Economy Action Agenda Food
Circular Economy Action Agenda- Food is designed as a call for business, government, and civil society. It is currently made up of five publications: electronics, plastics, textiles, food, and capital equipment to transform existing knowledge into a collective agenda that will inform and mobilize action.
Stage 4
The food loss index
The Food Loss Index measures losses along the food supply chain starting from post-harvest losses on the farm, up to but not including retail stage.
Stage 4
The food waste index
The Food Waste Index measures food waste at retail and consumer level. It measures total food waste (rather than loss or waste associated with specific commodities) allowing countries to measure and report on food loss generated in manufacturing processes, not captured under key commodity losses by the Food Loss Index.
Stage 4
The Global Roadmap for Food Waste Reduction in Tourism
The Global Roadmap for Food Waste Reduction in the Tourism Sector aims to raise awareness among tourism stakeholders of the opportunities deriving from a more sustainable and circular management of food, with special emphasis on reducing food waste as a cost-effective and environmentally responsible strategy.
Stage 4
SHERPA: Guide to Sustainable Housing
Sherpa: sustainable housing tool is a self-evaluation tool for project managers, communities, and other stakeholders involved in the planning, design, construction and assessment of housing projects. SHERPA assesses housing projects from inception through to site selection and design, choice of materials, and the recyclability of building materials used.
Stage 4
The re-think buildings toolkit
The re-think buildings toolkit is an integrated set of tools to “RE –think sustainability in the building sector” to support governments in transforming their buildings and construction sector, particularly the housing sector, in a resource efficient, low carbon, and climate-resilient manner.
Stage 4
Embodied carbon in construction calculator (EC3)
Embodied carbon in construction calculator (EC3) tool is an open-access tool for benchmarking assessment and reductions in embodied carbon per material category, focused on the upfront supply chain emissions of construction materials.
Stage 4
Inventory of carbon and energy
The inventory of carbon and energy (ICE database) is an embodied carbon database for building materials.
Stage 4
Circular built environment reports
Circular built environment reports provide a benchmark and recommendations on how to move forward towards a circular built environment.
Stage 3
OECD guidance on EPR
The OECD guidance on EPR provides guidance and information on design and implementation of EPR policies, including cases by governments to better assess the cost and environmental effectiveness of EPR and its overall impact on the market.
Stage 3
Going circular: The EPR guide
Going circular: The EPR guide is an open-access online course to promote locally adapted EPR schemes for packaging and includes a number of case examples.
Stage 3
Envisioning 1.5 degree lifestyles: Policies for low-carbon cities in 2030
Envisioning 1.5 degree lifestyles: Policies for low-carbon cities in 2030 explores the 1.5-degree lifestyles concept at the city level with findings from the project implementation in the six cities involved, including policy recommendations.
About
the partners
UNDP’s Climate Promise is the largest global offer on NDC support, covering over 120 countries and territories, representing 80 percent of all developing countries globally to enhance and implement their Nationally Determined Contributions under the global Paris Agreement. Delivered in collaboration with a wide variety of partners, it is the world’s largest offer of support for the enhancement of climate pledges and implementation of the Paris Agreement. Learn more at climatepromise.undp.org and follow at @UNDPClimate.
UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet. Learn more at undp.org or follow at @UNDP.
UNEP’s One Planet Network is a global solutions-oriented stakeholder network that works together to accelerate the implementation of sustainable consumption and production and circular economy practices. It is built on a multi-stakeholder UN partnership that implements the 10-year Framework of Programmes on Sustainable Consumption and Production (10YFP). The network includes Member States, inter-governmental organizations, civil society and private sector organisations working on topics such as consumer information, public procurement, lifestyles and education, food systems, the built environment, tourism and digitalisation. It includes over 140 national focal points and counts more than 6000 organisational and 4000 individual expert members on sustainable consumption and production (SCP). UNEP hosts the Secretariat of the 10YFP and its One Planet Network. The 10YFP was established by the UN General Assembly to advance SCP. It is included in Agenda 2030 as Sustainable Development Goal 12.1. A Global Strategy for SCP 2023-2030 supports the shift to SCP.
UNFCCC secretariat (UN Climate Change) is the United Nations entity tasked with supporting the global response to the threat of climate change. UNFCCC stands for United Nations Framework Convention on Climate Change. The Convention has near universal membership (198 Parties) and is the parent treaty of the 2015 Paris Agreement. The main aim of the Paris Agreement is to keep the global average temperature rise this century as close as possible to 1.5 degrees Celsius above pre-industrial levels. The UNFCCC is also the parent treaty of the 1997 Kyoto Protocol. The ultimate objective of all three agreements under the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous human interference with the climate system, in a time frame which allows ecosystems to adapt naturally and enables sustainable development.
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