At the COP26, Nepal’s Prime Minister, Sher Bahadur Deuba made a commitment to achieve Net Zero Carbon Emission in Nepal by 2045. To achieve this ambitious goal set by the PM, Nepal needs to shift away from the current linear ‘take-make-dispose' model towards a circular model of economy. In simple terms, Circular Economy (CE) is a model that is aimed at the efficient use of available resources by minimizing waste production long-term value retention of waste through re-integrating waste into product value chain. According to the Ellen MacArthur Foundation1, the CE model is guided by three major principles: eliminate waste and pollution, circulate products and materials, and regenerate nature. CE is directly linked with re-integrating the waste into the product value chain which ultimately reduces carbon emissions. Hence, to realize the commitments of attaining Zero Carbon Emission by 2045, it is important for Nepal to incorporate CE in governmental plans and policies.
Over the last few years, the notion of CE has started to gain traction in developing countries like Nepal. For a rapidly urbanizing economy like Nepal, infrastructure development requires an extensive use of raw materials. So, there is a huge need to implement CE model in Nepal to promote sustainable infrastructure development. Furthermore, CE puts emphasis on using local resources, uplifting indigenous knowledge and skills, and prioritizing sustainable development of infrastructure. These facets of CE play an important role in promoting climate resilient and climate adaptive communities.
According to research, limited institutional capacity and a lack of access to finance and technology are the two major barriers to implementing CE in developing countries like Nepal. Furthermore, the understanding of CE is limited to recycling and waste management, which undermines its principle of eliminating waste at the source. Thus, the first step of integrating CE is to enhance the individual and organizational understanding of CE. As a result of these major challenges, CE has yet to be incorporated in Nepal’s governmental policies and guidelines; for example, the 15th five-year plan has completely ignored it. Similarly, the SDG action plan developed by Nepal Planning Commission (NPC) has emphasized the need of recycling, but it doesn’t prioritize waste reduction.
Moving towards a CE model will require close collaboration with all the key stakeholders. The role of civil societies including NGOs and INGOs will be specifically important in acting as a liaison between the private sector and government bodies. Furthermore, their role will also be significant in attracting foreign donors, investments, skills and knowledge. There are several institutions in Nepal working towards CE through recycling, upcycling and innovation – CREASION, Doko Recyclers, Blue Waste to Value. CREASION is one such organization that has contributed to the CE of plastic waste by enhancing the supply chain by focusing on facilitating the aggregators with infrastructures and technologies. We can create a road towards circularity and assist in the elimination of plastic waste by working together with individuals, governments, communities, and businesses. The cost of disposing waste to Banchare landfill on average is NPR 2/kg, whereas, when looked at from a market perspective, dumped plastic waste is highly valuable. In addition to economic incentive, shifting to a CE model will support the local bodies in waste management and creating a sustainable environment.
Hence, incorporating CE in Nepal’s plans and policies will be integral to meet the SDG 2030 and Nepal's commitment of Net Zero Carbon Emission by 2045. Furthermore, it is the ideal sustainability strategy for businesses as it maximizes resource utilization, reduces pollution, and benefits the country at large. Thus, in the longer run, CE will be beneficial to individuals, communities, governments, private sectors, and more importantly to the environment.
